EU Commission To Be Requested To Assess OHIM CTM System.
On Friday April 13, 2007, the Presidency of the Council of the EU has published Document 8375/07 with Draft council conclusions regarding the financial perspectives of the OHIM and the further development of the community trade mark system. Starting point is the enormous success of the OHIM:
"[...] THE COUNCIL OF THE EUROPEAN UNION,
1. [...];
2. EMPHASISES that the establishment of the Office for Harmonisation in the Internal Market (Trade Marks and Designs)2 has been an enormous and unprecedented success; since the beginning of its operation in 1996 OHIM has contributed substantially to strengthening the competitiveness of the European Union; OHIM's success proves the value to business of Community wide trade mark rights which are efficiently administered and granted, are effectively enforceable and give legal certainty to all stakeholders throughout Europe;
3. NOTES that the work of OHIM has been very well received by all stake holders; consequently, the number of trademark applications and registrations at OHIM has exceeded the most optimistic predictions; as a result, OHIM has experienced annual budget surpluses which, by the end of 2006, resulted in cumulative cash reserves of more than EUR 200 million despite a reduction of the applicable fees which took effect in 2005; [...]"
"6. RECOGNIZES that lower fees may facilitate access by users, including SMEs, to the Community trademark system and EMPHASISES that the accumulated fees paid by the users should not disproportionately exceed the overall costs of the Community trade mark system; [...]"
In view of this situation, a call for action is issued:
"11. CALLS on the Commission to :
:: in the short term, make proposals on:
- an immediate reduction of the fees charged for the application, registration and renewal of Community trade marks;
- the introduction of structural criteria which facilitate regular adaptations of Community trade mark fees in the Comitology procedure; these criteria should contribute to a long term balance of the OHIM's budget, ensure a continuous high quality of OHIM's performance, and take account of OHIM's cooperation with the trade mark offices of Member States; the criteria should respect the principles of prudence and sound financial management; in addition these criteria should keep the fee system reliable and transparent for users and its future adaptations predictable; the proposal should be accompanied by an impact assessment;
- encouraging joint projects of OHIM and national trademark offices which enhance the overall functioning of the Community trademark system;
:: in the medium term, conduct a comprehensive study on the overall functioning of the Community trade mark system.
This study should in particular :
- assess the coexistence of the Community trade mark system and national trade marks, including the territorial requirements for genuine use of Community trade marks;
- evaluate the effects of the Community trade mark system on national trade mark offices, as well as the contributions of such offices to the overall functioning of the Community trade mark system;
- evaluate the effects of the recent reforms;
- address the effects of the Community trade mark system on SMEs and start-up enterprises."
Interesting: "assess the coexistence of the Community trade mark system and national trade marks" and "evaluate the effects of the Community trade mark system on national trade mark offices" - what do those texts really mean? Are some of the EU Member States complaining about the OHIM's success, drying up work for national TM Offices? Or, to the contrary, is somebody daring to propose to wind up national TM registration? I don't know.
Anyway, there will be an examination of the said draft council conclusions on the financial perspectives of the OHIM and the further development of the Community trade mark system behind closed doors on April 19, 2007, in Brussels with the Intellectual Property Attaches (Trade Marks).
Document 8375/07 with Draft council conclusions regarding the financial perspectives of the OHIM and the further development of the community trade mark system. Starting point is the enormous success of the OHIM:
the potential accumulation of huge cash reserves: