EU Trade Mark Law and Product Protection: A Comparative Analysis of Trade Mark Functionality

B ancusi, La inia
Book
EU T ade Ma k Law and P oduc P o ec ion: A Compa a i e
Analysis o T ade Ma k Func ionali y
P o ided in Coope a ion wi h:
Taylo & F ancis G oup
Sugges ed Ci a ion: B ancusi, La inia (2024) : EU T ade Ma k Law and P oduc P o ec ion: A
Compa a i e Analysis o T ade Ma k Func ionali y, ISBN 978-1-003-37604-0, Rou ledge, London,
h ps://doi.o g/10.4324/9781003376040
This Ve sion is a ailable a :
h ps://hdl.handle.ne /10419/290378
S anda d-Nu zungsbedingungen:
Die Dokumen e au EconS o dü en zu eigenen wissenscha lichen
Zwecken und zum P i a geb auch gespeiche und kopie we den.
Sie dü en die Dokumen e nich ü ö en liche ode komme zielle
Zwecke e iel äl igen, ö en lich auss ellen, ö en lich zugänglich
machen, e eiben ode ande wei ig nu zen.
So e n die Ve asse die Dokumen e un e Open-Con en -Lizenzen
(insbesonde e CC-Lizenzen) zu Ve ügung ges ell haben soll en,
gel en abweichend on diesen Nu zungsbedingungen die in de do
genann en Lizenz gewäh en Nu zungs ech e.
Te ms o use:
Documen s in EconS o may be sa ed and copied o you pe sonal
and schola ly pu poses.
You a e no o copy documen s o public o comme cial pu poses, o
exhibi he documen s publicly, o make hem publicly a ailable on he
in e ne , o o dis ibu e o o he wise use he documen s in public.
I he documen s ha e been made a ailable unde an Open Con en
Licence (especially C ea i e Commons Licences), you may exe cise
u he usage igh s as speci ied in he indica ed licence.
h ps://c ea i ecommons.o g/licenses/by/4.0/
EU T ade Ma k Law and
P oduc P o ec ion
This book employs schola ly analysis o g ound p ac ical ools o applying he
EU T ade Ma k law (EUTM) unc ionali y e usal g ounds o add ess business
needs when egis e ing ade ma ks consis ing o p oduc cha ac e is ics.
The s udy comp ehensi ely examines he absolu e g ounds o a e usal o
egis a ion o unc ional signs unde EUTM. I in e p e s he unc ionali y
e usal g ounds h ough objec i e es s, ocusing on he p o-compe i ion
a ionale o denying ade ma k exclusi i y on p oduc ea u es ha a e
echnically o aes he ically impo an o compe i o s’ abili y o ade in
al e na i e p oduc s. The wo k akes a compa a i e app oach looking a he US
ade d ess unc ionali y doc ine, and a law and economics pe spec i e on he
ole o ade ma ks and b ands in he ma ke place. I explo es how compe i ion
ules ela ed o ma ke de ini ion and he subs i u abili y o p oduc s, as well
as ma ke ing and design indings ela ed o b anding and aes he ics, could be
in eg a ed in o he legal assessmen o EUTM unc ionali y. The olume will
be o in e es o academics and esea che s wo king in he a eas o In ellec ual
P ope y Law, T ade Ma k and Design Law, EU Law, Compa a i e Law, and
B anding.
La inia B ancusi is Adjunc P o esso a New Technologies Law Cen e,
Ins i u e o Law S udies, Polish Academy o Sciences in Wa saw, Poland. She
holds law deg ees om he Uni e si y o Wa saw, Facul y o Law (mas e , d .
iu .) wi h an awa d-winning doc o al disse a ion in design law. He esea ch
in e es s co e cumula i e p o ec ion in in ellec ual p ope y, wi h a speci ic
ocus on p oduc p o ec ion, unc ionali y in adema k and design law, as
well as he in e ace be ween IP and compe i ion ules, especially in ela ion
o b ands.
EU T ade Ma k Law and
P oduc P o ec ion
A Compa a i e Analysis o T ade Ma k
Func ionali y
La inia B ancusi
LONDON AND NEW YORK

Fi s published 2024
by Rou ledge
4 Pa k Squa e, Mil on Pa k, Abingdon, Oxon OX14 4RN
and by Rou ledge
605 Thi d A enue, New Yo k, NY 10158
Rou ledge is an imp in o he Taylo & F ancis G oup, an in o ma business
© 2024 Ins i u e o Law S udies, Polish Academy o Sciences
The igh o he Ins i u e o Law S udies, Polish Academy o Sciences o
be iden i ied as au ho o his wo k has been asse ed in acco dance wi h
sec ions 77 and 78 o he Copy igh , Designs and Pa en s Ac 1988.
The Open Access e sion o his book, a ailable a www. aylo ancis
.com, has been made a ailable unde a C ea i e Commons A ibu ion
4.0 license.
T adema k no ice: P oduc o co po a e names may be adema ks
o egis e ed adema ks, and a e used only o iden i ica ion and
explana ion wi hou in en o in inge.
B i ish Lib a y Ca aloguing-in-Publica ion Da a
A ca alogue eco d o his book is a ailable om he B i ish Lib a y
Lib a y o Cong ess Ca aloging-in-Publica ion Da a
Names: B ancusi, La inia, 1977- au ho .
Ti le: EU ade ma k law and p oduc p o ec ion : a compa a i e
analysis o ade ma k unc ionali y / La inia B ancusi.
O he i les: Eu opean Union ade ma k law and p oduc p o ec ion
Desc ip ion: Abingdon, Oxon ; New Yo k, NY : Rou ledge, 2023. |
Includes bibliog aphical e e ences and index.
Iden i ie s: LCCN 2022061735 | ISBN 9781032446318 (ha dback) |
ISBN 9781032452289 (pape back) | ISBN 9781003376040 (ebook)
Subjec s: LCSH: Func ionali y (T adema k law)—Eu opean Union coun ies.
Classi ica ion: LCC KJE2768 .B7359 2023 |
DDC 346.404/88—dc23/eng/20230406
LC eco d a ailable a h ps://lccn.loc.go /2022061735
ISBN: 978-1-032-44631-8 (hbk)
ISBN: 978-1-032-45228-9 (pbk)
ISBN: 978-1-003-37604-0 (ebk)
DOI: 10.4324/9781003376040
Typese in ITC Gallia d P o
by codeMan a
Publica ion inanced unde he p og am o he Minis e o Science and
Highe Educa ion unde he name “DIALOG” in he yea s 2019–2023
as pa o he p ojec “Excellence in Legal Resea ch. P omo ing Polish
Achie emen s in he A ea o Legal Sciences Ab oad” implemen ed
unde he leade ship o Celina Nowak by he Ins i u e o Law S udies
o he Polish Academy o Sciences.
To my husband Jan
Con en s
Acknowledgemen s ix
In oduc ion: how o deal wi h unc ionali y in ade ma k
law in a p ac ical way 1
1 The legal amewo k o ade ma ks’ unc ionali y in he EU 18
2 ‘La aison d’ê e’ o unc ionali y in he EUTM: a ool o
balancing in e es s be ween legal exclusi i y and enhancing
compe i ion 39
3 The US legal amewo k o unc ionali y doc ine: a eas o
con e gence wi h EU law 64
4 Func ionali y wi hin he amewo k o law and economics:
compe i ion conce ns agains p o ec ing unc ional ade ma ks 87
5 Ca ego ies o signs alling wi hin he scope o EUTM
unc ionali y e usal g ounds 153
6 Technical unc ionali y 191
7 Gene ic unc ionali y: signs esul ing om he
na u e o goods 247
8 The unc ionali y o signs gi ing subs an ial alue o goods 267
9 Conclusions 321
Index 335
4 In oduc ion
in e ope abili y wi h p oduc s o di e en o igins demons a es he absence o
con e gence be ween he unc ionali y ules o EU ade ma k and design law,
a leas wi h ega d o some pa icula indus ies.17 Ce ainly, design igh s a e
limi ed in ime, and so legal exclusi i y appea s o a ec ma ke compe i ion
less se e ely han in he case o ade ma ks. This is one o he easons ha
he book ocuses on ade ma k law, whils es ic ing he discussion o design
ules o de ails which help ame he main heme.
In addi ion, Lego has s a egically egis e ed o he kinds o ade ma ks
which co e impo an elemen s o oy se s o ea u es o he packaging. One
such example is a igu a i e ade ma k displaying a black-and-whi e b ick,
d awn wi h yellow con ou s on a ed backg ound, which was unsuccess ully
challenged upon absence o dis inc i e cha ac e o easons o ealis ic ep-
esen a ion o he in e locking b ick.18 Ano he in e es ing egis a ion was a
wo-dimensional igu a i e ma k ha in ol ed a one-knob b ick ep esen ed
in black and whi e as a hombic shape and a hal -o al shape se abo e – he
a emp o in alida ion due o unc ionali y ailed.19 The case o Lego’s h ee-
dimensional shape o a manikin wi h p o usion on he head and holes in i s
ee is in e es ing o se e al easons. T ade ma k egis a ion was sough o
he oy igu e, al hough design igh s we e also a ailable. Se ious unc ionali y
objec ions challenged he basic s uc u e o he manikin as esul ing om he
na u e o designa ed goods, howe e he egis a ion was success ully main-
ained, despi e he ac ha he CJEU had implemen ed a es ic i e app oach
owa ds his ype o unc ionali y.20 Ano he ecen a emp o cancel he eg-
is a ion o a quasi-iden ical shape o a manikin wi hou p o usion o easons
o unc ionali y also ailed.21 These ew examples show ha he p ac ice o ely-
ing on ade ma ks ha combined se e al design ea u es (g aphics/colou o
shape elemen s) was a sh ewd business manoeu e because such ade ma ks
we e mo e easily egis e ed and de ended agains cancella ion.
