Dreyfus

Overturning the ban on “soy steaks” and “veggie sausages”

On 28 January 2025, the French Council of State (Conseil d’État) issued two landmark decisions (n° 465835 and n° 492839), overturning the decrees (n° 2022-947 et n° 2024-144) banning the use of the terms “soy steaks” and “veggie sausages”. This decision is in line with the position of the European Court of Justice (ECJ), which had previously ruled on the issue. This ruling has significant implications for the food industry, particularly in relation to the labelling of plant-based products. It also reflects a wider legal debate about the use of traditional food terminology in the context of rapidly growing plant-based alternatives.

Background to the case

The legal framework of the ban

The French government initially banned terms such as “soy steaks” and “vegetable sausages”, arguing that such terms could mislead consumers into thinking that these products were made from meat. However, companies in the plant-based sector challenged this regulation, arguing that it unfairly restricted their ability to accurately market their products. The legal question arose as to whether these French decrees violated broader European principles of competition and the free market. This led to the Council of State’s decision to overturn the ban.

The role of European law

The Council of State’s decision follows an important ruling by the European Court of Justice in October 2024. The ECJ had emphasised that such bans could violate the freedom of companies to advertise their products, as long as the products were clearly labelled as plant-based and not derived from animals. This position was crucial to the Council of State’s assessment, which concluded that the French decrees did not comply with European principles of free movement of goods and commercial freedom.

The legal reasoning behind the repeal

The impact of the ECJ ruling

The Council of State’s decisions of 28 January 2025 followed the logic of the ECJ ruling and concluded that the French regulations banning terms such as “soy steaks” and “vegetable sausages” were overly restrictive. The Council of State stated that these terms could be used as long as there was a clear indication that the products were plant-based. This decision aims to provide greater freedom for producers while ensuring transparency for consumers.

Consumer protection versus corporate freedom

The Council of State balanced the need for consumer protection with the commercial freedom of companies. It concluded that the use of terms such as “steaks” or “sausages” would not confuse consumers, provided that the labelling clearly indicates that these products are plant-based. This approach seeks to strike a fair balance between preventing consumer confusion and allowing plant-based businesses the freedom to market their products effectively.

Impact on the plant-based food industry

Greater flexibility for manufacturers

With the ban lifted, manufacturers of plant-based products can now freely use terms such as “soy steaks” and “veggie sausages”. This decision improves their ability to market their products and supports the continued growth of the plant-based foods sector, which is expanding rapidly in France and Europe. It allows producers to label their products in a way that appeals to consumers, while maintaining the accuracy of their claims.

Impact on consumer behaviour

Consumers will benefit significantly from this decision as it will ensure clearer product labelling. This decision helps to reduce confusion about the nature of plant-based foods and increases the credibility of plant-based claims. As more people adopt vegetarian and vegan diets, the decision ensures that the marketing of these products remains transparent and in line with the values and expectations of environmentally conscious consumers.

Conclusion

The Council of State’s overturning of the ban on terms such as “soy steaks” and “veggie sausages” is a significant victory for the plant-based food industry. By aligning itself with the position of the ECJ, this decision allows companies greater freedom to market their products while maintaining transparency for consumers. It highlights the importance of balancing consumer protection, business innovation and market freedom in an evolving food landscape.

Dreyfus Law Firm works with clients in the food sector, providing specialist advice on intellectual property and regulatory issues to ensure compliance with national and European laws.

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FAQ

1. What is the Council of State?

The Council of State is the highest administrative court in France, responsible for ensuring that government decisions comply with French law. It advises the government on legal matters and rules on disputes involving public administration.

2. Why did France ban terms such as "soy steaks" and "vegetable sausages"?

France introduced the ban to avoid consumer confusion, as it believed that such terms could mislead consumers into thinking that these products were made from meat.

3. What impact has the ECJ ruling had on food labelling in Europe?

The ECJ ruling emphasised that plant-based products can use familiar food terminology as long as the label clearly indicates that they are plant-based, promoting marketing freedom while protecting consumers.

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Evolution of French case law on trademarks registered in the name and on behalf of a companies in the process of being set up: a trend towards streamlining formalities

The protection of a trademark is crucial for any business, including those in formation. However, the process of registering a trademark in the name and on behalf of a company still in the process of being formed raises complex legal questions, particularly regarding the adoption of acts and the ownership of rights. Recently, French case law has evolved towards simplifying the formalities required for these actions.

Legal context of companies in the process of being set up in France

Definition and legal framework

A company in the process of being set up is a legal entity that has not yet acquired its legal personality, which occurs upon registration in the French Trade Register (RCS). During this period, acts can be carried out by the founders in the name and on behalf of the future company. These acts can be adopted by the company once it is incorporated, in accordance with articles L. 210-6 and R. 210-6 of the French Commercial Code.

Procedures for reassumption of acts

Acts carried out on behalf of the company in the process of being set up can be reassumed in one of three ways:

  • By mentioning in the company’s statutes that a list of acts done on its behalf is annexed.
  • By granting a mandate to one of the partners to carry out specific acts.
  • By a decision of the company after its incorporation, expressly approving the acts that have been performed.

Trademark registration for a company in the process of being set up

Importance of early registration

Registering a trademark before the company is incorporated is crucial for securing the business name and preventing third parties from taking ownership of it. This registration is typically carried out by a founder acting on behalf of the company in formation.

Risks associated with lack of regularization

If, after the company’s incorporation, the trademark registration is not regularized, the company will not be considered the owner of the trademark. As a result, it will be unable to take action against trademark infringement or defend its rights. Furthermore, the founder who made the registration will remain personally liable.

Recent jurisprudential evolution

French Supreme Court’s case law revision of November 29, 2023

In three rulings on November 29, 2023 (n°22-12.865, n°22-18.295, and n°22-21.623), the French Supreme Court relaxed the conditions for reassuming acts carried out on behalf of a company in formation. Previously, only acts explicitly stating that they were done “in the name” or “on behalf” of the company could be reassumed. The court has now allowed judges to consider the common intent of the parties, even in the absence of such explicit mentions.

