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When is URS a strategic option for trademark owners?

Introduction

The Uniform Rapid Suspension (URS) procedure is particularly effective when the primary goal is to stop a clear trademark infringement quickly through a domain name, without initiating a heavier procedure aimed at transferring the domain. It complements the UDRP by offering a faster and generally less expensive route, but with a deliberately limited remedy: suspension (not recovery) of the domain name.

URS: what the procedure can do (and what it cannot)

The promise: fast suspension, no transfer

URS allows a trademark owner to file a complaint for infringement of its rights, leading to the temporary suspension of the disputed domain name without any transfer of ownership. The suspension remains in place until the end of the registration period, after which the domain name is expected to become available again.

Strategic implication: URS is ideal when the priority is to stop a fraud or abusive use, rather than to recover a digital asset.

The standard: a procedure reserved for “clear-cut” cases

URS is designed for the most obvious infringements. It is not comfortable territory where the file involves a serious factual or legal dispute (plausible competing rights, potentially descriptive use, broader commercial dispute). This approach is expressly supported by ICANN: URS is intended as a fast-track mechanism for clear cases.

The three elements to prove (the “three-part test”)

To succeed in an URS complaint, the complainant must establish three cumulative elements:

  • The domain name is identical or confusingly similar to a word trademark or figurative trademark owned by the complainant (a valid national/regional registration in current use, or judicially validated), and the complainant must be able to prove both the registration and the use;
  • The domain name holder has no legitimate right or interest;
  • The domain name was registered and is being used in bad faith.

condition urs complaint

Which Top-Level Domains (TLDs) are eligible for URS?

Before recommending URS, it is essential to verify the eligibility of the relevant extension, as URS is not intended to apply indiscriminately to all TLDs. As a rule, URS was designed for the new gTLDs introduced under the ICANN program, meaning it primarily applies to domain names registered under those new extensions. Conversely, for legacy gTLDs (for example, .com, .net, or .org), URS is not automatically available and the “standard” route generally remains the UDRP.

There are, however, specific cases: certain so-called “legacy” extensions have incorporated URS following amendments or renewals of their Registry Agreement, so that an extension historically “outside URS” may become eligible depending on the applicable framework. In practice, the most robust approach is therefore to confirm, on a TLD-by-TLD basis, whether URS is available, and then to choose between URS and UDRP depending on the objective pursued (rapid neutralization or transfer).

When URS is strategically better than the UDRP

1) Phishing, fake shop, impersonation: neutralization comes first

When the domain name is used for fraud (phishing, payment pages, a fake store replicating the trademark, misleading redirects), the economic priority is often to stop the abuse before anything else. In this context, URS is strategic because it specifically targets obvious abuse and can lead to rapid suspension.

2) Short-window campaigns: sales, launches, events

Where infringement is opportunistic (Black Friday, holiday season, product launches, influencer-driven campaigns), the key issue is not the ownership of the domain name but the loss of revenue and consumer confusion over a short time frame. URS is then a proportionate response: fast, tailored to obvious cases, and compatible with a multi-channel enforcement strategy.

3) Volume: “cloned” series of registrations (same pattern, same actor)

URS is also relevant where multiple domains follow the same abusive pattern: trademark + generic term, typos, geographic variants, or multiple extensions. Providers offer fee schedules adapted to volume, which can make URS economically rational in “anti-raid” operations.

4) When transfer offers no immediate value

If the domain name has no real portfolio value (no marketing value, no “clean” traffic, no portfolio coherence), pursuing a transfer under the UDRP may be disproportionate. URS allows us to cut the abuse and let the domain expire, with a possible one-year extension if needed.

Limitations: when URS is not the right tool

1) Where recovering the domain name is a business issue

URS does not transfer ownership. If the domain name is strategic (trademark + core business term, product name, recurring campaign name), the UDRP (or a national procedure) is more suitable, as it can result in a transfer.

2) Where there is a serious dispute

URS is designed to exclude “debatable” situations. If a potentially legitimate use exists (criticism site, parody, descriptive use, plausible prior rights, contractual dispute), the URS complaint may be denied, as the examiner must reject the complaint whenever a substantial factual dispute arises.

3) Where evidence of trademark use is weak

URS requires a clean file (rights, use, bad faith, lack of legitimate interest). Operationally, the procedure is strict and leaves little room to “fix” weaknesses afterwards: an incomplete or poorly structured filing can significantly undermine the case.

Conclusion

URS is a strategic route when a rapid response is required, focused on neutralizing a clear infringement, on an eligible TLD, with an evidentiary record capable of meeting the clear and convincing evidence standard. Conversely, as soon as the goal is to recover the domain name, or where a serious dispute is foreseeable, the UDRP (or a targeted court action) becomes the natural option again.

It is also advisable to strengthen your upstream framework through an integrated strategy combining targeted filings for key signs, continuous monitoring of risky registrations and content, and a graduated response depending on urgency (notice, takedown requests to intermediaries, then URS or UDRP where suspension or transfer is required).

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 the deadline to respond to an URS complaint?

In principle, the respondent has 14 calendar days to file a response.

2. What level of proof does URS require?

The complainant must prove its case by clear and convincing evidence and show that there is no substantial factual dispute.

3. How much does an URS proceeding cost?

Costs depend on the provider and the number of domain names involved. By way of indication, centers such as Forum, ADNDRC, and MFSD publish fee schedules: for a straightforward case (1 domain), fees usually start at a few hundred, then increase by tiers or with an additional per-domain fee.

4. Is there an appeal mechanism under URS?

Review/appeal mechanisms exist under the URS rules and the provider’s supplemental rules (deadlines, fees, conditions).

5. In which cases is URS not recommended?

Where the objective is transfer, or where the case raises serious factual or legal issues (potentially legitimate use, credible competing rights).

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 will ICANN’s Registration Data Request Service (RDRS) reshape access to non-public WHOIS data through 2027?

Introduction

ICANN’s Board decision of 30 October 2025 keeps the Registration Data Request Service (RDRS) running until December 2027, while the community debates whether RDRS should evolve into a long-term, standardised access model (such as SSAD or a successor). The practical consequence is immediate: for the next two years, stakeholders must operate in a “hybrid” environment where disclosure requests are increasingly standardised in format, but still uneven in coverage, timelines, and authentication.

RDRS: what it is (and what it is not)

The Registration Data Request Service (RDRS) is a pilot service launched on 28 November 2023 to standardise the submission format of requests to obtain non-public gTLD registration data from ICANN-accredited registrars. It is intentionally not a final policy framework: it is a “real-world instrument” to measure demand, collect operational metrics, and identify policy gaps, so the community can decide what a durable system (e.g., SSAD) should look like.
What this means concretely: RDRS standardises the front door, not the outcome. Each registrar still applies its own legal assessment and decision-making, within applicable law and ICANN policy.

What ICANN’s 30 October 2025 resolution changes in practice?

ICANN’s Board confirmed that RDRS will continue operating for up to two years beyond the pilot, i.e., until December 2027, while the community works through next steps and policy alignment.
From an operational perspective, three points matter most:
• Continuity: rights-holders and investigators can keep using RDRS as a live channel rather than losing it at the end of the pilot.
• Pressure to expand uptake: the Board explicitly encouraged comprehensive usage by requestors and registrars, without (yet) converting it into a mandatory regime.
• Policy alignment is now the battlefield: ICANN opened a public comment process on the “RDRS Policy Alignment Analysis”, positioning it as the roadmap for addressing gaps (privacy/proxy underlying data, urgent timelines, authentication, etc.).

effect rdrs icann

What ICANN84 in Dublin revealed: the real friction points

ICANN84 (Dublin, 25–30 October 2025) made one reality unavoidable: RDRS is useful, but incomplete, and its weakest points sit exactly where brand protection and law enforcement most need predictability.

Voluntary participation creates structural blind spots

A recurring concern is that participation is not universal. The Governmental Advisory Committee (GAC) highlighted that optional registrar participation translated into about 60% of gTLD domains under management being reachable via RDRS, which inevitably depresses requestor adoption and undermines “single-channel” expectations.

Authentication (especially for law enforcement) is a gating item

Community discussions repeatedly return to one practical question: who is the requestor, and can the registrar rely on that identity fast enough for urgent cases? ICANN’s own communications refer to ongoing work on an authentication protocol for law enforcement users during the extension period.

Integration and workflow efficiency are decisive

Registrars with mature disclosure processes are reluctant to “duplicate” work. The direction of travel is therefore technical: API-based integration that lets registrars map RDRS inputs into their internal tooling, reduce manual handling, and improve turnaround consistency, without forcing a single UI on everyone.

RDRS vs SSAD: why the distinction matters for strategy and compliance

SSAD (System for Standardised Access/Disclosure) is not a synonym for RDRS. SSAD is a policy construct developed through the EPDP Phase 2 process, with 18 interdependent recommendations covering accreditation, request criteria, response requirements, logging, auditing, and service levels.
ICANN’s Operational Design Assessment work illustrates why SSAD has remained complex and resource-intensive to implement, and why the community is now testing what can be improved incrementally via RDRS while policy deliberations continue.
Practical takeaway: RDRS is the operational “bridge” through 2027; SSAD (or a successor) is the potential “highway.” Planning must therefore assume evolution, not stability.