Lego’s s o y is ins uc i e no only o demons a ing how mind ul en e-
p eneu s co e hei mos aluable co e asse s (he e: p oduc appea ance +
in e ope abili y/connec i i y e ec s = modula sys em) by means o a ious
laye s o in ellec ual p ope y igh s ( ade ma ks, pa en s, designs, un ai com-
pe i ion, copy igh ). I also shows he pe sis en p essu e om compe i o s
who wish o eely exe cise echnical solu ions a ailable in he public domain
in o de o ade simila p oduc s. In eali y, compe i o s wished o ge close
o Lego’s ma ke posi ion, which was buil on a enowned p oduc . Lego in-
es ed ime and money in o deli e ing p oduc s o consis en quali y, which
17 The e a e mo e di e ences be ween hese wo ypes o egula ion which he book ouches
u he upon.
18 EUTM 106948, EUIPO BoA R-690/2014-4.
19 CTM 13745476, EUIPO Cancella ion No. 14148 C o 27 No embe 2018.
20 CTM 50450, T-396/14, C-452/15.
21 CTM 50518, EUIPO cancella ion no. C 44791 o 1 July 2020.

In oduc ion 5
was expensi e. Should i als ge a sha e o Lego’s success? They would a -
gue ha he abili y o ade al e na i es, some compa ible wi h Lego’s sys em,
would exe ma ke p essu e o lowe he p ice o he inal p oduc s ( oy se s)
which ul ima ely lies in he in e es o consume s. Who dese es mo e a -
en ion? In ui ion sugges s ha sol ing he con lic be ween he in e es s o
igh -holde s and compe i o s, le alone consume s, is no easy and in ol es
balancing and p io i izing compe ing goals. One possible legal ool o add ess
his issue is ep esen ed by he unc ionali y p o isions o ade ma k law. The
book will discuss he pu pose o his egula ion in de ail, and how i may be
e ec i ely applied.
A his poin i is wo h no ing ha conce ns abou he an i-compe i i e
e ec s o ‘monopolizing’ p oduc ea u es unde ade ma k p o ec ion a e
no a ea u e unique o he EUTM. Many o he legisla ions wo ldwide ha e
adop ed simila policies and ules pe aining o unc ional signs. Fo easons
ha will be explained u he , his book bene i s ex ensi ely om examining
he US unc ionali y doc ine and p ac ice.
2. Is unc ionali y a p essing p oblem ha equi es (dis inc )
a en ion?
Func ional ade ma ks a e occu ing a an inc easing a e in he p ac ice o
he EUTM in ecen yea s. Each new case s ikes om a su p ising angle and
gene a es a g ea deal o igo ous deba e among schola s and in he cou s.
One possible eason o his si ua ion lies in he expansion o new ca ego ies o
signs, hose ha all ou side he adi ional ealm o wo ds and g aphics, and
which businesses seek o use and egis e as ade ma ks.22 This end seems
a ibu able o e e -mo e sophis ica ed b anding s a egies ha build on im-
po an p oduc ea u es, appealing o a wide ange o senso ial expe iences.
As will be discussed in Chap e s 4 and 8, in e disciplina y esea ch is de elop-
ing an in eg a ed app oach o wha may ep esen p oduc alue in he eyes
o consume s, and how emo ional expe ience becomes an essen ial indica o
o consume sa is ac ion. P oduc in e ac ion in ol es much mo e han isual
s imuli, igge ing he speci ic consume emo ions ha designe s and ma ke -
e s seek o s ee . Businesses know how s imula ing sound, ouch, as e, and
smell may be, and how employing a comple e senso y expe ience as pa o
p oduc launches o shopping ac i i y may in luence consume awa eness and
he pu chase decision.23 Fo hese easons, he issue o monopolizing aspec s
22 I ene Calboli, Ma in Sen leben (eds.) The P o ec ion o Non-T adi ional T ade Ma ks: C i i-
cal Pe spec i es (OUP 2018). Fo a ecen c i ique, I ene Calboli, ‘Non-T adi ional T ade-
ma ks as Ba ie s o Compe i ion, Inno a ion and C ea i i y: Wha i Thei P o ec ion Could
Be E ec i ely Limi ed in P ac ice’ in Gus a o Ghidini, Vale ia Falce (eds.) Re o ming In el-
lec ual P ope y (Elga 2022) 1.
23 Ca los Velasco, Cha les Spence (eds.) Mul isenso y Packaging: Designing New P oduc Ex-
pe iences (Palg a e Macmillan 2019). Fo a legal s udy acknowledging he signi icance o
6 In oduc ion
o senso ial expe ience based on non- adi ional ade ma ks, as pa o he
‘way o doing business’ by a gi en en ep eneu , aises ac ual legal conce ns.
Gene ally, i is no ye a se led ule ha non- adi ional signs may easily
pe o m he basic unc ion o a ade ma k, ha o dis inguishing he com-
me cial o igin o goods o se ices. Regis a ion o such ade ma ks has gene -
ally aced a a ie y o legal obs acles, which in he mos common cases ange
om unclea subjec -ma e o a lack o dis inc i eness. These ma e s ha e
been ex ensi ely sc u inized in he legal doc ine.24 Less a en ion, howe e ,
has been paid o he sepa a e in alidi y g ound ha pe ains o unc ionali y.
Al hough simila p o isions we e p esen in he na ional legisla ion o se e al
EU coun ies, ha moniza ion o he EUTM has led o he need o de elop
uni o m me hods o assessmen , ollowing a di e si ica ion o case-law. The
ecen EUTM e o m has eshaped he unc ional p o isions by ende ing
hem mo e sui able o challenging he s a us o non- adi ional ade ma ks.
Analysing he di e en aspec s o legal in e p e a ion o de ine he scope o
unc ionali y se ou in he EUTM may, hus, p o ide he p ima y and mos
s aigh o wa d eason o w i ing his book.
Unde he EUTM, con e ing au onomous in e p e a ion o unc ional-
i y p o isions, ha is, sepa a ely om he assessmen o dis inc i e cha ac e
(and ela ed g ounds, such as desc ip i eness and gene icness), should be an
easy ask. In p ac ice, hough, i has u ned ou o be di icul o a numbe
o easons. Fi s o all, in he p e-ha moniza ion pe iod, as in e na ional con-
en ions did no explici ly add ess unc ionali y, he legisla ion in Eu opean
coun ies deal wi h i au onomously in a ious ways. In mos cases he eg-
is a ion o wha appea ed o be a unc ional sign was denied ei he because
o a gene al incapaci y o dis inguishing goods/se ices, o o he absence
o a dis inc i e cha ac e assessed in ela ion o he designa ed goods/se -
ices. E en when ha moniza ion ook place a he EU le el, o many yea s
a e wa ds ce ain speci ici ies o p e- e o m p ac ice s ill linge ed in he way
cou s unde s ood he issue o unc ional signs and he applica ion o dedi-
ca ed legal p o isions. Fo his eason Chap e 1 looks in o some aspec s
o in e na ional and na ional legisla ions ha a e ele an o he egime o
EUTM unc ionali y.
neu opsychology indings on consume beha iou and pu chase decision, Anne e Ku ,
‘B and Symbols, he Consume , and he In e ne ’, Max Planck Ins i u e o Inno a ion &
Compe i ion Resea ch Pape No. 16-01, a h ps://ss n.com/abs ac =2721740, 4–6. Mo e
in Chap e 8.3.1.
24 Ane e Ku , Ma in Sen leben, Eu opean T ade Ma k Law: A Commen a y (OUP 2017),
Lionel Ben ly, B ad She man, De Gangjee, Phillip Johnson, In ellec ual P ope y Law (5 h
ed. OUP 2018); William Co nish, Da id Llewelyn, Tanya Aplin, In ellec ual P ope y: Pa -
en s, Copy igh , T ade Ma ks and Allied Righ s (8 h ed. Swee & Maxwell 2013), Je emy
Phillips, T ade Ma k Law: A P ac ical Ana omy (OUP 2003); Rysza d Skubisz, P awo z
ejes acji znaku owa owego i jego och ona: S udium z zak esu p awa polskiego na le p awno-
po ównawczym ( ep in S owa zyszenie Naukowe P o Scien ia Iu idica Lublin 2018).
In oduc ion 7
Ano he di icul y o he unc ionali y assessmen esul s om he way he
sign consis ing o p oduc ea u es was iled – how i was indica ed and (g aph-
ically) ep esen ed. Applican s ha e s a egically disguised he eal na u e o
such signs by elying on o he ade ma k ca ego ies (e.g. igu a i e, posi ion,
colou ) which could mo e easily acqui e egis a ion, mos ly unde he es o
dis inc i e cha ac e . I is ue ha many signs alling unde he unc ional-
i y ada a e a combina ion o unc ional/non- unc ional ea u es. Howe e ,
EUTM unc ionali y p ohibi ions only apply unde he condi ion ha he sign
a issue consis s ‘exclusi ely’ o unc ionally de e mined ea u es. This means
ha assessmen o a composi e sign equi es weighing some ea u es agains
he o he s and using ce ain, objec i e, c i e ia o each a decision in a si ua-
ion when he assessmen emains a ma e o deg ee. In addi ion, he issue
o ade ma k ca ego iza ion and i s legal e ec s is de e mined by he ame-
wo k o he egis a ion p oceedings, and especially by he scope o eedom
he examine s/cou s enjoy wi h ega d o he e idence used o in e p e he
iled subjec -ma e . The in e p e a ion o he subjec -ma e has di ec con-
sequences in choosing he absolu e e usal g ounds upon which a gi en ap-
plica ion is examined. Chap e 5 looks in o he in icacies o iden i ying he
subjec -ma e o unc ionali y p ohibi ions, and he di icul y o keeping he
unc ionali y assessmen sepa a ed om he dis inc i eness pa h.
Las , bu no leas , he CJEU’s ju isp udence has implemen ed a ule ha
bo h he absolu e g ounds o e usal ela ed o dis inc i eness and unc ion-
ali y should be in e p e ed h ough he lenses o ‘public in e es ’. This is no
a no ma i e no ion, bu a ju isp uden ial one. The di icul y is ound in he
si ua ion ha he e m ‘public in e es ’ has cap u ed a ious meanings o e
ime25 and ails o clea ly sepa a e no only he sphe e o applica ion o he
e usal pe aining o desc ip i eness o gene icness o (absence o ) dis inc i e-
ness, bu also he ealm o hese h ee e usal g ounds om unc ionali y ones.
