Nathalie Dreyfus

Complete Reference Guide: Trade Secrets in 2026

Legal definition, recent case law, litigation procedures, evidence methods and protection strategies — everything you need to know to protect your confidential information.


In an economy built on intangibles, a company’s value often lies in what it doesn’t disclose. Customer databases, algorithms, business strategies or technical know-how: these critical assets are not always patentable, and this is where trade secret protection comes into play.

Since the French law of July 30, 2018, transposing EU Directive 2016/943, France has had a powerful but demanding protective framework. The 2024-2025 case law has significantly clarified the relationship between trade secrets, the right to evidence and GDPR. This reference guide provides everything you need to understand, protect and defend your confidential information.

This guide covers:

  • The legal definition and 3 cumulative protection criteria
  • The 2024-2025 case law review and its practical implications
  • Litigation procedures: taking legal action, timelines, costs
  • Methods for proving the prior existence of your secret
  • Industry case studies (pharma, tech, food & beverage)
  • Coordination with other intellectual property rights
  • The international dimension of protection

Evolution of the Legal Framework

June 8, 2016 Adoption of EU Directive 2016/943 on trade secret protection
July 30, 2018 Transposition into French law (Law No. 2018-670)
December 22, 2023 Cass.Ass: admission of unfairly obtained evidence under conditions (No. 20-20.648)
June 5, 2024 Cass. Com.: first articulation between right to evidence / trade secrets (No. 23-10.954)
February 5, 2025 Cass. Com.: confirmation of the “indispensable” requirement (No. 23-10.953)
February 27, 2025 CJEU: GDPR prevails over trade secrets for automated decisions (C-203/22)

1. Fundamentals: What is a Trade Secret?

Unlike traditional intellectual property (patents, trademarks) which relies on a public title, trade secret law protects information by virtue of it remaining secret. This protection arose from a simple observation: some strategic information cannot or should not be patented.

The Legal Definition (Article L.151-1 of the French Commercial Code)

To be protected by law, information must cumulatively meet three strict criteria:

The 3 Cumulative Conditions

  1. Secrecy
    The information is not generally known or readily accessible to persons within circles that normally deal with this type of information. This is the “non-obviousness” criterion: the information must not be commonplace in the relevant sector.
  2. Commercial Value
    The information has commercial value (actual or potential) precisely because it is secret. This value can be direct (competitive advantage) or indirect (cost avoidance).
  3. Reasonable Protection Measures
    The information is subject to concrete protection measures by its holder to maintain its secrecy. This is often the determining criterion in litigation.

Essential Point

If you don’t actively protect your information (confidentiality clauses, passwords, document classification), courts will consider there is no trade secret. This is the criterion most often neglected by companies.


What Does Trade Secret Law Cover?

The scope is very broad. The concept of “information” is interpreted extensively and includes:

Technical know-how: manufacturing processes, recipes, chemical formulas, production methods, optimization parameters, technical drawings.

Commercial information: customer and prospect lists, pricing policies, supplier terms, product margins, internal market shares.

Strategic data: M&A projects, development plans, proprietary market studies, business plans, financial projections.

Organizational information: strategic organization charts, management methods, optimized internal processes.

Algorithms and data: source code, scoring models, proprietary databases, software architectures.

What Trade Secret Law Does NOT Protect

Understanding the limits of this protection is essential:

Independent discovery: if a competitor independently develops the same information, you cannot sue them.

Lawful reverse engineering: analyzing a product placed on the market to understand how it works is legal (unless contractually prohibited).

Information becoming public: once a secret is disclosed (voluntarily or not), protection is lost definitively.

General employee skills: the know-how acquired by an employee (their “experience”) belongs to them and can be used with a new employer.

2. 2024-2025 Case Law Review

Recent judicial developments have been marked by an ongoing tension between two imperatives: protecting business secrets and the right to evidence (a party’s need to obtain documents to assert their rights in court).

The Landmark Ruling: Cass. Com., February 5, 2025 (No. 23-10.953)

This was the major turning point. In a case between the franchise networks Speed Rabbit Pizza and Domino’s Pizza, the French Cour de Cassation established a structuring principle for balancing these rights.

The Legal Principle

“The right to evidence may justify the production of elements covered by trade secrets, provided that such production is indispensable to its exercise and that the infringement is strictly proportionate to the aim pursued.”


Practical implications:

For a judge to order production of a document covered by trade secrets, it must be indispensable to resolve the dispute, not merely “necessary” or “useful”. The term “indispensable” is intentionally restrictive: it excludes “fishing expedition” requests (exploratory evidence gathering).

The judge must conduct a proportionality assessment between the competing rights. This involves verifying that no less intrusive means of proof exists, and that the requested document is truly decisive for the outcome of the case.

Managing Seizures (Seizure-Infringement and Article 145 CPC)

When a company is subject to an ex parte seizure on its premises, how can it prevent its secrets from ending up with a competitor?

Case law requires strict application of provisional sequestration:

Documents seized that may violate trade secrets are placed in escrow with a third party (usually the bailiff). A period of one month is granted to the seized party to contest disclosure. The judge rules on whether documents can be communicated before any transmission to the seizing party, applying the proportionality test.

The Preparatory Ruling: Cass. Com., June 5, 2024 (No. 23-10.954)

This decision laid the groundwork for the balance, recognizing for the first time that the right to evidence could justify an infringement of trade secrets, while requiring strict judicial oversight.

Unfairly Obtained Evidence: Cass.Ass, December 22, 2023 (No. 20-20.648)

The French Cour de cassation ruled that evidence obtained unfairly (secret recordings, stolen documents) may be admitted in court if two conditions are met: production is indispensable to exercising the right to evidence, and the infringement of the opposing party’s rights is proportionate to the aim pursued.

3. Trade Secrets vs GDPR: The CJEU Ruling of February 27, 2025

At the European level, the Court of Justice (CJEU, C-203/22, Dun & Bradstreet Austria) issued a major decision on the relationship between trade secrets and individual rights.

The Facts

An Austrian consumer was denied a mobile phone contract on the grounds of insufficient creditworthiness. This refusal was based on an automated assessment (credit scoring) conducted by Dun & Bradstreet. She requested an explanation of the “underlying logic” of this decision, invoking Article 15 of the GDPR (right of access). The company refused, citing trade secret protection of its algorithm.

The CJEU Decision

Principle Established by the CJEU

GDPR prevails over trade secrets regarding the right of access to personal data and information about automated decisions. The data controller must provide “meaningful information about the logic involved” in a manner that is “concise, transparent, intelligible and easily accessible”.

What this means for businesses:

Simply providing an algorithm or complex mathematical formula is not sufficient to fulfill the information obligation. The explanation must be understandable to a non-specialist.

The company must enable the individual to understand what data was used and how it influenced the decision. This doesn’t mean disclosing the complete algorithm, but explaining the determining criteria.

In case of dispute, allegedly protected information must be communicated to the judge who will balance the competing rights.

Sector Impact

This decision directly affects sectors using automated scoring: banks and credit institutions, insurance (personalized pricing), recruitment (automated CV screening), real estate rental (tenant creditworthiness), and more generally any automated decision-making process with significant effects on individuals.

4. Protection Strategies: “Reasonable Measures”

To benefit from legal protection, a company must prove it has implemented concrete measures. The term “reasonable” means appropriate to the nature of the information, the size of the company and the economic context. A SME doesn’t have the same resources as a Fortune 500 company, and courts take this into account.

Protection Measures Checklist

Legal Measures

  • Non-disclosure agreements (NDAs): systematic before any discussion with a partner, service provider or investor
  • Enhanced confidentiality clauses: in employment contracts and commercial agreements
  • Non-compete clauses: for strategic positions, within legal limits
  • IT charter: explicitly mentioning confidentiality duties and signed by all employees
  • Internal regulations: incorporating confidentiality obligations

Technical Measures

  • Access management: “need-to-know” principle
  • Traceability: access logs for sensitive documents
  • Encryption: of sensitive data at rest and in transit
  • Strong authentication: MFA for access to critical systems
  • DLP (Data Loss Prevention): data leak prevention tools

Organizational Measures

  • Document marking: “CONFIDENTIAL — TRADE SECRET” label on sensitive documents
  • Information classification: confidentiality level system (C1, C2, C3…)
  • Staff training: awareness of social engineering risks and information leaks
  • Exit procedures: reminder interview about obligations, retrieval of access and documents
  • Physical security: secured premises for sensitive paper documents
  • Secret inventory: regular mapping of the company’s confidential information

Practical Tip

“CONFIDENTIAL” marking of documents is the simplest and most effective measure to prove in court. An unmarked document will be difficult to consider as a trade secret. Also invest in traceability: being able to demonstrate who accessed what information and when is invaluable in litigation.

5. Proving Your Secret: Timestamping Methods

In case of dispute, you will need to prove that you held the information before the alleged infringement. A computer file’s creation date is not sufficient proof (it can be modified). You need to establish a certain date.

The Soleau Envelope (INPI)

The best-known and most economical solution for SMEs and individual inventors.

Principle: You send a document in two identical copies to INPI (French Patent Office). One copy is kept by INPI, the other is returned to you with an official stamp certifying the date.

Cost: €15 for 5-year protection, renewable once (10 years maximum).

Advantages: Simplicity, low cost, established judicial recognition.

Limitations: Limited size (7 pages maximum per compartment), not suitable for frequent updates, no direct international validity.