Implications for companies in formation

This development simplifies the reassumption of acts and reduces the formalities previously required. Founders now have greater flexibility in managing acts performed prior to the company’s incorporation.

Case study: the French “PROPULSE” case

In a recent case, decision handed down by the Judicial Court of Lyon on October 1, 2024 (no. 24/01144), a trademark “PROPULSE” had been registered by an individual “acting on behalf of the company Submersive Drinks in formation.” After incorporation, no steps were taken to transfer the trademark to the company. When a trademark infringement action was filed, the court ruled that the company could not act since it was not the rightful owner of the trademark.

  1. Practical recommendations for entrepreneurs
  • Formalize the acts: while recent jurisprudence has relaxed requirements, it is still advisable to explicitly state that acts are carried out “in the name and on behalf of the company in formation.”
  • Annex the acts to the statutes: listing acts performed on behalf of the company in the company’s statutes makes it easier for them to be automatically reassumed after incorporation.
  • Follow post-incorporation formalities: after the company is incorporated, take the necessary steps to transfer the trademark ownership officially to the company, including filing a modification request with the INPI (French National Institute of Industrial Property).

Conclusion

Recent jurisprudential developments have simplified the formalities regarding acts carried out on behalf of a company in the process of being set up, particularly concerning trademark registration. However, entrepreneurs must remain vigilant to ensure their trademark rights are fully protected after incorporation.

Dreyfus Law Firm works with clients in the food sector, providing specialist advice on intellectual property and regulatory issues to ensure compliance with national and European laws.

We collaborate with a global network of intellectual property attorneys.

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FAQ

 

1. What is the INPI?

The INPI (National Institute of Intellectual Property) is the French public body responsible for the registration and management of industrial property rights, such as trademarks, patents, and designs. It oversees the issuance of protection titles and the management of databases related to industrial property rights.

2. Can a trademark be registered in the name of a company that has not yet been registered?

Yes, a founder can register a trademark “in the name and on behalf of a company in the process of being formed”. This wording allows the company, once registered, to take over the rights to this trademark, provided that the regularization procedures are then carried out.

3. Who is the holder of the trademark before the company is registered?

Before registration, the applicant remains the legal holder of the trademark, even if he or she is acting on behalf of the company in formation. It is only after an explicit takeover (by statute or by decision) or a transfer that the company becomes the holder of the rights.

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The third draft of the General-Purpose AI Code of Practice: Objectives and future perspectives

The rapid advancement of artificial intelligence (AI) technologies has necessitated the development of comprehensive frameworks to ensure their ethical and responsible use. In this context, the European Commission has introduced the third draft of the General-Purpose AI (GPAI) Code of Practice, aiming to guide AI model providers in aligning with the stipulations of the EU AI ActRegulation (EU) 2024/1689). This article delves into the primary objectives of this draft and explores its future implications.

I – Objectives of the third draft of the General-Purpose AI Code of Practice

A – Enhancing transparency

A cornerstone of the third draft is its emphasis on transparency. All providers of general-purpose AI models are mandated to disclose pertinent information about their models, including design specifications, training data sources, and intended applications. This initiative seeks to foster trust among users and stakeholders by ensuring they are well-informed about the functionalities and potential limitations of AI systems. Notably, certain open-source models are exempted from these transparency obligations, reflecting a nuanced approach to diverse AI development paradigms.

B – Addressing copyright concerns

The draft also tackles the intricate issue of copyright in AI development. Providers are required to implement measures that respect intellectual property rights, ensuring that AI models do not infringe upon existing copyrights. This includes establishing mechanisms for rights holders to report potential violations and for providers to address such claims effectively. The draft outlines that providers may refuse to act on complaints deemed “manifestly unfounded or excessive, particularly due to their repetitive nature.”

C – Ensuring safety and security

For AI models identified as posing systemic risks, the draft delineates additional commitments focused on safety and security. Providers of these advanced models are obligated to conduct comprehensive risk assessments, implement robust mitigation strategies, and establish incident reporting protocols. These measures aim to preemptively address potential threats and ensure that AI systems operate within safe and ethical boundaries.

II – Future perspectives of the General-Purpose AI Code of Practice

A – Implementation challenges

As the AI landscape continues to evolve, implementing the GPAI Code of Practice presents several challenges. Providers must navigate the complexities of aligning their operations with the Code’s requirements, which may necessitate significant adjustments in their development and deployment processes. Ensuring compliance without stifling innovation will be a delicate balance to maintain.

B – Global influence and harmonization

The GPAI Code of Practice has the potential to set a global benchmark for AI governance. By establishing comprehensive guidelines, the European Commission aims to influence international standards, promoting harmonization across jurisdictions. This could lead to a more cohesive global approach to AI regulation, benefiting both providers and users worldwide.

Alongside the third draft, the Chairs and Vice-Chairs are also introducing a dedicated executive summary and an interactive website. These resources aim to facilitate stakeholder input, both through written comments and discussions within working groups and specialized workshops. The final version of the Code is expected in May, serving as a compliance framework for general-purpose AI model providers under the AI Act, while integrating cutting-edge best practices.

C – Continuous evolution and adaptation

Recognizing the rapid pace of AI advancements, the Code is designed to be adaptable. It emphasizes the need for continuous evolution, allowing for updates and refinements that reflect technological progress and emerging ethical considerations. This flexibility ensures that the Code remains relevant and effective in guiding AI development responsibly.

Conclusion

The third draft of the General-Purpose AI Code of Practice represents a significant step toward responsible AI governance. By focusing on transparency, copyright respect, and safety, it lays a foundation for ethical AI development. As the cCde progresses toward finalization, its successful implementation will depend on collaborative efforts among stakeholders to address challenges and seize opportunities for global harmonization.