European data protection: how GDPR logic shapes disclosure decisions

For European stakeholders, the disclosure decision is rarely “policy-only.” It is a legal risk assessment structured around GDPR principles: lawful basis, necessity, proportionality, transparency, minimisation, retention, and accountability.

Lawful basis and the “legitimate interest” test

In most rights-holder scenarios, disclosure requests are framed around legitimate interest (Article 6(1)(f) GDPR logic), which requires (i) a legitimate interest, (ii) necessity, and (iii) balancing against the data subject’s rights and reasonable expectations. The CNIL and French legal materials frequently reflect this three-step logic.

Cross-border reality: one DNS, many legal regimes

A single domain name can involve a registrar in one jurisdiction, a registrant in another, and harm occurring across markets. RDRS helps standardise inputs, but it does not harmonise legal thresholds. As a result, outcomes will continue to vary unless and until enforceable service standards and authentication mechanisms mature.

A useful comparison point for France: AFNIC’s disclosure logic

While RDRS targets gTLDs, French operators and rights-holders are already familiar with structured disclosure models at the ccTLD level. AFNIC, for example, provides a formal route to request disclosure (lift of anonymisation) for .fr-type namespaces, illustrating that “structured request + evidence + legitimate interest” is operationally feasible, yet still fact-dependent.

Operational implications by stakeholder type

Registrars and registries: prepare for “standardisation pressure”

If you are not participating, you risk being operationally and reputationally out of step with ICANN’s “comprehensive usage” direction, even before any mandatory shift occurs.
If you are participating, the competitive differentiator becomes process maturity: intake quality, documented decision criteria, escalation paths for urgent cases, and technical integration capacity.
For further reading, we invite you to consult our analysis of ICANN registration data policy measures and their impacts.

Rights-holders and investigators: treat RDRS as one channel in a layered toolkit

RDRS remains a valuable path, but not a complete one. We recommend positioning it as:
• a first-line standardised intake for gTLD non-public data; and
• a case-building instrument that strengthens follow-on actions (takedown, registrar escalation, UDRP/URS, court measures) when disclosure is denied or delayed.
For further reading, we invite you to consult our complete guide to UDRP, Syreli, and international alternatives.

Privacy/proxy services: expect policy alignment to narrow discretion

One of the most sensitive gaps concerns access to underlying data behind privacy/proxy services, and how such requests should be handled in a standardised architecture. The policy alignment track explicitly connects RDRS evolution with privacy/proxy workstreams.

Corporate stakeholders: anticipate governance questions, not only “legal” questions

Large organisations operating globally should expect internal questions such as:
• Who is authorised to submit RDRS requests?
• What evidence threshold is required (fraud indicators, brand rights, consumer harm, phishing signals)?
• How do we log, retain, and audit outgoing requests and incoming data to meet internal compliance expectations?

Conclusion

The Registration Data Request Service (RDRS) is no longer a short experiment: with operations maintained through December 2027, it becomes the reference bridge for non-public gTLD registration-data requests, while the community debates whether to harden it into mandatory, authenticated, SLA-driven infrastructure. For European organisations, success will depend on combining high-quality evidence, disciplined disclosure theories, and well-sequenced enforcement paths that remain robust even when disclosure is refused.

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) Does RDRS replace WHOIS/RDDS?

No. WHOIS/RDDS remains the system for accessing registration data (often partially redacted), while RDRS is a separate channel for submitting disclosure requests.

2) Does RDRS provide automatic access to non-public WHOIS data?

No. There is no automatic disclosure: each request is assessed by the registrar on a case-by-case basis, based on the applicable legal framework and the supporting evidence provided.

3) What is SSAD and how is it different from RDRS?

SSAD is the policy framework proposed by the EPDP Phase 2 process, including recommendations on accreditation, request criteria, response requirements, auditing, and SLAs. RDRS is a pilot operational service collecting data and experience while those policy questions remain unresolved.

4) Why is “law enforcement authentication” such a central issue?

Because urgent, cross-border cases require reliable requestor identity verification. ICANN has identified authentication work as a priority improvement track during the extension period.

5) How should EU rights-holders frame RDRS requests under GDPR constraints?

Requests should be tightly scoped, evidence-driven, and aligned with lawful-basis logic (often legitimate interest), necessity, proportionality, and documented balancing, consistent with CNILstyle reasoning around Article 6(1)(f).

6) If RDRS fails, what are the fastest alternatives to stop abuse?

Depending on the facts: registrar/hosting takedown routes, platform abuse channels, and, when transfer or suspension is needed, UDRP/URS or ccTLD-specific procedures.

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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Is the filing of a trademark or a domain name in the name of a company president fraudulent?

Introduction

In corporate life, the issue of ownership of intangible assets is far from secondary. The filing of a trademark or the registration of a domain name in the personal name of a company director, even though such signs identify the company’s business, regularly gives rise to disputes. This practice is not automatically unlawful. However, it may become fraudulent where the filing is carried out with knowledge of the company’s prior rights or use, or as part of a strategy aimed at the personal appropriation of a strategic asset. This issue was recently illustrated by a noteworthy decision of the Douai Court of Appeal dated June 12, 2025.

The stakes are significant: judicial transfer of the trademark, loss of the domain name, civil liability, and potentially unfair competition claims.

When may a director file a trademark or register a domain name in their own name?

The principle: freedom to file

Under French law, the right to file belongs to the first applicant. As a matter of principle, no provision prohibits a director from filing a trademark or registering a domain name in their personal name, including where a company is still in the process of being formed. This formal freedom explains many “anticipatory” filings, particularly prior to incorporation.

The limit: corporate interest and loyalty

This freedom nevertheless reaches its limit where the filing takes place in the context of a joint project, a company in formation, or collective exploitation of the sign. A director may not divert to their own benefit an asset intended to identify the company.

To learn more about recent case law developments relating to trademarks filed on behalf of companies in formation, we invite you to consult our previously published article.

The criteria applied by French courts

Prior use for the benefit of the company

Use of the sign prior to filing, even informal, for the benefit of the future company or its associates constitutes a strong indication of fraud where the filing is made in a personal capacity.

The context of a company in formation

Where the filing takes place while the company is in the process of being formed, and the sign has been chosen collectively, courts frequently consider that the applicant acted in the corporate interest, even if the company had not yet acquired legal personality.

The director’s subsequent conduct

Fraud is not presumed. It is based on an intentional element: the applicant’s knowledge of existing rights or prior use that they seek to neutralise or appropriate. Case law consistently recalls that fraudulent intent must be assessed in light of all the circumstances, including those arising after the filing. Fraud is often revealed by subsequent conduct, such as:

  • Proposing a licence agreement to the company,
  • Threatening to prohibit use of the sign,
  • Retaining control of the domain name or professional email addresses.

In a recent case, the Douai Court of Appeal ruled on this issue.

application fraud condition

The decision of the Douai Court of Appeal, June 12, 2025, No.22/05989

Facts of the case

A founding associate, who later became president of a company in formation, personally filed several trademarks and registered a domain name corresponding to the sign intended to identify the company’s business. After his dismissal, he claimed ownership of these rights and proposed a licence agreement to the company, while retaining control over the domain name and the professional email addresses.

Decision of the Douai Court of Appeal

In its decision of 12 June 2025, the Douai Court of Appeal held that these filings constituted fraudulent filings, as they had been carried out with full knowledge of the circumstances, within the framework of a collective business creation project, and exclusively in the interest of the company in formation. The Court ordered the transfer of the trademarks and the domain name to the company, finding that the director had sought to appropriate a strategic intangible asset for personal purposes.

The Court also found the existence of acts of unfair competition and parasitism, as the former president, following his dismissal, pursued a competing activity through a newly created company while improperly exploiting the signs and identifying elements of the original company.

Scope of the decision

This decision confirms settled case law: the filing of a trademark or the registration of a domain name by a director is not unlawful per se, but becomes fraudulent where it diverts a sign intended to identify and develop the company’s business, in disregard of the collective interest and the duty of loyalty.

Trademarks and domain names: a converging legal approach

Courts apply a similar line of reasoning to domain names. Personal registration of a domain name corresponding to the corporate name or an exploited trademark may be characterised as fraud or unfair competition where it disrupts the company’s operations or diverts an element of its intangible assets.

Issues relating to identification data and access retention are also assessed in light of loyalty requirements and, where applicable, the principles recalled by the CNIL regarding the use of professional data.

Best practices to secure ownership of rights

  • Anticipate ownership issues from the creation phase.
  • Include an asset transfer clause in the articles of association or shareholders’ agreements.
  • File trademarks directly in the name of the company once incorporated.
  • Centralise domain name management at company level.
  • Document collective decisions relating to the choice and exploitation of distinctive signs.

Conclusion

The filing of a trademark or the registration of a domain name in the name of a director is not, in itself, fraudulent. It becomes so when the facts demonstrate a disloyal appropriation of a sign intended to identify the company’s business, to the detriment of the company and its associates.

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 a company recover a trademark filed by its director?
Yes, through an action for ownership claim where fraud is established.

2. What if the articles of association do not provide for the transfer of trademarks?
The absence of a transfer clause does not prevent legal action, but it weakens the company’s position and makes proof of fraudulent intent more complex.

