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Austria - Amendment of Trademark Law

We have been advised that the Austrian trademark law has been amended effective July 23, 1999, in order to satisfy Austria's obligations under the European Union trademark laws and international treaties. The principal changes effected under the amendments are summarized below.

1) The definition of a mark has been extended to signs which are distinctive and capable of being represented graphically, including trademarks consisting of letters, numbers and sounds, as well as shapes and aspects of the packaging of goods.

2) The concept of trademark ownership has been broadened to allow anyone, such as a holding company, advertising agency or private individual, to own trademarks.

3) Descriptive and non-distinctive marks may be registered if it is shown that they have acquired distinctiveness as a result of use in Austria prior to the application.

4) Liens may be registered in the Trademark Register.

5) Prison sentences of up to two years have been introduced as a penalty for trademark infringement. In a civil suit for infringement, the plaintiff may claim damages amounting to double the "reasonable compensation" (which could be the usual license rate), if the trademark infringement was caused intentionally or by gross negligence.

6) Additional protection for famous marks has been introduced.

7) A trademark owner who has been aware of and has acquiesced to the use of a conflicting mark for a period for 5 years may not thereafter object to the use of the junior mark, if it was commenced in good faith.

8) The majority of the amendments entered into force on July 23, 1999, although some provisions are retroactively effective from January 1, 1996, because of international treaties.


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