Chap e 2 looks in o he de elopmen o he ‘public in e es ’ c i e ion o he
pu poses o hese absolu e e usal g ounds, whils jus i ying why unc ional-
i y objec ions should emain he objec o a sepa a e assessmen p io o any
dis inc i eness ma e s.
3. The pu poses o unc ionali y and he in e es s a s ake
The s o y o Lego is a good illus a ion o how a ious IPRs ha e been used,
sequen ially o simul aneously, in o de o p o ec he same o complemen a y
p oduc ea u es, which ep esen an impo an ma ke asse . This phenom-
enon o so-called ‘o e laps’, ha is, cumula i e p o ec ion, which s eng hens
25 Ilanah Fhima , ‘The Public In e es in Eu opean T ade Ma k Law’ (2017) 4 IPQ 311; An oon
Quaed lieg, ‘Shapes wi h a Technical Func ion: An E e Expanding Exclusion?’ (2016) 17
ERA Fo um 101; Je emy Philips, ‘T ade Ma k Law and he Need o Keep F ee’ (2005) 36(4)
IIC 389.
8 In oduc ion
he ma ke posi ion o a business unde aking and collides wi h compe i o s’
in e es s, lies a he co e o he eleological ounda ion o he unc ionali y
doc ine. As no ed abo e, a decision denying ade ma k p o ec ion o a unc-
ional sign unde he EUTM should be unde lined/guided by speci ic easons
o ‘public in e es ’. One way o unde s anding he la e no ion cen es on he
goal o achie ing a clea dema ca ion be ween he di e en limi ed egimes
(pa en s, u ili y models, designs), wi h unc ionali y pe o ming he ole o a
cu ing ool o sepa a e hem. Ano he complemen a y app oach ocuses on
he nega i e impac o a ade ma k’s egis a ion on ma ke compe i ion due
o he possible monopoliza ion o p oduc ea u es.26 As pa s o Chap e 2
demons a e, EUTM p ac ice o da e has ied o accommoda e hese wo
app oaches in a ious p opo ions. The e a e s ill que ies a ound whe he
he concep o public in e es is a common one, good o all ypes o unc-
ionali y, o whe he sepa a e app oaches be e i he echnical as opposed
o he aes he ic kind o unc ionali y. Chap e s 6 o 8, indi idually add ess-
ing he in e p e a ion o EUTM unc ionali y p o isions, a gue ha achie -
ing he igid and o malis ic clea -cu ing goal is unsus ainable/un easible in
mos cases, whils adop ing a lexible solu ion – ocused on si ua ions o un ai
compe i ion ad an ages and p oduc ea u es needed o compe e e ec i ely –
ep esen s a iable and eachable op ion.
The a ionales unde pinning he unc ionali y ules ep esen a poin whe e
he EUTM and US legal sys ems seem o con e ge. Di e en app oaches ha e
been ad anced in he USA, o example unde he e ms o a ‘ igh o copy’ as
opposed o ‘a need o copy’, in o de o jus i y he decision o con e p o ec-
ion upon, o deny i o, a ade ma k ha has been deemed unc ional.27 Some
heo ies, ollowing he ‘law and economics’ app oach, accen ua e he nega i e
economic impac , including highe socie al cos s, ha esul s om adema k-
ing unc ional signs – hese indings a e o in e es o EUTM p ac ice. These
aspec s a e discussed in Chap e 3 and pa s o Chap e 4. A ecen end in he
US unc ionali y doc ine has been e alua ing mul iple in e ac ions be ween
unc ionali y ules ac oss di e en IP egimes. The e a e oices ad oca ing o
a ‘holis ic’ iew on he way unc ionali y ules may help o ebalance he IP
sys em is-à- is he nega i e e ec s o o e lapping igh s.28 F om i s side, he
26 Es elle De claye, Ma hias Leis ne , In ellec ual P ope y O e laps: A Eu opean Pe spec i e
(Ha Publishing 2011); Anna Tischne , Kumula ywna och ona wzo nic wa p zemysłowego w
p awie własności p zemysłowej (Wa szawa C.H. Beck 2015).
27 Fo a seminal wo k: G aeme Dinwoodie , ‘The Dea h o On ology: A Teleological App oach
o T adema k Law’ (1999) 84 Iowa Law Re iew 611. See also Ma k P McKenna, ‘(Dys) unc-
ionali y’ (2011) 48 Hous L R 823.
28 Ch is ophe Bucca usco, Ma k Lemley , ‘Func ionali y Sc eens’ (2017) 103 Vi ginia Law Re-
iew 1293; Ma k McKenna, Ch is ophe Sp igman, ‘Wha ’s In, and Wha ’s Ou : How IP’s
Bounda y Rules Shape Inno a ion’ (2017) 30 Ha . J. L. & Tech. 491; Ch is ophe Buc-
ca usco, Ma k Lemley, Jona han S. Masu , ‘In elligen Design’ (2018) 68 Duke Law Jou nal;
Cai lin Canahai, Ma k McKenna ‘The Case Agains P oduc Con igu a ion T ade D ess’ in
In oduc ion 9
CJEU has ecen ly elabo a ed upon he meaning and pu pose o unc ional-
i y ules in ade ma k, design, and copy igh law,29 al hough e aining om
adop ing a uni o med, sys emic in e p e a ion and solu ions. Some Eu opean
schola s ha e sugges ed he in oduc ion o a ‘ha monised exclusion’ o h ee-
dimensional objec s – unde design, ade ma ks, and copy igh ules – wi h
he common denomina o being hose cases es ic ing ma ke compe i ion.30
This app oach is wo h conside a ion as a long- e m goal, howe e , o he
ime being he au ho conside s ha i is wo h ying o apply compe i ion-
ela ed c i e ia, a leas wi hin he egime o ade ma k unc ionali y. A a i-
ous poin s his book will discuss aspec s in which EUTM unc ionali y ules
di e om hose o EU design law. Due o space es ic ions, and also due o
lack o explici legal g ounds, unc ionali y issues in he copy igh law o Eu-
opean coun ies emain beyond he scope o his book.
As no ed ea lie , he p oduc ea u es ha a e usually cap u ed by unc ion-
ali y ules a e needed by business en i ies ha wish o e ec i ely compe e and
ade in al e na i e o e s. I such ea u es canno be legally copied – because
hey a e co e ed by legal exclusi i y on behal o one en i y – p oduce s mus
‘design a ound’ hem, a p ocess which may ad e sely impac he cos and qual-
i y o hei o e . S ill, e en in cases whe e a di e en appea ance is ound o a
p oduc o simila unc ionali y, a compe i o may be unce ain whe he hei
solu ion lies wi hin he bounda ies o he eedom o ope a e, o i hey will
isk in ingemen claims om he owne o he unc ional ade ma k. Con-
ce ns abou li iga ion and i s impac on economic iabili y may lead compe i-
o s o abandon plans o manu ac u ing such al e na i es. Fo his eason, one
o he conce ns mos o en a icula ed by he judicia y ega ding he EUTM
is ha unc ional ade ma ks may hea ily educe compe i ion by subs i u ion.
Howe e , no speci ic ools, meaning he e speci ic ac o s o assessmen , ha e
so a been o mula ed o e alua e his impac . An a enue which his book
seeks o explo e is whe he a ma ke -o ien a ed es , such as is applied in he
US unc ionali y doc ine, and ocused p ima ily on he a ailabili y o subs i-
u able goods, may also be applicable in he EUTM.
This kind o assessmen ies in o he analysis o he e ec s egis a ion o
unc ional signs may ha e upon ma ke compe i ion. The ‘law and economics’
analy ical app oach o ade ma ks has gene ally emphasized he bene icial,
p o-compe i i e ole o ade ma ks as sou ce-iden i ie s ha educe consume
sea ch cos s o goods/se ices co esponding o hei p e e ences and incen-
i ize igh -holde s o in es in p oduc quali y and de elop goodwill in he
G aeme Dinwoodie, Ma k Janis (eds.) Resea ch Handbook on T adema k Law Re o m (Elga
2021) 137.
29 C-395/16 Doce am . Ce amTech, EU:C:2018:172; C-237/19 Gömböc . Szellemi,
EU:C:2020:296; C-833/18 SI and B omp on Bicycle . Chedech, EU:C:2020:461.
30 Uma Su he sanen, Ma c Mimle , ‘An Au onomous EU Func ionali y Doc ine o Shape Ex-
clusions’ (2020) 69(6) GRUR In 567.

10 In oduc ion
i m.31 Howe e , unc ional ade ma ks appea o in ol e an i-compe i i e
e ec s ha ha e seen much less explo a ion in he legal doc ine. Fo ins ance,
using unc ional ma ks on goods/se ices in ade, especially in he ini ial pe-
iod when hey may be dep i ed o dis inc i e cha ac e , isks inc easing con-
sume sea ch cos s. La e on, a he s age when a unc ional sign may become
egis e ed, i inc eases he cos s o compe i o s when pu ing subs i u able
p oduc s on he ma ke , and could in ol e addi ional socie al cos s, such as he
h ea o in imida ing li iga ion. Func ional signs may be employed – o en in
co ela ion wi h o he IPRs – as le e age ools con e ing compe i i e ad an-
ages ha s eng hen he ma ke posi ion o igh s holde s. Conce ns should
be aised by he issues o p oduc ea u es ha may be used in syne gy wi h
pa en s and/o b anding s a egies, o as indispensable asse s o p oduc s in
in e ela ed ma ke s, especially o s anda disa ion and compa ibili y needs.