3. Is an oral agreement between associates sufficient?
It is risky. A written agreement is strongly recommended.

4. Is payment of filing fees by the company decisive?
It is a strong indication, but not an exclusive one.

5. Is the registration of a domain name treated in the same way as a trademark?
The legal reasoning is largely similar, particularly where company operations are disrupted.

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

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EU Design Protection: Complete Guide to the 2025 Reform

Designs are a major competitive lever. In the European Union, the protection of product appearance underwent a historic overhaul with the entry into force of Regulation (EU) 2024/2822 on May 1, 2025.

This expert guide breaks down the current system, the new opportunities from the reform, and strategies for filing, monetizing and defending your creations.

📅 Reform Timeline

December 8, 2024 Entry into force of the Regulation and Directive
May 1, 2025 Application of main provisions (Phase I) — now in effect
July 1, 2026 Application of secondary provisions (Phase II)
December 9, 2027 Deadline for Member States to transpose the Directive
December 9, 2032 End of transitional period for spare parts

1. Scope of protection: from physical to virtual

A modernized definition

Under the new regulation, a design means the appearance of the whole or a part of a product resulting from its features: lines, contours, colors, shapes, textures, materials, and now also movement, transitions and animation.

The reform has expanded the definition of “product” to explicitly include digital and non-physical creations. Now covered are:

  • Graphic elements: logos, graphic symbols, icons and graphic works
  • Digital interfaces: graphical user interfaces (GUI), typefaces, application animations
  • Virtual environments: objects in video games, metaverse products, virtual spatial configurations
  • Physical presentations: packaging, sets of articles, interior arrangements (e.g.: store design)

What remains excluded from protection

Pure technical function: Features dictated solely by technical function are not protected. The Court of Justice clarified in the Papierfabriek (C-684/21) ruling that the existence of alternative designs is not a decisive criterion for circumventing this exclusion.

Interconnections: Shapes necessary to mechanically connect two products are excluded. Notable exception: modular systems (interchangeable elements like construction bricks) remain protectable.

2. Registered or unregistered: the dual system

The EU offers unique flexibility depending on your products’ lifecycle and commercial strategy.

Characteristic Unregistered EU Design (UEUD) Registered EU Design (REUD)
Duration of protection 3 years from the date of first disclosure in the EU 5 years, renewable every 5 years up to a maximum of 25 years
Scope of protection Against copying only. Ineffective against independent creation. Complete monopoly. Protects against any similar design, even if created independently.
Formalities None — automatic protection upon disclosure Filing required with the EUIPO
Evidence Burden of proof on the holder (date of disclosure + copying) Registration certificate = official proof
Ideal for Fashion, seasonal trends, short-cycle products Flagship products, iconic designs, R&D investments

💡 Strategic advice

For short-cycle sectors like fashion, start with automatic protection (UCD), then register only the designs that achieve commercial success. You have 12 months (grace period) after first disclosure to file.


3. Registration procedure: strategies and pitfalls

Filing and simplification

An application can be filed directly with EUIPO or through WIPO (Hague System). Since May 1, 2025, submission of physical specimens has been abolished — only digital representations are accepted.

Important: Filing through national offices is no longer possible. Only EUIPO is now competent for European Union designs.

Simplified multiple filing

The class unity rule has been abolished. You can now group up to 50 different designs (for example, a chair, a logo and an interface) in a single multiple application, even if they belong to different Locarno classes.

Fast Track procedure and costs

Timelines:

  • Standard registration: approximately 10 working days
  • Fast Track procedure: 2 working days

Fee structure (since May 2025):

Registration fee (1st design) €350
Each additional design €125
Deferment of publication (1st design) €40
Deferment (additional designs) €20 / design

Mandatory representation

If the applicant has no domicile, headquarters, or real and effective establishment in the EU, they must appoint a qualified representative for all proceedings following the filing. The initial filing can be made without a representative.


⚠️ The priority trap (KaiKai case law)

For international filings, be vigilant. The Court of Justice confirmed in the KaiKai (C-382/21 P) ruling that it is impossible to claim the priority of an international patent application (PCT) for a European Union design. Only the priority of a utility model filed within the preceding 6 months is allowed.


4. 2025 Reform: the 3 major changes

The reform brought by Regulation 2024/2822 and Directive (EU) 2024/2823 introduces strategic changes:

  1. Fight against illicit 3D printing

It now constitutes infringement to create, download, copy or share digital files or software recording the design for the purpose of manufacturing a product. This provision anticipates the rise of 3D printing technologies.

  1. The “Repair Clause” (Spare parts)

Spare parts used for repair in order to restore a product’s original appearance are no longer protected. This measure aims to liberalize the spare parts market, particularly in the automotive sector.

Important transitional regime:

  • Parts protected before December 8, 2024 retain their protection for a period of 8 years
  • Member States have until December 9, 2027 to transpose this directive
  1. Grace period and self-disclosure

The 12-month grace period is maintained. The designer’s own use of their product during this period does not destroy novelty, even if the final design differs slightly from the tested prototype.

5. Commercial exploitation: licenses and assignments

A registered design is a valuable business asset.

Licenses: The right can be licensed exclusively or non-exclusively for all or part of the EU.

Third-party enforceability: Recording the license or assignment in the EUIPO register is crucial to make it enforceable against third parties. Without registration, a good faith acquirer could be unaware of prior rights.

Licensee’s action: The holder of an exclusive license can bring infringement proceedings alone if the owner fails to act after formal notice.

6. Defense and litigation

Jurisdictional competences:

  • EUIPO: Exclusive competence for direct invalidity (administrative action)
  • National courts (“EU Design Courts”): Competence for infringement and can rule on invalidity by way of counterclaim

Appeal filtering (CJEU): Access to the Court of Justice is restricted. An appeal is only admitted if it raises a significant question for the unity or development of EU law (Article 58a of the Statute of the Court).

7. Recent case law to remember (2023-2025)

Judgment of the General Court of April 10, 2024 (Case T-654/22) M&T 1997 v EUIPO – VDS Czmyr Kowalik — Overall impression and tactile perception

For a door and windows handles, the General Court confirmed that tactile differences (edge curvature) influence the overall impression on the informed user, as they affect how the object is handled. As a result, the design does indeed have an individual character. Key takeaway: perceptible functional aspects count in the assessment of individual character.

Judgment of the General Court of March 22, 2023 (Case T-617/21) ) – B&Bartoni spol. s r.o., v EUIPO — Complex product

A welding torch electrode was deemed a “separate product” and not a component of a complex product, thereby escaping the visibility requirement during normal use. Key takeaway: “separate product” qualification extends protection.

Judgment of the Court of September 4, 2025 (Case C-211/24) – LEGO A/S v Pozitív Energiaforrás Kft., — Informed user (LEGO)

The Advocate General suggests that for construction bricks, a child can be considered an “informed user” with a high level of observation. Key takeaway: the informed user adapts to the product and its target audience.

8. Filing checklist

✅ Pre-filing checklist for EU Design

Design preparation

  • ☐ Verify the design has not been disclosed more than 12 months ago
  • ☐ Ensure the design is not dictated solely by technical function
  • ☐ Prepare high-quality representations (multiple views recommended)
  • ☐ Identify the appropriate Locarno class(es)

Prior search

  • ☐ Conduct a prior art search
  • ☐ Check for similar designs already registered
  • ☐ Analyze the individual character of your creation

Filing strategy

  • ☐ Decide: single or multiple filing (up to 50 designs)
  • ☐ Assess the opportunity for deferment of publication (confidentiality)
  • ☐ Check if priority can be claimed (6 months max.)

Formalities

  • ☐ If you are located outside the EU: appoint a qualified representative
  • ☐ Prepare fee payment (€350 + €125 per additional design)
  • ☐ Create an EUIPO User Area account

After filing

  • ☐ Monitor the publication deadline (30 months max. if deferred)
  • ☐ Record licenses/assignments in the EUIPO register
  • ☐ Plan for renewal (5 years)

9. Frequently Asked Questions (FAQ)

What is the difference between a registered and unregistered design?
An unregistered design (UEUD) lasts 3 years and only protects against copying. A registered design (REUD) lasts up to 25 years and provides a complete exploitation monopoly, protecting even against independent creations producing the same overall impression.

Can I register my design if I have already shown it to the public?
Yes, you benefit from a 12-month grace period before the filing date. Your own disclosure during this period does not destroy the novelty of your design.

How much does it cost to register an EU design in 2025?
Since May 1, 2025: €350 for the first design, then €125 per additional design in a multiple application. Deferment of publication costs €40 for the first design and €20 per additional design.

Are automotive spare parts still protected?
The “repair clause” now excludes protection for parts used to restore a product’s original appearance. However, a transitional period of 8 years applies to existing rights (until December 9, 2032). Spare parts that do not aim to reproduce the original appearance remain protectable.

What are the registration timelines at EUIPO?
A standard registration takes approximately 10 working days. Under the Fast Track procedure, registration can be obtained in just 2 working days.

Can a 3D file be protected as a design?
The 2025 reform does not directly protect digital files as such. However, the design they enable to reproduce is protected, and the creation/distribution of such files without authorization now constitutes infringement. Also consider copyright protection for the file itself.

