Tissot Loses Trademark Opposition over the POWERMATIC mark

In a recent decision, the Opposition Board of Japan Patent Office (JPO) dismissed an opposition filed by TISSOT S.A., a member of Swatch Group, who contended that trademark registration no. 5950175 for a word mark “PowerMatrix” designating, inter alia, watches in class 14 shall be cancelled in violation of Article 4(1)(xi) and (xv) of the Japan Trademark Law due to a conflict with senior domestic trademark registration and international trademark registration for the “POWERMATIC” mark in class 14.
[Opposition case no. 2017-900258]

PowerMatrix

Opposed mark, consisting of a term “PowerMatrix” written in a plain alphabetical letter, was applied for registration on October 24, 2016 in the name of Kyland Technology Co. Ltd., a Chinese corporation, by covering various goods and services in classes 7,9,11,12,38 and 42 as well as watches in class 14. As a result of substantive examination, JPO granted registration (TM Reg no. 5950175) on May 26, 2017.

Opposition

The Japan Trademark Law provides that anyone is entitled to file an opposition against new trademark registration within two months from the publication date of gazette under Article of 43bis.

Tissot S.A. filed an opposition against opposed mark “PowerMatrix” by citing senior registrations for the word mark “POWERMATIC”, and alleged that opposed mark shall be cancelled based on Article 4(1)(xi) and 4(1)(xv) of the Trademark Law.

  • Article 4(1)(xi) is a provision to refrain from registering a junior mark which is deemed identical with, or similar to, any senior registered mark.
  • Article 4(1)(xv) prohibits to register a mark which is likely to cause confusion in connection with the goods or services pertaining to a business of another person.

POWERMATIC

Tissot argued POWERMATIC has been used on luxury Tissot watches in Japan as an indication of high-end automatic movement for the watches since 2013.

By taking account of increasing sales amount of approx. 1 million CHF in 2015 and substantial advertisement through newspapers, magazines and web-media, the POWERMATIC mark has acquired a certain degree of popularity and reputation among relevant public in Japan as well as its house mark, Tissot.

In appearance and sound, “PowerMatrix” and “POWERMATIC” are confusingly similar because of coincidence of initial eight alphabetical letters among ten in total. If so, opposed mark is likely to cause confusion with the Tissot luxury watch installing “POWERMATIC” automatic movement when used on watched in class 14.

BOARD DECISION

The Board negated a certain degree of popularity and reputation of the “POWERMATIC” mark, stating that produced materials are insufficient and non-objective to demonstrate famousness of the cited mark. Given that the Tissot POWERMATIC watch was firstly distributed in Japan since 2013, a three-year-duration before the filing of opposed mark seems too short to become popular among relevant consumers in fact.

Besides, the Board concluded that difference in appearance and sound is not negligible in view of overall configuration of both marks. If so, it is unlikely that relevant consumers and traders confuse or misconceive watches using the opposed mark with a product from Tissot and the entity systematically or economically connected with Tissot.

Appeal Board reversed examiner’s rejection in the BOB trademark dispute

In an administrative appeal disputing trademark similarity between TM registration no. 5719997 for word mark “BOB” and a junior application no. 2016-49394 for the “bob” device mark represented as below, the Appeal Board of the Japan Patent Office decided that both marks are deemed dissimilar and reversed examiner’s rejection.
[Appeal case no. 2017-10420, Gazette issued date: January 26, 2018]

 

TM Registration no. 5719997

The cited mark, consisting of a word “BOB” in standard character, was registered on November 21, 2014 by designating various items of furniture in class 20.

 

Junior Application no. 2016-49394

Applied junior mark consists of the following “bob” device mark.

It was applied for registration on May 5, 2016 by designating furniture in class 20.

As a result of substantive examination by the JPO examiner, applied mark was rejected due to a conflict with the cited mark based on Article 4(1)(xi) of the Trademark Law.
Subsequently, the applicant filed an appeal against the rejection and disputed dissimilarity of both marks.

 

Board decision

In the decision, the Appeal Board held that:

applied mark is a device in dark brown, consisting of two circles protruding upward on the left side, a circle connected with the two circles in line, and wavy lines underneath.

From appearance, even if it may happen the circle design is recognized as a stylized design of “bob”, the Board opines that the design is unlikely to be considered as alphabetical letters due to a remarkable extent of stylization or abstraction. Thus, it is reasonable to conclude that applied mark shall not give rise to any specific pronunciation and meaning.

Based on the foregoing, in the assessment of trademark similarity, the Board decided that:

Obviously, both marks are distinguishable in appearance. As long as applied mark does not give rise to a specific pronunciation and meaning, it is meaningless to compare the pronunciation and meaning of both marks. Consequently, the Board finds no ground to affirm examiner’s rejection from visual, phonetic, and conceptual point of view.


Astonishingly, JPO considered the bob device mark is unreadable.

Masaki MIKAMI, Attorney at IP Law – Founder of MARKS IP LAW FIRM

First to file rule – How to solve a conflict filed on the same date

The Japan Trademark Law follows “first to file” rule under which a registration is granted to the person who is first to file a trademark application, whether or not he or she began to use the mark before others.

 

Article 4 (1)(Xi) of the Trademark Law

“No trademark shall be registered if the trademark is identical with, or similar to, another person’s registered trademark which has been filed prior to the filing date of an application for registration of the said trademark, if such a trademark is used in connection with the designated goods or designated services relating to the said registered trademark, or goods or services similar thereto.”

 

Provided that a senior mark has yet to be registered at the time of a junior application, but expected in due course, Article 8(1) is applicable.

 

Article 8(1)

“Where two or more applications for trademark registration relating to identical or similar trademarks which are to be used in connection with identical or similar goods or services have been filed on different dates, only the applicant who filed the application for trademark registration on the earlier date shall be entitled to register the trademark in question.”

 

Article 4(1)(xi) and 8(1) provides a decisive solution to deal with conflicting marks filed in different dates based on the “first to file” rule.

 

What happens when conflicting marks are filed on the same date?

 

Article 8(2), (4) of the Trademark law stipulates that the JPO requests applicants to negotiate voluntarily to determine which party is entitled to be a registrant.

 

Article 8(2)

“Where two or more applications for trademark registration relating to identical or similar trademarks which are to be used in connection with identical or similar goods or services have been filed on the same date, only one applicant who is to be determined by consultations among the applicants who filed such applications shall be entitled to register the trademark in question.”

 

Given applicants failed to reach an agreement, the JPO conducts a lotteryto select either applicant for registration in accordance with Article 8(5).

The lottery is conducted using a lottery machine.

 

Article 8(5)

“Where no agreement is reached in the consultations held pursuant to paragraph (2) or no report is submitted within the designated time limit set forth in the preceding paragraph, only one applicant, selected by a lottery in a fair and just manner conducted by the Commissioner of the Patent Office, shall be entitled to register the trademark in question.”

 

This can offer us a valuable lesson.

Get good luck on your side to win a trademark registration in addition to complying with “first to file” rule!

 

Procedures for the public lottery can be seen at Trademark Examination Manual.

https://www.jpo.go.jp/tetuzuki_e/t_tokkyo_e/pdf/44-01.pdf

1187hirai%e4%bf%ae%e6%ad%a3003_2 Masaki MIKAMI – Attorney at IP Law (Japan)