The si ua ion whe e a unc ional sign has de eloped in o a b and – a powe ul
comme cial asse ha educes he in e changeabili y o p oduc s on he de-
mand side and becomes a ba ie o en y o po en ial supplie s – appea s e en
mo e p oblema ic. All hese aspec s a e he ocus o se e al sec ions in Chap-
e 4, which concludes wi h an a gumen ha unc ional ade ma ks ough
o be e alua ed upon he c i e ion o al e na i e p oduc s (subs i u es). The
ex en o p oduc subs i u abili y, consume choice, and consume swi ching
capabili ies is cap u ed by he concep o ‘ma ke de ini ion’.32 This concep
is analysed bo h om a compe i ion law s andpoin in Chap e 4, as well as
looking a how i has been analogically applied in he US unc ionali y p ac ice
(Chap e s 3 and 6 o 8). The aim is o explo e how such c i e ia may be suc-
cess ully implemen ed upon EUTM unc ionali y g ounds.
The au ho is awa e o he possible c i ical a gumen ha an assessmen
based on p oduc subs i u abili y b ings oo much lexibili y and unce ain
ou comes, whils one using unc ionali y as a cu ing ool o p e en o e -
lapping igh s (i.e. adema king i ems al eady pa en ed o co e ed by u ili y
models o design igh s) would appa en ly b ing clea e esul s. Howe e , as
Chap e 6 demons a es wi h ega d o echnical unc ionali y, in p ac ice he
ma ke place is ull o p oduc s wi h a blend o unc ional and non- unc ional
elemen s, and in mos cases he e is no pe ec co ela ion be ween he
subjec - ma e o a unc ional ade ma k and ha o a pa en /u ili y model.
Func ionali y assessmen s will necessa ily in ol e subjec i e poin s o a gu-
men , especially ha EUIPO (Eu opean Union In ellec ual P ope y O ice)
examine s and Eu opean cou s enjoy b oad compe ence o eely assess ac s.
Any examina ion will ha e o sc u inize he s uc u e o he sign a hand and
31 William Landes, Richa d Posne , ‘T adema k Law: An Economic Pe spec i e’ (1987) 30 The
Jou nal o Law & Economics 265.
32 Ins ead o many: He be Ho enkamp, Ma k D. Janis, Ma k A. Lemley, IP and An i us :
An Analysis o An i us P inciples Applied o In ellec ual P ope y Law, olume I Supplemen
2009.
In oduc ion 11
decide on he ollowing issues: which ea u es a e he ‘mos impo an ’ s. ‘less
impo an ’; which ones a e ‘ unc ional’ s. ‘non- unc ional’; wha he weigh
o non- unc ional ea u es is wi hin he o e all combina ion o ea u es in o -
de o ul ima ely ule whe he a sign consis s ‘exclusi ely’ o unc ionally de-
e mined ea u es. These poin s o subjec i e assessmen lead o he si ua ion
whe e he e is a ange o p oduc s o di e en appea ance and inco po a ing
simila unc ionali y ha may be ele an o con e ing/denying ade ma k
p o ec ion. Fo hese easons, Chap e 6 aims a cons uing a es based on
equi alen s in e ms o p oduc appea ance and unc ion. Addi ionally, his
es should in eg a e some o he compe i ion ac o s in oduced by Chap e 4
in o de o es ablish whe he such equi alen p oduc s a e also subs i u able in
e ms o consume choice and he manu ac u ing capabili ies o compe i o s.
Along simila lines, aes he ic unc ionali y also in ol es di icul and imp e-
cise poin s o assessmen . Fi s o all, he e is a cen al con lic be ween he in-
e es s o a igh holde o in es in and p o ec a ade ma k ha acqui es and
enhances ecogni ion/ epu a ion33 – which mee also he needs o b anded-
o ien a ed consume s – is-à- is he in e es s o compe i o s in keeping (aes-
he ically) unc ional ea u es unp o ec ed and in he public domain. EUTM
ju isp udence has no ye ound a s able way o ixing his balance o in e es s.
In addi ion, he ca alogue o c i e ia sugges ed by he CJEU o assess aes he ic
unc ionali y does no indica e how o weigh a ious sou ces o alue in o de
o iden i y hose gi ing subs an ial alue o goods and link hem o speci ic
p oduc ea u es. Chap e 8 looks in o he de ails o he legal assessmen and
complemen s i wi h inpu d awn om aes he ics esea ch. This aims o e eal
he complex eali y ha su ounds designing a p oduc ha b ings ‘ alue’ in
he eyes o consume s and s imula es hei pu chase mo i a ion.34 Because
he no ion o ‘ alue’ has mul iple meanings and ade ma ks lie a he co e o
b anding s a egies, he ma ke ing iew o b ands and consume pe cep ion
and co-c ea ion o b ands – as discussed by Chap e 4 – ep esen s ano he
piece o in o ma ion use ul o unde s anding aes he ic unc ionali y. A poin
ha he CJEU has o da e le unsol ed, ye whe e u u e p ac ice will demand
cla i ica ion, ela es o he iden i ica ion and quan i ica ion o a dis inc alue
o epu a ion, especially when a ade ma k gene a es a ac i eness o cus-
ome s s emming om b anding s a egies. Summing up all hese p oblema ic
issues, assessmen o aes he ic unc ionali y will always each a poin o subjec-
i e in e p e a ion and weighing c i e ia agains one ano he . Fo hese easons
he au ho conside s ha he mos p ac ical solu ion, ailo ed also o ma ke
ealia and including consume p e e ences, is o apply a mul i- ac o es which
combines he CJEU’s guidance wi h he US app oach ocused on compe i i e
need and measu ed by he ex en o al e na i e, subs i u able p oduc s.
33 And ew G i i hs, An Economic Pe spec i e on T ade Ma k Law (Elga 2011).
34 Ilanah Fhima, ‘Consume Value as he Key o T ade Ma k Func ionali y’ (2022) 85(3) Mod-
e n Law Re iew 661.
12 In oduc ion
EUTM unc ionali y also includes a dis inc p ohibi ion pe aining o p od-
uc ea u es esul ing om he na u e o goods. In p ac ice, ce ain ea u es
alling wi hin his ca ego y may be in e p e ed as also ul illing u ili a ian pu -
poses acco ding o he p ohibi ion o echnical unc ionali y, o , di e en ly,
as b inging subs an ial alue o goods in ligh o aes he ic unc ionali y. As
he in en o he EUTM legisla o was o p ese e he au onomy o he unc-
ional p ohibi ion o signs esul ing om he na u e o goods, and he CJEU’s
guidance has also shaped i s scope o co e wha may be e med as ‘gene ic’
unc ionali y, his book discusses gene ic unc ionali y sepa a ely in Chap e 7.
The possibili y o gene ic unc ionali y o e lapping wi h o he e usal g ounds
is no able, howe e , he au ho conside ed i use ul o ind a legal in e p e a-
ion ha is no a comple e b eak wi h he cu en CJEU’s acquis, and ha has
be e chances o being applied in p ac ice.
An impo an ca ea is needed: o easons o easy eading, he au ho p i-
ma ily employs he e ms ‘ echnical’ and ‘aes he ic unc ionali y’, also o acili-
a e he pa allel wi h US law, assuming ha gene ic unc ionali y is somehow
spli in-be ween he wo. When i needs o be speci ically iden i ied, wi h ex-
plici e e ence o ‘signs esul ing he na u e o goods’ unde he EUTM, he
book uses his no ma i e ph ase o he e m ‘gene ic unc ionali y’.
4. How should he unc ionali y o ade ma ks be explo ed?
The usual pa h o conduc ing a legal analysis o he a o emen ioned opics
would ollow he line o Eu opean case-law and explo e he di e en schools
o hough . Howe e , as mos o he ad anced legal es s ocus on how unc-
ionali y may p e en o e lapping igh s, his may be oo es ic i e and could
lead o insu icien ly cons uc i e esul s. A his poin , aking a compa a i e
look35 a he US unc ionali y doc ine, especially as applied in ela ion o ade
d ess, may cas new ligh on me hods o assessing unc ionali y ha could also
wo k o he EUTM sys em.
US unc ionali y p ac ice is ich, complex, and non-uni o m, due o he
common law sys em and he US ede al s uc u e.36 The e is an imp essi e
amoun o li iga ion, co e ing a wide ange o p oduc ea u es, om a ange
o indus ies. Legal solu ions ha e o necessi y ollowed business needs and
p o ided lexible answe s. This may be help ul o enabling he EUTM o o -
mula e be e es s o add ess he di e si y o unc ionali y cases s ill o come,
especially wi h ega d o new ypes o non- adi ional ma ks.
Following he idea o applying a unc ionali y es based on he c i e ion o
al e na i e p oduc s, he need o assess he ex en and closeness o subs i u es
equi es p oduc delinea ion, in o he wo ds iden i ying he ele an p oduc
35 G aeme Dinwoodie (ed.) Me hods and Pe spec i es in In ellec ual P ope y (Elga 2013).
36 Ins ead o many: G aeme Dinwoodie and Ma k Janis , T ade D ess and Design Law (Aspen
Publishe s 2010).
In oduc ion 13
and i s possible al e na i es. Some US unc ionali y ulings ha e deal wi h his
issue.37 This igge s he conside a ion o whe he aking a compe i ion (US:
an i us ) pe spec i e on a p oduc ’s subs i u abili y may also be o use in ade
ma k unc ionali y p ac ice. Indeed, one ool adi ionally applied o explo e he
issue o ma ke dominance/powe o compe i ion pu poses is ‘ma ke de ini-
ion’. As p e iously indica ed, his concep ies in o he a ailabili y o subs i u -
able goods, unde s ood as he possibili y and willingness o cus ome s o swi ch
o al e na i e p oduc s in he case o a p ice inc ease. Explo ing he use ulness
o such a compa a i e app oach cons i u es ano he pu pose o his book.
Some conce ns may a ise o e whe he compa a i e analysis is an accu a e
me hod o legal in e p e a ion, especially gi en ha i occu s a wo di e en
le els, ha is, be ween he US and EUTM on unc ionali y ade ma k ules,
and be ween compe i ion ules and ade ma k law. Howe e , US ade ma k
law is based on he economic heo y ha ade ma ks a e p o-compe i i e,
which jus i ies he e e ence o in e disciplina y a gumen s. In addi ion, as
unc ionali y cases mus balance he public in e es agains he p i a e in e es s
o ade ma k holde s, he au ho inds i use ul o o mula e c i e ia o as-
sessmen ha e lec , as much as possible, ma ke eali ies and he needs o all
s akeholde s. A necessa y ca ea is ha his book can only co e ce ain aspec s
o US unc ionali y p ac ice and compe i ion law wi h po en ial ele ance o
he EUTM, and hose a e subjec i ely chosen by he au ho .
