Latest updates

What happens when an EU mark is not well known in Hungary?
Danubia Patent and Law Office LLC
  • Intellectual Property
  • Hungary
  • 15 July 2019

The Hungarian Intellectual Property Office (HIPO) recently refused to register a mark on the basis that the opponent had proved its prior mark's reputation in a substantial part of the European Union. The applicant requested a review by the Metropolitan Tribunal, contesting the significance of the HIPO's decision for Hungary if reputation could be proved only in other EU member states. As the tribunal had doubts in this regard, it referred the case to the European Court of Justice for the first time.

No victory for sports giant Decathlon: limits of enforcement based on reputed mark
Danubia Patent and Law Office LLC
  • Intellectual Property
  • Hungary
  • 01 July 2019

Decathlon – one of the biggest sportswear companies in Europe – has a defensive trademark policy under which its reputed EU trademark is protected for all goods and services in Classes 1 to 42, including sporting activities, as well as services in Classes 41 and 42. However, the applicant in a recent case was clever enough to limit the scope of its application to register the coloured mark DUNATHLON VEDD BE A KANYART to special services, thereby limiting the authorities' examination of a potential conflict.

New rules on handling of employee data
Schoenherr
  • Employment & Benefits
  • Hungary
  • 26 June 2019

Parliament recently adopted a new law amending several sectorial laws concerning the processing of personal data. The new law aims to provide clarity in these areas and has amended the general rules of the Labour Code. It has also introduced a new chapter which sets out general rules on the handling of employee data. Although the amendments of the existing rules on the processing of employee data have been eagerly awaited, many practitioners have expressed their disappointment.

Red Bull doesn't always give you wings: trademark applicant defeated by energy drink giant
Danubia Patent and Law Office LLC
  • Intellectual Property
  • Hungary
  • 27 May 2019

An applicant filed to register the combination word mark R.E.D. RÓNA ENERGY DRINK, which was opposed by the owner of the RED BULL mark. The applicant argued that there was no likelihood of confusion, as the term 'Róna' (ie, plain) was the distinctive element of the applied-for mark. However, the Metropolitan Tribunal disagreed, finding that the central element of the applied-for mark was the acronym 'R.E.D.'.

Digital consumer protection in action – HCA launches market study into digital comparison tools
Schoenherr
  • Competition & Antitrust
  • Hungary
  • 09 May 2019

The Hungarian Competition Authority (HCA) has launched a market study to explore the specific market developments relating to the application of digital comparison tools and their effects on consumers' decision making. The market study puts the HCA's mid-term digital consumer protection strategy paper into action and demonstrates the HCA's recent focus on consumer protection and efforts to serve as a lighthouse in the digital age.

Fifty shades of violet: court finds likelihood of similarity between two colour marks
Danubia Patent and Law Office LLC
  • Intellectual Property
  • Hungary
  • 06 May 2019

Colour combinations could be protected as trademarks under the previous Trademark Act 1969. However, single colours have only been protectable as trademarks since Hungary joined the European Union and harmonised its trademark law therewith. A recent Metropolitan Court of Appeal case concerning a colour mark for a shade of violet, which was used on chocolate packaging, is a notable example of the application of the rules on colour marks during the enforcement phase.

Who owns a mark used by multiple business parties?
Danubia Patent and Law Office LLC
  • Intellectual Property
  • Hungary
  • 25 March 2019

In a recent dispute between the inventor and marketer of a food supplement gel, the Hungarian Intellectual Property Office, the Metropolitan Tribunal and the Metropolitan Court of Appeal had to determine the true owner of the associated word and device marks. Using EU case law as a guide, they considered the market situation, including the knowledge of consumers, and applied the principle of registration and the rule of good faith.

Facebook secures finding of likelihood of confusion by association
Danubia Patent and Law Office LLC
  • Intellectual Property
  • Hungary
  • 04 March 2019

In a recent trademark dispute between Facebook and the owner of the applied-for mark 'mbook – ablak a világra' (ie, 'window to the world'), the Hungarian Intellectual Property Office, the Metropolitan Tribunal and the Metropolitan Court of Appeal came to the same decision on the merits and rejected the applied-for mark, albeit for different reasons. This result is logical, as the Facebook mark is one of the most well known with regard to communication services.

Rexona fined for unfair ad: role of trademarks in comparative advertising
Danubia Patent and Law Office LLC
  • Intellectual Property
  • Hungary
  • 28 January 2019

The Office of Economic Competition recently fined the owner of the REXONA mark HUF30 million following an investigation into an ad which compared Rexona Invisible and NIVEA Invisible antiperspirant. The case demonstrates the important role that trademarks play in comparative advertising, as the decision discussed the REXONA and NIVEA marks which appeared in the TV ads and the fine – which is arguably high – was the result of the volume of products sold under the REXONA mark.

