CONTEXT
Virtual Cable is a Spanish technology company specializing in the development of secure solutions for the digital transformation of the workplace. Through its proprietary platform, UDS Enterprise, the company develops virtual desktop infrastructure (VDI) solutions that are fully tailored to the needs of each user.
Its commitment to customization, flexibility, and constant adaptation to new technological environments has led the company to maintain a strong focus on innovation. Through the evolution of UDS Enterprise, Virtual Cable has incorporated developments related to desktop virtualization, integration with cloud, hybrid, and multicloud environments, compatibility with new service providers, improved connectivity protocols, multi-factor authentication, advanced security mechanisms, and optimizations in performance, scalability, and user experience. All of this has enabled the platform to continue adapting to increasingly complex infrastructures and the specific needs of different user profiles.
It was precisely this recurring pattern of technological evolution in its platform—supported by functional, architectural, and security developments that went beyond routine software maintenance—that made it necessary to analyze which part of that activity could qualify for tax incentives linked to technological innovation.
TECHNICAL APPROACH
The project began with several sessions with Virtual Cable's technical and management teams to understand the technological developments that were taking place internally.
From there, a comprehensive technical and tax analysis was conducted of the various projects and updates developed by the company, with the aim of identifying which developments were eligible for the tax incentives provided for R&D&I projects, distinguishing them from routine tasks such as maintenance, support, correction, or minor software modifications.
One of the key issues was determining whether these developments should be approached as R&D projects or as technological innovation. After reviewing the scope of the work and the degree of improvement incorporated, it was determined that the most appropriate approach was to structure them as technological innovation projects.
Based on that assessment, the economic analysis began: identifying which costs were associated with the projects and could form part of the basis for the deduction. To do so, it was necessary to work in coordination with the company’s technical and financial teams, reviewing the personnel involved, their time commitments, external collaborations, and other expenses necessary for the execution of the projects.
Based on all this information, the technical and economic framework necessary for Virtual Cable to claim, for its corporate income tax, the tax deductions corresponding to its technological innovation activities was established; the regulations and application of these deductions are set forth in Article 35.2 of the Corporate Income Tax Law.
At the same time, work was also carried out to certify Virtual Cable as an innovative company based on the AENOR EA0047 specification, which stipulates that certain indicators must be met across the areas of human resources, economic and financial resources, innovation methods, organization of process results, and job creation in R&D&I. In Virtual Cable’s case, this recognition allows the company to institutionally reinforce its innovative nature and ensure consistency in the incentive strategy linked to its ongoing technological activities.
RESULT
As a result of the project, Virtual Cable was able to claim tax deductions equal to 12% of the expenses classified as technological innovation, in accordance with the provisions for this type of activity set forth in the Corporate Income Tax Law, thereby optimizing the resources invested in the development and ongoing improvement of its platform.
Obtaining this certification also served as official recognition of Virtual Cable’s capacity for innovation and the technological work the company has been carrying out continuously for years, strengthening its position within the national innovation ecosystem and facilitating better coordination of the various public instruments that support R&D&I.
In addition, the project enabled the company to establish an internal methodology for identifying, documenting, and structuring future technological developments from both a technical and economic perspective. As a result, the company was able not only to optimize the tax treatment of the investment already made but also to lay the groundwork for managing its future innovation initiatives in a more systematic manner.
José Miguel Sanabria, R&D&I Consultant
José Miguel Sanabria, a consultant in ELZABURU's Innovation Financing division, has led the project to analyze and structure the tax incentives implemented by Virtual Cable.
Specializing in innovation financing, José Miguel regularly participates in projects related to the identification, analysis, and technical defense of innovative developments, assisting companies both in applying for tax deductions and in obtaining certifications and accreditations related to innovation.
CONTEXT
The Comité Interprofessionnel du Vin de Champagne (CIVC), the organization responsible for protecting the Champagne protected designation of origin (PDO), detected the use of the term “Champanillo” to identify a chain of tapas bars in Catalonia, as well as its use in domain names, social media, and promotional materials.
In the European Union, PDOs are subject to a specific protection regime at the Union level, as set forth in Regulation (EU) No. 1308/2013, which ensures their protection against misuse in all Member States.