Website: INPI – Soleau Envelope

Deposit with a Bailiff or Notary

Traditional solution offering maximum evidentiary weight under French law.

Principle: A ministerial officer certifies the content of a document on a given date and stores it.

Cost: Variable depending on volume, generally €100 to €500 for a simple deposit.

Advantages: Uncontestable evidentiary weight, universal acceptance by French courts, ability to deposit digital media.

Limitations: Higher cost, less agile procedure for frequent updates.

Blockchain Timestamping

Modern solution, particularly suited for tech companies and frequent updates.

Principle: A digital fingerprint (hash) of your document is recorded in a public blockchain (usually Bitcoin or Ethereum). This record is immutable and timestamped.

Cost: A few euros per timestamp via specialized services, or integratable into your internal processes.

Advantages: Automatable, suitable for software development pipelines (CI/CD), low marginal cost, traceability of each version.

Limitations: Judicial recognition still emerging in France (but growing), need to keep the original document corresponding to the hash.

Providers: Woleet, OriginStamp, KeeSign, or solutions integrated into document management platforms.

APP Deposit (Software)

For source code and software, the French Agency for Program Protection offers a specialized deposit service.

Principle: Secure deposit of source code with certain date, recognized as proof of prior possession.

Cost: From €120 excluding VAT for 5 years.

Website: APP – Agency for Program Protection

Evidence Methods Comparison Table

Method Cost Evidentiary Weight Ideal for
Soleau Envelope €15 / 5 years ★★★★☆ SMEs, inventors, stable documents
Bailiff / Notary €100-500 ★★★★★ Strategic deposits, foreseeable disputes
Blockchain €1-10 / hash ★★★☆☆ Tech, source code, multiple versions
APP Deposit €120 / 5 years ★★★★☆ Software, source code

6. Taking Legal Action: Procedures, Timelines and Costs

When a trade secret infringement is identified, several courses of action are available to the secret holder. The choice depends on urgency, severity of the infringement and objectives pursued.

Competent Jurisdiction

Civil Court (Tribunal judiciaire): competent for civil actions in trade secret matters. This is the general jurisdiction court.

Commercial Court (Tribunal de commerce): competent if the dispute is between two merchants or commercial companies and relates to commercial acts.

Labor Court (Conseil de prud’hommes): competent if the infringement is committed by an employee within the employment relationship (but action may be brought before the civil court for non-employment aspects).

Available Procedures

Interim Relief (Référé)

Fast-track procedure for obtaining provisional measures. Conditions: urgency and absence of serious dispute, or existence of imminent harm. Hearing timeline: generally 2 to 4 weeks after service. The judge can order provisional prohibition on use or disclosure of the secret, protective seizure of disputed products or documents, and penalty payments to ensure compliance.

Proceedings on the Merits

Full procedure for obtaining a definitive decision. Average duration: 12 to 24 months at first instance depending on complexity. Allows for final damages, permanent injunction and publication of the judgment.

Adapted Seizure-Infringement (Article L.152-3 of the Commercial Code)

Ex parte procedure (without the opposing party being notified) to establish an infringement and seize evidence. Application to the president of the civil court. Execution by bailiff at the presumed infringer’s premises. Sequestration of sensitive documents pending decision on their disclosure.

Limitation Period

Limitation Period: 5 Years

Civil action in trade secret matters is time-barred after 5 years from the day the trade secret holder knew or should have known the last fact enabling them to exercise their action (Article L.152-2 of the Commercial Code). This period can be interrupted by a formal notice or legal proceedings.

Cost Estimates

Procedure Attorney Fees (estimate) Ancillary Costs
Formal Notice €500 – €1,500
Simple Interim Relief €3,000 – €8,000 Bailiff: €200-500
Seizure-Infringement €5,000 – €15,000 Bailiff: €1,000-3,000
Proceedings on Merits (1st instance) €10,000 – €50,000+ Court expert: variable

These estimates are indicative and vary according to case complexity, firm reputation and geographic area.

Elements to Gather Before Taking Action

Before initiating proceedings, ensure you have the following elements:

Proof of prior possession: Soleau envelope, notarial deposit, blockchain timestamp.

Proof of protection measures: signed NDAs, IT charters, access logs, document classification.

Proof of infringement: disclosed documents, infringing products, witness statements, correspondence.

Damage assessment: loss of revenue, lost R&D investments, reputational harm.

7. Remedies and Sanctions

In case of theft, misappropriation or unlawful disclosure, the law provides for extensive civil sanctions. Criminal liability remains limited to related offenses such as theft, breach of trust or receiving stolen goods.

What the Court Can Order

Prohibition orders: prohibition on using, manufacturing, marketing or disclosing the protected information. This prohibition may be accompanied by penalty payments for non-compliance.

Recall and destruction measures: product recall from the market, destruction of documents, files or products incorporating the secret (“infringing goods”).

Publication of the decision: at the infringer’s expense, in newspapers or on websites, to repair reputational harm.

Damages: calculated taking into account negative economic consequences (loss of earnings, lost opportunity), moral damage, and profits made by the infringer through the infringement.

Legal Exceptions (Article L.151-8 of the Commercial Code)

Trade secrets cannot be invoked in certain situations of overriding interest:

Exercise of the right to information: freedom of expression and freedom of the press, particularly to reveal information in the public interest.

Whistleblowers: disclosure of illegal activity or wrongdoing to protect the public interest (enhanced protection under the 2022 Waserman law).

Protection of a legitimate interest: particularly the right to evidence, subject to proportionality conditions established by 2025 case law.

Employee representatives: in the exercise of their functions (works council, union delegates).

8. Industry Case Studies

Trade secret protection is implemented differently across industries. Here are concrete examples illustrating the stakes and best practices.

Pharmaceutical and Biotechnology Industry

Typical Case: Protection of Development Data

A laboratory develops a new molecule. Before filing a patent (which requires disclosure), all R&D data constitutes critical trade secrets: preclinical trial results, tested formulations, observed side effects, synthesis processes.

Issue: A leak could allow a competitor to file a “blocking” patent or develop a similar molecule.

Recommended specific measures:

Strict compartmentalization of R&D teams (each team only has access to their part of the project). Laboratory notebooks timestamped and signed daily. Enhanced NDAs with CROs (Contract Research Organizations). Clean room procedures for license negotiations.

Technology Sector (Startups, Software Publishers)

Typical Case: Protection of Algorithms and Source Code

A startup develops a recommendation algorithm that constitutes its competitive advantage. The source code and model training parameters are trade secrets.

Issue: A developer leaving for a competitor could recreate a similar solution.

Recommended specific measures:

Technical architecture limiting access to complete code (microservices, module-based access). Systematic blockchain timestamping of commits. Specific confidentiality clauses in developer employment contracts. Monitoring of code repositories (GitHub, GitLab) to detect leaks. Formalized exit interviews with reminder of obligations.

Food and Beverage Industry

Typical Case: Protection of Recipes and Processes

A food manufacturer holds a unique recipe (sauce, beverage, processed product) whose secrecy is key to its market positioning. The most famous example is Coca-Cola, whose formula has been kept secret since 1886.

Issue: Disclosure would allow immediate copying by competitors or private labels.

Recommended specific measures:

Fragmentation of the recipe (different people know different parts). Coding of ingredients (internal codes instead of actual names). Restricted physical access to sensitive production areas. Regular audits of key ingredient suppliers.

Consulting and Professional Services

Typical Case: Protection of Methodologies and Client Data

A consulting firm develops proprietary methodologies and holds strategic data about its clients. These elements constitute major intangible assets.

Issue: A consultant leaving for a competitor takes their “address book” and methods.

Recommended specific measures:

Formal documentation of methodologies marked “trade secret”. Strict policy on use of client data (no export, anonymization). Client non-solicitation clauses. Team training on the distinction between personal skills and company assets.

9. Coordination with Other IP Rights

Trade secrets are not intellectual property rights in the strict sense, but they interact with other available protections. An effective protection strategy often combines several regimes.

Trade Secrets and Copyright

Cumulation possible: Software source code can simultaneously benefit from copyright (which protects the original form of expression) and trade secret protection (which protects the underlying algorithms and business logic).

Key differences:

Criterion Copyright Trade Secret
Formality None (automatic protection) Protection measures required
What is protected The original form The information itself
Duration 70 years post mortem As long as secrecy is maintained

Trade Secrets and Patents

Strategic choice: To patent or keep secret? This choice is fundamental and irreversible.

Patenting is preferable when: The invention is easily identifiable through reverse engineering. You want to monetize the invention (licenses, assignments). The commercial lifespan is less than 20 years. You need a title enforceable against all (including independent discoverers).

Secrecy is preferable when: The information doesn’t meet patentability criteria. The secret can be maintained long-term (no reverse engineering possible). The commercial lifespan exceeds 20 years. You want to avoid patent costs and disclosure.

Warning: Patents Destroy Secrecy

Filing a patent requires publication of the invention (18 months after filing). This disclosure is definitive: if the patent is invalidated or expires, the information remains in the public domain. The secret is lost forever.

Trade Secrets and Trademarks

Coordination: Trademarks protect a distinctive sign (public by nature), while trade secrets can protect brand strategy, positioning studies, launch projects before public announcement.

Trade Secrets and Designs

Coordination: Before launching a new design, plans and prototypes are trade secrets. Once the product is marketed, protection shifts to design rights (registered or unregistered for the EU).

