The UK Supreme Court’s SkyKick Trademark decision is a game changer for brand protection. By ruling that some of Sky’s trademarks were obtained in bad faith because of their scope, the Court has blown apart the broad approach many companies have taken to trademark registrations.
Key Takeaways:
- Precision over Breadth:
- Don’t apply for too much. Don’t apply for things you have no intention of selling. For example, Sky applied for bleach and luggage. Bad faith.
- File for only what you sell or will sell.
- Enforcement:
- If you try to enforce against unrelated businesses or categories, you may struggle if your application is deemed too broad or unjustified.
- This protects smaller businesses from being bullied by large companies with big but unfocused trademark portfolios.
- Portfolio review:
- UK companies to review their existing trademarks and cull any that are vulnerable to bad faith attacks.
- Trademark protections now match business activity and not a monopoly.
- Pro-Competition:
- A more level playing field for smaller businesses, it’s harder for big companies to use broad trademark claims to stifle competition.
- Higher standards for new applications:
- Established and new brands will have to put more time and effort into their applications.
- Make sure your registrations are defensible and not too big to fail.
Looking Ahead:
A pro-competition judicial approach. But more pressure on businesses, especially smaller ones, to get their trademark strategy right.
This changes how trademarks will be viewed and enforced in the UK and will have international implications over time. For all businesses, big and small, it’s time to review and refresh your trademark strategy according to Holmes Mackillop.