WORLD TRADE IP/N/6/HUN/1
16September 1997
ORGANIZATION(97-3667)
Original: English Council forTrade-Related Aspects
ofIntellectual Property Rights
CHECKLIST OFISSUES ONENFORCEMENT1
Responses from Hungary
Civil andAdministrative Procedures andRemedies
(a) Civiljudicial procedures andremedies
1. Specify thecourts which have jurisdiction overIPRinfringement cases.
Inindustrial property matters theMetropolitan Court hasjurisdiction andexclusive competence
overindustrial property infringement cases. Second instance: Supreme Court.
Therearenospecialisedcopyrightcourts.Judges,actingassinglejudgesspecialisedincopyright
atcounty courts (these areusually, inordinary civillawlitigation, thesecond instance courts) hear
copyright cases inthefirstinstance except forlitigation falling within thescope ofcollective
administration. TheSupreme Court hassecond instance jurisdiction.
2. Which persons havestanding toassert IPRs? How maytheyberepresented? Arethere
requirements formandatory personal appearances before thecourt bytheright holder?
Asregards trademark cases inproceedings forthereview ofthedecisions oftheHungarian
Patent Office, anyperson whotookpartasaparty intheproceedings andhasalegalinterest inthe
review ofthedecision, andthepublic prosecutor, havestanding before thecourt.
Inpatent casesanyparty toprocedures before theHungarian Patent Office mayrequest areview
ofthedecision. Thereview ofthedecision onthegrant andrevocation ofapatent mayberequested
bythepublic prosecutor aswell. Inlitigation concerning IPRinfringements, therightholders have
standing before theCourt. Inthecourt proceedings thepersons having standing toassert IPRsmay
berepresented bylegalcounsel -persons listed inArticle 57(1) oftheCode ofCivil Procedure -in
trademark andpatent cases patent attorneys mayalsoactasrepresentatives. There arenorequirements
formandatory personal appearances before thecourt bytherightholders.
3. What authority dothejudicial authorities have toorder, attherequest ofanopposing
party, aparty toaproceeding toproduce evidence which lieswithin itscontrol?
UnderArticle95(5)ofthenewActXIof1997ontheProtectionofTrademarksandGeographical
Indicationsif,ininfringementproceedings,apartyhaspresentedreasonablyavailableevidencesufficient
tosupport itsclaims, thejudge mayorder -attherequest oftheopposing party -theparty toproduce
documents andother evidence which arewithin itscontrol. Similar provisions havebeenincluded
1Document IP/C/5IP/N/6/HUN/1
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intheCopyright Act,Patent Actandinother industrial property legislation. These provisions are
inaccordance withArticle 43oftheTRIPS Agreement.
Inaddition, according toArticles 163and164(2) oftheCode ofCivil Procedure thejudge
incharge oftheproceeding mayorder theother litigant orathirdparty todisclose documents orother
evidence which heconsiders necessary inthecase.
4. What means exist toidentify andprotect confidential information brought forward as
evidence?
Article 7oftheCode ofCivil Procedure regulates thespecific circumstances under which the
public maybebarred fromthetrialofthecase. These areprotection ofstatesecrecy, business secrecy
andbanksecrecy.
Under Article 90ofActNo.XXXIII of1995 ontheProtection ofInventions byPatents, at
therequest oftheparty thepublic maybebarred fromthetrialofthecasealsowithout thefulfilment
ofthose conditions laiddown inArticle 7oftheCode ofCivil Procedure asmentioned above. In
thenewTrademark Act,Article 80contains similar provisions. TheActontheProhibition ofUnfair
Market Practice andRestriction ofCompetition (No.LVII of1996) provides fortheprotection of
undisclosed information. Itprohibits theuseofabusiness secret inanunfair manner aswellasits
disclosure toothers without authorization.
5. Describetheremediesthatmaybeorderedbythejudicialauthoritiesandcriteria,legislative
orjurisprudential, fortheir use:
- injunctions;
- damages, including recovery ofprofits, andexpenses, including attorney 'sfees;
- destruction orother disposal ofinfringing goods andmaterials/implements for
their production;
- anyother remedies.