Trade Secrets and Know-How in Contracts

In know-how license agreements or franchises, trade secrets are often the basis of the transferred value. Confidentiality clauses must be particularly carefully drafted, with a precise definition of the know-how scope, protection obligations for the licensee, and control mechanisms.

10. International Dimension

In a globalized economy, your trade secrets cross borders. Understanding the international protection framework is essential.

The Harmonized European Framework

EU Directive 2016/943 has harmonized protection across the 27 member states. This means the definition of trade secrets and available remedies are similar throughout the European Union, facilitating cross-border protection.

The TRIPS Agreement (WTO)

Article 39 of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) requires the 164 WTO members to protect “undisclosed information”. This is the minimum ground of international protection.

International Comparison

Jurisdiction Protection Level Particularities
United States ★★★★★ Defend Trade Secrets Act (DTSA, 2016). Federal action available. Punitive damages up to 2x. Ex parte seizures.
European Union ★★★★☆ Harmonized Directive 2016/943. Civil protection. No harmonized criminal component.
United Kingdom ★★★★☆ Common law + directive transposition (retained post-Brexit). Breach of confidence.
China ★★★☆☆ Revised Anti-Unfair Competition Law (2019). Improved protection but variable enforcement.
Japan ★★★★☆ Unfair Competition Prevention Act. Criminal provisions. Effective protection.

Best Practices for International Protection

Adapt your NDAs to applicable law: An NDA governed by French law won’t have the same effectiveness before an American or Chinese court. Include choice of law and jurisdiction clauses.

Map your information flows: Identify where your secrets transit (subsidiaries, subcontractors, cloud). Each jurisdiction crossed requires a protection analysis.

Strengthen clauses with foreign partners: In some countries with weaker protection, stricter contractual clauses (penalties, bank guarantees) can compensate.

Consider international arbitration: For cross-border disputes, arbitration (ICC, LCIA) can offer faster proceedings and facilitated enforcement in many countries (New York Convention).

11. Patent vs Trade Secret: Comparison Table

Criterion Patent Trade Secret
Nature Public industrial property title Protection through confidentiality
Duration 20 years maximum (with annuity payments) Unlimited as long as secrecy is maintained
Condition Public disclosure required Maintenance of secrecy required
Protection against All exploitation, including independent creation Unlawful acquisition only (not lawful reverse engineering)
Initial cost High (drafting, filing, examination: €5,000-15,000) Low (internal organizational measures)
Recurring cost Increasing annuities + international extensions Security measure maintenance
Main risk Design-around by different conception Leak or independent discovery
Monetization Easily monetizable (license, assignment, collateral) More complex monetization (due diligence required)
Ideal for Patentable technical inventions, monetization/licensing Know-how, commercial data, non-patentable information

Combined Strategy

The two protections are not mutually exclusive. An optimal strategy can combine: patenting key innovations (strong, monetizable protection) and keeping complementary information secret (manufacturing processes, optimization parameters, implementation know-how).


12. Q&A: Your Questions About Trade Secrets

What is the difference between a patent and a trade secret?
A patent grants a 20-year monopoly in exchange for public disclosure of the invention. A trade secret protects information as long as it remains secret (unlimited duration), but does not protect against independent discovery by a competitor (lawful reverse engineering). A patent is enforceable against everyone; a trade secret only protects against unlawful acquisition.

Can an employee use their knowledge with a new employer?
Yes, acquired know-how (“experience”) belongs to the employee. The line is crossed if they take documents, client files or use specific technical secrets identified as confidential by their former employer. The distinction lies in the nature of the information: general skills (usable) vs. protected information (prohibited).

What constitutes a “reasonable protection measure”?
There is no official list, but case law recognizes: “Confidential” marking of documents, restricted computer access, signed confidentiality clauses, physical security of premises and staff training. Complete absence of such measures prevents legal protection. “Reasonable” is assessed according to company size and nature of the information.

Do trade secrets override whistleblower protections?
No. The law provides clear exceptions (Article L.151-8 of the Commercial Code). Trade secrets cannot be invoked to prevent disclosure of illegal activity or wrongdoing aimed at protecting the public interest (right to alert). The 2022 Waserman law strengthened this protection.

How long does protection last?
It is potentially perpetual. It lasts as long as the three conditions (secrecy, value, protection) are met. If the information becomes public — through disclosure, leak or independent discovery — protection is immediately and definitively lost. The example of Coca-Cola’s formula (kept secret since 1886) illustrates this potentially unlimited duration.

Can trade secrets yield to the right to evidence?
Yes, since the French Cour de cassation’s ruling of February 5, 2025 (No. 23-10.953). The judge must verify whether production of the document is “indispensable” to prove the alleged facts and whether the infringement of secrecy is “strictly proportionate” to the aim pursued. This is a case-by-case assessment that excludes exploratory requests.

Must I explain my algorithms to affected individuals?
Since the CJEU ruling of February 27, 2025 (C-203/22), yes for automated decisions with significant effects (scoring, profiling). You must provide “meaningful information about the logic involved” in an understandable manner. This doesn’t mean disclosing the complete algorithm, but explaining the criteria used and their influence on the decision.

What is the limitation period for legal action?
Civil action is time-barred after 5 years from the day the trade secret holder knew or should have known the last fact enabling them to exercise their action (Article L.152-2 of the Commercial Code). This period can be interrupted by a formal notice or legal proceedings.

How can I prove I held the information before the infringement?
Several methods establish a certain date: the Soleau envelope (INPI, €15 for 5 years), deposit with a bailiff or notary, blockchain timestamping, or APP deposit for software. A computer file’s creation date is not sufficient proof as it can be modified.

Can source code be protected by both copyright and trade secrets?
Yes, these two protections can be combined. Copyright protects the original form of the code (automatically, without formalities), while trade secret law protects the underlying algorithms and business logic (provided the 3 legal criteria are met and confidentiality is maintained).


Legal References


Need to Audit Your Protection or Take Legal Action?

Dreyfus assists you in implementing your protection measures, drafting your NDAs, timestamping your secrets and defending your interests in case of infringement.

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Return fraud: How counterfeits infiltrate the e-commerce supply chain

Introduction

With the rise of online shopping, not only are buying habits changing, but so are methods of fraud. Return fraud, which involves sending back a counterfeit item instead of an authentic product, is now one of the most serious types of fraud.

This mechanism introduces counterfeits directly into legal distribution channels and undermines the integrity of inventories. As a result, companies can no longer rely on simple visual checks: sustainable trademark protection requires enhanced traceability and authentication tools, in line with best practices recommended by French and European authorities.

How return fraud works?

Return fraud is based on a simple but discreet strategy. The fraudster orders a genuine product, keeps the original, and returns a carefully reproduced imitation. This type of fraud thrives due to several factors:

  • Very permissive return policies on e-commerce platforms,
  • Increasing sophistication of counterfeits,
  • Logistical pressure linked to large volumes,
  • Lack of thorough checks upon receipt.

In warehouses, processing times are short and teams do not always have the expertise to identify high-quality fakes.

Why is return fraud rising in e-commerce?

Historically, counterfeit goods entered the market through parallel channels. Today, return fraud creates an internal entry point: counterfeit goods enter directly through the trademark‘s official channel. As a result:

  • Warehouses receive counterfeits without their knowledge;
  • Some counterfeits perfectly imitate the characteristics of the authentic product;
  • Counterfeits may be mistakenly shipped to other consumers.

This confusion blurs the lines between authentic and counterfeit, complicating overall control of the supply chain.

cycle return fraud

Legal, financial, and reputational impacts

Return fraud has three major consequences:

  1. An immediate financial cost

The company loses the original item and is left with a counterfeit that cannot be sold. On a large scale, the losses add up.

  1. Significant reputational risk

If a counterfeit item is accidentally returned to a customer, trust is eroded, which can lead to complaints, doubts about quality, and damage to the company’s image.

  1. Significant legal consequences

The presence of counterfeits in the supply chain complicates infringement actions, as the break in traceability alters the evidence. This raises questions about civil liability, as well as the company’s ability to enforce its intellectual property rights.

Strengthening authentication and traceability

To limit this risk, companies must adopt enhanced technical mechanisms:

  • Unique digital identifiers for each item,
  • Discreet markings applied during manufacturing,
  • Authentication technologies integrated into the product,
  • Digital tracking of the item’s life cycle until its eventual return.

Internal procedures must allow for rapid and confidential verification of authenticity upon receipt.

A sustainable protection strategy

Return fraud evolves with online commerce practices. Companies must therefore secure the entire chain:

  • Production,
  • Transport,
  • Distribution,
  • Returns.

But the strategy must also be based on:

  • Robust internal procedures,
  • Regular updates to the legal framework,
  • Ongoing training for teams,
  • Constant risk analysis to anticipate new methods.

Conclusion

Return fraud is now a major challenge for businesses. It is essential to implement robust authentication systems and strengthen return controls. Companies that invest in these measures protect their reputation, the value of their assets, and public trust in the long term.

Dreyfus & Associés assists its clients in managing complex intellectual property cases, offering personalized advice and comprehensive operational support for the complete protection of intellectual property.

Dreyfus & Associés works in partnership with a global network of attorneys specializing in Intellectual Property.

Nathalie Dreyfus with the support of the entire Dreyfus team

FAQ

1. What is return fraud?
The purchase of an authentic product followed by the return of a counterfeit or different product.

2. Why is this phenomenon rising?
Due to flexible return policies, the increasing quality of counterfeits, and the rise in return volumes.