Ano he objec ion o a es based upon he a ailabili y and closeness o
subs i u es would be ha i seemingly equi es ime- and money-consuming
e iden ia y e o s, which could be an unnecessa y was e o esou ces, a bu -
den on he cou s, and may see li iga ion limi ed o weal hy en i ies. Howe e ,
echnological ad ancemen os e s eno mous possibili ies o using a i icial
in elligence (AI) wi hin adminis a i e/judicia y p oceedings – o ins ance,
pa en o ices wo ldwide a e using AI o assess he simila i y o signs e sus
simila i y o goods/se ices, o o e i y he accu acy o he designa ed p od-
uc ca ego y.38 Mo e impo an ly, in he online ma ke space AI is used o
guide consume s o make accu a e choices by lis ing ecommended al e na-
i es om di e en b ands, which he sys em sees as subs i u es. These ex-
amples show how AI has al eady been applied o huge collec ions o ma ke
da a in sea ch o simila /subs i u able p oduc s. Looking u he ahead, AI
capabili ies may be used wi hin unc ionali y assessmen o in eg a e e idence
on he a ailabili y o equi alen s wi h da a abou he compe i ion en i onmen
o he p oduc ma ke . Chap e s 4, 6 and 8 will look u he in o he e idence
needed o assess unc ionali y.
37 Ma k McKenna, ‘Is Pepsi a Really Subs i u e o Coke? Ma ke De ini ion in An i us and IP’
(2011–2012) 100 Geo. L.J. 2055.
38 De Ganjee, ‘Eye, Robo : A i icial In elligence and T ade Ma k Regis e s’ in Niklas B uun,
G aeme B. Dinwoodie, Ma ianne Le in, Ansga Ohly (eds.) T ansi ion and Cohe ence in In-
ellec ual P ope y Law (CUP 2021) 178.
20 The legal amewo k o ade ma ks’ unc ionali y in he EU
(ii) he shape, o ano he cha ac e is ic, o goods which is necessa y
o ob ain a echnical esul ;
(iii) he shape, o ano he cha ac e is ic, which gi es subs an ial alue
o he goods.
The addi ion o he e m ‘ano he cha ac e is ic’ appea s o ex end he p e ious
scope o unc ionali y o colou s pe se o a combina ion he eo . Howe e , he
change may also encompass a ious ypes o p oduc ea u es, which has a signi i-
can impac on he p o ec ion o non- adi ional ade ma ks (Chap e 5).47 This is
because om he poin o enac men , EU unc ionali y has also aimed o p e en
he egis a ion o unc ional signs upon p oo s o acqui ed dis inc i eness.48 Func-
ionali y has been in a c i ical se ing owa ds o he e usal g ounds (i.e. ela ing o
undis inc i e, desc ip i e o gene ic signs) e e since. EU p ac ice is s ill g appling
o ind a iable dema ca ion be ween hese di e en legal ba s(Chap e 2).
Fo ease o eading, a ew issues equi e in oduc ion and cla i ica ion.
The second unc ionali y p o ision may be e med as ‘ echnical unc ion-
ali y’, whils he hi d one, ‘aes he ic unc ionali y’. Close inspec ion e eals
some angency bo h be ween echnical and aes he ic unc ionali y, indi idually
aken, and he i s unc ionali y p ohibi ion o signs de e mined by he na-
u e o goods. Howe e , he book ollows he adi ional s uc u e wi h h ee
dis inc chap e s (6 o 8). One eason o do his is ha he CJEU (Cou o
Jus ice o he Eu opean Union) has consequen ly upheld he au onomy o
each unc ionali y p ohibi ion.49 Regis a ion may be denied on mo e han
one e usal g ound, howe e each mus apply ully. Hyb ids o combina ions
o elemen s om di e en e usal g ounds a e no allowed.
To p ope ly unde s and he signi icance unc ionali y bea s, he implemen -
ing egula ions which accompanied he a o emen ioned egula ions50 mus
also be conside ed. The e o med Implemen ing Regula ion No 2017/143151
ini ia ed echnological de elopmen s o acili a e he egis a ion o non- a-
di ional ade ma ks (such as mo ion, mul imedia). I was eplaced by Imple-
men ing Regula ion No 2018/626 (EUTMIR),52 cu en ly in o ce.
47 Ben ly e al. (n 24) 963–964.
48 This ule esul ed om a con a io in e p e a ion o he p o ision o A . 3(3) o Fi s Di ec i e
and A . 7 (3) o Fi s Regula ion, which enabled acqui ed dis inc i eness o o e come o he
absolu e g ounds o e usal, sa e o unc ional signs. The amended EUTM main ained i .
49 Case C–205/13 Hauck …, EU:C:2014:2233, pa as 39–43.
50 The implemen ing egula ions mos ly deal wi h egis a ion p oceedings, con ol, and com-
munica ion wi h OHIM/EUIPO.
51 Commission Implemen ing Regula ion (EU) 2017/1431 o 18 May 2017 laying down de-
ailed ules o implemen ing ce ain p o isions o Council Regula ion (EC) No 207/2009
on he Eu opean Union ade ma k [2017] OJ L 205/39.
52 Commission Implemen ing Regula ion (EU) 2018/626 o 5 Ma ch 2018 laying down de-
ailed ules o implemen ing ce ain p o isions o Regula ion (EU) 2017/1001 o he Eu-
opean Pa liamen and o he Council on he Eu opean Union ade ma k, and epealing
Implemen ing Regula ion (EU) 2017/1431 [2018] OJ L 104/37.

The legal amewo k o ade ma ks’ unc ionali y in he EU 21
Landma k EUTM unc ionali y cases ha e eme ged om he p ac ice o
he CJEU. The cou ep esen s he highes appeal ins ance wi h compe ences
o e subs an i e and p ocedu al ma e s embodied in any EU egula ion and/
o di ec i e. Conce ning ade ma ks, one ield o con ol co e s he egis a-
ion and in alida ion o EUTM by EUIPO. The in e media y s eps o e iew
cons i u e he EUIPO’s Boa d o Appeal (BoA), and, nex , he Gene al Cou
(p e iously known as he Cou o Fi s Ins ance, CFI). The CJEU only hea s
appeals on poin s o law.
Sepa a ely, he CJEU has compe ence o issuing p elimina y ulings on
ma e s o in e p e a ion o EU law, embedded bo h in egula ions o di ec-
i es, ollowing e e als submi ed by na ional cou s.53 A ypical scena io is
ha a cou o an adminis a i e body ( he Pa en O ice), when hea ing a case
based on p o isions o na ional law subjec o EU ha moniza ion, may s ay he
p oceedings and seek guidance om he CJEU. In his case i s in e p e a ion
would be binding, and e ec i e no only in e pa es, bu also o u u e cases
dealing wi h ha p o ision in a simila con ex . Se e al impo an cases on
unc ional signs ollowed his pa h, al hough he lion’s sha e came ia egis a-
ion/in alidi y p oceedings o EUTM/CTM.
1.2. Func ionali y ules wi hin in e na ional con en ions
P io o EUTM ha moniza ion, he unc ionali y o ade ma ks was no ex-
plici ly add essed by any in e na ional con en ion dealing wi h ma e s o sub-
s an i e law. The ollowing pa discusses he ele ance o he Pa is Con en ion
wi h ega d o he egis a ion o non- adi ional ma ks (such as h ee-dimen-
sional), and he in oduc ion o minimal s anda ds o ade ma k p o ec ion by
he TRIPS Con en ion. An in e es ing issue is he compliance o ade ma k
egula ions o gene al objec i es and p inciples se o h in he A . 7 and 8 o
TRIPS, by explo ing he possible applica ion o unc ional signs.
1.2.1. Pa is Con en ion ini ia ing IP p o ec ion
Amongs he p inciples go e ning di e en aspec s o indus ial p ope y, he
Pa is Con en ion o he P o ec ion o Indus ial P ope y o 188354 in o-
duced he ‘ elle quelle’ ule in ela ion o ade ma ks. I s ipula ed ha a
ade ma k duly egis e ed in he coun y o o igin mus be accep ed o iling
in ano he con ac ing coun y; he la e would apply hei own egis a ion
ules, ye , i egis a ion was accep ed, he sign had o be p o ec ed ‘as is’ ( .
‘ elle quelle’), c . A . 6.55 The iling could be opposed i he sign was con-
53 See A . 267 o Consolida ed e sion o he T ea y on he Func ioning o he Eu opean Un-
ion [2012] OJ C 326/ 47.
54 h ps://wipolex.wipo.in /en/ ex /287780
55 Sam Ricke son, The Pa is Con en ion o he P o ec ion o Indus ial P ope y (OUP 2015)
pa as 12.10–25.
22 The legal amewo k o ade ma ks’ unc ionali y in he EU
a y o public o de and mo ali y.56 The e was no de ini ion o a ade ma k,
ca ego ies o eligible signs, o any equi emen o p o ec ion. Each membe
s a e enjoyed he au onomy o de e mine hei condi ions o egis a ion,
ye we e p e en ed om disc imina ing agains o eign applican s, who could
in oke he applica ion o he same ules o domes ic legisla ion as o na ional
applican s, acco ding o he p inciple o ‘na ional ea men ’.57
Al hough his o ically he a ionale behind ‘ elle quelle’ was o o e come
an impedimen o Russian law which only allowed signs depic ed in Cy illic
cha ac e s58 o be egis e ed, conce ns la e a ose abou he scope o he ‘ elle
quelle’ p i ilege. Was i ela ed only o he ex e nal appea ance/ o m o a sign,
o did i also encompass he con en /meaning con eyed by ha sign?59 The
la e would ha e add essed he equi emen s o p o ec ion, in e alia dis inc-
i e cha ac e , o acili a e he egis a ion o ade ma ks ia he ‘ elle quelle’
ule in coun ies whe e na ional illings o such signs we e no success ul.