Need expert guidance on AI and intellectual property? Dreyfus Law Firm specializes in intellectual property law, including trademark, copyright, and AI-related legal matters.

We collaborate with a global network of intellectual property attorneys.

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FAQ

1 – What is the AI Act?

The AI Act is a regulation proposed by the European Commission aimed at governing the development and deployment of artificial intelligence systems within the European Union. It is the first comprehensive legal framework in the world dedicated to AI, designed to balance innovation and fundamental rights protection. The AI Act classifies AI systems into four risk levels: • Unacceptable risk (banned, such as social scoring systems or subliminal manipulation). • High risk (subject to strict requirements, including AI systems used in critical infrastructures, recruitment, or judicial decisions). • Limited risk (requiring transparency obligations, such as chatbots or deepfakes). • Minimal risk (with no specific obligations, such as AI-powered content recommendations). The primary objective is to ensure that AI systems deployed in the EU comply with fundamental rights, safety, and transparency while promoting responsible innovation.

2 – When will the AI Act come into force?

The AI Act was provisionally adopted in 2024 and is expected to come into force in 2025, following final approval by the European Parliament and the Council of the European Union. However, its implementation will be gradual: • Some immediate provisions will take effect six months after publication. • Rules for high-risk AI systems will apply starting in 2026. • Additional obligations, such as those for general-purpose AI models, may not be fully implemented until 2027. This phased approach allows businesses to adapt their operations to comply with the new regulatory framework.

3 – What is the legal framework for AI?

The legal framework for AI currently consists of a combination of European and national laws covering various aspects: 1. The AI Act (set to come into force in 2025), which will provide specific regulations for AI development and deployment. 2. The GDPR (General Data Protection Regulation), which governs the use of personal data—a key issue for AI systems. 3. The Product Liability Directive (Directive 85/374/EEC) and the upcoming AI Liability Directive (COM(2022) 495 final 2022/0302 (COD)), which define the responsibility of AI developers and users in case of damages. 4. Sector-specific regulations (e.g., finance, healthcare) that impose industry-specific AI compliance requirements. 5. Copyright and intellectual property laws, which impact the training datasets of generative AI models (e.g., ensuring that AI does not infringe on existing copyrights). This legal framework is constantly evolving to protect users and promote ethical AI development.

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Latest developments in generative AI and copyright: An in-depth analysis

The rapid evolution of generative artificial intelligence (AI) has transformed the creation and use of content, raising complex questions regarding copyright. This article provides a comprehensive overview of recent legal actions and legislative initiatives related to generative AI and copyright, highlighting the challenges and opportunities that emerge in this dynamic landscape.

Recent legal actions in the United States

In the United States, several lawsuits have been initiated concerning the use of copyrighted works in training generative AI models.

Case of Kadrey v. Meta

In this class action lawsuit, authors Richard Kadrey, Sarah Silverman, and Christopher Golden allege that Meta Platforms Inc. infringed their copyrights by using their books to train its AI model, LLaMA (Large Language Model Meta AI). On November 20, 2023, the U.S. District Court for the Northern District of California dismissed several claims, including those for direct copyright infringement based on the derivative work theory and vicarious copyright infringement. However, the court allowed the plaintiffs’ claims related to the removal of copyright management information under the Digital Millennium Copyright Act (DMCA) to proceed, acknowledging that the plaintiffs had alleged sufficient injury for Article III standing. Subsequently, on March 10, 2025, the plaintiffs filed a motion for partial summary judgment on direct copyright infringement, arguing that Meta cannot rely on a fair use defense concerning its alleged acquisition of “millions of pirated works” used to train its model. ​

Legal proceedings against OpenAI and Microsoft

In December 2023, The New York Times filed a lawsuit against OpenAI and Microsoft, alleging that their AI models were trained using the newspaper’s articles without authorization, constituting copyright infringement. This case underscores the growing tensions between content creators and AI developers regarding the use of protected works in AI training. As of March 2025, a federal judge has allowed the lawsuit to proceed, dismissing some claims but permitting the core allegations of copyright infringement to move forward. ​

International legal developments

Legal actions related to generative AI and copyright are also increasing internationally.

Legal action in France against Meta

In France, three associations representing authors and publishers—the Syndicat National de l’Édition (SNE), the Société des Gens de Lettres (SGDL), and the Syndicat National des Auteurs et des Compositeurs (SNAC)—have initiated proceedings against Meta. They allege that Meta used copyrighted works without authorization to train its generative AI model. This is the first action of its kind in France, demanding copyright enforcement and the complete removal of data repositories used for AI training.​

Legislative and regulatory initiatives

In response to these challenges, several legislative and regulatory initiatives have been proposed or implemented.

United States: Generative AI Copyright Disclosure Act

In April 2024, U.S. Representative Adam Schiff introduced the Generative AI Copyright Disclosure Act. This bill requires companies to disclose the copyrighted works used to train their generative AI systems by submitting a notice to the Register of Copyrights at least 30 days before the public release of a new or updated AI model. Penalties for non-compliance start at $5,000, with no maximum penalty specified.

European Union: AI Act

In the European Union, the proposed Artificial Intelligence Act (AI Act), which was formally adopted on 13 March 2024, includes specific provisions designed to address intellectual property concerns related to generative AI.

Among its key requirements, the AI Act mandates that developers of general-purpose AI models, including generative AI systems, must provide detailed documentation on the content used for training, including information on whether the datasets contain copyright-protected material. This transparency obligation is aimed at ensuring that rights holders are aware of how their works may have been used.

Additionally, the Act introduces a duty to clearly label AI-generated content, enabling consumers and rightsholders to identify content created without direct human authorship.

These measures reflect the EU’s broader objective to strike a balance between fostering AI innovation and safeguarding intellectual property rights, especially as tensions grow between creators and developers of large-scale AI systems.