3. What are the risks for businesses?
Risk of financial loss, damage to reputation, and legal difficulties related to the presence of counterfeits in the supply chain.

4. How can you protect yourself?
Through unique identifiers, authentication technologies, digital tracking, and strict internal procedures.

5. Is it possible to completely eliminate return fraud?
No, but consistent measures can greatly reduce the risk.

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Why is a prior art search essential before filing a trademark?

Introduction

Creating a trademark, whether a name and/or a logo, is often a pivotal moment in the development of a business. However, before initiating a formal filing with the French IP Office (INPI) or any comparable authority, it is essential to verify that the proposed sign is available and does not conflict with earlier rights. This is precisely the purpose of a prior art search: an essential step to anticipate legal risks, safeguard your investments, and build a sustainable trademark strategy.

What Is a trademark prior art search?

Filing a trademark grants, under trademark law, an exclusive right to use the sign for specific goods and services.

However, such registration requires that the chosen sign be distinctive and available: it must not infringe any pre-existing rights (trademarks, company names, trade names, business names, domain names, etc.).

A prior art search is therefore the preliminary verification used to identify such earlier rights before filing.

Several types of searches may be necessary:

  • Exact-match search: identifies signs that are strictly identical (same spelling, same logo, same classes of goods/services) to the one you intend to file.
  • Similarity search (phonetic, visual, conceptual): a deeper examination to detect signs that are close enough to trigger a likelihood of confusion. This level is particularly critical for assessing risks of opposition, invalidity, or infringement.

Thus, the absence of identical trademarks is not sufficient: similarity must also be assessed to identify potential risks.

How to conduct an effective prior art search?

Recommended tools and databases

To perform a thorough search, it is advisable to use:

Relying solely on a general-purpose search engine is strongly discouraged.

database search trademark

Legal analysis: beyond simple automated searches

A truly useful prior art search requires professional legal analysis:

  • Assessment of the likelihood of confusion based on phonetic, visual or conceptual criteria, and the perception of the relevant public.
  • Examination of the goods and services covered, in accordance with the principle of specialty.
  • Consideration of other rights beyond trademarks: company names, trade names, domain names, business names, etc.
  • Verification of the actual use of the earlier sign (reputation, age, geographical scope), which may affect the assessment of the risk.

This work demands legal expertise, making the involvement of an IP attorney or trademark attorney highly advisable.

When and by whom should the search be conducted?

  • When?: Before any filing. It should be carried out as soon as the name, trade name, domain name, or logo is being conceived.
  • By whom?: The applicant may perform preliminary checks, but a professional (IP attorney or specialist lawyer) is strongly recommended for a reliable, risk-based interpretation.

Legal and strategic implications of a prior art search

Securing registration and avoiding opposition or invalidation

Without a prior search, filing a trademark may lead to:

For instance, in the Huella case of May 7, 2025, the application for a trademark covering leather goods (Class 18) was refused due to the presence of an earlier trademark protected for cosmetics (Class 3). More details can be found on this case in our previously published article.

Thus, a prior art search is the first line of defence in securing the validity and long-term enforceability of your trademark.

Protecting investments and trademark reputation

Trademark development often involves substantial investments: branding, marketing, packaging, communication, digital presence, etc.

A conflict arising after launch may result in refusal of registration, forced withdrawal, or a complete rebrand, each carrying significant financial, logistical and reputational consequences.

A prior art search protects the business against these risks by providing a stable and secure framework from the outset.

Structuring a strategic trademark portfolio

Beyond a simple verification exercise, a prior art search helps to build a smart filing strategy. The applicant is advised to:

  • Identify priority or defensive classes based on current or future activities,
  • Adjust the sign (spelling, logo, wording) to maximise distinctiveness,
  • Consider complementary filings (domain names, trade names, company names) to strengthen market presence,
  • Prepare for future monitoring to detect potentially conflicting new filings.

A comprehensive search is therefore not merely a compliance measure but a genuine strategic tool for managing intangible assets.

Conclusion

A prior art search is the cornerstone of any effective trademark protection strategy. It allows businesses to anticipate legal risks (opposition, invalidity, infringement), safeguard investments, establish a strong trademark reputation, and develop a coherent trademark portfolio. Neglecting this step exposes the company to significant financial and reputational consequences that can be difficult to remedy.

We strongly encourage every entrepreneur, start-up, and established company to incorporate this process into their trademark development strategy, ideally with the support of an experienced professional.

Dreyfus & Associés assists its clients in managing complex intellectual property cases, offering personalized advice and comprehensive operational support for the complete protection of intellectual property.

Dreyfus & Associés works in partnership with a global network of attorneys specializing in Intellectual Property.

Nathalie Dreyfus with the support of the entire Dreyfus team

 

Q&A

1. Is a prior art search legally required before filing a trademark?

No. It is not a statutory requirement, but it is essential in practice because it determines whether earlier rights could block registration or restrict the use of your trademark.

2. Why is a simple Google search insufficient to verify availability?

Many earlier rights are not visible through search engines. Only official databases (INPI, EUIPO, WIPO, domain name registries) reveal registered rights, and only legal analysis can assess the likelihood of confusion.

3. Should I check only trademarks, or also domain names and company names?

A complete search should include domain names, company names, trade names and business names, as these rights can also be invoked, especially when they are well-known.

4. Does a prior art search guarantee the absence of future conflicts?

It significantly reduces the risk but cannot provide absolute certainty. New filings may still arise after the search, which is why ongoing monitoring is recommended.

5. Does a prior art search guarantee that my trademark will be registered?

No search can guarantee registration. The outcome depends on the applicant’s strategic choices, the behaviour of holders of earlier rights and subsequent filings. A combined strategy (search + filing + monitoring) provides the highest level of security.

 

This publication is intended for general public guidance and to highlight issues. It is not intended to apply to specific circumstances or to constitute legal advice.

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Protection of figurative trademarks in the European Union: how to ensure distinctiveness and prevent registration refusals?

Introduction

The protection of figurative trademarks occupies a central place in intellectual property strategies, particularly in an environment where imagery, form, and graphic codes are decisive vectors for identifying products and services. Yet the registration of such signs remains complex due to the strict requirements set by European Union law and recent case law. Companies seeking robust protection must anticipate obstacles relating to distinctiveness, graphic originality, and consumer perception.

This article outlines the key legal criteria, the risk of refusal, and practical strategies to optimize the protection of figurative trademarks.

Legal foundations of figurative trademark protection

A figurative trademark encompasses any non-verbal sign composed of graphic elements: logos, icons, stylized drawings, shapes, lines, or visual combinations. Under both French law and European Union law, such signs must be distinctive, non-descriptive, and capable of identifying the commercial origin of the goods or services.

Legislation requires that the sign be perceived immediately by the consumer as an indication of origin, and not as a simple decorative motif or ordinary shape. This requirement is set out in Article L.711-2 of the French Intellectual Property Code and Article 7(1)(b) EUTMR.

Industrial property offices consistently refuse signs considered banal, even when applicants rely on actual commercial use or marketing strategy. The logic remains constant: a trademark does not protect a graphic idea but a form that is immediately perceived as distinctive.

condition protection trademark

Distinctiveness criteria applicable to shapes and graphic elements

The central question is whether the figurative sign contains sufficiently marked characteristics to allow the consumer to memorise it without particular effort. This does not require a high level of artistic creativity, but the sign must be capable of standing apart from the common stock of shapes.

Where the graphic element approaches a simple geometric shape (circle, square, rectangle, line, pentagon), there is a high risk of refusal. Case law adds that minor variations (slight waviness, tilt, rounding) are not sufficient to compensate for a lack of distinctiveness.

For example, in a decision dated November 13, 2024 (TUE, November 13, 2024, case 426/23 Chiquita Brands v. EUIPO), the General Court of the European Union ruled that a simple yellow and blue oval was comparable to a basic geometric shape and therefore not eligible for trademark protection. This approach is particularly strict, as the offices and courts consider that these signs do not convey any identifiable commercial message.

This requirement applies irrespective of the relevant public. Even if that public has a higher level of attention, as in technological or professional sectors, case law reiterates that the degree of attention has no impact on the threshold of distinctiveness.

Key lessons from recent case law: the Rigo Trading decision

The judgment delivered by the General Court of the European Union on 16 July 2025 (Case T-215/24, Rigo Trading SA v. EUIPO) constitutes a major development.

Facts and procedure

The Luxembourg company Rigo Trading SA designated the European Union for the international registration of a purely figurative sign representing a slightly wavy rectangle, intended to distinguish a wide range of goods.

The EUIPO examiner refused registration on the ground that the sign had no distinctive character within the meaning of Article 7(1)(b) EUTMR, considering that it amounted to a minor variation of a basic geometric shape. The Fifth Board of Appeal upheld that decision, prompting the company to bring the matter before the General Court.

Before the Court, Rigo Trading argued, in particular, that the EUIPO had incorrectly defined the relevant public and that the sign could not, in reality, be assimilated to a simple geometric figure.

Findings of the General Court

The General Court dismissed the action, confirming that the sign did not allow consumers to identify the commercial origin of the goods. It emphasised that the level of attention of the consumer, whether average or specialised, has no impact on the assessment of distinctiveness.

The Court found that:

  • The contested sign is very close to a simple geometric figure
  • The slight waviness is not sufficient to constitute a substantial variation
  • The absence of additional graphic elements (combination, complexity, stylisation) prevents the sign from meeting the minimum threshold required
  • The simplicity of the sign prevents immediate memorisation by the public

The ruling reinforces a long-established trend: overly simple or minimalist signs (rectangles, lines, stylised circles, regular hexagons) fail to be registered unless distinctiveness acquired through use is proven.

