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ARTICLE · 07 SEPTEMBER 2018

A Debranding Debacle - EU Customs Warehousing And Trade Mark Rights

In this case, involving Mitsubishi forklift trucks, two importers were taking advantage of the system.

European UnionIntellectual Property

The highest court in the EU (the CJEU) has made an interesting ruling — that the owner of a trade mark is entitled to prevent a third party from debranding its goods without consent in an EU customs warehouse, before applying a different mark and importing them into the European Economic Area (EEA).

What does this mean?

EU customs warehousing allows non-EU goods to be stored within the customs territory of the EU without being subject to import duties. Generally, the system is used to allow goods to smoothly transit through the EU for sale in non-EU countries. In this case, involving Mitsubishi forklift trucks, two importers were taking advantage of the system. They were bringing goods into a customs warehouse and then replacing Mitsubishi's branding with their own, before modifying the trucks to make them compliant with EU standards.

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