Conclusion

The intersection of generative AI and copyright law is a rapidly evolving field, marked by significant legal actions and legislative efforts worldwide. As AI technology continues to advance, it is imperative for stakeholders—including developers, content creators, and legal professionals—to stay informed and engaged with these developments to navigate the complex landscape effectively.

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FAQ

What is generative AI?

Generative AI refers to artificial intelligence systems capable of creating content, such as text, images, or music, based on patterns learned from existing data.

Why is generative AI raising copyright concerns?

Generative AI models are often trained on large datasets that include copyrighted works, leading to concerns about unauthorized use and potential infringement.

What is the Generative AI Copyright Disclosure Act?

It is a proposed U.S. legislation requiring companies to disclose the copyrighted materials used to train their generative AI systems, aiming to increase transparency and protect creators' rights.

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The CJUE Neutralizes the Reciprocity Rule of Article 2, §7 of the Berne Convention for Works Originating from a Non-EEE Country

The Court of Justice of the European Union (CJUE) now effectively neutralizes the reciprocity rule found in Article 2, §7 of the Berne Convention for works originating from a third country outside the European Economic Area (EEE). This shift has immediate consequences for stakeholders in the fields of design and copyright, illustrating the expanding scope of EU copyright harmonization. Below, we outline the core aspects of this change, moving from the overarching principle to its practical implications in a structured manner.

Context and Legal Foundations

  • The Berne Convention and EU Law
    We observe that the Berne Convention has historically allowed signatory states to apply a principle of reciprocity to artistic and applied works from countries that did not offer equivalent protection. Recently, however, the CJUE clarified that the harmonization achieved by European directives (notably Directive 2001/29/EC) supersedes individual Member States’ prerogative to rely on reciprocity in areas that the EU has fully regulated. This decision stems from the principle that only the EU legislator may introduce exceptions or limitations once an aspect of copyright law has been harmonized across Member States.
  • Official Sources and Regulatory References
    According to the CJUE’s interpretation, Member States must refrain from applying reciprocity where EU law intends for equal treatment, irrespective of an author’s nationality or a work’s country of origin.

Key CJUE Decision of 24 October 2024

CJUE, 1re ch., 24 Oct. 2024, Aff. C-227/23, Kwantum Nederland BV, Kwantum België BV c/ Vitra Collections AG
In its landmark ruling of 24 October 2024, the CJUE held that Member States cannot apply material reciprocity under Article 2, §7 of the Berne Convention to refuse or limit copyright protection for works of applied art originating in a non-EEE country. By doing so, the Court confirmed that only the EU legislator may decide on any limitation to economic rights granted under harmonized directives. The decision underscores the principle that national rules tied to the country of origin become inoperative where the EU has established overarching copyright norms.

Impact on Protection for Artistic and Applied Works

  • Extended Copyright for Third-Country Creations
    By neutralizing the reciprocity rule, the CJUE effectively grants works originating from countries outside the EEE a level of protection in line with EU standards, provided they meet the originality and other formal criteria under EU law. This shift primarily benefits foreign creators of designs, industrial models, and artworks who previously faced potential restrictions if their home jurisdictions did not offer reciprocal protection.
  • Reinforced Harmonization and Legal Certainty
    From a business and innovation standpoint, uniform copyright protection across the EU promotes legal certainty. Designers, manufacturers, and distributors now operate under clearer guidelines, facilitating smoother market entry and fewer obstacles linked to a work’s geographic origin.

Practical Consequences for Rights Holders

  • Easier Enforcement: Foreign authors or rights holders can assert their copyrights uniformly throughout the EU, without having to prove reciprocal treatment in their home country.
  • Encouraged Cross-Border Collaboration: Companies in the EEE may confidently license or acquire designs from third countries, knowing that these rights enjoy robust backing under EU directives.
  • Reassessment of Agreements: Existing contracts or licenses that assumed limited rights based on reciprocity might need a thorough legal review to align with the CJUE’s position.

Recommended Next Steps & Best Practices

  • Monitor Legislative Updates: Future EU legislative initiatives may further define or refine limitations.
  • Review IP Portfolios: Rights holders should ensure that new or ongoing filings for design or copyright registration reflect this updated landscape.
  • Consult Specialized Counsel: Given the complexity of international IP rights, professional guidance is indispensable to navigate cross-border transactions effectively.

The CJUE takes on profound significance for EU copyright enforcement. We advise rights holders, designers, and businesses to adapt proactively to this refined legal environment.

  • Subscribe to Our Newsletter: Stay informed about important rulings and policy shifts.
  • Follow Us on social media: Engage with our professional community for timely updates and best practices.

At Dreyfus Law Firm, we stand ready to provide comprehensive legal strategies tailored to each client’s needs. Our services include advising on copyright registration and enforcement, brand and design protection, domain name portfolio management, licensing and transfer negotiations, anti-counterfeiting initiatives, and litigation support across multiple jurisdictions.

Dreyfus Law Firm is in partnership with a global network of Intellectual Property attorneys, ensuring comprehensive assistance for businesses worldwide.

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FAQ

1. Does this ruling apply to all creative works?

Yes. It covers any original work under EU copyright law, including works of applied art and design.

2. What if my home country does not protect such works at all?

Under the CJUE’s new interpretation, EU protection still applies if the work meets EU originality standards.

3. Will this affect the duration of protection?

The CJUE’s decision concerns the scope of protection, not duration. However, the EU already has specific rules on duration that Member States must respect.

 

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The Protection of AI-Generated Inventions Under Patent Law

The rapid rise of artificial intelligence (AI) has led to significant advancements in various fields, including technological innovation. AI systems are now capable of autonomously generating inventions without direct human intervention. This new reality raises a fundamental question in patent law: Can an invention generated by an AI be protected by a patent?

This complex issue is at the center of concerns for intellectual property offices and legislators worldwide, who are debating how patent law should adapt to this new form of innovation.