An interesting point: the same sign had been accepted by the Benelux Office, highlighting divergences between European offices. However, the Court confirmed that EU law prevails for any registration targeting the European Union.

Best practices for securing a figurative trademark

To maximise the chances of registration, it is advisable to:

  • Integrate distinctive graphic elements: visual rhythm, asymmetry, original contours
  • Avoid simple or geometric shapes, especially when the aim is to protect packaging or motifs
  • Reinforce the stylisation of the logo to increase memorability
  • Demonstrate intensive use of the sign through structured marketing evidence when necessary
  • Systematically analyse recent EUIPO refusals to adjust the graphic strategy

Conclusion

The protection of figurative trademarks requires both a strategic and technical approach. Ensuring strong figurative trademark protection involves more than aesthetic analysis: it relies on a precise understanding of distinctiveness as assessed by trademark offices. Companies must therefore anticipate obstacles linked to graphic simplicity, strengthen stylisation, and closely monitor recent case law.

Dreyfus & Associés assists its clients in managing complex intellectual property cases, offering personalized advice and comprehensive operational support for the complete protection of intellectual property.

Dreyfus & Associés works in partnership with a global network of attorneys specializing in Intellectual Property.

Nathalie Dreyfus with the support of the entire Dreyfus team

 

Q&A

1. How can distinctiveness acquired through use be proven?

By providing evidence demonstrating that the public associates the sign with your company: sales data, advertising campaigns, surveys, press coverage, market share, or any proof of effective recognition.

2. Can a figurative trademark protect packaging?

Yes, provided the packaging has sufficiently original visual features to be perceived as an indicator of origin rather than a decorative or functional element.

3. Do European offices assess distinctiveness in the same way?

No. Although EU law sets a common framework, assessments differ between national offices. The EUIPO generally applies a stricter approach, particularly regarding simple shapes.

4. How can a logo that is too simple be strengthened before filing?

By adding distinctive graphic elements: asymmetry, combinations of shapes, original lines, stylistic effects, or integrating a verbal element to distance the sign from basic geometry.

5. How can a refusal before the EUIPO be avoided?

By anticipating the distinctiveness assessment, avoiding minimalist signs, preparing an evidence-of-use strategy if needed, and conducting a legal evaluation of the sign prior to filing. Reinforcing stylisation greatly increases the chances of registration.

This publication is intended for general public guidance and to highlight issues. It is not intended to apply to specific circumstances or to constitute legal advice.

 

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How do judges assess conceptual linkage in trademark disputes? Lessons from “COCO SHAOUA” v. “COCO”

Introduction

In trademark law, the protection granted to a well-known earlier trademark requires, in the context of an opposition or an appeal, a dual assessment:

The decision delivered by the Versailles Court of Appeal on October 22, 2025 in opposition proceedings initiated by Chanel against the trademark application “COCO SHAOUA” provides a landmark illustration of how these two concepts are assessed when a famous earlier trademark invokes both confusion and dilution.

We provide below a detailed analysis of the procedure, the Court’s reasoning, and the key takeaways for intellectual property professionals.

Opposition strategy: key elements to strengthen upstream

To maximise the chances of success in an opposition based on confusion or reputation, it is essential to:

  • Document the reputation of the earlier trademark: association studies, surveys, turnover figures, market share data
  • Demonstrate similarity between the signs (visual, phonetic, conceptual)
  • Prove proximity or similarity of the goods and services
  • Establish the existence of a mental link with the earlier trademark when invoking damage to reputation

strengthening opposition trademark

Where one of these elements is missing or weakened, the opponent’s position is significantly undermined, as illustrated in the Versailles Court of Appeal decision of October 22, 2025.

Facts and procedural background of the October 22, 2025 decision

The earlier trademark: “COCO”

Chanel owns the verbal trademark “COCO,” covering soaps, perfumery and cosmetics in Class 3. The trademark enjoys significant public recognition as a direct reference to the Chanel universe and forms the basis of the opposition.

The contested trademark: “COCO SHAOUA” (classes 3 and 4)

A trademark application for the verbal sign “COCO SHAOUA” was filed for goods in Class 3 (cosmetics) and Class 4 (candles). Chanel contested the application on two grounds:

  • A likelihood of confusion regarding Class 3 goods
  • Damage to the reputation of the earlier trademark “COCO,” particularly in relation to Class 3 goods.

Opposition Before the INPI and the Director General’s Decision

Chanel filed an opposition before the French IP Office (INPI) against “COCO SHAOUA.”
The INPI Director General, while acknowledging the reputation of the earlier “COCO” trademark, rejected the opposition. He found that the signs were insufficiently similar to give rise to a likelihood of confusion and thus allowed the registration of “COCO SHAOUA.”

Chanel’s appeal before the Court of Appeal

Following the rejection, Chanel lodged a cancellation action before the Versailles Court of Appeal. The company argued that “COCO” was highly distinctive visually, phonetically and conceptually, and that “COCO SHAOUA” created both a likelihood of confusion and damage to reputation.

The Court delivered its decision on October 22, 2025.

The Court of Appeal’s assessment of likelihood of confusion

Similarity of the signs

Chanel argued that “COCO SHAOUA” incorporated the sequence “COCO” in its attack position, leading consumers to associate it instantly with the earlier trademark. The company also contended that the syllable “SHA” could phonetically evoke “CHANEL,” reinforcing a conceptual association.

The Court held otherwise. It noted that the word “coco,” when used as a common noun (e.g., as an ingredient or scent), does not function exclusively as a distinctive sign for Chanel in the mind of consumers. It further considered that the fantasy term “shaoua” was equally prominent within the sign “COCO SHAOUA,” such that the trademark would be perceived globally.

The Court therefore concluded that the visual differences (one word vs. two words), phonetic differences (two syllables vs. four), and conceptual differences between the signs were sufficient to exclude similarity.

Proximity of the goods

The Court acknowledged that the goods in Classes 3 and 4 were similar or closely related to those covered by the earlier trademark, which could, in principle, reinforce the likelihood of confusion. However, the lack of similarity between the signs prevailed: product proximity alone was insufficient to create confusion.

Conclusion: no likelihood of confusion

The Court rejected Chanel’s claim on likelihood of confusion, holding that the company had not demonstrated that “COCO SHAOUA” would be perceived as originating from, or linked to, Chanel by the relevant public.

The Court of Appeal’s assessment of damage to reputation

Recognition of the reputation of “COCO”

The Court confirmed that “COCO” benefits from recognised reputation, as acknowledged by the INPI. This reputation gives rise to autonomous protection under Article L. 713-3 CPI, allowing action even without confusion, where the contested sign creates dilution or parasitism.

Low intrinsic distinctiveness of the term “COCO”

However, the Court emphasised that the term “coco” is a common, polysemous noun (e.g., coconut, ingredient, scent), resulting in limited intrinsic distinctiveness. Reputation alone cannot compensate entirely for this weakness.

Assessment of “COCO SHAOUA” and lack of mental link

The Court found that the combination of “coco” with the fantasy term “shaoua” did not create a mental link with the earlier trademark “COCO.”

As the existence of such a link is a prerequisite under Article L. 713-3 CPI, the claim for damage to reputation could not succeed.

Conclusion: no damage to reputation

The Court therefore dismissed Chanel’s claim, finding no confusion and no dilution of the earlier reputed trademark.

To learn more about the scope of protection for a trademark’s reputation, please see our previously published article.

Conclusion

The Versailles Court of Appeal decision of October 22, 2025 demonstrates that the protection of a well-known earlier trademark does not dispense with a thorough assessment of sign similarity and the overall perception of the contested trademark. Despite Chanel’s reputation, the Court held that “COCO SHAOUA” was sufficiently distinct from “COCO” to exclude both confusion and dilution.

For trademark owners, this decision underscores the need for vigilance and meticulous preparation when engaging in opposition proceedings.

Dreyfus & Associés assists its clients in managing complex intellectual property cases, offering personalized advice and comprehensive operational support for the complete protection of intellectual property.

Dreyfus & Associés works in partnership with a global network of attorneys specializing in Intellectual Property.

Nathalie Dreyfus with the support of the entire Dreyfus team

 

FAQ

 

1. Can an opposition be based solely on damage to reputation without likelihood of confusion?

Yes. Article L. 713-3 CPI allows action against a sign that damages the reputation of an earlier trademark even where no likelihood of confusion exists, provided that the earlier trademark’s reputation is proven and that a mental link is established.

2. Does a trademark consisting of a first name or nickname automatically benefit from enhanced protection?

No. Even a famous first name does not necessarily acquire strong distinctiveness. Courts evaluate its intrinsic character: a common first name, even if associated with a public figure, may remain weakly distinctive. Reputation does not convert a common word into a strongly distinctive trademark.

3. Does the presence of a generic term within a composite sign always prevent a likelihood of confusion?

No. A generic term may remain dominant if the rest of the sign is descriptive or secondary. It depends on the overall impression. In this case, the fantasy element “shaoua” neutralised the impact of “coco,” but other cases have found confusion despite a generic term where the dominant attack remained preponderant.

4. What types of evidence best support the existence of a mental link in reputation-based actions?

The most persuasive evidence includes recent market studies, association surveys, media exposure analytics and demonstrations of likely marketing free-riding. Judges accord significant weight to robust, recent and verifiable data.