How to protect a graphical user interface (GUI)?
Since the 2025 reform, graphical user interfaces are explicitly included in the definition of protectable products. You can file screenshots or animations showing the transitions and interactions of your interface.


Need assistance protecting your creations?

Dreyfus & Associates supports you in filing, managing and defending your designs in the European Union and internationally.

Contact our experts

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How can trademarks make or break your next M&A deal?

Introduction

An M&A deal is often decided on an element that is mistakenly viewed as “technical” until the documentation is scrutinized: the trademark. Where ownership is clear, registers are properly updated and use is consistent, the trademark supports a significant portion of the valuation, reduces legal uncertainty and facilitates post-acquisition implementation.
Conversely, an unclear chain of title, rights scattered across territories, or a trademark that is challenged or vulnerable (cancellation or revocation) may lead to price renegotiation, reinforced protections, or even the termination of the transaction.

Why trademarks are a decisive asset in M&A?

A trademark is not merely a graphic sign: it is an enforceable right…or a fragile advantage

A trademark is an asset because it grants an exclusive right to use a sign for designated goods and services. It enables the owner to prevent confusing uses, structure a distribution policy, support international expansion and protect marketing investment. However, its value depends on verifiable facts: who owns the trademark, in which territories, for which goods/services, and subject to which contractual constraints?

Common situations in which trademarks weaken the transaction

Uncertain ownership: the seller uses the sign but is not (or is no longer) the recorded proprietor. This undermines enforcement against third parties and complicates transfer. Under French law, recording transfers and changes is a key condition for opposability.
Territorial fragmentation: the same sign is owned by different entities depending on the country, complicating a global strategy (communications, social media, distribution, parallel imports). This is common in older portfolios or those built through successive acquisitions.
Risk of invalidity or revocation: descriptive trademark, serious prior rights, insufficient use for certain classes, overly broad specifications disconnected from actual activity, a portfolio that is “theoretical” rather than defensible.
Contracts that dilute value: exclusive licenses, imbalanced coexistence agreements, security interests, non-challenge commitments, transfer restrictions or change-of-control clauses.

factors weakening ma

Trademark audit: the checks that protect price and completion

1) Start from the business strategy

First, identify the portfolio’s strategic marks: the main trademark, sub-trademarks, slogans, logos, country-specific marks, flagship product names, and their role in the company’s growth (line extensions, new markets, new channels). The goal is not merely to take stock, but to confirm that the portfolio truly supports the post-acquisition plan (roll-out, expansion, diversification, internationalisation).

2) Secure the chain of title and opposability

Next, the asset must be regularised before being transferred. In France, INPI sets out the recording of events affecting a trademark’s life (assignment, change of name, merger, etc.), which contributes to publicity and opposability.
Key points of attention: in France and in the European Union, an up-to-date register is a condition for a transfer that is fully opposable and practically usable; for international trademarks, changes of ownership are handled through WIPO procedures.

3) Verify the validity of the sign

A portfolio can be extensive and yet fragile. It is therefore necessary to assess the likelihood that a third party could obtain invalidation of the trademark in contentious proceedings, by examining distinctiveness, relevant prior rights and the market context. This assessment is decisive: it determines the ability to defend the trademark, to invest, and to expand the commercial strategy without paralysing disputes.

4) Verify use and the administrative regularity of the titles

A trademark must remain “alive”. This requires checking renewals, the consistency of recorded data (owner, address, goods/services) and the existence of strong evidence of use (packaging, invoices, campaigns, dated screenshots, commercial documents). Portfolios that have undergone multiple restructurings can become difficult to operate if evidence and documentation have not been centralised.

5) Review the contracts

The buyer acquires a right to use and exploit. Change-of-control provisions, exclusivity clauses, territorial limits, quality-approval obligations, or sub-licensing restrictions can reduce value, constrain strategy or trigger renegotiation. A licence misaligned with the post-acquisition strategy may, in practice, neutralise a portion of the valuation.

6) Integrate the digital perimeter

A trademark’s digital footprint is inseparable from the trademark: domain names, marketplaces, social media, content and accounts. On certain platforms, access to trademark-protection tools requires proof of ownership and consistency between the recorded proprietor and the operating entity. Any inconsistency in the register can delay critical actions (content removal, seller blocking, internal trademark-protection processes).

7) Do not overlook data

Where valuation relies on customer relationships, marketing performance and customer files, compliance becomes an economic parameter. CNIL recalls the rules applicable to the sale/transfer of customer databases (information, rights, proportionality, security, etc.).

From the audit report to transaction clauses: securing the transaction without unnecessary over-negotiation

Match each identified risk with an appropriate measure

A weakness in title or a latent dispute does not automatically require abandoning the transaction. However, it must be translated into a clear mechanism: price adjustment, price holdback, escrow, capped indemnity, or a targeted condition precedent (recording an assignment, releasing a security interest, contractual regularisation). The logic is straightforward: a specific risk calls for a specific, proportionate and verifiable response.
Organise pre- and post-completion regularisation while protecting the timetable
Regularisation takes time: recordals, multi-territory signatures, supporting documents and historical corrections. For sellers, putting IP assets “in order” ahead of time reduces negotiation fatigue and strengthens the file’s credibility. For buyers, the audit should be approached as a structuring decision: what must be resolved before completion and what can be treated afterwards, with appropriate protections and a controlled timetable.

Conclusion

In M&A, trademarks can make or break the transaction: they concentrate value, but also potentially decisive weaknesses (opposability, territorial scope, use, contracts, disputes, digital issues). A structured audit and rigorous contractual implementation turn trademarks into a tool for security and negotiation, rather than a late-stage source of uncertainty.

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 does a trademark audit cover in an M&A transaction?
It involves reviewing ownership, validity, use, contracts and disputes relating to trademarks in order to secure price and completion.

2) What documents should the seller prepare to avoid delays?Up-to-date certificates and register extracts, assignment deeds and evidence of recordal, renewal schedules, evidence of use (invoices, catalogues, packaging, campaigns), contracts (licences, distribution, coexistence, security interests) and any litigation history.

3) What are the most frequent chain-of-title issues?
Trademarks filed in a founder’s name and used by the company without recorded transfer; intra-group transfers not recorded after restructuring; errors in corporate name or address; partially executed assignments; assignments unclear as to scope (territories/classes).

4) How should a trademark owned by different entities across territories be handled?
Through a rights map and a strategy combining additional filings, coexistence agreements, licences, intra-group reorganisation, or a trademark adjustment aligned with commercial priorities.

5) What if the audit reveals a missing recordal or a missing deed?
Implement a regularisation plan (reconstituted deeds, signatures, recordals), typically through a condition precedent or a specific covenant, supplemented where necessary by a holdback or escrow.

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

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How to comply with French and European regulations on product labelling, packaging and sorting?

Introduction

French and European regulations on labelling, packaging and sorting are undergoing a major transformation with the entry into force of Regulation (EU) 2025/40, also known as the PPWR (Packaging and Packaging Waste Regulation). Published on January 22, 2025, this regulation replaces Directive 94/62/EC and establishes a harmonised and binding framework for all packaging placed on the European market, with clear objectives aimed at reducing waste and promoting the circular economy.

This represents a structural legal turning point, engaging not only environmental law, but also consumer law and trademark law, for both food and non-food packaging. Companies must now integrate these obligations into their compliance strategies and legal governance frameworks.

What is the legal framework governing labelling, packaging and sorting?

A directly applicable and strengthened European framework

Regulation (EU) 2025/40, adopted on December 19, 2024 and published on January 22, 2025, now constitutes the core European legal instrument governing packaging and packaging waste. It replaces Directive 94/62/EC and introduces binding rules on the design, durability, recyclability, labelling and management of packaging waste across all Member States.

This harmonisation aims to:

  • Reduce packaging waste,
  • Promote reuse and recycling,
  • Foster the circular economy throughout the internal market.

At national level, these provisions interact with the existing French regulatory framework, in particular the AGEC Law, which already imposes obligations relating to the reduction and recycling of packaging.

When do the main measures enter into force?

A progressive yet legally binding timetable

The PPWR entered into force on January 22, 2025. Its main milestones are structured as follows:

  • August 12, 2026: mandatory application of the new rules on packaging design, harmonised labelling and consumer information for companies and Member States.
  • 2028: introduction of a minimum recycled content requirement for certain categories of plastic packaging, for example at least 30% recycled plastic in PET packaging.
  • 2030: more ambitious reuse and recycling targets must be met.
  • 2035: extension of recycling obligations to additional types of packaging, with a goal of large-scale recyclability.

reglementation ppwr deadline

What obligations apply to food and non-food packaging?

Challenges specific to food packaging

Food packaging combines environmental constraints with strict health and safety requirements.
Packaging must ensure product safety while avoiding any misleading information regarding the nature, composition or preservation of the product.

From 2026, new rules will apply, reinforcing in particular:

  • the clarity and legibility of sorting instructions,
  • consistency between the packaging and the environmental message conveyed,
  • traceability of the materials used.

Constraints for non-food packaging

For non-food products (cosmetics, household products, electronics, textiles, etc.), obligations will also apply from 2026, covering new standards of design and labelling. Companies will need to anticipate reuse requirements and the reduction of unnecessary packaging in product design, relying on technical data and documented evidence of compliance.