Under Article 35ofthePatent Act,inthecaseofaninfringement thepatentee mayrequest
thatthefactofinfringement bedeclared bythecourt andaninjunction inorder tostoptheinfringement
andenjoin theinfringer fromcontinuing theinfringement. Thepatentee mayalsodemand satisfaction
fromtheinfringer andrestitution fortheenrichment obtained bytheinfringement ofthepatent. The
patentee mayalsorequest theseizure ofthemeans usedforinfringement andoftheinfringing products.
Depending onthecircumstances ofthecase, thecourt mayrule,attherequest ofthepatentee, that
theinfringing features ofthemeans andproducts seized beremoved or,where thisisnotpossible,
thattheybedestroyed. Inplace ofdestruction, thecourt mayorder thatthemeans andproducts seized
beauctioned inaccordance withtherules ofenforcement bythecourt; insuchcases, thecourt has
todecide howthesumobtained istobeused. Where apatent isinfringed, thepatentee mayalsoclaim
damages under therules ofcivilliability.
ThenewTrademark Actlaysdown similar legal consequences oftrademark infringement.
Under thenewActevendestruction oftheinfringing products andmeans ispossible.
Theeffectiveness oftheenforcement ofrights hasbeenincreased byfurther measures aswell.
Theinfringer canbeobliged togiveinformation onthesource ofinfringing goods andontherelevant
business connections. (Similar provisions havebeenincluded intheCopyright Act,inthePatent LawIP/N/6/HUN/1
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andinother industrial property legislation.) Seizure oftheinfringing products andofthemeans or
materials usedfortheinfringement shallbepossible evenifthese arenottheproperty oftheinfringer,
provided thattheirowner isaware oftheinfringement orshould under duecarebeaware ofit.It
isalsopossible toinstitute proceedings fortrademark infringement based onapending trademark
application, theproceedings shall, however, besuspended untilthefinaldecision ontheregistration
ofthetrademark. Theholder ofthetrademark mayalsorequest measures ofthecustoms authorities
-under special rules -toprevent theputting onthemarket inthecountry oftheinfringing goods.
Under Article 52oftheCopyright Act,theauthor mayassert civillawclaims ifhisrights are
infringed. Theauthor mayclaim adeclaration bythecourt establishing thataninfringement hasbeen
committed, aninjunction tocease anddesist, aredress fromtheinfringer andremoval oftheinfringing
situation.
Theauthor maydemand damages. Hemayfurther demand thattheobject produced through
infringement bedestroyed orbedeprived ofitsinjurious quality.
TheTrademark Acthasamended theCopyright Acttotheeffect thattheright holder may
claim profits oftheinfringer toberecovered.
6. Inwhat circumstances, ifany,dojudicial authorities have theauthority toorder the
infringer toinform theright holder oftheidentity ofthird persons involved inthe
production anddistribution ofthegoods orservices found tobeinfringing andoftheir
channels ofdistribution?
According tothenewTrademark Act(Article 27(1)), inthecaseofinfringement, theproprietor
ofthetrademark hastheright todemand information from theinfringer about theidentity ofthird
persons involved intheproduction anddistribution ofinfringing goods orservices andoftheirchannels
ofdistribution. ThenewTrademark Acthasamended theCopyright Act,Patent Act,andsimilar rules
ofprocedure havebeenintroduced intoallpieces ofintellectual property legislation inaccordance with
Article 47oftheTRIPS Agreement.
7. Describe provisions relating totheindemnification ofdefendants wrongfully enjoined.
Towhat extent arepublic authorities and/or officials liable insuchasituation andwhat
"remedial measures" areapplicable tothem?
Under Article 349oftheCivil Code, liability fordamage caused inthesphere ofstate
administration shallbeestablished onlyifthedamage could notbeprevented byordinary legalremedies.
These rules shallalsoapply toliability fordamages caused within thesphere ofauthority of
courts andprosecutors 'offices.
8. Describe provisions governing thelength andcostofproceedings. Provide anyavailable
dataontheactual duration ofproceedings andtheir cost.
Therearenoparticularprovisionsgoverningthelengthoftheproceedings.Costsofaproceeding
depend onthevalue oftheaction.
(b) Administrative procedures andremediesIP/N/6/HUN/1
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9. Reply totheabove questions inrelation toanyadministrative procedures onthemerits
andremedies thatmayresult from these procedures.
