Trademark reputation extends to virtual markets

In a recent decision, The European General Court has ruled that companies with well-established trademarks for physical goods and/or services can extend their reputation to virtual markets.

This decision came in the case of Glashütter Uhrenbetrieb GmbH v. EUIPO, where the luxury watchmaker sought to register “Glashütte Original” for protecting virtual goods. The EUIPO rejected the application, arguing that “Glashütte” evokes a German watchmaking city, making the sign non-distinctive. Glashütter appealed, contending that reputation for physical goods should not automatically transfer to digital goods. However, the General Court upheld the decision, emphasizing that public perception of a sign does not change when transitioning to virtual goods.

This ruling contradicts EUIPO’s 2024 Guidelines, which previously suggested that digital and physical goods should not be assumed to be similar. The recent decisión is also expected to influence future intellectual property disputes across the EU, raising questions about the evolving landscape of signs in virtual marketplaces.