Source: http://hahlf.com/news3.html
Timestamp: 2018-01-21 18:04:42
Document Index: 429261871

Matched Legal Cases: ['art 1', 'art 2', 'art 3', 'art 1', 'art 2', 'art 3']

Trademarks: Investing with "distinction".
Trademarks started to show with the idea of Brands when applied by corporate subjects.
Initially, the system was ''the more you produce, the richer you get''. The competition was limited and products were distributed by the name of its components; Ex: SUGAR. During those days, competition was only on lowering down prices and some offers. Companies realized that if the trend was to continue with lowering prices, they will go out of business. That's why the market started revealing the idea of Brand competition replacing Product competition, through which companies started showing some identity and personality for their products as a way to attract clients without considering price tags as priority. For distinction, you should mark your trade as different from others.
Some historians say that Trademarks started to show during the Roman Empire, others confirm afterwards. (You can refer to the Belgian Beer ''Stella Artois'' - 1336).
One step ahead, when companies started to name their products for some distinction, the Trademark idea started to show. Marketing had its entry, and is, nowadays, considered the most important part of estimating any Brand. The more you market and advertise, the more the Brand is estimated. When Philip Morris bought Kraft, half of the price was just for Brand's estimation. We mean by brand's estimation including the cost of advertisement and marketing campaigns.
Because branding needs basic protection from the Trademark and knowing that trademarks has not been something that easy, especially when it comes to legal issues and geographical protection, two main conventions were concluded for that issue: Paris Convention & Madrid Agreement & Protocol.
Geographical protection represents the territories where the trademark is being protected. Practicability in enforcing the protection has coincided with the evolution of the market and free trade conventions.
When the trademark was born, within the appearance of what we call ''The Brand'' replacing the product, not many companies were trading many far distances. Protection was not agreed but to be national and could be exposed to other countries by either second registration or notoriety. With market evolution, came another type of protection which we call the international protection that covers wider and easier.
We will treat in this publication all aspects of the Trademark
To start with, what is a Trademark?
A trademark is a distinctive sign or indicator used by an individual, business organization or other legal entity to identify that the products or services to consumers with which the trademark appears originate from a unique source, and to distinguish its products or services from those of other entities.
Every trademark has to go for registration procedures, in order to protect the rights of the owner from any illegal copying or infringement. In case of registration, a sign will be added to the trademark: ® (Registered Trademark). In case of no registration, and to ensure ownership as former usage, the following sign should be inserted: ™ (Trademark).
In general terms, we have two types of legal systems;
1-	The system that considers as owner the first person using the trademark (actual use), though registration offers the benefits of assuring the ownership & date of usage of that trademark, as well the right to go for a criminal lawsuit in case of infringement.
2-	The system that considers as owner the person who first register the trademark, denying the first usage of any real effect without prior conditions.
In Lebanon, we follow system n.1 (though others claim both), and registration is considered as a type of insurance of that property. Hence; the person owning that trademark, will benefit, from a civil lawsuit as well as from a criminal lawsuit in case of illegal competition or copy of the trademark. In case of no registration, the person using the Trademark (founder) will attach the symbol ™, and in case of infringement, the owner (founder) will have to prove that he was the first using that trademark, as well to prove that the person copying the trademark did know of the existence of the latter, and would be through proving, for example, that the trademark was famous and notorious when infringement did occur. As well, he will not benefit from a criminal lawsuit. That's why registration is recommended in order not to face such heavy and long procedures. In case of registration, the owner would have also the quality to conclude all needed agreements on his trademark, because it is rather impossible, legally and factually, to conclude any type of agreement with no prior registration of the trademark. If possible, the other party will refuse concluding an agreement in case of no registration.
Ex: Franchise Agreements, Trademark Sale Agreement, Trademark Assignment, media license….
Before starting, two notes:
1-	It is important to compare between a business names (Trade name) and a trademark. Simply, the former is not used to label products or services as it is the case with the latter. It is just a name used for the entity, and not materialized on products or services.
2-	A trademark which is popularly used to describe a product or service (rather than to distinguish the product or services from those of third parties) is sometimes known as a genericized trademark. If such a mark becomes synonymous with that product or service to the extent that the trademark owner can no longer enforce its proprietary rights, the mark becomes generic (like to word ''BIC'' for pencils).
As for our case, we will study about the protection given through registration to the owner in Lebanon (Part 1), as well, the protection on international basis (Part 2) and a brief distinction with other areas (Part 3).
Part 1: Benefits of registration in Lebanon:
Registration of the trademark is a type of declaration to third parties of your ownership. As informed above, the Lebanese IP law considers the owner; the person who uses first the trademark. Registration is a type of official declaration of that ownership.
Then why registration procedures if ownership is issued by former usage?
Well, in case of no registration, the person in charge (the owner) should prove, in case of infringement, that he is the first person using that trademark; as well he must prove that the other party infringing his trademark already knows about that trademark. Such a procedure is difficult and will for sure take time and money in order to survive it. The easy way to do it is by registration, that way you will have the official document of your initial usage of that trademark, as well the other party cannot consider its ignorance of such a trademark, because it is already registered, and registration means by law that it is declared to third parties.