There isnolegislation inforce inHungary relevant tothespecific cases identified inthis
question.
Provisional Measures
(a) Judicial measures
10. Describe thetypes ofprovisional measures thatjudicial authorities mayorder, andthe
legal basis forsuchauthority.
Arecent amendment totheCode onCivil Procedure (byActLXof1995) hasstreamlined
therules onprovisional measures. Accordingly, onthebasis ofArticle 156oftheCode onCivil
Procedure thecourt mayorder byaprovisional measure, onrequest, compliance withtheclaim for
action (counterclaim) orwiththerequest foraprovisional measure ifitisnecessary toavertimminent
damage, ortomaintain unchanged circumstances giving risetolitigation ortoprotect thepetitioner 's
rights deserving special appreciation andifthedrawbacks caused bythemeasure donotoutweigh the
benefits attainable byit.Thecourt maysubject theordering ofprovisional measures toproviding
security. Thefactsonwhich therequest isbased mustbemade likely. Therequest forprovisional
measure cannot besubmitted before filing thestatement ofclaim, however, thecourt maydecide on
theprovisional measure before thefirsthearing. Thecourt decides ontheprovisional measure out
ofturn,butpriortothatithears theparties personally orallows themtoreply totherequest inwriting.
Thehearing oftheparties mayonlybeomitted incaseofurgent needoriftheparty doesnotcomply
withthetimelimitorperiod fixed forthehearing. Although itispossible tolodge anappeal against
thedecision ontheprovisional measure, thismeasure maybeexecuted inadvance.
Therulesonprovisional measures havebeenmodified partly inthelightofexperience gained
from industrial property andcopyright cases andofpractical needs inthisfield. Themodification
oftheCode onCivil Procedure fulfilled along-standing practical demand bymaking itpossible to
attach theordering ofprovisional measures toproviding security andbypermitting theordering of
suchmeasures alsoinexparte proceedings ifonlyinthecaseof"extreme need".
Withthemodification oftheCode onCivilProcedure, Hungarian lawhasmettherequirements
stemming from Article 50oftheTRIPS Agreement. Special provisions onprovisional measures
applicable inthecaseofinfringement havebeenincluded intoourindustrial property andcopyright
legislation bythenewTrademark Act.These provisions reflect thespecialities ofsuchcases andwould
enhance theeffective enforcement ofrights.
According tothem inintellectual property litigation, itwillbesufficient forcourts toassume
thataprovisional measure isnecessary toprotect thepetitioner 'srights deserving special appreciation
ifevidence isprovided thattheapplicant istherightholder orotherwise entitled toactintheprocedure
andthatthelegalprotection exists. Thedecision ontheprovisional measure shallbepassed within
15dayscounted from thedayoftherequest forsuchmeasure.
11. Inwhat circumstances maysuchmeasures beordered inaudita altera parte?
Such measures maybeordered inaudiata altera parte onlyincaseofurgent needorifthe
party doesnotcomply withthetimelimitorperiod fixed forthehearing.IP/N/6/HUN/1
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12. Describe themain procedures fortheinitiation, ordering andmaintenance inforce of
provisional measures, inparticular relevant time-limits andsafeguards toprotect the
legitimate interests ofthedefendant.
TheCourt shalldecide onprovisional measures outofturn. According tothenewTrademark
Act,theCourt hastoorder aprovisional measure within 15dayscomputed from thesubmission of
therequest forsuchmeasure.
13. Describe provisions governing thelength andcostofproceedings. Provide anyavailable
dataontheactual duration ofproceedings andtheir cost.
There arenoparticular provisions onthelength andcosts ofthese proceedings.
(b) Administrative measures
14. Reply totheabove questions inrelation toanyadministrative provisional measures.
There isnolegislation inforce inHungary relevant tothespecific cases identified inthis
question.
Special Requirements Related toBorder Measures
15. Indicate forwhich goods itispossible toapply forthesuspension bythecustoms authorities
oftherelease intofreecirculation, inparticular whether these procedures areavailable
alsoinrespect ofgoods which involve infringements ofintellectual property rights other
thancounterfeit trademark orpirated copyright goods asdefined intheTRIPS Agreement
(footnote toArticle 51). Specify, together withrelevant criteria, anyimports excluded
from theapplication ofsuchprocedures (such asgoods from another member ofacustoms
union, goods intransit ordeminimis imports). Dotheprocedures apply toimports of
goods putonthemarket inanother country byorwiththeconsent oftheright holder
andtogoods destined forexportation?
