RESTRICTED
WORLD TRADE IP/Q2/HUN/1
9September 1997
ORGANIZATION(97-3607)
Original: English Council forTrade-Related Aspects
ofIntellectual Property Rights
REVIEW OFLEGISLATION ONTRADEMARKS, GEOGRAPHICAL
INDICATIONS AND INDUSTRIAL DESIGNS
Hungary1
Thepresent document reproduces theintroductory statement made bythedelegation ofHungary
inthereviewoflegislationontrademarks,geographicalindicationsandindustrialdesignsattheCouncil's
meeting of11-15 November 19962,thequestions puttoitandtheresponses given.
_______________
I. INTRODUCTORY STATEMENT
Trademarks
LawNo.IXof1969 onTrademarks asnotified isinforce since 1970. Thislawwasdrafted
withdueregard totheinternationally accepted norms anddisciplines concerning theprotection of
trademarks.
WhenreviewingthelawonecanfindthatitsprovisionsareincompliancewiththoseofSection2
ofPartIIoftheTRIPS Agreement. More precisely, allsigns enumerated inArticle 15areprotectable;
thegrounds fordenying registration donotderogate fromtheprovisions oftheParis Convention; the
rights conferred byatrademark, including theapplication ofArticle 6bisoftheParis Convention, the
requirement ofuseandother requirements, andthepossibility ofassignment oroflicensing without
thetransfer ofthebusiness towhich thetrademark belongs areprovided forintheHungarian lawas
prescribed bytheTRIPS Agreement. Theowner oftheregistered trademark can,however, notprevent
theuseofthetrademark forgoods andservices which areneither identical norsimilar.
Asaresponse totheneeds ofourbusiness community, andforamoretransparent harmonization
withtheTRIPS Agreement, aswellasforthesakeofharmonization ofourlawwiththelegislation
oftheEuropean Union, therelevant legislation isrecently reviewed andadraftnewlawhasbeen
prepared. Thiswillbesubmitted totheGovernment intheverynearfuture andsubject tothe
Government approval willbetransmitted totheParliament. Thenewlawisexpected toenter into
force midnextyear.
1Asregards lawsandregulations relevant totheareas under review asnotified byHungary under Article 63.2ofthe
Agreement reference ismade todocuments IP/N/1/HUN/1/Rev.1, IP/N/1/HUN/T/1-2, IP/N/1/HUN/T/1/Rev.1 and
IP/N/1/HUN/D/1-2.
2Theminutes ofthemeeting have been circulated indocument IP/C/M/11.IP/Q2/HUN/1
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Inthenewlawtheprovision ontheprotectable subject matter isinharmony withArticle 15
oftheTRIPS Agreement andisalmost literally identical withtherelevant ECDirective. Theprovision
ontherights conferred byatrademark expressly includes thepossibility toprevent theunauthorized
useofthetrademark inrelation togoods orservices which arenotsimilar tothose forwhich the
trademark isregistered, provided thatthetrademark hasareputation inthecountry andwhen such
ausewould bedetrimental toorwould takeunfair advantage ofthedistinctive character ortherepute
ofthetrademark. Forthepurpose ofmaintaining theregistration, useofatrademark byaperson
withtheauthorization ofitsowner shallberecognized asuse.
Assoonasthelawenters intoforceitwillbenotified under Article 63oftheTRIPS Agreement.
Geographical Indications
Astotheprotectionofgeographicalindications,HungarybeingmemberoftheLisbonAgreement
ontheProtection ofAppellations ofOrigin andtheirInternational Registration, these indications are
protected under thesaidAgreement. Furthermore, geographical indications areprotected inageneral
manner bythelawonunfair competition. Boththenewandthepresent legislation ontrademarks prohibit
theregistration ofasignifitismisleading astothegeographical origin ofthegoods.
Letmedescribe some provisions ofthenewdraftlaw.ThenewTrademark Lawwillcontain
aspecial chapter ontheprotection ofgeographical indications. Infact,thetitleofthislawis"Law
ontheProtection ofTrademarks andofGeographical Indications".
Adefinition ofgeographical indication isincluded inaccordance withtheTRIPS Agreement.
Besides, thenotion ofappellation oforigin isalsodefined. Therights conferred bytheprotection
correspond totherelevant provisions oftheTRIPS Agreement, andtheprovisions ofArticle 23.1for
theadditional protection ofgeographical indications forwines andspirits willadequately beensured
forallgeographical indications. Hungary hasconcluded some bilateral agreements relating tothe
protection ofgeographical indications andisready toconduct negotiations asforeseen inArticle 24.1
oftheTRIPS Agreement.