Why are sorting and recycling at the heart of the new rules?

Persistent complexity for consumers

Despite the widespread use of the Triman logo logo triman in France, studies show that consumers still have difficulty understanding sorting instructions.

The European regulation now requires a clear hierarchy of information, combined with standardised pictograms.

Companies must explain:

  • what can be recycled,
  • how to dismantle the packaging where applicable,
  • what must not be disposed of in recycling bins.

The central role of environmental instructions for use

Instructions for use will no longer concern solely the use of the product, but also its end of life.
This obligation directly extends the consumer law duty to provide clear and accurate information.

What impact do these rules have on trademarks and environmental claims?

The PPWR has a direct impact on the use of environmental claims on packaging. From 2026, statements such as “recyclable”, “eco-friendly” or “biodegradable” may only be used if they are based on objective and verifiable criteria. The new regulatory framework requires absolute consistency between the trademark message and the technical reality of the packaging.

The absence of technical substantiation for such claims may be considered a misleading commercial practice, engaging the company’s liability regardless of its status as a trademark owner. From 2028, enforcement is expected to intensify, particularly in the context of market surveillance and product compliance checks.

To learn more about green brands and greenwashing, we invite you to read our previously published article.

Conclusion

French and European regulations on labelling, packaging and sorting now form a structuring legal framework, with obligations progressively applicable between 2026 and 2035, aimed at strengthening recyclability, reducing waste and harmonising practices across the internal market.

Integrating these constraints into companies’ legal and operational strategies is essential to ensure compliance and to mitigate significant legal 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. How can regulatory developments be anticipated?
To anticipate these developments and minimise legal risks, it is recommended to:

  • conduct packaging audits incorporating the new European obligations;
  • document evidence of recyclability and recycled content;
  • align environmental claims with certified technical data;
  • involve legal, CSR and marketing teams from the product design stage.

2. What sanctions apply in the event of non-compliance?
Administrative penalties, unfair competition actions, consumer litigation and reputational damage.

3. Does the Triman logo remain mandatory?
Yes, the Triman logo remains mandatory in France, but it will gradually have to be coordinated with the harmonised European pictograms provided for under the PPWR. In the medium term, companies will have to manage the coexistence of different systems, requiring particular vigilance in terms of clarity and hierarchy of information.

4. Does the regulation require a complete redesign of existing packaging?
Not systematically, but in many cases adaptation will be unavoidable, particularly for:

  • packaging that is not recyclable by design,
  • packaging using complex composite materials,
  • packaging containing non-compliant environmental claims.

5. Why anticipate obligations that only apply in 2028 or 2030?
Because current decisions relating to design, supplier contracts and trademark strategy commit the company for several years. Anticipation helps secure investments legally, avoid rushed redesign costs and transform regulatory compliance into a controlled competitive advantage.

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

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Losing a plant variety right for an unpaid fee: a risk confirmed by the CJEU?

Introduction

The decision delivered by the Court of Justice of the European Union on September 2, 2025 (Case C-426/24 P) marks a decisive turning point in the management of Community Plant Variety Rights (CPVRs). By confirming the definitive cancellation of a right for non-payment of an annual fee, the CJEU forcefully reiterates that the protection of plant innovations depends as much on the legal robustness of the title as on the administrative discipline of its holder.

This ruling, with major practical implications for breeders, seed companies, and agri-industrial groups, calls for a strategic and operational reading of plant variety protection law in the era of dematerialisation.

The legal framework governing the payment of fees in plant variety protection

The fundamental principle of maintaining the right

Regulation (EC) No 2100/94, which establishes the Community system for the protection of plant varieties, is based on a clear balance: in return for an exclusive right of exploitation, the holder must pay an annual maintenance fee.

In principle, failure to pay this annual fee within the prescribed time limits results in the definitive forfeiture of the plant variety right, save for limited circumstances in which the holder demonstrates, pursuant to Article 80 of Regulation (EC) No 2100/94, that an involuntary, exceptional, and duly justified impediment prevented compliance with the deadline.

A logic comparable to other intellectual property rights

Like patents or trademarks, a plant variety right is a living right, dependent on continuous vigilance. However, the specific feature of the CPVO system lies in its European centralisation and the growing use of digital tools dedicated to relations with right holders, in particular the MyPVR electronic platform, used for the notification of official acts, deadline management, payment of annual fees, and procedural exchanges with holders.

The Melrose case: a landmark dispute before the CJEU

The facts giving rise to the dispute

Romagnoli Fratelli SpA, the holder of a Community plant variety right for the potato variety Melrose, failed to pay the annual fee within the prescribed time limits.

The CPVO (Community Plant Variety Office) had nevertheless issued a debit note and several reminders, all made available via the MyPVR platform, with notifications sent by email.

The attempted restitutio in integrum

The holder applied for restitutio in integrum under Article 80 of Regulation (EC) No 2100/94, arguing that it had been prevented from meeting the payment deadline due to the lack of effective receipt of the notifications and contesting the validity of MyPVR as an official means of communication.

These arguments were rejected successively by the CPVO, the General Court of the European Union, and ultimately by the Court of Justice of the European Union, which held that failure to consult electronic notifications does not constitute an involuntary impediment within the meaning of Article 80.

Validation of electronic communications via MyPVR

An explicitly recognised legal basis

The CJEU confirms that the President of the CPVO is empowered, under Regulation 2100/94, to determine the modalities of electronic notification. Accordingly, the MyPVR system is recognised as an official and legally valid channel for the service of acts.

The importance of the holder’s consent

A decisive factor lies in the fact that the holder had opted for electronic communication. This choice entails clear legal consequences: failure to consult the platform cannot invalidate the notification.

legal recognition plateform

Burden of proof and the holder’s heightened responsibility

A firm position of the CJEU

The Court unequivocally states that the burden of proof lies with the holder. It was for the holder to demonstrate that the documents had not been made available in its MyPVR space or that the notification emails had not been sent. Failing such proof, the notification is presumed valid.

A heightened duty of diligence

This approach enshrines a logic of proactive responsibility: not seeing a notification does not mean it does not exist.

The CJEU thus elevates the administrative management of a CPVR portfolio to a strategic obligation, inseparable from legal protection.

Essential best practices for holders of plant variety rights

To avoid irreversible losses, we notably recommend:

  • Regular monitoring of MyPVR;
  • Continuous updating of electronic contact details;
  • The implementation of redundant internal alerts;
  • The use of a professional representative for portfolio management.

Conclusion

The CJEU decision of September 2, 2025 starkly illustrates the cost of administrative negligence in plant variety protection law. Failure to pay an annual fee, even in the absence of bad faith, may result in the definitive loss of a right of significant economic value. In a digital environment fully embraced by European institutions, vigilance is no longer optional; it is the very condition for the sustainability of 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. Can a cancelled plant variety right be refiled at a later stage?

In practice, refiling a plant variety right is very limited, as any new protection remains subject to novelty within the meaning of Regulation (EC) No 2100/94, as well as the DUS criteria, conditions that are rarely met after prior exploitation of the variety.

2. Is appointing a professional representative mandatory?

No, but it is strongly recommended to secure effective portfolio management.

3. Can the loss of a plant variety right affect a company’s valuation?

Absolutely. Plant variety rights are often strategic intangible assets. Their cancellation may impact financial valuation, acquisition audits, fundraising operations, or mergers and acquisitions.

4. Can failure to pay a CPVO fee trigger internal liability within a company?

Yes. In structured groups, forfeiture resulting from non-payment may give rise to contractual or disciplinary liability of the department or service provider responsible for portfolio management, particularly where economic harm can be demonstrated.

5. Does forfeiture of a plant variety right affect ongoing licence agreements?

Yes. Cancellation of the right generally removes the legal basis for licences, with potentially significant contractual consequences, particularly regarding royalties, warranties, and liability vis-à-vis licensees.

 

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

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Comprehensive guide: Strategic protection of the 4 pillars of a perfume

In the luxury industry, perfume is far more than just a fragrance: it is a complex intangible asset composed of multiple layers of creation. For effective protection, it is imperative to dissect the product into its four major components: the scent (the juice), the formula (the recipe), the packaging (the bottle/box), and the name (the trademark).

Each of these elements falls under a distinct legal regime. Dreyfus Law Firm offers this expert guide to navigating between Copyright, Trademark Law, Designs & Models, and Trade Secrets.


The scent (The Fragrance): The challenge of the intangible

This is the soul of the perfume, yet it remains the most difficult element to protect legally in France today. This is a subject we monitor closely, and one we have already addressed particularly in our article entitled Fragrance and Intellectual Property: which protection?.

Why copyright does not (yet) apply to scent

Unlike music or literature, current French case law refuses to consider the fragrance (the perceived scent) as a “work of the mind” (œuvre de l’esprit) protected by copyright.

  • The Judicial Position: The French Cour de cassation considers that a fragrance proceeds from the implementation of technical know-how, rather than from a purely creative artistic endeavor identifiable with sufficient precision.
  • The Consequence: One cannot sue for “copyright infringement” for the reproduction of a scent alone.

The solution: Acting on grounds of unfair competition

While the scent is not a “work,” servile imitation remains punishable. To protect a scent against “dupes” or copies, we take action based on unfair competition (concurrence déloyale) or free-riding (parasitisme).