TheGovernment Decree No.128/1997 (VII.24) Korm. onthemeasures inthefieldofcustoms
administration procedures against infringements ofintellectual property rights entered intoforce on
1August 1997.
Itispossible toapply forthesuspension inrespect ofgoods which involve infringements of
trademark, geographical indication, copyright orneighbouring rights.
Thefollowing imports areexcluded from theapplication ofsuchprocedures: transit goods
andnon-commercial imports (deminimis imports).
Theprocedures areapplicable togoods destined forexportation andre-exportation. Thecase
oftheimports offoods putonthemarket inanother country byorwiththeconsent oftherightholder
isnotmentioned intheDecree, buttheprocedures arenotapplicable because thisisacivilcontractual
relation between theparties.
16. Provide adescription ofthemain elements oftheprocedures relating tothesuspension
oftherelease ofgoods bycustoms authorities, inparticular thecompetent authorities
(Article 51),therequirements foranapplication (Article 52)andvarious requirements
related totheduration ofsuspension (Article 55). How have Articles 53(security orIP/N/6/HUN/1
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equivalent assurance), 56(indemnification oftheimporter andoftheowner ofthegoods)
and57(right ofinspection andinformation) been implemented?
Tostarttheprocedure aspecific orageneral application maybesubmitted tothecompetent
customs authority. Theperson entitled tosubmit anapplication is:theperson entitled totheprotection
ofthetrademark, theprotection ofthegeographical indication, andtheholder ofthecopyright and/or
neighbouring rights; theuserofthetrade mark entered intotheRegister ofTrademarks, inthecase
ofcopyrights andneighbouring rights, theuserentitled tousethem; andtheorganisation dealing with
thecommon administration ofcopyrights andneighbouring rights. Theaction ofthecustoms authority
mayberequired regarding thespecific illegal goods orshipment inthecaseofaspecific application.
Inthecaseofthegeneral application theaction mayberequired inrelation toaspecified producer
orcountry oforigin foraperiod ofuptosixmonths. Thespecific application shallbesubmitted at
thecustoms office where theimport orexport oftheillegal goods istobeexpected orwhere thecustoms
clearance ofsuchgoods hasbeeninitiated. Specific applications where theplaceofthecustoms clearance
isunknown andgeneral application shallbesubmitted totheNational Headquarters oftheCustoms
andExcise Guard. Thecustoms authority shalltakeadecision onthemerits concerning theapplication
within fiveworking daysofthedatewhen itwassubmitted. Thecustoms authority shallreject the
application if:ithasnotbeensubmitted bytheentitled person; theapplication doesnotcontain all
thenecessary requirements; theentitled person doesnotdeposit thesecurity. Onthebasis ofthe
accepted application thecustoms authority shall place thecustoms goods submitted bytheperson
requesting customs clearance under direct supervision (suspension procedure), andtheentitled person
isforthwith notified thereof. Thecustoms authority shallproceed inrelation totheillegal goods in
accordance withthedecision ofthecourt which rules aninterim measure tobetaken. Thecustoms
authority shallimplement thecustoms clearance ofthecustoms goods inaccordance withtheprovisions
ofthebinding decision ofthecourt which endstheprocedure.
Theapplication oftheentitled person shallcontain: theproof thatthetrademark protection,
protection ofthegeographical indication, and/or thelegalprotection ofcopyright orneighbouring rights
exists inrelation tothecustoms goods; astatement thattheperson isentitled toactagainst the
infringement; hisrequest thatthecustoms authority should taketheappropriate measures totakethe
illegalgoodsunderdirectcustomssupervision;thedescriptionandrelevantcharacteristicsofthecustoms
goods tofacilitate identification, andthecircumstances, data, documents, which suggest thatthe
infringement isprobable; theacknowledgement oftheobligation todeposit thesecurity; inthecase
ofageneral application theperiod forwhich thesupervision isrequired. Theentitled person shall
relate tothecustoms authorities provided heisaware ofit:theplace atwhich thecustoms goods can
befound ortheirplace ofdestination; suchdetailed dataasenable theshipment, consignment orthe
package tobeidentified (with special regard tothedataconcerning thepackaging andvalue ofthe
customs goods andthetransport vehicle); thedenomination oftheimporter, exporter ortheowner
ofthecustoms goods; theexpected timeandplace ofarrival ordeparture ofthecustoms goods; all
information concerning thecustoms goods orthose involved which mayhelpthecustoms authority.