Digital consumer protection – Black Friday success turns sour for major online marketplace
Schoenherr
  • Competition & Antitrust
  • Hungary
  • 24 January 2019

After a record-breaking Black Friday promotion, an online retailer is now suffering the consequences. According to the Hungarian Competition Authority (HCA), eMAG may have failed to meet the standards of professional diligence by misleading consumers with its 2018 Black Friday campaign. This action was one of the first to be initiated under the umbrella of the HCA's digital consumer protection strategy paper.

'Slave act': changes to working time rules
Schoenherr
  • Employment & Benefits
  • Hungary
  • 23 January 2019

In Hungary, as is the case in other EU countries, recent economic growth has been accompanied by a labour shortage. Under pressure to find a solution, the government introduced a new law to amend the working time rules. Since its adoption, the new law has come under close scrutiny from opposition parties and trade unions, and in December 2018 thousands of people took to the streets to protest what has become known as the 'slave act'.

Novel approach to assessing similarity of services
Danubia Patent and Law Office LLC
  • Intellectual Property
  • Hungary
  • 17 December 2018

In a recent case, the Hungarian Intellectual Property Office (HIPO) held that the services covered by two conflicting marks were not similar and granted the applied-for mark protection in Class 35. In this regard, the HIPO took a traditional approach, bearing in mind the marks' classification and examining only the services in Class 35, which were different. However, on review, the Metropolitan Tribunal took a different approach.

HCA publishes digital consumer protection strategy
Schoenherr
  • Competition & Antitrust
  • Hungary
  • 06 December 2018

The Hungarian Competition Authority (HCA) recently published a strategy paper presenting its views on consumer protection in the digital age. The paper subtly indicates that the HCA will continue to follow the European Commission's guidance in this regard. It also highlights the measures which the HCA deems necessary to protect consumers and keep up with the developments and companies central to this process.

Disputability of descriptiveness
Danubia Patent and Law Office LLC
  • Intellectual Property
  • Hungary
  • 19 November 2018

The Hungarian Intellectual Property Office recently refused to grant the word mark PAYSEND protection, holding that it is descriptive. However, the Metropolitan Tribunal disagreed, holding that the mark is a grammatically incorrect variation which does not in itself enable consumers to recognise the service which it designates. Rather, the mark comprises an invented word, which makes it distinctive.

Limits of protection of geographic names
Danubia Patent and Law Office LLC
  • Intellectual Property
  • Hungary
  • 22 October 2018

An application was filed to register the term #lovetokaj for goods and services. The Hungarian Intellectual Property Office (HIPO) refused to register the sign for goods, holding that the geographic name Tokaj, which is reputed and therefore cannot be registered as a trademark for wines, cannot be used for other products either. However, the Metropolitan Tribunal disagreed and ordered the HIPO to repeat its examination procedure.

Unique application of competition law in registration proceedings
Danubia Patent and Law Office LLC
  • Intellectual Property
  • Hungary
  • 24 September 2018

Trademark owners often allege infringement of both the Trademark Act and the Act on the Prohibition of Unfair Market Behaviour in enforcement proceedings. However, the application of competition law in registration (ie, opposition) proceedings, as demonstrated in a recent case, is new to Hungarian case law. The legal basis for this case law is Section 5(2)(a) of the Trademark Act, which allows the Metropolitan Tribunal to link claims to other laws, including competition law.

HCA's recent practice: cooperation and commitments
Schoenherr
  • Competition & Antitrust
  • Hungary
  • 20 September 2018

In recent years, the Hungarian Competition Authority (HCA) has seemingly aimed to foster cooperation between itself and market participants. Recent case law shows that the HCA strives for cooperation even when market participants allegedly commit grave infringements of the competition rules. Market participants are advised to harness this tendency and the HCA's willingness to reach decisions more efficiently.

How will new EU directive on work-life balance affect family-related leave in Hungary?
Schoenherr
  • Employment & Benefits
  • Hungary
  • 19 September 2018

The European Commission has proposed to implement a directive on work-life balance for parents and carers which aims to increase the number of dual-earning families and help women return to work, while also requiring more flexibility from employers. Should the proposed directive enter into force, it will set minimum standards regarding parental and carer leave and will thus bring about considerable change for the Hungarian employment and social systems.

Alleged infringement of piety rights in trademark procedure
Danubia Patent and Law Office LLC
  • Intellectual Property
  • Hungary
  • 03 September 2018

The applicant in a recent case filed an application to register a device mark which featured the name 'Stowasser.J'. Two parties filed observations against the mark and the Association of Manufacturers of Music Instruments filed an opposition. However, the Metropolitan Tribunal held that as the observers were not named Stowasser, they could not contest the applicant's use of the name. The case also addressed the infringement of a deceased person's name where this will damage their reputation.

When is a trademark application unfair?
Danubia Patent and Law Office LLC
  • Intellectual Property
  • Hungary
  • 27 August 2018

In a recent decision, the Hungarian Intellectual Property Office examined only one part of the opponent's claims before rejecting them in their entirety. As such, its decision was incomplete in respect of the claims relating to unfair market behaviour, even though the parties were genuine competitors. However, the Metropolitan Tribunal remedied this error by basing its decision on Section 5(2)(a) of the Trademark Act, which relates to other branches of law, including competition law.