After reviewing the achievements and evolution of the European Union Trademark and Design Court, in this fourth and final installment marking its 20th anniversary, we will reflect on the challenges facing this judicial body in the current context.
With the United Kingdom’s departure from the European Union, the Alicante court is in a key position to assume an even more prominent role in international litigation. We will analyze the opportunities and challenges brought about by Brexit and how the court can strengthen its leading role in the future.
Brexit: An Opportunity for the Alicante Court?
Who could have imagined that the United Kingdom’s exit from the European Union could have the unintended consequence of strengthening the Spanish court’s rolein international trademark litigation? But that is the case—or could be—if certain key factors are taken into account in this context.
The starting point is that the European Union Trademark and Design Court in Alicante—since the EUIPO’s headquarters are located in that city—has residual jurisdiction to hear infringement actions brought between parties who do not have a domicile in Europe.
This jurisdiction makes Alicante a potentially key forum for resolving international disputes involving industrial property, especially in the post-Brexit environment.
The Need to Strengthen Leadership
The United Kingdom, as one of the leading countries in terms of the number of EU trademark applications and a major player in international trade, now faces a significant change in its participation in the EU trademark system.
With the UK's departure from the EU, legal actions brought by British plaintiffs against companies based outside the EU—as well as those brought by such companies against British firms—could begin to be transferred to Alicante.
Of course, such a leading role is not automatic; it must be earned. The somewhat flexible concept of“domicile”in Europe that the Court of Justice is establishing may or may not encourage the shift of litigation to other jurisdictions. But this would not be the case if the Spanish court were to establish itself as a European benchmark in this area.
On the contrary, in addition to this residual forum, there are certain opportunities forforum shoppinginvolving EU trademarks that could create anincentive to bringlitigation to Spain.
In this regard, the fledgling court in Alicante faces both a challenge and a historic opportunity to reaffirm its position on the European judicial scene.
Challenges and Outlook for the EU Trademark and Design Court
It should be noted—to begin with the mostcircumstantialpoint—that a new City of Justice is under construction in Alicante. Given the international scope of these cases, it is reasonable to insist that in the new building set to open (in 2025?), the European Union Trademark and Design Court (the joint courtroom that the three existing courts might share) should present the best possible image of our country.
But an iconic setting alone is not enough forthecourt’sproceedings. It is also necessary to strengthen the unification of legal doctrine among the three courts—all operating under the umbrella of the Eighth Section of the Provincial Court—through measures such as the aforementioned approach of acting in acollegialmanner.There is no room for procedural biases when the prestige of Spanish institutions in the eyes of the world is at stake.
In the meantime, we must conclude this commemorative series as we began it: with warm congratulations to the court on its twentieth anniversary. While the song says “twenty years is nothing,” for the European Union Trademark and Design Court, these have been years of development, specialization, and consolidation.
As attorneys, we can only express our gratitude for your work, and we hope that you will continue to be a pillar in the defense of industrial property rights in Europe.
Carlos Morán, Partner in the Litigation Practice Group at ELZABURU