Neutralising the forbidden Apple: Has the EUIPO taken neutralisation too far?


Neutralisation in trademark law refers to the principle that a significant conceptual distinction between two trademarks can outweigh their visual or phonetic similarities, particularly when one mark has a clear, immediately recognizable meaning. A landmark ruling by the European Court of Justice in 2006 established that there was no likelihood of confusion between the trademarks PICASSO and PICARO, as consumers would readily associate the former with the renowned artist Pablo Picasso, allowing them to differentiate between the two marks effectively. Over time, this principle has gained traction in European trademark jurisprudence, emphasizing the importance of conceptual differences. Recent discussions at a trademark conference highlighted the potential for divergent interpretations of this concept between the EUIPO and UKIPO post-Brexit. A notable case currently under appeal involves an international trademark registration by Opple Lighting Co., Ltd., which faced opposition from Apple Inc. due to potential confusion with its well-known “APPLE” trademarks. The EUIPO determined that while “APPLE” is associated with the fruit, “OPPLE” lacks inherent meaning, leading to a conclusion that the average consumer would not confuse the two marks. Despite Apple’s strong reputation, the EUIPO found that the distinct conceptual association of “APPLE” significantly diminished the likelihood of confusion. This decision is pivotal for two reasons: it suggests that the mere existence of a dictionary meaning can overshadow visual and phonetic similarities, potentially undermining the protective scope of trademarks with recognizable meanings. Furthermore, the EUIPO's approach diverges from previous rulings by treating neutralisation as part of the overall assessment of confusion rather than a standalone factor. The anticipated ruling from the Board of Appeal will be crucial in clarifying the boundaries of neutralisation and its implications for trademark protection.



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