A ecen his o ical analysis o con e ence documen s, including session min-
u es, a gued ha he explici lack o consensus o con ac ing membe s o e he
no ion o (p o ec able) ade ma k, oge he wi h he au onomy o indi idual
coun ies o e he con en o ilings, especially he eedom o deny p o ec ion
o non-dis inc i e signs, sugges ed ha shapes, and gene ally non- adi ional
ma ks, we e le ou side he applica ion o Pa is Con en ion.60 An ea lie com-
men a o no iced ha in e p e a ion o he ‘ elle quelle’ ule conce ned a he
egis a ion o simple numbe s o le e s, su names, and geog aphical names,
whils shapes, ha is, h ee-dimensional objec s – se in con as o wo-dimen-
sional pic o ial ep esen a ions – we e lis ed as con o e sial subjec -ma e .61
The ‘ elle quelle’ p inciple was no an ins umen o ha monizing he ade
ma k no ion; he e o e, i a membe s a e would no accep a h ee-dimensional
objec as a ade ma k, he e should be no obliga ion o egis e and p o ec
i , no wi hs anding he possibili y o an ea lie egis a ion in ano he coun y
(o o igin).62 The example o e ed in his con ex was Ge many, which ended
o deny egis a ion o shapes ia he public o de and mo ali y in e dic ion.63
The Washing on e ision o 1911 b ough impo an addi ions – in ac
excep ions – o he ‘ elle quelle’ p inciple, namely a ca alogue o legal g ounds
56 A . 6 in ine.
57 I is one o he undamen al p inciples in oduced by Pa is Con en ion o 1883 (A . 2) o
apply o all ca ego ies o indus ial p ope y igh s de ined by he ac .
58 Ane e Ku , ‘Ma ken ech ’ in Eichmann, Ku (eds.) Design ech . P axishandbuch (1s ed.
2009 Nomos) 185 n 352.
59 Ricke son clea ly eads his p inciple in ela ion only o he ‘ o m o he ma k’, ibidem (n 55)
pa a 12.14, 538.
60 Ng-Loy Wee Loon, ‘Absolu e Bans on he Regis a ion o P oduc Shape Ma ks. A B each o
In e na ional Law?’ in Calboli, Sen leben (n 22) 150–160.
61 G.H. Bodenhausen, Guide o he Applica ion o Pa is Con en ion o he P o ec ion o Indus-
ial P ope y (BIRPI Gene a 1969) a www.wipo.in /edocs/pubdocs/en/in p ope y/611/
wipo_pub_611.pd 6quinquies sec ion A (b) 108, also n 1.
62 Bodenhausen, ibidem 6quinquies sec ion A (e) 111.
63 Bundespa en ge ich , uling o 29/4/1965, case No 4 W (pa ) 632/641965, GRUR In ,
1965, 508.
The legal amewo k o ade ma ks’ unc ionali y in he EU 23
which allowed a membe s a e o deny o in alida e a ade ma k egis a ion.
Apa om he ini ial public o de clause – which some schola ship64 pe cei ed
as adequa e g ounds o deny p o ec ion o unc ional signs – i inse ed a p o-
hibi ion on signs in inging he igh s o hi d pa ies, and o signs dep i ed
o a dis inc i e cha ac e o con aining p oduc in o ma ion. The la e would
nowadays all unde he ambi o desc ip i e and cus oma y signs. The legal
doc ine pe cei es his ca alogue as he esul o ‘comp omise a he han o
delibe a e law-making’65 by a guing ha he e ec i eness o he ‘ elle quelle’
upon hese p o isions could no o e come he di e ences in domes ic p ac ice.
This p o ision was discussed du ing subsequen e isions,66 and a e he
Lisbon con e ence (1958), i was ensh ined as A . 6quinquies Sec ion B,67 a e -
sion main ained unmodi ied by he S ockholm ea y. Sec ion B(2) ca ied
possible implica ions o unc ional signs. I co e ed ade ma ks consis ing
‘exclusi ely o signs o indica ions which may se e, in ade, o designa e he
kind, quali y, quan i y, in ended pu pose, alue’. D awing a pa allel he e, ‘kind’,
‘quali y’, ‘quan i y’ may sugges signs esul ing om he na u e o goods,
whils ‘in ended pu pose’ may co e ea u es pe o ming a echnical unc ion,
and ‘quali y’ and ‘ alue’ ela e o aes he ic unc ionali y. Howe e , such an
analogy b ings li le bene i in ligh o ha monized EUTM. This pa o A .
6quinquies Sec ion B became he objec o e usal g ounds dis inc om unc-
ionali y, se o h in A . 3(1)(b)–(d) o Fi s Di ec i e and A . 7(1)(b)–(d)
o Fi s Regula ion, and subsequen ly amended.
1.2.2. The TRIPS68 con en ion and global s anda ds
Following he Pa is Con en ion, o he ea ies – cu en ly go e ned by WIPO –
con ained mo e adminis a i e p o isions han subs an i e law, wi h none o
hem explici ly ouching upon unc ionali y. The Mad id Ag eemen (1891,
wi h e isions) and Mad id P o ocol (1995) o ganized he in e na ional
64 Ma in Sen leben, ‘Public Domain P ese a ion in EU T adema k Law’, 2013 T adema k
Repo e 784–786.
65 Ane e Ku , Ma in Sen leben, ‘In e na ional P o ec ion’ in Ku , Sen leben (n 24) pa a 2.46
(quo a ion) – 2.48.
66 O he con e ences we e held a Hague (1925), London (1934) Lisbon (1958) and S ock-
holm (1967), www.wipo.in / ea ies/en/ip/pa is/
67 Bodenhausen indica ed ha his con e ence uled o e he limi a i e cha ac e o e usal/
in alidi y g ounds, i.e. membe s a es could no apply o he g ounds o block he ‘ elle quelle’
p inciple, Bodenhausen. Ibidem 6quinquies sec ion B and C (c) 114, n 4. Howe e in dispu es
a ising o e A . 15(2) o TRIPS Ag eemen (below) – which indi ec ly e e s o he e usal
g ounds o Pa is Con en ion – he panels in cases Uni ed S a es: Sec ion 211 Omnibus (2002)
WT/DS176/AB/R and Eu opean Communi ies-GI. (2005) WT/DS174/R decided ha
WTO membe s may in oke o he e usal g ounds, which implied ha he Pa is Con en ion
lis is no ‘limi a i e’, see Lisa Ramsey, ‘Reconciling T adema k Righ s and F ee Exp ession
Locally and Globally’ in Daniel Ge ais (ed.), In e na ional In ellec ual P ope y. A Handbook
o Con empo a y Resea ch (Elga 2015) 359.
68 Ag eemen on T ade-Rela ed Aspec s o In ellec ual P ope y Righ s (TRIPS), as amended 23
Janua y 2017 www.w o.o g/english/docs_e/legal_e/31bis_ ips_01_e.h m
24 The legal amewo k o ade ma ks’ unc ionali y in he EU
egis a ion scheme, whils he T adema k Law T ea y (1994) also deal wi h
adminis a i e p ocedu es. The Singapo e T ea y on he Law o T ade Ma ks
(2006) was i s o ecognize he ca ego y o ‘non- adi ional ma ks’ ( isible
and non- isible).69 This pa ed he way o changing he ade ma k de ini-
ion h ough he EUTM e o ms, oge he wi h enabling he illing o non-
adi ional signs.
The TRIPS Ag eemen o 1995 ep esen s he mos impo an piece o in-
e na ional egula ion co e ing he aspec s o subs an i e IP law. This con en-
ion encapsula ed he ension be ween he need o ee ade, and he ba ie s
esul ing om embedding in ellec ual p ope y igh s (IPRs) in aded goods –
a ce ain le el o ba ie s was accep ed in he nego ia ions.70 This was he
minimum le el o IP p o ec ion, in oduced as a supplemen o he Pa is and
Be ne Con en ion71 s anda ds. Membe s a es enjoyed a deg ee o au onomy
o implemen a ion and also he possibili y o inc ease ha le el, p o ided ha
such changes did no con a ene he Ag eemen (he e including he gene al
objec i es and p inciples inse ed in he ex as a ool o balancing igh s and
du ies o highe public in e es goals72).
1.2.2.1. TRIPS’ de ini ion o a ade ma k and unc ional signs
As ega ds ade ma ks, A . 15(1) TRIPS adop ed a unc ional de ini ion
o p o ec able subjec -ma e , iden i ied as ‘any sign, o any combina ion o
signs’ which is ‘capable o dis inguishing he goods o se ices o one un-
de aking om hose o o he unde akings’. A lis o examples ollowed, in-
cluding igu a i e elemen s, combina ions o colou s and any combina ion
o such signs, ye shapes/p oduc con igu a ion o colou pe se we e no
men ioned.73 Membe s we e allowed o make egis a ion con ingen upon
he capabili y o signs o be isually pe cep ible – an exclusion no longe el-
e an ollowing he e o med EUTM, which abolished he equi emen o
69 Full ex s a www.wipo.in / ea ies/en/
70 Susy F ankel , ‘Some Consequences o Misin e p e ing he TRIPs Ag eemen ’, 2009 WIPOJ
No 1, 39–40 h p://pape s.ss n.com/abs ac =1862672
71 Be ne Con en ion o he P o ec ion o Li e a y and A is ic Wo ks o 1886, h ps://wipolex.
wipo.in /en/ ea ies/ ex de ails/12214
72 A . 7 TRIPS indica es amongs he objec i es ‘ he p omo ion o echnological inno a ion’
and ‘ ans e and dissemina ion o echnology’ and a ‘balance o igh s and obliga ions’. To
achie e he objec i es, A . 8 indica es ha ‘membe s may, in o mula ing o amending hei
laws and egula ions, adop measu es necessa y o p o ec public heal h and nu i ion …’ (1),
whils measu es may also be needed as o ‘p e en he abuse o in ellec ual p ope y igh s by
igh holde s o he eso o p ac ices which un easonably es ain ade o ad e sely a ec he
in e na ional ans e o echnology’ (2).