The main legal challenge in this case stemmed from the fact that the products in question were not comparable to Champagne, but rather restaurant services, which raised a key question: Can there be an infringement of a PDO when the sign is used for services rather than products?
LEGAL PERSPECTIVE
The argument in this case was based on a central idea: the protection of designations of origin is not limited to identical or similar products, but must extend to those uses that evoke a certain association in the consumer’s mind.
If the use of the “Champanillo” trademark led the average consumer to think directly of Champagne, protection should be granted, regardless of whether it was used to identify tapas bars rather than sparkling wines.
Furthermore, that association in the consumer’s mind also constituted an improper exploitation of the reputation associated with the Champagne designation of origin: the mark benefited from the prestige, recognition, and value built up by the PDO.
This approach required going beyond traditional analysis and relying on the European framework (EU Regulation 1308/2013). Consequently, the case led to a preliminary ruling requested by the Provincial Court of Barcelona before the Court of Justice of the European Union, which proved decisive in clarifying and defining the limits of protection for designations of origin.
CASE DEVELOPMENT
The process spanned nearly a decade and went through several stages before this shift in approach was finalized.
Following an initial unfavorable ruling at the trial court level, the Provincial Court of Barcelona referred the matter to the CJEU, shifting the focus of the debate from the similarity between products to the concept of evocation.
Until then, the Court of Justice had interpreted—in various decisions, including the judgments of June 7, 2018, in Case C-44/17, and December 17, 2020, in Case C-490/19—the concept of evocation of a PDO, but it had never specifically ruled on the question of whether the protection afforded by designations of origin extends not only to conduct related to products but also to services.
The CJEU’s response, in its September 9, 2021, judgment (Case C-783/19), was decisive. It confirmed that the protection of appellations of origin also extends to services, provided that the use of the sign creates a sufficiently direct link between the protected appellation and the consumer.
Based on that criterion, the Provincial Court reviewed the case and concluded that the use of “Champanillo” constituted an infringement by association. In reaching this conclusion, the court did not limit itself to a nominal analysis but rather assessed the totality of the circumstances: the clear phonetic and conceptual similarity between the signs, the inclusion of the term “champán” in the disputed sign, its use in contexts related to the consumption of beverages, and, in particular, the unfair exploitation of the reputation associated with Champagne.
RESULT
On April 8, 2026, the Supreme Court upheld in its entirety the ruling issued by the Provincial Court of Barcelona, applying the doctrine established by the Court of Justice of the European Union. This brought the proceedings to a close, thereby consolidating the approach that had been adopted.
In line with the CJEU’s interpretation, the ruling reaffirms that an infringement occurs when the PDO “Champagne” is invoked, even in the absence of identity or similarity between products, and that this protection also extends to services when the use of the sign creates a sufficiently direct association in the mind of the consumer. It also confirms that such uses may constitute an unfair exploitation of the reputation associated with the designation of origin.
In accordance with these principles, the Supreme Court upholds the order to cease use of the “Champanillo” trademark, remove related materials, and cancel the associated digital assets.
Beyond its specific effects, the ruling marks a milestone in the interpretation of the concept of “evocation” of PDOs under Spanish law. The Supreme Court expressly incorporates the CJEU’s criteria and integrates them into national judicial practice, thereby establishing a standard that broadens the scope of protection for designations of origin and strengthens their defense against indirect uses.
This ruling not only provides legal certainty but also sets a clear precedent for future cases by confirming that the protection of PDOs does not depend on the similarity between products, but rather on the sign’s ability to trigger an association with the protected designation in the consumer’s mind.
Carlos Morán, partner in the Legal Department
The case has been led by Carlos Morán, a partner in the Legal Department at ELZABURU, who has advised the Comité Interprofessionnel du Vin de Champagne since the beginning of the proceedings, coordinating the legal strategy throughout all its phases and helping to establish this precedent.
His work in defending the Champagne PDO has been recognized internationally by the Comité Champagne itself, with his appointment as Knight of the Ordre des Coteaux de Champagne, a distinction the Committee awards to legal professionals who have distinguished themselves in the legal protection of this designation of origin at the international level.