 Patent eligibility of AI-Generated inventions

Patentability criteria

Pursuant to the article L611-10 of the French Intellectual Property Code, to be eligible for a patent, an invention must meet three fundamental criteria:

  • Novelty: The invention must not have been disclosed to the public before the patent application was filed.
  • Inventive step: The invention must not be an obvious improvement for a person skilled in the art.
  • Industrial application: The invention must be capable of being used in industry.

When an AI generates an invention, assessing these criteria becomes more complex. The originality of the invention largely depends on the training data and algorithms used by the AI. It then becomes difficult to determine whether the invention is truly novel or merely a reformulation of existing information.

Furthermore, the inventive step requires that an invention is not an obvious outcome of prior knowledge. However, if an AI is programmed to analyze a vast corpus of technical data and propose optimized solutions, can its invention be considered as involving sufficient creative effort?

Challenges in recognizing AI as an inventor

One of the major legal obstacles concerns the attribution of inventorship. Today, most legal frameworks require the inventor to be a natural person.

The European Patent Office (EPO) and the United States Patent and Trademark Office (USPTO) have rejected patent applications where an AI was designated as the inventor.

For example, in January 2020, the EPO rejected two European patent applications in which the designated inventor was an artificial intelligence system named DABUS. This decision was based on the European Patent Convention (EPC), which states that only a human being can be recognized as an inventor.

The applicant, creator of DABUS, argued that this AI, based on artificial neural networks, had autonomously conceived the inventions. However, the EPO concluded that, under the EPC, the rights attached to inventorship, such as the right to be mentioned as an inventor or to assign a patent, can only be granted to natural or legal persons. AI systems, lacking legal personality, cannot be recognized as inventors.

This case highlights the legal challenges posed by artificial intelligence in the field of intellectual property.

These decisions are motivated by the fact that only humans can be legally recognized as inventors, particularly due to legal rights and liability considerations.

This stance raises a dilemma: When human intervention is minimal or nonexistent in the invention process, who should be credited as the inventor?

Some experts suggest attributing inventorship to the AI user or the entity that controls the AI, but this approach remains highly debated.

Legislative developments

International Perspectives

Given the uncertainties surrounding AI and patentability, several initiatives are underway worldwide:

  • The World Intellectual Property Organization (WIPO) has launched consultations on the impact of AI in patent law and is considering potential reforms to harmonize approaches among different countries.
  • The United States has seen the emergence of several legislative proposals aimed at clarifying the legal status of AI-generated inventions, although no major reform has been adopted so far.

In the United States, in October 2023, the White House issued an executive order aimed at ensuring the safe and reliable development of artificial intelligence (AI). In response, the USPTO published, in February 2024, guidelines on the patentability of AI-assisted inventions.

These guidelines specify that:

  • AI may contribute to an invention, but
  • Only a human who has made a significant contribution to each claim can be legally recognized as an inventor.

This position aligns with previous court decisions affirming that the inventor must be a natural person. Thus, patent applications involving AI must explicitly name individuals who have made a substantial contribution to the invention, excluding the possibility of designating the AI itself as the inventor.

This regulatory development highlights the importance of clarifying the respective roles of humans and AI systems in the innovation process, to ensure adequate legal protection for inventions in the United States.

Recent changes in patent law

Some countries have already introduced legislative changes:

  • South Africa became the first country to grant a patent to an AI-generated invention, although this remains an isolated case.
  • Australia also examined the issue, and in a decision on July 30, 2021, the Federal Court admitted this possibility (Thaler v Commissioner of Patents [2021] FCA 879).

These developments show that the recognition of AI-generated inventions is an evolving topic, and regulators will likely need to clarify their stance to address the challenges posed by AI and intellectual property.

Practical Considerations for Innovators

Strategies for Protecting AI-Generated Inventions

Businesses and innovators must anticipate legal challenges by adopting suitable strategies:

  • Ensure a human role in the invention process: A researcher or engineer should be sufficiently involved to be designated as the inventor.
  • Document every stage of creation: Keeping detailed records of how the AI operates and its role in the invention is essential.
  • Explore alternatives to patent protection: When patentability is uncertain, other forms of protection, such as trade secrets, may be considered.

Implications for Intellectual Property management

Companies must adapt their patent management strategies to the challenges posed by AI. It is advisable to:

  • Update contracts to clearly define ownership of AI-generated inventions.
  • Monitor legislative developments to anticipate possible regulatory changes.

Conclusion

The emergence of AI in innovation raises profound legal and ethical questions. Current patent law is not fully adapted to this new reality. Legislators and intellectual property offices must therefore adapt to address the challenges posed by autonomous AI-generated inventions.

Until regulatory clarifications are made, innovators must adopt proactive strategies to effectively protect their inventions and safeguard their intellectual property rights.

Need expert guidance on AI and intellectual property? Dreyfus Law Firm specializes in intellectual property law, including trademark, copyright, patent and AI-related legal matters. Our experts stay ahead of AI and copyright developments!

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Revisions to China’s Three-Year Non-Use Trademark Revocation Procedure: What You Need to Know

In the realm of intellectual property law, China’s trademark regulations, as outlined in Article 49 of the Trademark Law of the People’s Republic of China, mandate that registered trademarks be subject to cancellation if not used within a continuous three-year period. This policy aims to prevent the hoarding of trademarks and ensure that only actively utilized marks remain protected. Recent developments indicate potential changes to this revocation procedure, signaling a significant shift in China’s trademark enforcement landscape.

Current Framework of China’s Non-Use Trademark Revocation

Under the existing legal framework, a registered trademark in China may be vulnerable to cancellation if it has not been used for three consecutive years, in accordance with Article 49 of the Trademark Law. The revocation process is typically initiated through a formal request by a third party, often a competitor or interested entity, who petitions the China National Intellectual Property Administration (CNIPA) to cancel the inactive trademark. The trademark holder is then required to provide evidence of genuine use within the specified period to maintain their rights.