5. Can a weakly distinctive trademark still be protected effectively?

Yes, provided the owner demonstrates either extensive use leading to acquired distinctiveness, or an arbitrary character in the relevant market.

 

This publication is intended to provide general guidance to the public and to highlight certain issues. It is not designed to apply to specific situations, nor does it constitute legal advice.

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Who owns a copyright-protected work in France?

Introduction

In an environment where creative content circulates faster than ever, determining the owner of a copyright-protected work remains a key legal issue for businesses, creators, and all innovation stakeholders. French law follows a particularly protective regime, grounded on the primacy of the author, strict requirements for copyright assignments, and narrowly framed exceptions, especially for employees, external service providers, collaborative works, and software.

Please find bellow the essential rules governing copyright ownership and transfer in France, together with best contractual practices to ensure secure exploitation of a work.

Who is the author and initial rights holder of a work?

Fundamental principle: the author is always the natural person who created the work

The French Intellectual Property Code (“IPC”) is unequivocal: the author is the creator of the work, regardless of status or function. The author holds:

Presumption of authorship: the person whose name appears on the work

When a work is disclosed under a particular name, that person is presumed to be the author, unless proven otherwise. This presumption is central in disputes relating to the origin of a creation.

Orphan works: a specific regime

If no author can be identified, the work is considered an orphan work, and it remains protected. Its use is strictly limited to cultural, educational or research purposes, excluding commercial exploitation.

Works created by employees, contractors, or public officials: who owns the rights?

Employees: no “work for hire” doctrine under French law

Contrary to common-law systems, French law does not recognise automatic transfers of copyright to employers.

Even when created within the scope of employment, the employee remains:

  • The author, and
  • The initial owner of economic rights.

To exploit the work, the employer must obtain a written copyright assignment, compliant with Articles L131-1 et seq. IPC.

The software exception

Software is subject to a major exception under article L113-9 IPC: the employer automatically acquires economic rights when the software is created:

  • In the course of the employee’s duties, or
  • According to the employer’s instructions.

This rule strongly protects technology companies.

Public officials: a regime governed by the intellectual property code

Public officials are subject to a specific copyright regime, set out in Articles L131-3-1 and L111-1 of the French Intellectual Property Code. As a general rule, the public official remains the author and the initial rights holder, but the administration may exploit works created in the performance of the official’s duties or in accordance with instructions received, to the extent necessary for the fulfilment of the public service mission. Any exploitation exceeding this purpose requires the express authorisation of the author, together with appropriate remuneration.

Teachers-researchers, however, constitute a notable exception: owing to their academic freedom, they retain full control over the exploitation of their works, even when created in the course of their duties. This framework seeks to balance the protection owed to the author with the operational needs of the public service.

Independent Contractors: Assignment Required

The rule is clear: a contractor remains the author and owner of the work unless a written assignment is executed in favour of the commissioning party.

Without such an assignment, the work cannot legally be exploited, even if fully paid for.

copyright employee summary

Works with multiple authors: collaboration, derivative works and collective works

Collaborative works: joint ownership

A work created by several individuals is a collaborative work under Articles L113-2 (para. 1) and L113-3 IPC.

Co-authors jointly own the rights, and any exploitation requires their mutual consent.

Derivative works: authorisation required

When a work derives from a pre-existing work (adaptation, transformation, remix of a protected work), the author of the derivative work must obtain the right holder’s authorization, pursuant to article L113-4 IPC, which governs composite works.

Collective works: a specific ownership regime

Article L113-2 (para. 3) IPC defines a collective work as a creation developed at the initiative of a natural or legal person who publishes and discloses it under their name and assumes editorial responsibility, with the individual contributions merged into an inseparable whole.

This regime frequently applies to:

  • Press publications,
  • Content created by creative agencies,
  • Websites and digital platforms,
  • Editorial and institutional materials.

A work qualifies as collective when three cumulative criteria are met:

  1. A decisive initiative and overall control by the commissioning entity, exercising genuine editorial oversight;
  2. Integration of individual contributions into a unified whole, with no separable rights;
  3. Disclosure under the commissioning entity’s name, appearing as the sole project owner.

Where these conditions are fulfilled, the legal entity is the original owner of the economic rights, eliminating the need to obtain individual assignments from contributors.

Assignment and licensing: how can copyright be transferred or exploited?

Copyright assignment: strict formal requirements

A valid assignment must:

  • Be in writing;
  • Specify each transferred right (reproduction, representation, adaptation, etc.);
  • Detail the territory, duration, and media;
  • Include proportional or fixed remuneration compliant with the ipc.

General formulas such as “all rights assigned” are invalid.

Licences: a flexible alternative

A licence authorises use without transferring ownership. It must be:

  • Limited in duration (perpetual licences are void),
  • Clear, with ambiguities interpreted in favour of the author.

Certain licences are statutory (library lending, private copying, educational uses) and involve mandatory remuneration.

No registration requirement

France requires no administrative formalities to recognise assignments or licences.
However, maintaining records is strongly recommended for evidentiary purposes.

Duration of protection and contractual safeguards

Standard duration: 70 years post mortem

Economic rights expire 70 years after the author’s death.

For collective, anonymous, or pseudonymous works, protection lasts 70 years from 1 January following the year of publication (Art. L123-3 IPC).

Best contractual practices

We systematically recommend:

  • Signing contracts before delivery of the work;
  • Drafting by distinct rights (reproduction, adaptation, etc.);
  • Precise identification of the work and all versions;
  • Verifying the chain of title (employees, contractors, subcontractors);
  • Including warranties against eviction and infringement.

A frequent example: a company commissioning a website without an assignment is legally unable to modify its design or entrust maintenance to a third party.

Conclusion

Determining the ownership of a copyright-protected work in France requires balancing author protection, contractual precision, and narrowly framed legal exceptions. Legal certainty depends on a deep understanding of IPC mechanisms and carefully drafted contracts.

Dreyfus & Associés assists its clients in managing complex intellectual property cases, offering personalized advice and comprehensive operational support for the complete protection of intellectual property.

Dreyfus & Associés works in partnership with a global network of attorneys specializing in Intellectual Property.

Nathalie Dreyfus with the support of the entire Dreyfus team

FAQ

1. Can an author assign copyright before the work is even created?
Yes, but only under strict conditions. French case law prohibits broad assignments of future works unless the scope or type of works is sufficiently defined. Production agreements (video games, audiovisual works, commissioned creations) often rely on this framework.

2. How can authorship or prior creation be proved in case of a dispute?
Evidence may include Soleau envelopes (INPI), blockchain timestamps, bailiff reports, digital archives, dated project files, or emails. No formalities are required, but reliable proof of date is essential.

3. Can an employer prevent an employee from reusing a work created during employment?
Yes, if the employee has assigned the economic rights under the IPC. Without a written assignment, the employer has no exploitation rights.

4. Who owns the rights in a work published under a pseudonym?
The person identified as author upon disclosure benefits from a presumption of authorship.

5. Can a licence be granted without a duration limit?
No. Perpetual licences are void under French law.

6. Can AI be considered an author?
No. Only a human being can be recognised as an author under the IPC.

This publication is intended to provide general guidance to the public and highlight certain issues. It is not intended to apply to specific situations or constitute legal advice

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Does self-promotion suffice to establish genuine use of a trademark in Class 35? The Airbnb case.

Introduction

On May 21, 2025, the General Court of the European Union  upheld the partial revocation of the EU trademark Airbnb for “advertising” services in class 35.

This decision highlights an essential distinction: promoting one’s own services does not constitute advertising within the meaning of trademark law.

The case illustrates the importance of genuine and distinctive use of registered trademarks and encourages proprietors to adapt their filing strategies to the actual nature of their business activities.

The partial revocation request concerning the Airbnb trademark

Airbnb, Inc., which owns a European Union trademark since 2013 and which covers advertising services in class 35, was subject to a revocation request filed in 2020 by the Australian company Airtasker Pty Ltd on the grounds of lack of genuine use within the European Union.

The EUIPO Cancellation Division partially upheld the request for revocation.

Following an appeal filed by Airbnb, the EUIPO Board of Appeal confirmed the revocation for class 35, finding that the evidence provided (promotional materials, marketing campaigns, website excerpts) related exclusively to the company’s internal activities and not to the provision of advertising services to third parties.

Airbnb then appealed to the General Court of the European Union, challenging the interpretation that advertising must necessarily be understood as a service provided to third parties.

The position of the General Court of the European Union

The General Court dismissed Airbnb’s appeal and upheld the partial revocation of the trademark for advertising services.

Based on established case law, the Court recalls that advertising services are intended to assist other companies in promoting their goods or services, or to strengthen their competitive position on the market through commercial communication.

Thus, advertising carried out solely for one’s own internal purposes, even if extensive and widely disseminated, cannot be regarded as an advertising service provided to third parties, which is the type of service covered by Class 35 under the Nice Classification.

The evidence of use submitted by Airbnb demonstrated only the promotion of its own accommodation offers and commercial activities, without establishing any advertising services carried out on behalf of other companies or individuals.

The Court further specified that promoting the accommodation offered by hosts on the platform does not constitute an independent advertising activity.

Such promotion is primarily intended to increase the visibility and profitability of the platform itself, rather than to provide a distinct advertising service.