Theentitled person mustprove within tenworking daysofreceiving thenotification thathe
hastaken anaction forinfringement oftrademark, geographical indication, orofcopyright or
neighbouring rights, andhassubmitted anapplication foraninterim measure tobetaken. Thisdeadline
maybeprolonged bytenworking daysinajustified case. Iftheentitled person makes astatement
thathedoesnotwishtoexercise hisrights, orhasnotproven hisapplication foraninterim measure,
oriftheapplication forsuchameasure hasbeenrejected bythecourt, thecustoms authority shall
forthwith notify theperson submitting thegoods tocustoms clearance andfollowing thisthecustoms
goods shallbetreated inaccordance withtheapplication ofthislatter person.
Theentitled person mustdeposit asecurity tothecustoms authority inorder tocover thecosts
ofwarehousing thecustoms goods which areplaced under customs supervision onthebasis oftheIP/N/6/HUN/1
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customs administration 'sprocedure regulated inthisdecree, tocover thecosts ofdestruction ifthe
customs goods aretobedestroyed, andtocover thepossible damages payable totheperson submitting
thegoods forcustoms clearance. Theamount ofthesecurity shallbe5%ofthevalue ofthecustoms
goods iftheirvalue canbeestablished. Iftheirvalue cannot beestablished, thesecurity shallbea
monthly Ft60,000 foreachapplication. Iftheamount ofthesecurity doesnotcover thecosts, the
entitled person must paythedifference.
Itispossible according totheHungarian civilprocedure rules thattheimporter, exporter or
theowner ofthecustoms goods isabletoaskforindemnification ofhislosses ordamages hesuffered
under thisprocedure.
Thecustoms authority, observing theprovisions ofregulations ontheprotection ofdata,shall
provide information onrequest oftheentitled person, ontheperson applying forthecustoms clearance,
onthename oftheaddressee ofthecustoms goods, andfurther shallensure thattheentitled person
mayobserve andexamine thecustoms goods inorder thattheentitled person canexercise hisrights
laiddown inlegalregulations.
17. Describe provisions governing thelength andcostofproceedings. Provide anyavailable
dataontheactual duration ofproceedings andtheir cost. How longisthevalidity of
decisions bythecompetent authorities forthesuspension oftherelease ofgoods intofree
circulation?
Thecustoms authority shalltakeadecision onthemerits concerning theapplication within
fiveworking daysofthedatewhen itwassubmitted. Thecostofthecustom procedure isincluded
intheamount ofthesecurity. Theamount ofthesecurity shallbe5%ofthevalue ofthecustoms
goods iftheirvalue canbeestablished, iftheirvalue cannot beestablished, thesecurity shallbeamonthly
Ft60,000 foreachapplication. Iftheamount ofthesecurity doesnotcover thecosts, theentitled
person must paythedifference.
TheGovernment Decree entered intoforce on1August 1997, soitwillbepossible toprovide
secure dataafteralonger period.
Theentitled person mustprove within tenworking daysofreceiving thenotification thathe
hastaken anaction forinfringement oftrademark, geographical label, orofcopyright orneighbouring
rights, andhassubmitted anapplication foraninterim measure tobetaken. Thisdeadline maybe
prolonged bytenworking daysinajustified case. Iftheentitled person makes astatement thathe
doesnotwishtoexercise hisrights, orhasnotproven hisapplication foraninterim measure, orif
theapplication forsuchameasure hasbeenrejected bythecourt, thecustoms authority shallforthwith
notify theperson submitting thegoods tocustoms clearance andfollowing thisthecustoms goods shall
betreated inaccordance withtheapplication ofthislatter person.
18. Arecompetent authorities required toactupon their owninitiative and,ifso,inwhat
circumstances? Arethere anyspecial provisions applicable toexofficio action?