Proposed Amendments to the Revocation Procedure

Recent discussions within China’s legislative bodies suggest forthcoming amendments to the non-use revocation procedure. While specific details remain under deliberation, the proposed changes may include:

  • Extension of the Non-Use Period: Consideration of lengthening the current three-year period to a longer duration, providing trademark owners with more flexibility before facing potential cancellation.
  • Modification of Evidence Requirements: Reevaluation of the types and standards of evidence required to demonstrate genuine use, potentially streamlining the process for trademark holders.
  • Introduction of Grace Periods: Implementation of grace periods or exceptions for certain industries or circumstances, acknowledging that some sectors may require longer lead times to commence trademark use.

Implications for Trademark Holders

These proposed changes carry significant implications for both domestic and international trademark holders operating in China:

  • Strategic Planning: Trademark owners may need to reassess their portfolio strategies, considering the potential for extended non-use periods and adjusted evidence requirements.
  • Compliance and Monitoring: Enhanced vigilance in monitoring trademark use and maintaining comprehensive records will be essential to comply with any new regulations.
  • Legal Consultation: Engaging with legal experts specializing in Chinese trademark law will be crucial to navigate the evolving legal landscape and ensure continued protection of intellectual property rights.

Conclusion

As China moves towards amending its three-year non-use trademark revocation procedure, trademark holders must stay informed and proactive. Adapting to these changes will be vital in safeguarding intellectual property assets within China’s dynamic market.

Dreyfus Law Firm assists clients at all stages of trademark protection and management in China and internationally. Our services include trademark portfolio monitoring and management, preparation and submission of evidence of use, and defense in case of challenges. We also assist clients in administrative procedures before the CNIPA and provide tailored strategies to adapt to regulatory changes in the Chinese market. With our in-depth intellectual property expertise and our global network of specialized attorneys, we ensure comprehensive and customized support to secure and enhance your intangible assets.

Dreyfus Law Firm is partnered with a global network of attorneys specializing in Intellectual Property.

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FAQ

1. What is the current non-use period for trademark revocation in China?

Currently, a registered trademark in China can be canceled if it has not been used for three consecutive years as stipulated in Article 49 of the Trademark Law.

2. What constitutes 'genuine use' of a trademark in China?

Genuine use refers to the actual commercial use of the trademark in connection with the goods or services for which it is registered.

3. How can a trademark holder prove genuine use?

Evidence such as sales invoices, advertising materials, and product packaging displaying the trademark can be submitted to demonstrate genuine use.

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Proof of Use in the United States: A Cornerstone for Trademark Protection

In the United States, the concept of “proof of use” is fundamental to the acquisition and maintenance of trademark rights. Unlike jurisdictions that recognize rights based on registration alone, U.S. trademark law requires actual use of the mark in commerce to establish and uphold these rights. This article delves into the critical role of proof of use in protecting trademarks within the U.S. legal framework.

Understanding Proof of Use

Proof of use refers to tangible evidence demonstrating that a trademark is actively used in commerce concerning the goods or services for which it is registered. This requirement ensures that the trademark serves its primary function: identifying the source of goods or services and distinguishing them from others in the marketplace.

Legal Requirements for Maintaining Trademark Registration

The United States Patent and Trademark Office (USPTO) mandates specific filings to confirm ongoing use of a trademark:

  • Section 8 Declaration: Between the 5th and 6th year after registration, trademark owners must file a Section 8 Declaration, attesting to the continuous use of the mark in commerce. This filing must include:
    • A statement of use.
    • A specimen (example) showing the mark’s current use.
    • The required filing fee.
  • Section 9 Renewal Application: Every ten years, a combined Section 8 Declaration and Section 9 Renewal Application are required to maintain the registration. Failure to submit these documents can result in the cancellation of the trademark registration.

Acceptable Forms of Proof

The USPTO provides guidelines on acceptable specimens to substantiate the use of a trademark:

  • For Goods:
    • Labels or Tags: Photographs of labels or tags affixed to the products bearing the trademark.
    • Product Packaging: Images showing the mark displayed on the packaging.
    • Online Point-of-Sale Displays: Screenshots of e-commerce webpages where the product, bearing the mark, is available for purchase, including the URL and date of capture.
  • For Services:
    • Advertising Materials: Brochures, flyers, or advertisements featuring the trademark in connection with the offered services.
    • Website Pages: Screenshots of webpages describing the services rendered under the mark, with visible URL and date.

It’s imperative that the specimen clearly associates the trademark with the specific goods or services listed in the registration.

Consequences of Non-Compliance

Neglecting to provide adequate proof of use can lead to severe repercussions:

  • Cancellation of Registration: The USPTO may cancel the trademark registration if the owner fails to submit the required declarations and specimens within the stipulated timeframes.
  • Legal Vulnerability: Without a valid registration, enforcing trademark rights against infringers becomes significantly more challenging, potentially leading to loss of brand exclusivity.

Best Practices for Trademark Holders

To ensure compliance and safeguard trademark rights, consider the following practices:

  • Maintain Detailed Records: Keep comprehensive documentation of how and where the trademark is used in commerce, including dated photographs, sales records, and marketing materials.
  • Monitor Deadlines: Utilize docketing systems or professional services to track and remind of critical filing deadlines to prevent inadvertent lapses.
  • Consult Professionals: Engage with intellectual property attorneys to navigate the complexities of trademark law and ensure that all proof of use submissions meet USPTO standards.

Conclusion

In the U.S., the adage “use it or lose it” aptly encapsulates the essence of trademark protection. Active and continuous use of a trademark, coupled with diligent adherence to legal requirements for proof of use, is indispensable for maintaining exclusive rights and reaping the benefits of brand recognition. By understanding and fulfilling these obligations, trademark owners can fortify their positions in the marketplace and avert potential legal pitfalls.