Industrial Designs
Theprotection ofindustrial designs isregulated byDecree LawNo.28of1978. Thislaw
hasalsobeen notified totheTRIPS Council ascontained indocument IP/N/1/HUN/D/1. The
requirements forprotection ofthisdecree-law comply withthose oftheTRIPS Agreement. Further
notification onthissubject matter hasbeenrecently transmitted totheSecretariat.
According toanamendment effected in1994 byLawNo.VIIof1994, theexclusive rights
oftheowner oftheprotected industrial design include alsoimports ofaproduct embodying thedesign
forcommercial purposes, ortogrant alicense toathirdparty forcarrying outthisact.Theduration
ofprotection available amounts to10years.
Summary
Insummary, weconsider thattheprotection oftrademarks, ofgeographical indications and
ofindustrial designs inHungary areinlinewiththerelevant provisions oftheTRIPS Agreement.IP/Q2/HUN/1
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II. REPLY TOTHE GENERAL QUESTION CONCERNING PRIORITY RIGHTS3
Doesyourcountry recognize arightofpriority onthebasisofanearlier trademark application
filedinanyother WTO Member byanational ofaWTO Member?
Incompliance withtheobligations under theTRIPS Agreement, Hungary isready torecognize
priority rights based onafirstfiling ofatrademark, industrial design andpatent application inanother
WTO Member, irrespective ofwhether thatother WTO Member isamember oftheParisConvention.
III. REPLIESTOQUESTIONSPOSEDBYTHEEUROPEANCOMMUNITIESANDTHEIR
MEMBER STATES
1. PleaseexplaintherightsconferredontheproprietorofaHungariantrademarkand,inparticular,
whether andifso,inwhich cases suchaproprietor hastoprove theexistence ofalikelihood ofconfusion
where athirdparty uses, without hisauthorization, anidentical orsimilar signforidentical orsimilar
goods orservices.
Relevant provisions oftheHungarian trademark lawinforce:
- Theregistered trademark confers onitsproprietor exclusive rights tousethetrademark
withrespect togoods andservices forwhich thetrademark isregistered (Article 7).
- Trademark infringement iscommitted bytheunauthorized useofaregistered trademark
orofasignconfusingly similar totheregistered trademark forgoods andservices
identical orsimilar tothose enumerated inthelistofgoods oftheregistered trademark
(Article 13).
Itfollows fromtheabove thatwhen boththesignandthegoods orservices areidentical, neither
thelawnorthelegalpractice requires anyproof astothelikelihood ofconfusion.
Should, however, either thesignorthegoods orservices notbeidentical butsimilar, itisthe
proprietor oftheregistered trademark whohastoallege andtomake itprobable thatthereisalikelihood
ofconfusion. Noproof totheeffect thatconfusion hasinfactoccurred inthetrade isrequired.
Anewlawontrademarks isunder preparation andisexpected toenterintoforce inJuly1997.
Thedraftofthenewlawcontains more detailed provisions ontherights conferred byatrademark,
basically inconformity withArticle 5oftheECCouncil Directive4.Accordingly, there seems tobe
nochange insofar thattheproprietor ofthetrademark willnothavetoprove thelikelihood ofconfusion
withrespect totheunauthorized useofidentical signs foridentical goods orservices.
2. DoesHungariantrademarklawprovidemeanstoactagainsttheunauthorizeduseofaregistered
trademark forgoods orservices which arenotsimilar tothose inrespect ofwhich atrademark is
registered? Ifyes,under whatconditions?
TheHungarian trademark lawinforcedoesnotprovide means toactagainst theabove described
use.
3Atthemeeting oftheTRIPS Council of11-15 November 1996, Members agreed torespond tothisquestion inthe
context ofthepresent review (document IP/C/M/11, paragraph 43).
4Document IP/N/1/EEC/T/1.IP/Q2/HUN/1
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Anewlawontrademarks isunder preparation andisexpected toenterintoforce inJuly1997.
Thedraftnewlawcontains aprovision according towhich theproprietor ofaregistered trademark
shallbeentitled toprevent allthirdparties nothaving hisconsent from using inthecourse oftrade
anysignwhich isidentical withorsimilar tothetrademark inrelation togoods orservices which are
notsimilar tothose forwhich thetrademark isregistered, provided thatthetrademark hasareputation
inHungary andwhere theuseofthatsignwould bedetrimental toorwould takeunfair advantage
ofthedistinctive character ortherepute ofthetrademark.
3. Please explain whether trademarks canbeassigned without thetransfer ofthebusiness towhich
thetrademark belongs?
Relevant provision oftheHungarian trademark lawinforce:
- Trademark protection shallbeassignable bycontract (Article 12).
Under thisprovision atrademark canbeassigned without thetransfer ofthebusiness towhich
thetrademark belongs. Anewlawontrademarks isunder preparation andisexpected toenter into
force inJuly1997. Thisprovision willbemaintained bythedraftnewlaw.