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Sweden - Amendments to the Trademarks Act

Amendments to the Swedish Trademarks Act, which entered into force on July 1, 1994, strengthen enforcement provisions and increase penalties for deliberate trademark infringement and infringement due to gross negligence. A summary of the major provisions are set out below:

1) Gross negligence which results in infringement now joins deliberate trademark infringement as an offense punishable by a fine or prison term. Moreover, the maximum prison term has been increased from six months to two years. The amendment does not change the former requirement that the public interest must be involved in order for a prosecution to be brought against an infringer.

2) Under an entirely new section of the law a plaintiff may now more readily seek injunctive relief in infringement proceedings.

3) The scope of damages for which an infringer is liable has been clarified. "Reasonable damages" are specified and are defined as at least the royalties that would have been paid had a license been granted, and may also include damages caused by losses of sales resulting from the infringement. Damages may also be awarded for loss of goodwill, even in cases where the plaintiff has not suffered any actual financial loss. The court may also consider, in assessing damages, "circumstances other than sheer economic interests"; this seems to provide measures against infringers that are punitive in nature.

4) A new provision has been included enabling a court to order the seizure and destruction of the object (i.e. machinery and equipment) used to produce the infringing goods; previously, a court was only empowered to direct the alteration or destruction of the infringing goods.



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© Copyright 1994 Ladas & Parry - Originally published November1994
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