Trademark protection is crucial to avoid unfair competition and ensure the free movement of goods and services. When trademark rights are infringed, various legal remedies are available, including voluntary dispute resolution and sanctions imposed by institutions such as the Patent Office, civil courts, and the Commission for the Protection of Competition.
In What Cases Are Trademark Rights Violated, and What Measures Can Be Taken?
Trademark rights are violated when, without the owner’s consent, a sign is used for goods and/or services that:
- Are identical to the trademark and used for goods or services identical to those for which the trademark is registered;
- Are identical or similar to the trademark and used for goods or services that are identical or similar to those for which the mark is registered, leading to potential consumer confusion or association;
- Are identical or similar to the trademark, regardless of the goods or services, if the mark is well-known in Bulgaria and the use would unfairly exploit or harm the distinctiveness or reputation of the mark.
These violations disrupt the free movement of goods and services and result in unfair competition. In such cases, the offender should face proportionate and fair sanctions based on the severity of the violation and its consequences.
Options for Protecting Trademark Rights
While voluntary out-of-court settlements are preferable for resolving trademark disputes—saving time, costs, and administrative procedures—it is not always possible. If your trademark rights have been infringed, the following options are available:
- Reporting to the Patent Office (PO):
The Patent Office can investigate and impose sanctions if a violation is confirmed. This intra-departmental procedure is handled by PO staff and typically takes 2-3 months to complete. - Filing a Claim Under Article 116 of the Law on Trademarks and Geographical Indications (ZMGO):
The Sofia City Court can establish the violation and order its suspension if sufficient evidence is provided. Compensation for damages resulting from the violation can also be claimed. However, litigation can be time-consuming, so voluntary settlement is advised when possible. - Filing a Claim Under Article 35 and Article 100 of the Law on the Protection of Competition (LPC):
If the violation affects competition, a claim can be filed with the Commission for the Protection of Competition. If the claim is upheld, sanctions may include fines of up to 10% of the offender’s turnover for the previous financial year. - Reporting to the Prosecutor’s Office (if there is public danger):
In cases where the violation presents a significant public danger, proceedings can be initiated under Article 172b of the Criminal Code. If found guilty, the offender could face imprisonment from one to six years and a fine of up to BGN 10,000. Criminal liability is personal and applies to natural persons. Additionally, a civil claim for damages can be filed as part of the criminal proceedings.
Criminal Liability and Legislative Debates
Article 172b of the Criminal Code has sparked debates regarding whether the penalties for trademark violations are excessive. Amendments to this provision in 2022 and 2023, as well as the EU Court’s Decision in case C-655/21, have raised questions about whether the penalties align with the level of public harm. This ongoing debate makes it rare for trademark owners to resort to criminal defense.
If you believe your trademark rights have been infringed and you need legal protection, contact us. Our team consists of experienced lawyers in the field of intellectual property, both at the national and international levels.