  • The Legal Argument: The goal is to prove that the competitor sought to appropriate the wake (sillage) of your perfume to benefit from your investments without cost, creating a risk of confusion or undue value capture.

The formula (the recipe): The realm of secrecy

If the scent is the result, the formula is the technical process (the list of chemical ingredients and their dosage) used to achieve it.

Trade secrets rather than patents

Patent filing is rare in perfumery because it requires disclosing the formula to the public (which enters the public domain after 20 years). The preferred strategy is that of Trade Secrets (Secret des affaires).

  • The Principle: The formula must remain confidential information, known only to a very restricted number of people (the “nose,” the laboratory).
  • Legal Protection: This relies on the implementation of reasonable protection measures (physical and digital) to prevent the theft of the formula.

Contractualization as a shield

For the secret to hold, it must be legally secured by contracts:

  • Non-Disclosure Agreements (NDAs): Essential with laboratories, raw material suppliers, and employees.
  • Non-Compete Clauses: To prevent a perfumer from joining a competitor with your formulas in mind.

Packaging (bottle and box): The alliance of design and trademark

The bottle is the first visual point of contact with the consumer. It is an industrial art object that benefits from powerful cumulative protections.

Designs & models and copyright

  • Designs & Models: This is the premier protection for the aesthetic appearance of the bottle (its shape, lines). Filing must be done before the product is disclosed to guarantee its novelty.
  • Copyright: If the bottle is original and bears the imprint of its author’s personality, it is protected by copyright from the moment of its creation, without formal registration (although a probatory deposit is recommended).

The three-dimensional trademark

In exceptional cases, the shape of the bottle itself can be registered as a trademark (3D trademark) if it is sufficiently distinctive for the consumer to recognize the origin of the product by its shape alone (e.g., the iconic Jean Paul Gaultier torso bottle).

The name: The trademark monopoly

The name is the most valuable asset in the long term. Once the scent has evaporated, the name remains.

Word mark registration

The perfume name (e.g., “N°5”) and the House name must be registered as word marks.

  • Filing Classes: It is crucial to target Class 3 (cosmetics, perfumes) but also Class 35 (advertising, business management) for retail and distribution.
  • Availability: An in-depth clearance search is indispensable to ensure the name is not already taken.

Protection against cybersquatting

The name must also be protected online. Reserving domain names (.com, .fr, and new extensions like .luxury) must be synchronized with trademark filing, as we explain in our article on Domain Names and New gTLDs.

Litigation expertise of Nathalie Dreyfus

Protecting these four elements requires a global strategy, but also the ability to defend one’s rights in court when counterfeiting occurs.

Dreyfus Law Firm stands out through the specialized expertise of its founder, Nathalie Dreyfus. As a French and European Trademark Attorney, she possesses recognized experience not only in strategic consulting but also in handling complex litigation.

Her expertise is regularly sought in high-stakes cases, requiring perfect mastery of case law from the French Cour de Cassation and Courts of Appeal regarding intellectual property. This fine-tuned knowledge of judicial decisions allows for the anticipation of legal risks linked to scent or shape protection and the construction of solid defense cases for perfume houses.

You can view our founder’s full profile here: Nathalie Dreyfus.

FAQ: Frequently asked questions

  1. Can you patent a scent?
    No. A scent cannot be patented. Only the technical manufacturing process (the chemical formula) could theoretically be patented, but this requires publication, which contradicts the industry’s secrecy strategy.
  1. How do I prove my scent was copied?
    Proof is generally established via chromatography analysis (chemical analysis) comparing the original juice and the copy, combined with olfactory tests by experts, to demonstrate economic parasitism.
  1. Should my perfume name be descriptive?
    Absolutely not. A trademark must be distinctive. Naming a perfume “Rose Scent” may be refused registration because the term describes the product. It is recommended to choose an arbitrary or fanciful name.
  1. What is the difference between a “dupe” and a counterfeit?
    Counterfeiting copies a registered right (the name, the logo, the bottle shape). A “dupe” often imitates the scent (not protected by copyright) and the vibe, while changing the name. Against a dupe, we act on grounds of unfair competition; against a counterfeit, we act for trademark or design infringement.

Dreyfus Law Firm is your strategic partner for securing your intangible assets. Contact us to audit the protection of your olfactory creations.

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When should you seek the assistance of a trademark law expert: distinctive signs, infringement and defence strategies?

Introduction

In an economic environment characterised by intensified competition, the digitalisation of exchanges and the rapid circulation of content, trademarks have become a key strategic asset. They embody economic value, reputation and consumer trust. Yet many companies still underestimate the technical complexity of trademark law and intervene too late, when the legal risk has already materialised.
Knowing when to seek the assistance of a trademark law expert is not a matter of legal comfort, but a strategic decision. Whether it involves creating a distinctive sign, preventing an infringement action or deploying an effective defence strategy, the involvement of a specialist makes it possible to anticipate, secure and, above all, arbitrate risks.

Understanding distinctive signs and the challenges of their protection

What is a distinctive sign under trademark law?

A distinctive sign is a sign capable of identifying the commercial origin of goods or services and distinguishing them from those of competitors. It may take various forms: a word trademark, logo, slogan, shape, colour, or even a sound or animation in certain cases.
However, not all signs are eligible for protection. Trademark law excludes, in particular, descriptive, generic or customary signs, as well as those contrary to public policy. Assessing distinctiveness requires a refined legal analysis, which is often underestimated at the filing stage. Independently of these absolute grounds for refusal, a sign may also be legally unavailable due to prior rights held by third parties, such as registered trademarks, company names, trade names or domain names, even if it is distinctive in itself.

protection sign trademark

 

Why is distinctiveness a critical point of attention?

A trademark that is weakened from the outset exposes its owner to significant risks: refusal of registration, third-party oppositions, or subsequent invalidity or revocation. A trademark law expert plays a key role in securing the choice of the sign, taking into account the relevant sector of activity, the target public and applicable case law.
Example: the French Supreme Court (Cour de cassation) set aside an appellate decision that had considered the trademark “Silhouette” to be distinctive on the grounds that the goods concerned were slimming-related substances, from which it followed that the sign could designate a characteristic of those goods (Cass. Com., July 12, 2005, No. 04-12.146).

When does trademark law expertise become essential?

Upstream: creation, filing and protection strategy

The first reflex must be anticipation. Before any commercial launch, the expert conducts in-depth prior rights searches and designs a coherent filing strategy, both at national and international levels. This approach helps avoid marketing investments in a sign that is legally unavailable.
Companies can file their trademarks with INPI for protection in France, with the EUIPO for a European Union trademark, or use the Madrid System managed by WIPO for streamlined international protection.

During use: monitoring and risk management

A registered trademark is not automatically protected in practice. Monitoring trademark registers, domain names, marketplaces and social networks is essential. The expert identifies potential infringements and recommends proportionate actions, ranging from cease-and-desist letters to litigation.

In crisis situations: opposition, disputes or litigation

Once a conflict has arisen, the intervention of a specialist becomes decisive. Opposition proceedings before the INPI or the EUIPO, infringement actions, settlement negotiations: each decision is based on a precise legal and strategic assessment, taking into account evidence, deadlines and economic stakes.

Trademark infringement: identifying, qualifying and acting effectively

How can a situation of infringement be identified?

Trademark infringement involves the unauthorised use of an identical or similar sign for identical or similar goods or services, creating a likelihood of confusion. The analysis is not limited to a visual comparison; it also incorporates phonetic, conceptual and contextual criteria.

Why is acting quickly essential?

Inaction weakens the trademark owner’s position and may be interpreted as acquiescence. A trademark law expert assesses the urgency, the seriousness of the infringement and the most appropriate course of action, whether judicial or extrajudicial.

Example: a company discovers the exploitation of its trademark through a fraudulent domain name used for online sales. A strategy combining a cease-and-desist letter, a UDRP procedure and platform takedown notices allows the risk to be neutralised swiftly. The firm has recognised expertise in domain name matters.

Building a defence and trademark valorisation strategy

Legal defence and overall consistency

Defending a trademark is not limited to reacting to infringements. It forms part of a broader strategy, aligned with the company’s commercial objectives and communication policy. The expert supports decision-making by assessing the cost/risk/opportunity balance.

Valorisation and securing intangible assets

Beyond litigation, trademark law is a powerful tool for valorisation: licensing, assignments, partnerships and fundraising. A legally robust trademark strengthens a company’s credibility with investors and business partners.

Conclusion

Seeking the assistance of a trademark law expert is a structuring step at every stage of a trademark’s life cycle: creation, use, defence and valorisation. In a context where infringements are multiplying and becoming increasingly complex, legal expertise makes it possible to turn risk into a competitive advantage.
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. When should a trademark law expert be consulted?
As early as the reflection phase on the choice of a name or logo, and before any filing or commercial launch.
2. Is an expert indispensable to file a trademark?
Filing is possible without an expert, but professional support significantly reduces legal risks.
3. What are the risks of a poorly drafted trademark filing?
An imprecise or overly broad specification may weaken the trademark, limit its enforcement or expose it to invalidity or revocation actions.
4. Is an unused trademark protected?
The absence of genuine use may lead to revocation of trademark rights.
5. Is trademark monitoring mandatory?
It is not legally mandatory, but it is essential in practice to preserve trademark rights.
6. What is the difference between opposition and infringement?
Opposition arises during the trademark application phase, whereas infringement sanctions the unauthorised use of a protected sign.
7. Can a company defend itself alone against an infringement claim?
In practice, this entails significant risks. Incorrect legal qualification or an inappropriate response may aggravate the situation. Expert support helps structure a coherent and proportionate defence.