73 Ea lie d a s o hese p o isions, such a 1987 US p oposal o a 1988 EC p oposal, men ioned
acco dingly a ‘dis inc i ely shaped h ee-dimensional objec ’ and ‘ he shape o goods o o
hei packaging’, see UNCTAD –ICTSD Resou ce Book on TRIPs and De elopmen (CUP
2010) 219–220, h ps://doi.o g/10.1017/CBO9780511511363
The legal amewo k o ade ma ks’ unc ionali y in he EU 25
g aphical ep esen a ion. Pu suan o A . 15(2) TRIPS, membe s we e also
ee o e use egis a ion on o he g ounds on condi ion o he con o mi y
o hose g ounds wi h he Pa is Con en ion o 1967. In addi ion, A . 15(1)
TRIPS deal wi h signs wi hou inhe en dis inc i eness, allowing egis abili y
by e ec o acqui ing dis inc i eness h ough use. This ule has di e ged in o
di e en na ional app oaches. The EU adop ed uni o m c i e ia o assessmen
o all ypes o signs, al hough consume pe cep ion is said o pe cei e p od-
uc ea u es di e en ly, which has ende ed he egis a ion o non- adi ional
ma ks di icul (Chap e 5).74 The USA has adop ed he ule ha p oduc con-
igu a ion – in con as o p oduc packaging – canno be inhe en ly dis inc-
i e, egis a ion being possible only wi h acqui ed dis inc i eness/seconda y
meaning (Chap e 3).75
TRIPS did no add ess unc ionali y, ye , he ques ion emains o whe he
he in oduc ion o such a e usal g ound by a signa o y would be consis -
en wi h he ea y. The absence o explici e e ence o shapes in A . 15(1)
TRIPS did no deny hei s a us as eligible subjec -ma e . P o . Ge ais no ed
ha he omission was due o he di icul y o eaching a consensus o e a
common lis o exempla y signs accep ed by all signa o ies.76 Fu he cla i i-
ca ion was b ough by he WTO Appella e Body’s decision in Uni ed S a es:
Sec ion 211 Omnibus77 which di e en ia ed be ween he sign ‘capable o ’ and
‘eligible o ’ egis a ion c . A . 15(1) TRIPS, which ansla ed in o he ob-
liga ion o in oduce he unc ional de ini ion in o domes ic legisla ion, and
a si ua ion imposed on membe s o ‘ egis e au oma ically’ such signs.78 The
la e si ua ion was no in ended by TRIPS. One schola ga e he example o
Singapo e’s legisla ion, which comp ises unc ional excep ions pe aining o
shapes, acco ding o he disc e ion gi en by A . 15(2) TRIPS.79 Wee Loon
a gued ha , assuming he Pa is Con en ion did no co e p oduc shapes, he
Singapo ean p ohibi ion o unc ional shapes was complian wi h A . 15(2)
TRIPS. Ano he lenien in e p e a ion o A . 15 TRIPS held he iew ha
wi hou explici disc imina ion, pu ely unc ional signs we e egis able upon
p oo o acqui ed dis inc i eness.80 I is wo h ecalling ha TRIPS in oduced
74 Fo he CJEU uni o m dis inc i eness s anda d see: Linde (C-53/01), Winwa d (C-54/01)
Rado (C-55/01), EU:C:2003:206.
75 Wal-Ma S o es, Inc. . Sama a B o he s, Inc, 529 US 205 (2000); by con as , ea lie Two
Pesos, Inc. . Taco Cabana, Inc. 505 US 763 (1992).
76 Daniel Ge ais, The TRIPS Ag eemen : D a ing His o y and Analysis (4 h ed. Swee & Max-
well 2012) 319.
77 (2002) WT/DS176/AB/R, a : h ps://docs.w o.o g/dol2 e/Pages/SS/di ec doc.
aspx? ilename=Q:/WT/DS/176ABR.pd &Open=T ue
78 (2002) WT/DS176/AB/R, 155.
79 Wee Loon (n 60) 163–164.
80 Nuno Pi es de Ca alho, The TRIPS Regime o T adema ks and Designs (4 h ed. Wol e Klu-
we 2019) pa as 15–49. The au ho seemingly links unc ionali y wi h he lack o a bi a y
appea ance o be deal wi hin he dis inc i eness c i e ion, an issue also ele an o sounds,
scen s, as e, see pa as 15–44.

26 The legal amewo k o ade ma ks’ unc ionali y in he EU
a s anda d o minimum obliga ions, whils A . 1(1) TRIPS allowed membe s
o go beyond ha s anda d and con e mo e ex ensi e p o ec ion, p o ided
ha i complies wi h TRIPS.81 This lexibili y may be in e p e ed as meaning
ha signa o ies can decide upon he condi ions o p o ec ing shapes, includ-
ing unc ional ones. In ano he con ex , P o . Ge ais a gues ha ‘ inding a
ceiling – [i.e. he “maximum le els o p o ec ions” dispu ably ixed by TRIPS,
addi ion LB] – absen a clea obliga ion o limi p o ec ion in he ex ’ is di -
icul o sus ain, p o ided, o ins ance, a case o ba ie s o legi ima e ade.82
Mu a is mu andis, denying o accep ing he p o ec ion o ( unc ional) shapes
has a guably emained wi hin he compe ence o signa o ies.
1.2.2.2. T ade ma ks in he con ex o A s. 7 and 8 TRIPS
A complemen a y que y is whe he he e is any ele ance o he gene al p in-
ciples laid down in A . 7 and 8 o TRIPS o ma e s ela ed o ade ma ks
unc ionali y. This ouches upon he public in e es policy unde lying he unc-
ional p o isions (Chap e 2). One way o unde s anding i is as a means o
p e en ing o e laps be ween di e en IPRs ha may impai compe i ion, such
as simul aneous o subsequen cumula ion be ween pa en s and ade ma ks
p o ec ion wi h ega d o echnical subjec -ma e . The e is ample li e a u e
discussing he poli ical genesis and impo ance o A . 7 and 8 o TRIPS in
he mul ina ional con ex o balancing he in e es s o de eloped coun ies–
ocused on he s eng hening o IPRs, especially copy igh and pa en s, jus i-
ied by a need o incen i ize c ea o s and inno a ion – wi h he in e es s o less
de eloped coun ies a ge ing access o basic asse s ia excep ions and limi a-
ions o IP igh s, ai licensing schemes and so on.83 Lea ing aside legal con-
o e sies a ound he manda o y o non-manda o y cha ac e o hese gene al
p o isions and he way hey we e implemen ed in (o neglec ed by) he WTO
deba es, as well as sugges ions o a be e applica ion, mos cases conce ned
i al public sec o s (such as heal h and ood) wi h issues o access o essen ial
medicines, p o ec ion o plan a ie ies, o ai use p i ileges.
T ade ma ks all unde he ambi o public heal h measu es se wi hin he scope
o A . 8 TRIPS in he case o he Aus alian Tobacco Plain Packaging Ac o 2011
81 Ge ais (n 76) 174–175.
82 Ibidem 175.
83 Reading TRIPS in he pe spec i e o ade libe aliza ion, P o esso F ankel no ed: The ‘TRIPS
Ag eemen is a balance o igh s and a balance o goals o p o ec in ellec ual p ope y o he
bene i o ade bu no o i s dis o ion. The TRIPS Ag eemen ’s minimum s anda ds a e he
basis on which indi idual s a es de elop hei in ellec ual p ope y laws, and a e he me hods
by which s a es can achie e he in ellec ual p ope y balance domes ically’ – Susy F ankel,
‘The WTO’s Applica ion o “ he Cus oma y Rules o In e p e a ion o Public In e na ional
Law” o In ellec ual P ope y’, 4 VUWLRP 2/2014, a h p://ss n.com/abs ac =795986,
42. Consul Pe e Yu, ‘The Objec i es and P inciples o he TRIPs Ag eemen ’ (2009) 46(4)
Hous. L. Re . 979, h ps://schola ship.law. amu.edu/ acschola /457
The legal amewo k o ade ma ks’ unc ionali y in he EU 27
(TPP). This Ac p ohibi ed he appea ance o ade ma ks (including colou s and
o he eye-appealing elemen s) on obacco packaging, wi h he excep ion o b and
names, as a measu e in ended o dec ease he a ac i eness and sales o obacco
p oduc s, and inc ease he signi icance o g aphic heal h wa nings.84 The TPP
Ac aised complain s om se e al coun ies unde he WTO Dispu e Se lemen
P ocess ega ding ade es ic ions and iola ion by Aus alia o TRIPS ade
ma k obliga ions, and a e eigh yea s o dispu es, a inal decision was eached
in 2020.85 The Appella e Body con i med ha he TPP measu es we e no mo e
ade- es ic i e han necessa y o ul il he legi ima e objec i e, ha is, educing
he use o , and exposu e o, obacco p oduc s.86 They we e held consis en wi h
jus i ied encumb ances o ade ma k igh s ha a Membe may p o ide unde
A . 20 TRIPS – he e he Panel ead A . 8 TRIPS as con e ing ‘use ul con ex-
ual guidance’ o he in e p e a ion o he e m ‘unjus i iably’ in A . 20 TRIPS.87
The Panel acknowledged he legi ima e in e es s o a ade ma k owne in using
hei ma k in he cou se o ade, howe e , he balance was il ed in a ou o he
signi ican socie al in e es o ‘public heal h’ e lec ed by A . 8(1) TRIPS, which
allowed membe s o pu sue his and adop measu es ha may a ec IPRs, i he e
was su icien suppo o he esul ing encumb ance.88 In addi ion, he Panel
held ha TPP was no inconsis en wi h Aus alia’s obliga ions unde A . 16(1)
TRIPS – he objec ion was ha TPP a ec ed he abili y o main ain dis inc i e-
ness o ade ma ks. The Panel’s easoning was ha A . 16(1) TRIPS did no
es ablish a posi i e igh o use a egis e ed ade ma k on behal o i s owne ,
bu only a (nega i e) igh o p e en in ingemen by unau ho ized hi d pa -
ies, and his was no abolished by he TPP.89 Al hough dis inc om a Eu opean
pe spec i e, he Panel’s app oach showed how he minimum accep able s anda ds
o TRIPS had o accommoda e di e en pe spec i es on he na u e o ade ma k
igh s ha e lec ed he speci ics o he legisla ion in each membe s a e.
