Select Committee on European Scrutiny Eighteenth Report


17  TRADEMARK LAW TREATY

(27221)
5260/06
SEC(05)1793
Recommendation for a Council Decision authorising the Commission to open negotiations for Community participation in the Diplomatic Conference to be held in Singapore on 13 to 31 March 2006 by the World Intellectual Property Organisation (WIPO) to adopt the revised Trademark Law Treaty


Legal baseArticle 300(1)EC; — ; unanimity
Document originated11 January 2006
Deposited in Parliament 23 January 2006
DepartmentTrade and Industry
Basis of consideration EM of 3 February 2006
Previous Committee Report None
To be discussed in Council No date set
Committee's assessmentLegally and politically important
Committee's decisionCleared

Background

17.1 The Trademark Law Treaty concluded in Geneva on 27 October 1994 deals with procedural provisions intended to simplify the administrative procedures relating to the registration of trade marks. It does not address substantive issues relating to the subsistence or exercise of trade mark rights but supplements the Agreement on Trade-Related Aspects of Intellectual Property Rights (the 1994 TRIPS Agreement).

17.2 A committee under the auspices of WIPO (World Intellectual Property Organisation) has been considering a number of additions and clarifications of procedural aspects of trademark registration and has proposed a revision of the Treaty which is to be considered at a WIPO Diplomatic Conference in March 2006. The proposed revision concerns the scope of the Treaty, whether the Treaty can be applied to non-visual trademarks (e.g. sounds or scents) if national trademark law so provides, the electronic filing of trademarks, relief measures in case of failure to comply with time limits, licences and the creation of an Assembly of the Contracting Parties (which would permit the Treaty to be amended without having to convene a Diplomatic Conference).

The recommendation for a Council Decision

17.3 The recommendation is concerned with the means whereby the Commission may take part in the Diplomatic Conference on behalf of the European Community in relation to those matters where the Community has competence. The draft Council Decision would authorise the Commission to negotiate at the Singapore Diplomatic Conference those aspects of the Trade Mark Treaty which are related to the Community trademark and the participation of the Community in the envisaged new Treaty.

17.4 The recommendation explains that the rules of procedure for the Singapore Diplomatic Conference provide that the States which are members of WIPO will be referred to as "Ordinary Member Delegations", but that the European Community will be referred to as a "Special Member Delegation" and will have the same status as an Ordinary Member Delegation except for having no right to vote or to participate in the credentials committee.

17.5 By virtue of the Decision, the Commission would be obliged to consult the Special Committee designated by the Council, and would be required to observe the negotiating directives set out in the annex to the Decision. These require the Commission to ensure that the provisions of the new Treaty are compatible with Council Regulation (EC) No 40/94 on the Community trade mark[30] and with measures implementing that Regulation, and that the revised Treaty contains provisions allowing the Community to become a party and to exercise voting rights in the Assembly with a number of votes equal to the number of Member States which are party to the Treaty.

The Government's view

17.6 In his Explanatory Memorandum of 3 February 2006, the Parliamentary Under-Secretary of State for Science and Innovation (Lord Sainsbury of Turville) explains that the existence of the Community trademark justifies the exercise of Community competence. The Minister recalls that the Community trademark does not replace national trade marks but is an independent and additional form of trademark which is valid throughout the Community and that the Community trademark and national trademarks "coexist and are legally separate and independent from each other with regard to both the substantive and procedural rules which apply and to the offices in charge of issuing them".

17.7 The Minister further explains that the planned revised Treaty concerns the European Community in that its provisions could apply to the Community trademark if the Community were to decide to accede to the Treaty, but that it remains for Member States to express themselves with regard to issues related to national trademarks. The Minister adds that it will be necessary for the Commission and the Member States closely to coordinate their respective positions in the negotiations.

17.8 The Minister states that the proposed changes are likely to be positive for business, allowing easier access to international systems by UK users. This is expected to produce cost savings for businesses and individuals who wish to register their designs overseas, with particular benefits for small and medium-sized enterprises which require international protection, but find the current financial and administrative costs to be too high. The involvement of the European Community arises from the fact that Community and national trademark systems operate concurrently.

Conclusion

17.9 We thank the Minister for his helpful Explanatory Memorandum. In the light of the explanations provided by the Minister, we are content to clear the document.




30   OJ No L 011 of 14.01.1994, p.1. Back


 
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