EU Trademark Reform Advances; Dutch Warn Of Holdup Of Goods In Transit

The European Union Council of ministers today adopted its position on the reform of the European trademark system. The Netherlands delegation abstained from voting out of concern that the proposed reform introduces the possibility to stop goods in transit for possible intellectual property infringement.

According to a press release, the reform of the trademark system is expected to improve conditions for business to innovate and get better protection against counterfeits, “including fake goods in transit through the EU’s territory.”

The new system is also meant to facilitate trademark registration easier for businesses in the EU, in particular with lower costs, and increased speed, according to the release, which added that the Dutch delegation abstained from voting and the United Kingdom delegation voted against the adoption of the draft regulation.

According to the press release, the European Parliament is expected to vote in second reading at a plenary session before the end of 2015.

According to the Dutch statement, the draft provisions “will introduce the possibility to detain goods on account of possible infringement of a national or EU-trademark, where those goods are merely in transit through EU territory.”

“The Netherlands believes that the proposed measure will put a disproportionate and unnecessary burden on holders of goods and an impediment to legitimate international trade, including for legitimate generic medicines,” the statement said.

“The Netherlands has had a negative experience in 2008 with detaining medicines in transit and does not want that to happen again,” it said. This may refer to seizures of goods passing through the country from developing countries en route to patients in other developing countries, which led to a World Trade Organization dispute case.

“Although the Netherlands supports the battle against counterfeiting as this undermines trade, IP-rights etc., the proposed measure for detaining goods in transit is unacceptable for The Netherlands,” the statement said. “Against this background the Netherlands will abstain from voting on the trademark reform package.”