Thecustoms authority shalltakemeasures exofficio ,toplace thecustoms goods under direct
customs supervision, orshalldecide toplace thecustoms goods toabonded warehouse ifitobtains
suchdatathrough itsother procedures, onthebasis ofwhich itisprobable thatthegoods submitted
forcustoms clearance areillegal goods.
If,inaprocedure initiated bytheoffice, theidentity oftheentitled person cannot beestablished,
thecustoms authority shall contact theHungarian Patent Office inthecaseofaninfringement of
trademark orgeographical indication, ortheorganization dealing withthecommon administration ofIP/N/6/HUN/1
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copyright inthecaseofaninfringement ofcopyright orneighbouring rights. TheHungarian Patent
Office shallinform thecustoms authority oftheidentity oftheentitled person within fivedays. If
theorganization dealing withthecommon administration ofrights doesnotprovide information on
theidentity oftheentitled person within fivedays, ordoesnotwishtoactagainst theinfringement,
thecustoms authority shallputanendtothedirect customs supervision, andproceeds withthecustoms
clearance inaccordance withtheapplication oftheperson submitting thegoods.
19. Describe theremedies thatthecompetent authorities havetheauthority toorder andany
criteria regulating their use.
Thecustoms authorities under thisDecree, according tothisdecision canplace thecustoms
goods under direct customs supervision, orshall decide toplace thecustoms goods toabonded
warehouse. Anyother remedies areavailable onlybythecourt'sbinding decision.
Criminal Procedures
20. Specify thecourts which have jurisdiction overcriminal actsofinfringement ofIPRs.
Allcourts havejurisdiction overcriminal actsofinfringement ofIPRs.
21. Inrespect ofwhich infringements ofwhich intellectual property rights arecriminal
procedures andpenalties available?
Under Article 329/A ofthePenal Code, infringement ofcopyright andneighbouring rights
isranked asacrime iftheactcauses pecuniary loss,thepenalty ofwhich isimprisonment ofupto
twoyears, labour inthepublic interest orfine.
Thepunishment shallbeimprisonment ofuptothree years, iftheinfringement iscommitted
causing considerable pecuniary disadvantage orinabusiness-like manner. Themostserious penalty
isimprisonment uptofiveyears iftheactcauses especially greatpecuniary disadvantage. Theprovision
prescribes theconfiscation oftheobject possessed bytheoffender forwhich thecrime iscommitted.
Confiscation isalsoadmissible iftheobject isnottheproperty oftheoffender, buttheproprietor has
beenaware ofthecommitment ofthecrime. Article 296ofthePenal Code alsoqualifies asacrime
andpunishes falseindication ofgoods withanimprisonment uptothree years.
According toArticle 329ofthePenal Code, aperson whoindicates ashisowntheintellectual
creation, invention, innovation orindustrial design ofanother person andcauses thereby pecuniary
disadvantage totheentitled party, commits acrime which shallbepunishable withimprisonment of
uptothree years.
22. Which public authorities areresponsible forinitiating criminal proceedings? Arethey
required todothisontheir owninitiative and/or inresponse tocomplaints?
Thepolice areresponsible forinitiating criminal proceedings. They maydoitontheirown
initiative andinresponse tocomplaints aswell.
23. Doprivate persons have standing toinitiate criminal proceedings and,ifso,who?
InIPRinfringement casesprivate persons donothavestanding toinitiate criminal proceedings.
24. Specify, bycategory ofIPRandtypeofinfringement where necessary, thepenalties and
other remedies thatmaybeimposed:IP/N/6/HUN/1
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- imprisonment;
- monetary fines;
- seizure,forfeitureanddestructionofinfringinggoodsandmaterialsandimplements
fortheir production;
- other.
Infringement ofcopyright andneighbouring rights:
Penalties: monetary fines;
imprisonment;
labour inpublic interest; and
confiscation.
Usurpation: imprisonment.
(Seeanswer toquestion 21.)
25. Describeprovisionsgoverningthelengthandanycostofproceedings.Provideanyavailable
dataontheactual duration ofproceedings andtheir cost, ifany.
There arenoprovisions particularly governing thelength orcostofthese proceedings.