At a time when the Europ-ean Parliament is fast approaching the end of its mandate, there are a number of new laws being deliberated with the intent of attaining political agreement before the finalisation of the legislative work programme of the incumbent Commission. The review of the trade mark package is a perfect example of an EU legislative initiative that should soon see the light of day.

In March the European Commission presented a legislative package to review the Community Trade Mark Regulation and Trade Mark Directive. These two laws regulate the functioning of the European trade mark system at EU and national levels. Trade marks are used by businesses to distinguish and underline the exclusive properties of their commercial products and services, often serving the critical purpose of attracting and retaining customer loyalty.

The objective of the Commission’s review is to modernise the trade markregistration system, primarily by making trade mark registration systems all over the EU more accessible and efficient for businesses by lowering costs and simplifying the filing process, therefore enhancing predictability and legal security for users.

Maltese business supports in principle the proposals put forward by the Commission. The review is an opportunity to modernise the trade mark registration system, bringing in greater convergence of rules and practices at EU and national levels and therefore contributing towards a greater level playing field for companies. For instance, the new proposals offer greater protection for EU-based companies against illicit use of duly registered trademarks by rogue traders exporting products into the EU’s internal market. Specifically, the new proposals entitle right-holders to prevent third parties from bringing goods from third countries into the European Single Market, which bear without authorisation a trade mark which is essentially identical to the trade mark registered in respect of those goods.

Of particular interest to Maltese companies is the proposed reform of the fees structures applicable to trade mark registration. Under the current system, a trade mark application can cover up to three classes and services for the same price. Now, it is being proposed that a new fee structure where a separate “class” fee is paid for each additional product can be already applied beyond the first product class, and not as from the third. The advantages for the concerned businesses are obvious as companies will no longer be obliged to pay for classes of goods and services they do not need, rendering trade mark protection more accessible and affordable for commercial firms.

Companies will no longer be obliged to pay for classes of goods and services they do not need

The trade mark package as proposed by the Commission is currently being reviewed by the European Parliament’s Legal Affairs Committee and the relevant committee structures within the Council of Ministers. At the European Parliament, it is therefore highly likely that the deliberations will be concluded before the EP elections scheduled to take place in May 2014.

For more information on EU business- related matters you can contact the Malta Business Bureau on e-mail info@mbb.org.mt or phone 21 251 719.

Omar Cutajar is the permanent delegate of the Malta Business Bureau in Brussels.