The protection due to the Lebanese Law and Regulations (Decision n.2385/1927) is considered on all Lebanese territory. The applicant will benefit from all rights given to any owner, as it is the case with a Landlord. Meaning, he can concede the trademark, as well share it with another person, or entity, through a certain company. He can give rights of usage or sell it.
Registration gives the owner the right to go through two types of lawsuits in case of infringement:
- The Criminal Lawsuit
- The Civil Lawsuit.
In case of no registration, the owner won't benefit from the criminal lawsuit.
Protection duration is for 15 years, renewable for the same period over and over again. Unlike patents that are time limited as for protection (10-20 years), trademarks are free of any time limit, and they might be protected for a never ending period. Sure, as long as registration is renewed. Exception: In case of no usage for the trademark, for over 5 consecutive years by the owner, the trademark will fall.
No annual fees shall be paid or charged during the above years. The fees that are paid initially upon registration will cover the following years.
This is mainly, and in general, what to be mentioned in this aspect, and the benefits that you obtain from the trademark registration in Lebanon.
Part 2: International protection given after registration:
The International protection of any trademark is treated through International Conventions. International trademark is the trademark that is spreading overseas.
We have two main conventions:
-	The Paris Convention for IP.
-	Madrid Agreement for IP.
Lebanon, as well other specific countries, did sign on the Paris Convention, but didn't go for the Madrid Convention. Lebanon signed the Madrid Agreement, and stood still for the Madrid Protocol of 1989.
What do we mean by both Conventions?
The Paris Convention (1883) considers that registration of the trademark in one country won't extend protection for other countries. The owner must fulfill registration in every country where the trademark is used, in order to benefit from protection. Registration must be done in 6 month, starting from the date of the first registration, or else he will lose the priority to benefit from the following registration. That is the case with every company investing in Lebanon, like NESTLE, BMW, MERCEDES BENZ, NIKE, ADIDAS…These companies registered their trademarks at the Ministry of Economy & Trade, and benefit from a limited geographical protection.
The Paris Convention issued a type of a compromise in order to protect the owners of trademarks, especially the notorious ones, by giving the rights to other countries to reject registration in case the initial owner proves that he was the first to use that trademark in that country (other country), and the person using the trademark, by infringement, already knows about the existence of that trademark. Also, notorious trademarks are rejected for registration in case the applicant was other then the initial owner. This is where the Paris Convention reached.
As for the Madrid system for the international registration of marks (the Madrid system) established in 1891 functions under the Madrid Agreement (1891), and the Madrid Protocol (1989). It is administered by the International Bureau of WIPO located in Geneva, Switzerland
Thanks to the international procedural mechanism, the Madrid system offers a trademark owner the possibility to have his trademark protected in several countries by simply filing one application directly with his own national or regional trademark office. An international mark so registered is equivalent to an application or a registration of the same mark effected directly in each of the countries designated by the applicant. If the trademark office of a designated country does not refuse protection within a specified period, the protection of the mark is the same as if it had been registered by that Office. The Madrid system also simplifies greatly the subsequent management of the mark, since it is possible to record subsequent changes or to renew the registration through a single procedural step. Further countries may be designated subsequently.
Lebanon is preparing his request to be member of the Madrid Protocol, and we will ensure an update for that issue.
Part 3: Distinction with other areas:
I hear many people that are confused between trademarks, patents and copyrights. At some point, the difference becomes hard to specify, especially when the three are drawn in a single product.
Patent law generally seeks to protect new and useful inventions, and registered designs law generally seeks to protect the look or appearance of a manufactured article. Trademarks, patents and designs collectively form a subset of intellectual property known as industrial property because they are often created and used in an industrial or commercial context.
As a trademark must be used in order to maintain rights in relation to that mark, a trademark can be 'abandoned' or its registration can be cancelled or revoked if the mark is not continuously used. By comparison, patents and copyrights cannot be 'abandoned' and a patent holder or copyright owner can generally enforce their rights without taking any particular action to maintain the patent or copyright. Additionally, patent holders and copyright owners may not necessarily need to actively police their rights. However, a failure to bring a timely infringement suit or action against a known infringer may give the defendant a defense of implied consent or estoppels when suit is finally brought.
In Lebanon, Trademarks are registered in front of the Ministry of Economy & Trade. Usually it is the competent reference in various countries for such registration. (USPTO in USA).
Categories define the usage of your trademark (food & beverages, pharmaceutical products…). Upon registration, the applicant should specify the category or categories he wishes to work under. The more you choose categories, the more expenses required by the Ministry will rise.
The procedure is normally completed in around one week.
Upon completion, the applicant will obtain from the Ministry a License for his trademark.
Our Publication was achieved thanks to research and applied experience. We hope we cleared out what is needed to be known about Trademarks.
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