The use of the Airbnb trademark in this context cannot therefore be regarded as genuine use for advertising services.

advertising airbnb decision

Key takeaways for trademark owners

This decision reiterates a fundamental rule of trademark law: for use to qualify as genuine, it must correspond to the precise nature of the services designated.

  • Avoid unnecessarily overprotecting a trademark

Filing a mark in classes that have no direct connection with the owner’s actual business activities, as was the case here with Class 35 for advertising services, exposes the registration to medium-term risks of revocation

  • Promoting one’s own products does not constitute an advertising service

A company’s internal or self-focused communication, even on a large scale, is not sufficient to demonstrate genuine use for advertising services. Only services rendered to third parties (e.g., agencies, consultants, platforms providing visibility to others) fall within this category.

  • The importance of a coherent filing strategy

Before filing, it is essential to identify accurately the relevant classes in light of the proprietor’s real economic activities. For digital businesses in particular, distinguishing between core activities and ancillary services is crucial.

Conclusion

In its judgment of May 21, 2025 (Case T-1032/23, Airbnb, Inc. v. EUIPO), the General Court of the European Union clearly reiterates that genuine use of a trademark requires exploitation consistent with the services for which it has been registered.

Trademark owners must therefore ensure that their filings accurately reflect the nature of their services, otherwise, they risk partial or even total revocation of their rights.

Dreyfus & Associés  assists its clients in managing complex intellectual property cases, offering personalized advice and comprehensive operational support for the complete protection of intellectual property.

 

Dreyfus & Associés works in partnership with a global network of attorneys specializing in Intellectual Property.

 

Nathalie Dreyfus with the support of the entire Dreyfus team

Q&A

1. What types of services are covered under Class 35?

Class 35 of the Nice Classification covers advertising, business management, and retail services, among others.

2. Why is it risky to register a trademark in classes that do not correspond to the owner’s actual business activities ?

Overly broad filings increase the risk of revocation: if the proprietor cannot demonstrate genuine use in a given class, their rights may be partially or fully cancelled. Moreover, an incoherent filing strategy can trigger unnecessary disputes and raise the overall cost of maintaining the trademark portfolio.

3. Can an overly narrow trademark filing also create issues?

Yes. An excessively limited specification may prevent a business from achieving adequate protection as its activities evolve. A trademark should be protected in a proportionate manner: if the filing is too broad, it risks revocation; if too narrow, it may fail to shield the owner from imitators

4. How can a business anticipate and mitigate the risk of revocation within its trademark portfolio?

By implementing regular monitoring of actual use, maintaining dated evidence, conducting internal audits every two to three years, and adjusting filings when business activities evolve. This proactive approach helps prevent future challenges.

5. What types of evidence are generally accepted to prove genuine use of a trademark within the European Union?

The evidence must demonstrate real, public, outward-facing, and commercial use of the mark for the goods or services for which it is registered. This may include invoices, contracts, advertisements directed at the public, sales evidence, marketing materials, audience metrics, or commercial partnerships. Purely internal documents are insufficient.

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Position marks in the European Union: between visual innovation and legal protection

Introduction

The evolution of trademark law in Europe has enabled the emergence of new forms of distinctive signs, adapted to companies’ visual strategies. Among these, the position mark stands out as a still relatively uncommon category, though one whose use and recognition are steadily increasing before European offices and courts.

This type of trademark, which lies at the intersection of design and traditional trademarks, protects the specific way in which a sign is affixed to a product. The European Union has regulated this concept through the European Union Trademark Regulation (EUTMR) and the EUIPO guidelines, in order to define its limits and guarantee legal certainty for economic operators.

Definition and characteristics of position marks

According to the EUIPO, a position mark is defined as a sign “consisting of the specific manner in which the mark is placed or affixed to the product.”

The graphic representation must clearly identify the position, size, and proportion of the sign in relation to the product concerned.

To be admissible, the graphic representation of the trademark application must:

  • Be precise, intelligible, and objective.
  • Include, where applicable, dotted lines to distinguish unprotected elements.
  • Avoid any vague descriptions suggesting that the position of the sign could vary depending on the products.

Thus, protection covers not only the sign itself, but also the combination of that sign and its particular positioning on the product.

Conditions of validity before the EUIPO

To be registered, a position mark must meet the conditions of validity set out in Article 7(1)(a) and (b) of the EUTMR, namely:

  • Be clearly defined and identifiable.
  • Have distinctive character, enable consumers to identify the commercial origin of the goods.

The EUIPO ensures that the representation filed allows any economic operator to understand the scope of protection without ambiguity. A sign that is purely decorative, generic, or inseparable from the usual appearance of the product may be refused. Case law thus reminds us that a position mark must not be confused with a simple design or aesthetic element.

conditions registering mark

The Airwair International Limited case

In a decision handed down on August 12, 2025, the EUIPO Cancellation Division ruled in the case Mtng Europe Experience, S.L.U. v. Airwair International Limited, regarding the famous yellow heel loop on Dr. Martens shoes.

Mtng Europe Experience, challenged the validity of the position mark registered by Airwair, described as a black and yellow buckle affixed to the back of the shoe, accompanied by contrasting yellow stitching.

The EUIPO reiterated that the representation of a trademark must be clear, precise, and durable, allowing for unambiguous identification of the protection conferred.

In this case, the Cancellation Division ruled that the trademark met these criteria and rejected the request for cancellation, considering that the visual element and its position gave the product a strong distinctive character.

This decision confirms the possibility of protecting an iconic visual positioning when it serves as an indication of commercial origin.

Practical issues for rights holders

For businesses, position marks offer valuable protection against the imitation of distinctive visual elements. They extend the protection afforded by the design or shape of the product by specifically targeting the location of a distinctive sign.

However, their success depends on a rigorous filing strategy:

  • Describe the position of the sign precisely;
  • Avoid any confusion between aesthetic function and function of origin;
  • Ideally, secure the trademark application with proof of use and public recognition.

Trademark owners must therefore work hand in hand with specialized IP counsels to secure the scope of their applications and avoid any cancellation based on lack of clarity or distinctiveness.

Conclusion

Position marks represent a major evolution in trademark law, adapted to contemporary visual and marketing realities.

The Airwair case illustrates the importance of rigorous and consistent representation to ensure the validity of such a registration.

By combining visual innovation and legal rigor, position marks enable companies to protect not only their identity, but also the way they present it to the public.

Dreyfus & Associés assists its clients in managing complex intellectual property cases, offering personalized advice and comprehensive operational support for the complete protection of intellectual property.

Dreyfus & Associés works in partnership with a global network of attorneys specializing in Intellectual Property.

 

Nathalie Dreyfus with the support of the entire Dreyfus team

 

Q&A

 

1. What is a position mark?

A position mark protects the specific way in which a sign is affixed to a product, rather than the sign itself. It is therefore distinct from figurative or three-dimensional marks.

2. What are the criteria for the validity of a position mark ?

It must be clear, precise, and sufficiently distinctive to enable consumers to identify the origin of the product.

3. What is the difference between a position mark and a design ?

A design protects the aesthetic appearance of a product, while a position mark protects the commercial origin associated with a particular visual positioning.

4. Can position mark protection and design protection be combined ?

Yes, both types of protection can coexist if they serve different purposes: one aesthetic, the other distinctive.

5. Why register a position mark ?

To prevent imitations and strengthen the protection of iconic visual elements that contribute to a brand’s identity, such as a seam, a stripe, or a distinctive location.

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Complete Guide on Bad Faith in Trademark Cancellation Proceedings before the INPI

Introduction

The administrative cancellation procedure has been available before the INPI since April 1, 2020, thanks to the PACTE Law of May 22, 2019. After five years, this procedure has proven highly successful. Bad faith in the filing of a trademark is one of the most frequently invoked absolute grounds for cancellation before the INPI. The rise of parasitic strategies, increased competitive tensions, and the consolidated case law from the CJEU have prompted companies to examine what this concept actually entails.

In this article, we provide a comprehensive guide to understanding and identifying bad faith in a trademark application, in order to determine under which conditions a nullity action can be brought before the INPI.

Understanding the concept of bad faith in trademark law

Legal definition and foundations

Article L.711-2 11° of the French Intellectual Property Code provides that a trademark filed in bad faith cannot be validly registered. If it is nevertheless registered, it may be declared null.
More specifically, the prohibition of bad faith targets any filing made with an intention contrary to honest commercial practices, whether to harm a competitor, unduly monopolize a sign, or divert the essential function of indicating origin.

Presumption of good faith and burden of proof

Under Article 2274 of the French Civil Code, good faith is always presumed. The burden of proof lies with the claimant seeking nullity, who must provide relevant and consistent evidence. This evidence must be dated, contextualized, and allow assessment of the applicant’s intention at the time of filing.

Identifying bad faith in a trademark application

Fraudulent behaviors targeting a specific third party

This category covers situations in which the applicant knew of prior use and filed with the intention of harming the third party’s interests, for example:

  • Filing a sign used by a former business partner, employee, or distributor

In the Secretum decision of April 15, 2025 (NL24-0093), a commercial partnership existed between the claimant and the owner of the contested trademark. The claimant had created a wine trademark specifically for the owner, with a contract explicitly stating that the trademark remained the claimant’s property. Despite this clause, the owner filed an identical trademark, reproducing both the term and the calligraphy.

  • Intent to improperly benefit from the reputation of the sign

For example, in a July 3, 2023 decision (NL23-000) regarding the trademark “logo bande fils” (or “BANDE DE FILS DE SNAP”) the INPI considered that the trademark exploited the notoriety of the signs “SNAPCHAT” and “logo snapchat”. The contested trademark was filed with the intent to create an association in the public’s mind and profit from the reputation and success of the existing application.