At Dreyfus Law Firm, we specialize in intellectual property law, offering expert guidance on trademark registration and maintenance. Our global network of attorneys ensures comprehensive support for your brand protection needs. We offer specialized expertise in trademark law, ensuring that our clients comply with USPTO proof of use requirements and maintain their trademark rights in the United States. With decades of experience in intellectual property law, our firm provides tailored legal strategies for businesses navigating trademark protection challenges in the U.S. and abroad.

Dreyfus Law Firm is partnered with a worldwide network of attorneys specializing in Intellectual Property.

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FAQ

1. What constitutes acceptable proof of use for goods?

Acceptable proof includes labels, tags, product packaging, or online sales pages displaying the trademark directly on the product or its packaging.

2. Is advertising material sufficient proof of use for services?

Yes, for services, advertising materials such as brochures or website pages that clearly associate the trademark with the offered services are acceptable.

3. What happens if I miss the filing deadline for the Section 8 Declaration?

Missing the deadline can result in the cancellation of your trademark registration. However, the USPTO provides a six-month grace period with an additional fee.

4. Can I submit a mock-up as proof of use?

No, the USPTO requires actual evidence of the mark's use in commerce; mock-ups or prototypes are not acceptable.

5. How often must I renew my trademark registration?

After the initial Section 8 Declaration between the 5th and 6th year, renewals are required every ten years, accompanied by a combined Section

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Decision of the Paris Judicial Court on the Protection of the Iconic Kelly and Birkin Bags – February 7, 2025

On February 7, 2025, the Paris Judicial Court issued a notable decision (Case No. RG 22/09210) in the dispute between Hermès International and Hermès Sellier against Blao&Co. This case raises essential questions regarding the protection of design works under French copyright law and trademark infringement. This article provides a detailed legal analysis of the ruling, highlighting its implications for designers and fashion companies. 

Case Background

Hermès International and Hermès Sellier, renowned for their iconic Kelly and Birkin bags, discovered that Blao&Co had been selling handbags under the brand name “NDG” since 2021. These products, particularly the “Paisley Jane” model, were marketed through Blao&Co’s website, social media platforms, and as NFTs on OpenSea.

Claiming that these handbags reproduced the distinctive features of their protected models, Hermès sent multiple cease-and-desist letters to Blao&Co in March and April 2022, demanding the cessation of the infringing bags’ sale, as well as the associated NFTs. After receiving no satisfactory response, Hermès filed a lawsuit in July 2022 for copyright and trademark infringement.

Arguments of the Parties

Hermès’ Position

Hermès argued that Blao&Co’s “Paisley Jane” bags were an unauthorized reproduction of their Kelly and Birkin models, which are protected under copyright due to their originality. Additionally, Hermès claimed that Blao&Co unlawfully used their registered three-dimensional trademark, particularly the signature lock closure featured on their bags.

Blao&Co’s Defense

Blao&Co contested the originality of the Kelly and Birkin bags, arguing that their features were common to many handbags or dictated by technical constraints. The company also denied trademark infringement, asserting that the elements used were generic and did not infringe on Hermès’ rights.

Legal Analysis of the Court

Originality of the Kelly and Birkin Bags

The court first examined the originality of the Kelly and Birkin bags, an essential condition for copyright protection. It was established that the Kelly bag has a trapezoidal shape with side gussets, a cut-out flap, a specific closing system, a special handle, four basic studs and a removable shoulder strap. The Birkin bag, on the other hand, has a slightly rectangular shape, a flap with a three-notch cut-out, a specific closing system, two special handles, specific gussets and four basic studs. The court concluded that these features were the result of free and creative choices, giving the bags a distinctive and recognizable appearance, thus satisfying the criterion of originality required for copyright protection.

Trademark infringement

Concerning trademark infringement, the court noted that Hermès has held a three-dimensional trademark registered since 2003, covering in particular the distinctive clasp of its bags. Blao&Co’s “Paisley Jane” bags were found to reproduce this clasp in an identical or similar manner, creating a risk of confusion in the mind of the public. The court therefore concluded that Blao&Co had infringed the trademark.

Implications of the Decision

For Fashion Designers

This ruling reaffirms the importance of originality in the protection of design works under copyright law. Fashion designers are encouraged to:

  • Develop distinctive and innovative designs to ensure effective legal protection against unauthorized copies.
  • Consider registering their designs as trademarks or design rights for enhanced protection.

For Businesses

Businesses must exercise caution to ensure that their products do not infringe existing intellectual property rights. This case underscores the importance of:

  • Conducting thorough legal research before launching new products.
  • Consulting intellectual property attorneys to assess potential risks and avoid costly legal disputes.

Conclusion

The Paris Judicial Court’s decision of February 7, 2025, establishes a significant precedent in fashion design and trademark protection. It recognizes the originality of fashion creations as works protected under copyright law and reaffirms the enforcement of three-dimensional trademarks against infringement.

Dreyfus & Associates Law Firm: Your Intellectual Property Partner

The Dreyfus & Associates Law Firm assists designers, businesses, and industry professionals in defending their intellectual property rights. Specializing in trademarks, patents, and design law, our expert legal team helps protect, value, and defend your creations against infringement risks and legal disputes.

Contact us for a personalized consultation and safeguard your designs!

Dreyfus & Associates Law Firm is partnered with a global network of attorneys specializing in Intellectual Property Law.

FAQ

1. What is originality in copyright law?

Originality is a fundamental requirement for copyright protection. It means that the work reflects the author's free and creative choices, giving it a unique and recognizable appearance.

2. Can handbags be protected by copyright?

Yes, provided they exhibit originality. The Paris Judicial Court confirmed that Hermès' Kelly and Birkin bags met this requirement, as their distinctive features resulted from creative choices.

3. What is the difference between a three-dimensional trademark and a design right?

A three-dimensional trademark protects a product’s distinctive shape as a commercial identifier. In contrast, a design right protects only the aesthetic appearance of a product for a limited duration.

