Austria: Rendering of accounts for trade mark infringement

Managing IP is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

Copyright © Legal Benchmarking Limited and its affiliated companies 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Austria: Rendering of accounts for trade mark infringement

Sponsored by

sonn-400px.png

A hotel in a skiing area known for its bar featuring scantily-clad dancing girls was found to have an infringing trade mark. The lower courts issued an injunction in a first partial judgment. A further partial judgment was made requesting accounts of the turnover earned in connection with the running of the bar and all advertisements made for it. Accounts are the basis for all claims of compensation and damages calculations. In this case, the question was which turnovers should be included. On further appeal to the Austrian Supreme Court, the Court upheld the lower courts' judgments. It ruled on this topic as follows.

One defence was that the order goes too far as it covers the whole year and the bar is only open during the skiing season (five months per year) and closed for the rest of the year. This defence is not applicable when the principal duty is to produce complete accounts. This defence was related to the question of whether laying out the accounts is correct, not the principal duty of a complete disclosure of the full time.

The main defence was that the turnover of the hotel itself should not be included because there is free entrance to the bar as a sales promotion and this is only one of seventeen amenities which are part of an inclusive service for the guests of the hotel. Free entrance to the bar for the customers is therefore not decisive for customers choosing the hotel. However, this defence did not convince the Supreme Court either. It is evident that the infringing trade mark had been used for the promotion of the hotel. Since it cannot be presumed that a business advertises ineffectively and uselessly this defence was refused.

A further defence was that the separate turnover of the independent girls as covered by the judgment cannot practically be known since the owner has no method of extracting any reliable figures or proof from the dancers. The Supreme Court replied that the level of difficulty is irrelevant here. The rendering of accounts in the present case is a right of the infringed, guaranteed expressly by Trademark Law without taking into account substantial difficulties in gathering reliable data or how reasonable it is to do so. Therefore, the infringer also has to make a sincere effort to ascertain the turnover of the independent dancers. They are part of the business of the bar and their turnover has to be calculated.

This decision (4Ob 130/18y) shows that once infringement is clear, the infringer cannot escape full rendering of accounts for all aspects of the infringement. All that can be done is to discuss how the consideration or damages will be calculated and which parts of the accounts have to be considered and to what extent.

sonn.jpg

Helmut Sonn



SONN & PARTNER Patentanwälte

Riemergasse 14

A-1010 Vienna, Austria

Tel: +43 1 512 84 05

Fax: +43 1 512 98 05

office@sonn.at

www.sonn.at

more from across site and ros bottom lb

More from across our site

A UK government consultation on AI and copyright, a patent blow for Lenovo and a trademark row over cider were among the big talking points this week
Our most popular stories of the year included a rundown of the 50 most influential people in IP, our in-house ones to watch, and UPC news
Awards
It is time to submit nominations for the sixth annual Life Sciences Awards EMEA
Keejeong Kim, who returned to Yulchon after a four-year gap, said he was intrigued by the opportunity to work on neighbouring areas of law to IP
The IP consulting firm hopes to expand its services and outreach with the support of investors VSS Capital Partners and Century Equity Partners
This update includes a ruling from the Court of Appeal, a judgment of the Paris Local Division, news of upcoming hearings, and predictions for 2025
US counsel review the key copyright and trademark trends of 2024, including generative AI disputes and SCOTUS cases
If 2024 is anything to go by, the next 12 months could see more IP firms seek investment opportunities while IP lawyers are increasingly likely to work alongside other functions
Practitioners reflect on the impact of USPTO guidance, as well as PTAB and litigation trends
We discuss Managing IP’s 50 most influential people in IP list and look back on the biggest talking points in the last month
Gift this article