  • Coincidence of the end of a contractual relationship and a targeted filing

In the HYGROTOP decision of February 23, 2022 (NL21-0167), the claimant had ended commercial relations with the company distributing and installing its products. On the same day, the managing director of the distributing company filed the claimant’s name as a trademark.

Filings diverting the essential function of a trademark

Some fraudulent filings do not target a specific third party but aim to obtain an unjustified monopoly, for example:

  • Filing to prevent a revocation action

In the Pomone decision of March 27, 2025 (NL23-0276), the claimant requested that the owner of preexisting POMONE marks (filed in 2017 and registered for more than five years) provide proofs of use, according to the rules controlling use of older marks. Less than three weeks after this request, the owner filed the contested trademark to strengthen its position in negotiations regarding the purchase of the marks.

  • Filing a work in the public domain

In the Pompon decision of September 13, 2024 (NL23-0183), the trademark «POMPON», filed by a museum shop operator, was challenged by Dixit Arte SAS. The claimant argued that the registration aimed to monopolize the name «Pompon», associated with sculptor François Pompon, whose works are in the public domain.

For more information on this matter, please refer to our previously published article.

Factual indicators considered by the INPI

The assessment is global and depends on multiple factors, such as:

Chronology of events (often decisive), e.g., in Drag Race France, April 26, 2023 (NL22-0205), the contested trademark was filed simultaneously with the announcement of the show’s arrival in France by the claimant.

Attempts to monetize the filing, e.g., in Google, August 30, 2021 (NL21-0055), the owner of the contested marks offered to modify the project in exchange for compensation, indicating a “wait for a monetary proposal.”

Other factors include:

  • Prior relations between the parties;
  • Notoriety of the prior sign;
  • A clearly parasitic strategy of multiple filings.

factors bad faith

Conversely, the INPI rejects bad faith when a filing aims to strengthen preexisting rights or involves a real and legitimate exploitation project.

Bad faith as a procedural tool before the INPI: the example of forfeiture through acquiescence

Article L.716-2-8 of the French Intellectual Property Code provides that the holder of an earlier right who tolerated the use of a later-registered trademark for five consecutive years cannot request nullity of that later trademark. This is known as forfeiture through acquiescence.

However, the article makes an exception: nullity is still possible if the registration was filed in bad faith. This serves as a powerful lever when the prior right holder discovers an abusive filing late.

In the recent LOCPLUS decision of December 14, 2023 (NL21-0255), the issue was examined, showing the strictness required to overturn forfeiture. In that case, although bad faith was invoked to bypass forfeiture, the argument was rejected due to insufficient evidence.

Conclusion

Cancellation of a trademark for bad faith in INPI proceedings is a decisive legal mechanism to combat parasitic strategies. Rigorous assessment of bad faith strengthens the legal certainty for economic actors.

In an environment of increasing trademark conflicts, understanding this absolute ground for cancellation is essential to protect intangible assets and anticipate litigation risks.

Dreyfus & Associés assists its clients in managing complex intellectual property cases, offering personalized advice and comprehensive operational support for the complete protection of intellectual property.

Dreyfus & Associés works in partnership with a global network of attorneys specializing in Intellectual Property.

Nathalie Dreyfus with the support of the entire Dreyfus team

FAQ

1. Can the INPI raise bad faith ex officio during examination of a trademark application
No. The INPI cannot raise bad faith on its own; it can only be invoked by a third party in a nullity action.

2. Is likelihood of confusion required to prove bad faith?
No. Bad faith sanctions a fraudulent intention, independent of confusion analysis.

3. Can a company file a name it plans to commercialize later?
Yes, provided there is a genuine and fair intention to use it, not as part of a fraudulent strategy to block a competitor.

4. Can multiple filings indicate bad faith?
Yes, if they reveal a systematic strategy to capture signs used by third parties.

5. Can bad faith exist without targeting a third party?
Yes, for example, when the filing diverts the essential function of a trademark.

This publication provides general guidance and highlights key issues. It is not intended for specific cases nor to constitute legal advice.

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Analysis of a major turning point in French trademark cancelation action

Introduction

The publication by the INPI of its analysis of the first five years of cancellation and revocation procedures trademarks an important step in the evolution of trademark litigation in France. For the first time, the Office provides a comprehensive and documented overview of how these procedures, introduced by the Ordinance of November 13, 2019, and accessible since April 2020, actually work.

This report, published in the INPI’s Journal du droit, highlights how these administrative mechanisms have become a key tool in trade mark protection and litigation strategies. It outlines the profile of users, the legal grounds most frequently invoked, and the way the INPI applies the provisions of the Intellectual Property Code.

An administrative procedure that has become essential

Since their entry into force on April 1, 2020, applications for cancellation and revocation, provided for in Articles L. 714-3 and L. 714-5 of the Intellectual Property Code, have significantly transformed trademark litigation.

They offer several advantages:

  • direct access, without going through a court;
  • controlled costs, limiting the financial uncertainties of legal proceedings;
  • decisions accessible in the INPI’s official legal database.
  • a clear procedural framework, allowing for better anticipation.

The first decision issued in November 2020 confirmed the INPI’s ability to handle disputes previously reserved for specialized courts. Since then, companies, particularly SMEs, have actively used these procedures to protect their trademarks or challenge those of competitors.

A volume of decisions that is reshaping the landscape

In five years, the INPI has received approximately 2,200 applications and issued more than 1,800 decisions, a stable volume demonstrating widespread adoption by businesses and practitioners.

Breakdown of applications:

  • 60% cancellation actions;
  • 40% revocation actions.

These figures show two main uses:

  • challenging the validity of a trademark upon filing
  • sanctioning the absence of genuine use.

The analysis also highlights the strong involvement of SMEs and micro-enterprises, which represent more than one-third of applicants and defendants. The mechanism therefore achieves the accessibility objective set by the legislator.

The presence of a lawyer or patent attorney in over 90% of cases confirms that, despite its accessibility, the procedure remains legally demanding.

The legal grounds most commonly invoked the INPI

Relative grounds dominate cancellation actions :

Nearly 70% of cancellation requests are based on prior rights (Articles L. 711-3 et seq. of the CPI).

The INPI regularly recognizes the similarity or likelihood of confusion between signs, which explains the high success rate of this type of action.

Absolute grounds remain decisive :

Approximately 20% of actions invoke absolute grounds such as:

  • lack of distinctiveness,
  • descriptive character,
  • violation of public policy,
  • bad faith at the time of filing.

Bad faith, which was previously mainly examined by the courts, now plays an essential role before the INPI. It is invoked in more than 20% of cases and upheld in a significant proportion of them.

Revocation : lack of use as the main argument :

Lack of genuine use remains the main basis for revocation proceedings. The INPI notes that lack of commercial exploitation continues to be the easiest objective ground to document. Around 30 decisions also dealt with the degeneration or misleading nature of trademarks, which are rarer but important situations for certain sectors.

Duration, effectiveness, and observed trends

The average duration of proceedings is 8.5 months, which can extend to 17 months in the event of a hearing.

Nearly 30% of proceedings are closed without a decision on the merits (withdrawal, regularization, amicable agreement), which demonstrates the strategic use of proceedings as a bargaining chip.

Success rates are high:

  • 85% of actions based on prior rights are successful in whole or in part;
  • 74% of revocation actions are fully justified;
  • More than 1,000 trademarks have been canceled or revoked since 2020.

Decisions often include an order to pay costs, with an average amount of €680, reinforcing the need for a solid strategy before initiating proceedings.

resultats procédures marques

Practical issues for trademark owners

The publication of the analysis highlights several essential reflexes:

  • regularly check the strength of registered trademarks;
  • systematically keep evidence of use, which is essential in the event of a dispute;
  • monitor competing filings to quickly detect conflicts using the tools provided by the INPI;
  • factor the risk of cancellation into naming and branding decisions;
  • prepare precise, documented, and structured arguments to maximize the chances of success.

To support these efforts, companies can rely on several useful resources:

  • Journal de droit (analysis of decisions), INPI
  • Légifrance for the applicable legal framework,
  • The CNIL when evidence is based on online or time-stamped data.

Conclusion

The analysis published by the INPI confirms the key role played by cancellation and revocation proceedings in protecting trademarks in France. Their effectiveness, the diversity of the parties that use them, and their high success rate now make them an essential tool. For companies, the challenge is to adopt an active, proactive, and documented approach to managing their intellectual property in order to secure their intangible assets in the long term.

Dreyfus & Associés assists its clients in managing complex intellectual property cases, offering personalized advice and comprehensive operational support for the complete protection of intellectual property.

 

Dreyfus & Associés works in partnership with a global network of attorneys specializing in Intellectual Property.

 

Nathalie Dreyfus with the support of the entire Dreyfus team

 

FAQ

 

1. What is the main benefit of the administrative procedure?

A quick, accessible, and effective resolution of trademark disputes.

2. What are the most effective grounds for cancellation?

Relative grounds based on prior rights.

3. How can genuine use of a trademark be proven?

With dated evidence: invoices, advertisements, sales statistics, web archives.

4. Can the INPI refuse to rule?

Yes, particularly in the event of a pre-existing legal dispute concerning the same facts.

5. Are actions for bad faith effective?

They are upheld in approximately half of the cases in which they are brought.

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