4. How can companies avoid trademark or copyright infringement in fashion?

Companies should: • Conduct extensive IP research before launching new products. • Consult an intellectual property lawyer to evaluate potential risks.

5. What are the penalties for trademark or copyright infringement?

Penalties may include: • Product sales bans • Stock destruction • Monetary damages • Fines • In severe cases, criminal charges

 

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Artificial Intelligence as a Legal Assistant

In the rapidly evolving landscape of legal services, artificial intelligence (AI) has emerged as a transformative force, particularly in the realm of intellectual property (IP) law.

The integration of artificial intelligence into the legal sector signifies a paradigm shift, offering tools that augment the capabilities of legal professionals. In the field of intellectual property, where precision and efficiency are paramount, AI serves as a catalyst for innovation and improved client service.

I – The role of AI in legal assistance

Automation of repetitive tasks

AI excels in automating routine tasks that traditionally consume significant time and resources. Document review, contract analysis, and due diligence are now expedited through AI-driven platforms, allowing legal practitioners to focus on more complex and strategic activities. For instance, AI can swiftly analyze vast amounts of legal documents to identify relevant information, thereby reducing the time spent on manual reviews.

Predictive analytics in legal decision-making

Beyond automation, AI offers predictive analytics capabilities that assist in forecasting legal outcomes. By analyzing historical case data, AI models can predict the likelihood of success in litigation, enabling lawyers to devise informed strategies. This predictive power is particularly beneficial in intellectual property disputes, where understanding potential case trajectories can inform negotiation and litigation approaches.

II – Impact on intellectual property consultancy

Enhancing efficiency and accuracy

In the realm of intellectual property consultancy, AI enhances both efficiency and accuracy. AI-powered tools can conduct comprehensive prior art searches, ensuring that patent applications are both novel and non-infringing. Additionally, AI aids in monitoring potential IP infringements by scanning global databases and marketplaces, providing timely alerts to rights holders. This proactive approach enables IP consultants to offer clients robust protection strategies.

Challenges and ethical considerations

While AI offers numerous benefits, its integration into legal services presents challenges and ethical considerations. Concerns regarding data privacy, algorithmic bias, and the potential erosion of client trust must be addressed. Legal professionals are tasked with ensuring that AI applications comply with existing regulations and uphold the profession’s ethical standards. This includes maintaining transparency in AI-driven analyses and safeguarding sensitive client information.

III – Recent governmental initiatives

National AI Strategies

Governments worldwide recognize the transformative potential of AI and are formulating strategies to harness its benefits responsibly. For example, the French government has launched a national AI strategy aimed at fostering innovation while ensuring ethical deployment across sectors, including the legal domain. Indeed, an information report titled “Artificial Intelligence and Legal Professions” was adopted on December 18, 2024. This strategy encompasses investments in AI research, development of regulatory frameworks, and initiatives to upskill the workforce in AI competencies.

Regulatory frameworks and compliance

To navigate the complexities of AI integration, regulatory bodies are establishing frameworks that promote innovation without compromising ethical standards. These regulations address issues such as data protection, accountability in AI decision-making, and the prevention of discriminatory practices. Legal professionals must stay abreast of these developments to ensure compliance and to advise clients effectively on AI-related matters.

Conclusion

Artificial intelligence stands as a pivotal ally in the evolution of legal services, particularly within intellectual property consultancy. Its capacity to automate tasks and provide predictive insights not only enhances operational efficiency but also elevates the quality of client counsel. As AI continues to mature, its symbiotic relationship with legal professionals will undoubtedly redefine the landscape of legal practice.

Need expert guidance on AI and intellectual property? Dreyfus Law Firm specializes in intellectual property law, including trademark, copyright, and AI-related legal matters.

We are committed to integrating cutting-edge AI technologies to deliver unparalleled intellectual property services and  collaborate with a global network of intellectual property attorneys.

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FAQ

1 – How can AI be used in the legal field?

Artificial intelligence is a powerful tool that can be leveraged in the legal field to automate certain tasks, enhance data analysis, and optimize case management. The main applications include: • Automation of repetitive tasks: AI can generate contracts, analyze clauses, and verify document compliance. • Legal research: AI-powered search engines accelerate the identification of case law precedents and applicable legal texts. • Predictive analysis: Some AI systems can assess the likelihood of success in legal cases based on past court decisions. • Risk management and compliance: AI algorithms detect anomalies in financial documents or contracts, helping companies comply with regulations.

2 – What is the relationship between law and artificial intelligence?

The relationship between law and AI is twofold: • AI applied to law: AI optimizes the work of legal professionals by automating complex tasks, facilitating access to legal information, and improving decision-making. • The regulation of AI: The rise of artificial intelligence presents legal challenges concerning data protection, algorithmic liability, ethics, and regulatory frameworks. Legislators must establish legal safeguards to prevent bias, ensure transparency, and protect individual rights.

3 – Can AI replace lawyers?

AI cannot replace lawyers, but it can significantly enhance their work by providing decision-support tools and automating time-consuming tasks. Lawyers bring indispensable expertise in legal interpretation, litigation strategy, and negotiation. AI lacks the judgment, creativity, and empathy required to defend a client in complex situations. It remains a highly effective assistant but not a substitute for legal professionals.

4 – How do consulting firms use AI?

Intellectual property and legal consulting firms use AI in several ways: • Brand monitoring and protection: AI helps detect fraudulent use of trademarks on the internet, social media, and e-commerce platforms. • Management and analysis of trademark and patent portfolios: AI algorithms can identify protection opportunities, detect potential conflicts, and propose tailored strategies. • Regulatory compliance audits: AI simplifies contract and legal text analysis to ensure compliance with current regulations. • Automation of document drafting: AI-powered tools generate contracts, legal clauses, and personalized analyses based on clients' needs. In summary, AI does not replace legal expertise but serves as an efficiency and precision tool that transforms legal practice and optimizes risk management.

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