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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Franchise law in the European Union and the United Kingdom: 2026 complete guide

Brexit has profoundly changed the legal landscape for international franchises. Since  June 1st, 2022, the European Union and the United Kingdom have applied separate exemption regimes for vertical agreements, creating new complexity for franchisors operating on both sides of the Channel. This guide details the applicable rules, the key differences between the two systems and the compliance strategies to secure your international development.


The legal framework for franchises in Europe

A franchise agreement constitutes a vertical agreement under competition law: it links two undertakings operating at different levels of the production or distribution chain. The franchisor grants the franchisee the right to exploit its brand, know-how and business methods, in return for a royalty and compliance with defined standards.

This contractual relationship is governed by competition rules that prohibit agreements likely to restrict competition. In the European Union, Article 101 of the Treaty on the Functioning of the European Union (TFEU) sets out this principle. In the United Kingdom, Chapter I of the Competition Act 1998 serves an equivalent function.

However, certain vertical agreements may benefit from a block exemption when they generate efficiency gains from which consumers benefit. This is precisely the purpose of block exemption regulations, which create a “safe harbour” for agreements meeting certain conditions.

The legacy of the Pronuptia ruling

European franchise law has its roots in the Pronuptia de Paris v Schillgalis ruling delivered by the Court of Justice of the European Communities in 1986. This landmark decision recognized that certain contractual restrictions are inherent to the very nature of franchising and do not constitute restrictions of competition. These include clauses aimed at protecting the identity and reputation of the network, as well as the confidentiality of the know-how transferred.

This “Pronuptia test” remains relevant today: restrictions genuinely necessary to protect know-how and brand image fall outside the scope of the prohibition on anti-competitive agreements.

Regulation 2022/720: the EU exemption regime

Regulation (EU) 2022/720 on the application of Article 101(3) TFEU to categories of vertical agreements entered into force on  June 1st, 2022. It replaces the 2010 Regulation and will be in force  until May 31st, 2034.

This Regulation is accompanied by the Vertical Guidelines, which provide a detailed interpretation of its provisions. Together, they constitute the reference framework for assessing the compliance of franchise agreements with EU competition law.

Conditions for applying the exemption

To benefit from the block exemption, a franchise agreement must meet several cumulative conditions:

Market share threshold: both the franchisor and the franchisee must each hold a market share not exceeding 30% on their respective relevant markets. For the franchisor, this is the market on which it sells the contract goods or services. For the franchisee, it is the purchasing market that is considered.

Absence of hardcore restrictions: the agreement must not contain any of the “hardcore” restrictions listed in Article 4 of the Regulation, which cause the entire agreement to lose the benefit of the exemption.

Absence of excluded restrictions: certain clauses, although not hardcore restrictions, are excluded from the benefit of the exemption without contaminating the rest of the agreement. They must be assessed individually.

Key changes in the Regulation 2022

The 2022 Regulation provides important clarifications on several points that had been debated under the previous text:

Dual distribution: the exemption now expressly covers situations where the franchisor also sells at the same levels as its franchisees (retail, wholesale, import), provided that the agreement is non-reciprocal and the parties do not compete at the upstream level.

Information exchange: in the context of dual distribution, the exchange of information between franchisor and franchisee is subject to specific rules to avoid the risks of horizontal coordination.

Shared exclusivity: the franchisor may now designate up to five exclusive distributors per territory, compared to only one previously.

Online sales: the Regulation clarifies the permissible restrictions regarding the use of the Internet and online sales platforms.

VABEO: the UK post-Brexit regime

The United Kingdom adopted its own exemption regime with the Competition Act 1998 (Vertical Agreements Block Exemption) Order 2022, commonly known as the VABEO. Entering into force on June 1st, 2022, it will expire on June 1st, 2028, six years before the EU Regulation.

The Competition and Markets Authority (CMA), the UK competition authority, has published guidance accompanying the VABEO. This guidance diverges from the European Commission’s guidelines on certain points.

Structure of the VABEO

The VABEO broadly follows the structure of the Regulation with the same 30% market share threshold and a similar list of hardcore restrictions. However, several notable differences reflect UK competition law enforcement priorities and CMA experience.

Shorter duration: expiry in 2028 will allow the UK to adapt its regulations more quickly to market developments, but also creates uncertainty for long-term agreements.

Investigation powers: the VABEO gives the CMA a statutory power to request information from parties about their vertical agreements, strengthening its monitoring capabilities.

Key differences between the Regulation and the VABEO

Although the two regimes share a common basis, several significant divergences require separate analysis for networks operating on both sides of the Channel.

Parity clauses (MFN)

This is probably the most important difference between the two regimes.

In the UK: all wide retail parity clauses (“wide retail MFN”) constitute hardcore restrictions. A wide parity clause prohibits the franchisee from offering its products or services on better terms through any other sales channel, whether online or offline. The inclusion of such a clause causes the entire agreement to lose the benefit of the exemption.

In the EU: only wide parity clauses imposed by online intermediation services providers are excluded from the exemption, and this is an exclusion (affecting only the clause concerned) rather than a hardcore restriction (which would affect the entire agreement).

Dual distribution and information exchange

In the EU: the Regulation imposes specific conditions for information exchange between parties in a dual distribution situation to benefit from the exemption. The exchange must be directly related to the implementation of the vertical agreement and necessary to improve the production or distribution of the contract goods.

In the UK: the VABEO does not impose these formal conditions. Information exchange is exempt if it does not restrict competition by object and is “genuinely vertical”, i.e. necessary for the implementation of the vertical agreement.

Shared territorial exclusivity

In the EU: the maximum number of exclusive distributors per territory is set at five.

In the UK: the VABEO does not prescribe a maximum number but requires the number to be “determined in proportion to the territory/customer group in such a way as to secure a certain volume of business that preserves the investment efforts” of the distributors.

Post-term non-compete

Both regimes allow post-term non-compete clauses of a maximum duration of one year, limited to the premises where the franchisee operated. However:

In the EU: an additional condition requires that the clause be “indispensable for the protection of know-how”.

In the UK: the VABEO adds that the clause must “relate to goods or services which compete with the contract goods or services”.

Summary table of differences

Criterion Regulation (EU) VABEO (UK)
Expiry date 31 May 2034 1 June 2028
Wide retail MFN clauses Excluded only for online intermediation platforms Hardcore restrictions for all
Information exchange (dual distribution) Formal conditions required More flexible approach
Shared exclusivity Maximum 5 distributors Number proportionate to territory
Post-term non-compete Indispensable for know-how protection Must relate to competing goods/services

Essential franchise agreement clauses

An international franchise agreement must be carefully drafted to benefit from the exemption in both jurisdictions. Here are the main clauses to consider.

Protection of know-how

Both regimes recognize the legitimacy of clauses aimed at protecting the franchisor’s know-how. The guidelines list the types of restrictions generally considered inherent to franchising:

  • Confidentiality obligation regarding the know-how transferred
  • Obligation not to acquire financial interests in a competitor
  • .
  • Obligation to communicate improvements to the system to the franchisor
  • Obligation to use the know-how solely for the purpose of operating the franchise

Non-compete clauses

Non-compete clauses are permitted under certain conditions:

During the term of the contract: the maximum duration is 5 years. Clauses that are tacitly renewable beyond this period are deemed to be concluded for an indefinite duration and do not benefit from the exemption.

After termination of the contract: the maximum duration is 1 year, and the clause must be geographically limited to the premises and land from which the franchisee operated during the term of the contract.

Territorial and customer restrictions

The franchisor may impose certain restrictions on the franchisee’s sales, including:

  • Restrictions on active sales into territories or to customer groups reserved exclusively to other network members
  • Obligation to operate only from an authorized place of establishment
  • Restrictions on active sales into territories reserved to the franchisor

However, restrictions on passive sales (responses to unsolicited customer enquiries) are generally considered hardcore restrictions.

Exclusive sourcing

The franchisor may impose an exclusive sourcing obligation (purchasing more than 80% of requirements from the franchisor or designated suppliers) provided that this obligation does not exceed 5 years.

Hardcore restrictions to avoid

Certain clauses constitute hardcore restrictions which cause the entire agreement to lose the benefit of the block exemption. These restrictions are presumed to restrict competition by object.

Resale price maintenance (RPM)

The imposition of a fixed or minimum resale price is the most serious restriction. This includes indirect mechanisms such as:

  • Fixed or maximum margins
  • Discounts or reimbursements conditional on compliance with a price level
  • Threats, intimidation or penalties related to pricing policy
  • Minimum advertised prices (MAP) that function in practice as fixed prices

However, recommended resale prices and maximum prices are permitted, provided they do not function in practice as fixed prices.

