Trademark Infringement in Cyprus: A Practical Guide
Contents
1. Introduction
A brand is often a business's most valuable asset. The name under which goods are sold, the logo that distinguishes a business from its competitors, the mark that consumers associate with a particular quality of product: all of these carry commercial weight that can take years to build. When a competitor appropriates or imitates that brand identity, the damage to goodwill, reputation, and revenue can be severe and, in some cases, irreversible.
Cyprus offers two distinct but frequently overlapping legal routes for protecting brand identity. The first is the statutory regime governing registered trademarks, codified in the Trademarks Law, Cap. 268, as substantially amended by Law 63(I)/2020, which harmonised Cypriot law with the relevant EU trademark directive and incorporated elements of EU Regulation 2017/1001 on the EU trademark. The second is the common law tort of passing off, preserved in Cyprus through section 35 of Cap. 268 and developed through a body of Cypriot and English case law that Cyprus courts continue to apply. The tort of passing off is addressed separately in our guide Passing Off: Protecting Unregistered Rights.
This guide sets out the legal framework for registered trademark infringement in Cyprus, explains how courts approach each head of liability, and identifies the practical steps a business should consider when its rights are threatened.
2. Registered Trademarks in Cyprus: The Statutory Framework
- What can be registered
Under article 4 of Cap. 268, a trademark may consist of any sign capable of distinguishing the goods or services of one business from those of another, provided the sign can be represented on the Register in a manner that allows the authorities and the public to determine with clarity and precision the scope of protection granted. This includes words, personal names, designs, letters, numerals, colours, the shape of a product or its packaging, and even sounds.
- Acquiring the right
Ownership of a trademark is acquired upon registration. A mere application for registration does not override the rights conferred by an existing registered mark or the protections available under passing off. The registration process involves preliminary examination by the Registrar of Trademarks, publication, and a period during which third parties with prior rights may oppose the application.
- Prior marks and relative grounds for refusal
A mark will not be registered, or may be declared invalid, where it is identical or similar to an earlier mark and used in respect of identical or similar goods and services, giving rise to a likelihood of confusion. Where the earlier mark enjoys a reputation in the Republic, even dissimilar goods or services may be caught if use of the later mark without due cause would take unfair advantage of, or be detrimental to, the distinctive character or repute of the earlier mark.
- Trademarks registered with the EU
A trademark registered with the European Union Intellectual Property Office (EUIPO) under EU Regulation 2017/1001 has unitary effect across all EU member states, including Cyprus, and does not require separate registration under Cap. 268. A rights holder may therefore hold both a Cypriot national registration under Cap. 268 and an EU trademark, and may choose to rely on either or both when enforcing in Cyprus.
3. What Constitutes Trademark Infringement
Infringement of a registered trademark is assessed under three heads of liability:
- Identical sign and identical goods or services
The proprietor's exclusive right is infringed where a sign identical to the registered trademark is used in commerce in relation to goods or services identical to those covered by the registration. The sign must be truly identical; use of only some elements of the mark will not satisfy this head.
- Likelihood of confusion
This head applies where either the sign or the goods and services are similar rather than identical, giving rise to a likelihood of confusion, including a likelihood of association. The assessment is global, taking into account:
- the visual, phonetic, and conceptual similarity of the marks;
- the degree of similarity of the goods or services;
- the distinctiveness of the earlier mark; and
- the perception of the relevant public at the time of the alleged infringement.
- Marks with reputation
No likelihood of confusion is required under this head. Infringement is established where the registered mark has a reputation in the Republic and a third party uses an identical or similar sign, without due cause, in a way that:
- takes unfair advantage of the mark's distinctive character or repute; or
- is detrimental to that distinctive character or repute.
This provision protects well-known marks against dilution, tarnishment, and free-riding, regardless of whether the goods or services are similar.
4. Defences to Trademark Infringement
A defendant may challenge infringement proceedings on a number of grounds.
- Denying the elements
The most common defence is to contest the substance of the claim: that the sign is not sufficiently identical or similar to the registered mark, that the goods or services are not sufficiently similar, or that no likelihood of confusion arises on the evidence.
- Contesting validity
A defendant may contend that the registration is invalid or liable to be revoked. Where this is pursued, the defendant will ordinarily counterclaim in the same proceedings and bears the burden of proof.
- Acquiescence
A proprietor who has been aware of a third party's use of a mark for more than five years and has remained inactive may be barred from asserting invalidity or restraining continued use.
- Honest practices: Limitations on the trademark right
The trademark right does not permit the proprietor to prevent third parties from using, in accordance with honest practices:
- their own name (where a natural person);
- signs or indications that are non-distinctive or descriptive of the goods or services; or
- the mark itself where necessary to indicate the intended purpose of a product, particularly accessories or spare parts.
Use will not qualify as honest if it creates the impression of a commercial connection with the proprietor, takes unfair advantage of the mark's reputation, or discredits or denigrates it.
- Exhaustion
Where goods bearing the mark have been placed on the market within the EEA by the proprietor or with the proprietor's consent, the right to control further dealings in those goods is exhausted, subject to limited exceptions where the condition of the goods has been altered or impaired.
5. Remedies
Where infringement is established, a successful claimant has access to a range of remedies, both injunctive and monetary. Interim measures, which allow a rights holder to act before trial to prevent ongoing harm, are addressed separately in our guide Interim Relief in Cyprus Trademark and Passing Off Disputes.
- Final injunction
The primary remedy in trademark infringement proceedings is a final injunction prohibiting continued use of the offending sign. The terms of any injunction must be expressed with precision and clarity, conferring adequate protection on the claimant without unjustly restricting the defendant's legitimate activities.
- Pecuniary relief
A successful claimant may elect between two alternative monetary remedies: an inquiry as to damages, which seeks to compensate the claimant for losses suffered, or an account of profits, which strips the defendant of the gains made from the wrongful conduct.
- Delivery up
Courts may also order the delivery up or destruction of infringing articles, labels, and packaging.
6. Our Firm's Assistance
At Economou & Co LLC, we advise businesses across a range of industries on the protection and enforcement of their trademarks and other intellectual property rights in Cyprus and in cross-border disputes involving Cyprus-registered entities. Our litigation practice covers trademark infringement, passing off, and related claims, from the initial assessment of a dispute through to trial and, where necessary, enforcement of judgments.
The content of this article is valid as of the publication date mentioned above. It is intended to provide a general guide and does not constitute legal or professional advice, nor should be perceived as such. We strongly recommend that you seek professional advice before acting on any information provided.
If you need further assistance, please feel free to reach out to us via phone at +357 22260064 or email at info@economoulegal.com