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Hungary - New Trademark Act

We have been advised that, on July 1, 1997, a new Trademark Act entered into force in Hungary, in order to bring the law into conformity with the Trademark Law Treaty, the European Community Trademark Harmonization Directive, and the GATT-TRIPS Agreement. Although we have not yet received an English translation of the new Law, we have been advised that the principal changes effected by the new law include those summarized below.

1) The definition of a trademark is expanded to include any distinctive sign that is capable of graphic representation, including slogans, letters, numerals, two and three-dimensional devices, sounds, and product shapes.

2) After the Trademark Office completes its substantive examination, it will publish trademark applications in the Official Gazette to enable third parties to submit observations as to why the trademark application should not proceed to registration. Parties submitting observations will not be involved in the examination procedure, but the Trademark Office will consider the observations when deciding whether to grant a registration on an application. [Editor's note: this provision subsequently changed — see below]

3) Trademark applicants may overcome objections of the Trademark Office based on prior conflicting marks by submitting a Letter of Consent from the owners of the conflicting marks to the registration of the application. [Editor's note: this provision subsequently changed — see below]

4) Under the prior law, only those parties engaged in economic or commercial activity could apply to register a trademark, but this activity requirement is abolished under the new law. It is also possible for a trademark to be owned by multiple parties.

5) Although the obligation to use a trademark remains, and non-use for any period of 5 consecutive years following the registration date will render a mark vulnerable to cancellation on the ground of non-use, valid use of the mark may consist of:
a) use of the mark in a slightly altered form;

b) use of the mark on products for export only;

c) advertising or offering the products bearing the mark for sale;

d) use of the mark in business correspondence.

6) Registered protection for certification marks, geographical indications and indications of source is possible.

7) A trademark owner that has been aware of the use of a conflicting junior mark and has acquiesced to such use for a period of 5 years may not thereafter object to the use or registration of the junior mark.

8) Trademark owners may not prevent the use of their trademark by third parties with respect to products that have been placed on the domestic market by the trademark owners, or with their consent. Certain exceptions are provided, such as where the goods have been altered or damaged.

9) Remedies for trademark infringement have been expanded to include the possibility of seizure of infringing goods by the Customs authorities, and destruction of infringing products, and new provisions concerning the grant of preliminary injunctive relief have been introduced.

Editor's Note:

In a subsequent revision of the law on May 1, 2004, the provisions set forth above in paragraphs 2 and 3 changed:

2) As of May 1, 2004, following the formalities examination, the Trademark Office conducts a search for possible conflicting earlier marks and notifies the applicants of, but does not reject the applications based on, the existence of such marks. The applicants may then voluntarily amend or withdraw their applications. The applications are then published for opposition and third parties may oppose the applications based on conflict with earlier rights.

3) As of May 1, 2004, Trademark applications are then examined for inherent registrability and based on any oppositions filed and will decide whether to grant a registration on an application.



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