Absolute territorial restrictions

Restrictions that completely prevent a franchisee from selling in certain territories or to certain categories of customers are prohibited. This particularly targets the partitioning of the EU internal market.

Passive sales restrictions

Restrictions on passive sales, i.e. sales resulting from unsolicited customer enquiries, constitute hardcore restrictions, with limited exceptions (notably in selective distribution systems).

Prohibition of online sales

A complete ban on the use of the Internet as a sales channel is a hardcore restriction. The franchisee must be able to sell online, even if qualitative restrictions may be imposed.

UK-specific restrictions

In the UK only, wide retail parity clauses also constitute hardcore restrictions. This stricter treatment than in the EU requires particular care when drafting contracts covering the UK market.

E-commerce and online sales

The rise of e-commerce was one of the main drivers of the revision of the exemption regulations. The new rules provide important clarifications for franchise networks.

Principle of free access to the Internet

The franchisee must be free to use the Internet to promote and sell the contract products or services. Any restriction aimed at preventing the effective use of the Internet as a sales channel constitutes a hardcore restriction.

Permitted restrictions

Certain restrictions on online sales are nevertheless permitted:

Dual pricing: the franchisor may set different wholesale prices for products intended to be sold online and those intended for in-store sales, provided that this difference is related to the different costs of each channel.

Qualitative criteria: in a selective distribution system, the franchisor may impose different criteria for online and offline sales, provided they pursue the same objectives and achieve comparable results.

Marketplace restrictions: the franchisor may prohibit the franchisee from selling via third-party marketplaces (Amazon, eBay, etc.), provided that all online presence is not prohibited.

Online intermediation platforms

The rules on online intermediation services have been strengthened. In the EU, wide parity clauses imposed by these platforms are excluded from the exemption. In the UK, the treatment is even stricter as all wide retail parity clauses are hardcore restrictions.

International compliance strategies

Franchisors operating in both the EU and the UK face an increased compliance challenge since Brexit. Several strategies may be considered.

Option 1: single contract aligned with the strictest regime

This approach involves adopting a single template contract that simultaneously meets the requirements of both the Regulation and the VABEO. Clauses are drafted according to the most restrictive standard, generally that of the UK for MFN clauses.

Advantages: simplicity of management, network consistency, reduced administrative costs.

Disadvantages: potential loss of flexibility in the EU where certain clauses would be permitted.

Option 2: separate contracts by jurisdiction

This approach involves using different contracts for franchisees established in the EU and those established in the UK, each optimized for its applicable regime.

Advantages: optimal use of the possibilities offered by each regime.

Disadvantages: management complexity, higher drafting and monitoring costs, risk of inconsistency within the network.

Option 3: modular approach

An intermediate solution involves using a common framework agreement with annexes or addenda specific to each jurisdiction. Sensitive clauses (MFN, information exchange, etc.) are addressed in these ancillary documents.

Compliance audit

Whatever option is chosen, a regular contract audit is essential. Key checkpoints include:

  • Verification of market share thresholds (to be updated regularly)
  • Review of non-compete clauses and their duration
  • Analysis of clauses relating to online sales
  • Examination of pricing mechanisms
  • Review of parity and MFN clauses
  • Verification of territorial restrictions

Dreyfus support for your franchise network

Dreyfus & Associés supports franchisors and franchisees in securing the legal foundations of their networks in France, the European Union and the United Kingdom.

Our expertise

Our team assists at all stages of your network development:

Audit and compliance: analysis of your existing contracts against Regulation and VABEO rules, identification of risk clauses, modification recommendations.

Contract drafting: preparation of franchise agreements compliant with both regimes, with necessary adaptations for each market. Our contracts incorporate best practices in know-how protection, intellectual property rights and competition compliance.

Brand protection: registration and monitoring of your trademarks in the EU and UK, management of opposition proceedings, anti-counterfeiting actions. The opposition procedure effectively protects your network’s identity.

Litigation: defense of your interests in disputes with franchisees, competitors or competition authorities.

Why choose Dreyfus?

Our firm stands out through:

  • Recognized expertise in intellectual property law and competition law
  • In-depth knowledge of the specific features of the franchise sector
  • International practice with a network of correspondents in key European markets
  • Nathalie Dreyfus’s accreditation as a judicial expert with the French Supreme Court and WIPO

Contact us to secure your franchise network


Frequently asked questions

What is the difference between the EU Regulation and the UK VABEO?
The VBER (Regulation 2022/720) applies in the EU until 2034, while the UK VABEO expires in 2028. The main differences concern MFN (Most Favoured Nation) clauses, the treatment of dual distribution and certain hardcore restrictions. In the UK, all wide retail parity clauses are hardcore restrictions, whereas the EU only treats those imposed by online intermediation services as such.

What clauses are prohibited in an EU/UK franchise agreement?
Hardcore restrictions common to both regimes include resale price maintenance (RPM), absolute territorial restrictions, restrictions on passive sales and a complete ban on online sales. In the UK only, wide retail parity clauses are also hardcore restrictions, requiring particular care.

What is the maximum duration of a non-compete clause?
The maximum duration of an in-term non-compete clause is 5 years. Clauses that are tacitly renewable beyond 5 years are deemed to be concluded for an indefinite duration and do not benefit from the exemption. Post-term clauses are limited to 1 year and must be geographically restricted to the franchisee’s premises.

What is the market share threshold to benefit from the exemption?
To benefit from the Regulation or VABEO exemption, both the franchisor and the franchisee must each hold a market share of 30% or less on their respective relevant markets. If this threshold is exceeded, the agreement must be individually assessed under competition law.

How to manage a franchise network covering the EU and the UK?
International franchisors must now carry out a dual compliance analysis. Two main options are available: adopting a single contract that complies with the stricter rules of both regimes, or using separate contracts adapted to each jurisdiction. A modular approach with jurisdiction-specific annexes often provides a good compromise. Regular audits and guidance from a specialised law firm are strongly recommended.

Can I prohibit my franchisees from selling on Amazon or other marketplaces?
Yes, under certain conditions. The franchisor may prohibit the franchisee from selling via third-party marketplaces (Amazon, eBay, etc.), provided that all online presence is not prohibited. The franchisee must retain the ability to sell through their own website. This restriction is permitted under both the EU and UK regimes.

What happens if my contract contains a hardcore restriction?
If your contract contains a hardcore restriction, it loses the benefit of the block exemption as a whole. The agreement must then be individually assessed to determine whether it infringes competition law. In the event of a proven infringement, the clause concerned is void and you face sanctions from competition authorities as well as damages claims from injured parties.

Can I impose resale prices on my franchisees?
No, fixing minimum or fixed resale prices (RPM – Resale Price Maintenance) constitutes a hardcore restriction under both regimes. However, you may communicate recommended prices or set maximum prices, provided they do not function in practice as fixed or minimum prices. Pressure, threats or monitoring systems aimed at enforcing compliance with these prices are also prohibited.

How long are the Regulation and VABEO exemptions valid?
The EU VBER is valid until May 31st 2034, while the UK VABEO expires on June 1st  2028. This six-year difference creates uncertainty for long-term contracts covering the UK. It is advisable to anticipate UK regulatory developments and include adaptation clauses in your contracts.

How do I calculate my market share to know if I benefit from the exemption?
For the franchisor, market share is calculated on the market where it sells the contract goods or services. For the franchisee, it is the purchasing market that is considered. The calculation must be performed annually based on turnover or, failing that, volumes. If the market share exceeds 30% but remains below 35%, the exemption may continue to apply for two additional years (only one year if it exceeds 35%).

Are online sales restrictions permitted?
A complete ban on online sales is a hardcore restriction. However, certain qualitative restrictions are permitted: website quality requirements, prohibition on selling through third-party marketplaces (while allowing a website of one’s own), or price differentiation between online and offline channels if it reflects different costs. The franchisee must always retain an effective ability to sell online.

What is dual distribution and what are its implications?
Dual distribution refers to the situation where the franchisor also sells directly to the same customers as its franchisees. This configuration is common in franchise networks. Since 2022, it has explicitly benefited from the exemption, but requires particular precautions regarding information exchange between franchisor and franchisees to avoid any risk of horizontal anti-competitive coordination.

Are post-term non-compete clauses valid?
Yes, but under strict conditions. The maximum duration is 1 year after termination of the contract. The clause must be geographically limited to the premises and land from which the franchisee operated. It must be indispensable for the protection of know-how (EU) and relate to competing goods/services (UK). A broader or longer clause does not benefit from the exemption.

Does my franchise agreement need to be notified to competition authorities?
No, there is no prior notification system. The block exemption applies automatically if the conditions are met. However, competition authorities (European Commission, CMA, national authorities) may at any time investigate an agreement and withdraw the benefit of the exemption if they find anti-competitive effects. A preventive audit by a specialized law firm is therefore recommended.


Key takeaways

  • Dual regime: since Brexit, two separate systems apply (Regulation in the EU, VABEO in the UK)
  • 30% threshold: the market shares of both franchisor and franchisee must not exceed this level
  • Non-compete: maximum 5 years during the contract, 1 year after termination
  • MFN clauses: stricter treatment in the UK (hardcore restriction)
  • Online sales: cannot be completely prohibited
  • Different expiry dates: VABEO expires in 2028, Regulation in 2034

Legal references

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