84 www.legisla ion.go .au/De ails/C2011A00148
85 Aus alia – Ce ain Measu es Conce ning T adema ks, Geog aphical Indica ions and O he
Plain Packaging Requi emen s Applicable o Tobacco P oduc s and Packaging – Appella e
Body epo s and Panel epo s – Ac ion by he Dispu e Se lemen Body WT/DS435/28
WT/DS441/29 – 2 July 2020, a : www.w o.o g/english/ a op_e/dispu_e/cases_e/
ds441_e.h m
86 Repo s o he Appella e Body, WT/DS435/AB/R; WT/DS441/AB/R, a h ps://docs.w o.
o g/dol2 e/Pages/SS/di ec doc.aspx? ilename=q:/WT/DS/435ABR.pd &Open=T ue
87 Repo s, ibidem 6.625–6.659. The WTO’s app oach o he ole and meaning o A . 8 TRIPS
ollowed he iews exp essed ea lie by Susy F ankel and Daniel Ge ais, ‘Plain Packaging
and he In e p e a ion o he TRIPS Ag eemen ’ (2013) 46 Vande bil Law Re iew 1149,
1202–1206.
88 Repo s, ibidem 7.11–3. By con as , P o esso s F ankel and Ge ais ad oca ed o a cau ious
decision, wi h ega d o he impac on o he IPRs (n 87) 1213–1214.
89 Repo s, ibidem 6.558–6.619, 7.7–10. Con incingly and c i ically abou he nega i e- igh
a gumen s, F ankel and Ge ais (n 87) 1178–1198. The au ho s opined: ‘ he con ex o nega-
i e igh s does no p eclude he e being some posi i e igh s and in e es s o egis e and use
a adema k’ (1197).
28 The legal amewo k o ade ma ks’ unc ionali y in he EU
As conce ns he o he con ex s o using A . 7 and/o 8 TRIPS wi h pos-
sible ele ance o ade ma ks, P o esso Ge ais ead A . 7 TRIPS as an in-
s umen o es o e balance when he bene i s o an IPR neglec ed he public
in e es o p omo ing inno a ion and enhancing he dissemina ion o echnol-
ogy.90 This iew conce ned o e -ex ending pa en p o ec ion wi h he e ec
o s i ling compe i ion, a conce n ha may also a ise in cases o adema king
i ems co e ed by lapsed pa en s. In he con ex o in es men ag eemen s,
P o esso F ankel a gued agains he s a egy o igh holde s claiming ex-
p op ia ion o in es men (such as e oca ion/in alida ion o pa en igh s)
upon alleged s anda diza ion o IP p o ec ion ia in e na ional ag eemen s
(e.g. TRIPS), whe eas hese aspec s emained wi hin he lexible bounda ies
o domes ic laws, sa egua ded by he objec and pu pose o hose ea ies.91
I was emphasized ha TRIPS aimed mo e han p o ec ing p i a e igh s, as
he a ailabili y and dissemina ion o c ea i i y and inno a ion, and he ans e
o echnology – o example wi h ega d he a o dabili y and a ailabili y o
medicines – ep esen ed addi ional goals belonging o he objec and pu pose
o TRIPS.92 Again, hese a gumen s could mu a is mu andis apply agains he
use o ade ma k p o ec ion o monopolize i ems ha should o he wise all
in o he public domain.
The issue o o e lapped copy igh p o ec ion, oo long o ce ain ype o
wo ks, was also examined h ough he pe spec i e o A . 7 and 8 TRIPS;93
he mo e his may conce n ade ma ks due o hei possible e mless p olon-
ga ion. De claye and Leis ne concluded ha al hough he goal o educing
he nega i e impac o cumula i e p o ec ion on ma ke compe i ion could a
o io i ma ch he policies o A . 7 and 8 TRIPS, gene al applica ion o hese
p o isions o any issue o o e lap would be oo ‘ a - eaching’ a solu ion, hus
applica ion on a case-by-case basis would be mo e app op ia e.94 The e a e
also oices ha pleaded o he inclusion o he igh o eedom o exp ession
wi hin he ambi o his balance, wi h a special ocus on cases o es ic ions o
ee speech h ough ade ma k o e p o ec ion.95
In e es ingly, Ad oca e Gene al Campos Sanchez-Bo dona in he B omp on
case96 (conc. copy igh p o ec ion o a bicycle ea u ing echnical unc ion)
90 Ge ais (n 76) 231–233.
91 Susy F ankel , ‘In e p e ing he O e lap o In e na ional In es men and In ellec ual P ope y
Law’ (2016) 19 Jou nal o In e na ional Economic Law 121, 122, 129 e e ing Eli Lilly and
Company The Go e nmen o Canada, UNCITRAL, ICSID Case No. UNCT/14/2.
92 F ankel, ibidem 135.
93 De claye, Leis ne (n 26) 25–27.
94 Ibidem 28.
95 Ramsey, ‘Reconciling T ade Ma ks …’ (n 67) 354–356; Lisa Ramsey, ‘F ee Speech and In-
e na ional Obliga ions o P o ec T adema ks’ (2010) 35 Yale Jou nal o In e na ional Law
445–447.
96 C-833/18 SI and B omp on Bicycle Chedech, Opinion AG Campos ECLI:EU:C:2020:79,
pa as 37–39.
The legal amewo k o ade ma ks’ unc ionali y in he EU 29
discussed he p inciple o IP cumula ion wi h di ec e e ence o A . 7 TRIPS
and emphasized he di e ences in goal be ween indus ial p ope y p o ec ion
(pa en s, indus ial designs) and copy igh . He wa ned agains using ‘disp o-
po iona e’ copy igh p o ec ion as a ‘b ake on he sys em o p o ec ion o
indus ial p ope y’ – he AG (Ad oca e Gene al) op ed o deny p o ec ion o
he bicycle’s appea ance due o he echnical necessi y.97 Howe e , he CJEU
did no ollow he AG’s a gumen s and e ained om making any e e ence
o he issue o IP o e laps o TRIPS.98 Simila ly, in he Dyson case,99 which
conce ned he a emp o egis e a anspa en bin o a mul iply shaped con-
igu a ion, AG Lége men ioned A . 7 TRIPS, ye he CJEU100 ocused only
on he gene al (i.e. in abs ac o) incapaci y o ha kind o sign o be a sou ce
iden i ica ion.
1.2.2.3. Some concluding hough s
Summing up, TRIPS did no con ain explici g ounds o e usal o in alidi y
in ela ion o unc ional signs. Thei ade ma k eligibili y emained wi hin
he au onomy o na ional legisla ions; i was gene ally accep ed, unless he
capabili y o being an indica o o o igin was ques ioned. The eal obs acle
o egis e ing shapes and o he non- adi ional signs was con ained in he
dis inc i eness equi emen , es ed in conc e o in ela ion o chosen goods/
se ices, wi h p ohibi ions o mula ed by A . 6quinquies o Pa is Con en ion.
The ac ha unc ionali y was no men ioned as a e usal g ound by Pa is
Con en ion– al hough easons o o de public could be in oked – sheds some
doub on i s compa ibili y wi h he ea y.101
I emains an open ques ion whe he A . 7 and 8 o TRIPS may cons i-
u e addi ional g ounds ha could sus ain and s eng hen he impo ance o
unc ionali y wi hin he egime o exclusi e igh s, as a means o limi ing legal
exclusi i y o he bene icial e ec s o public in e es , and mo e speci ically
o ma ke compe i ion. The ecen emphasis by AG in B omp on o he need
o ‘p opo ionali y’ when se ing he bounda ies be ween indus ial p ope y
and copy igh in e ms o cumula i e p o ec ion, ‘so as o p e en he exces-
si e p o ec ion o he la e om lea ing he o me de oid o subs ance’,102
an icipa es u u e de elopmen s in his a ea.
97 Ibidem pa a 39.
98 C-833/18 B omp on, ECLI:EU:C:2020:461.
99 C-321/03 Dyson . Regis a o T ade Ma ks, Opinion AG Lége ECLI:EU:C:2006:558,
pa a 94.
100 C- 321/03 Dyson, ECLI:EU:C:2007:51, pa a 45.
101 Pe cei ing a ce ain incompa ibili y, P o esso Ku conside s unc ionali y a ulne able
g ound o deny p o ec ion acco ding o he elle quelle ule, see Ku , ‘Absolu e g ounds o
e usal’ in Ku , Sen leben (n 24) pa a 4.172.
102 C-833/18 Opinion ECLI:EU:C:2020:79, 45.
36 The legal amewo k o ade ma ks’ unc ionali y in he EU
and 4.2.1.3.), bu is an op ion cu en ly una ailable o ade ma ks. When i
comes o de ails, ano he di e ence om ade ma ks (Chap e 5) is ha de-
sign unc ionali y applies o p oduc ea u es aken indi idually, and does no
always a ec he whole design/p oduc appea ance.135 I equi es a dis inc
ype o assessmen .136
Summing up, EU design law is cons ued so as o cap u e and p o ec unc-
ional p oduc s, whils he unc ionali y ules ope a e es ic i ely and inciden-
ally. Thei main pu pose is no o dep i e an en i e design o p o ec ion, bu
a he o ‘adjus ’ i s scope o p o ec ion in case o con lic wi h simila p od-
uc s. The e a e simila i ies o ade ma k unc ionali y, howe e he ange and
signi icance o di e ences is isible. E en as ega ds he sha ed an i-monopoly
a ionale, he isk o o e -ex ending legal exclusi i y o e p oduc ea u es is
lessened in he case o designs, which a e subjec o empo al cons ain s.137
The abo e discussion ad oca es o cau ion when applying analogical in e -
p e a ions be ween ade ma k and design unc ionali y ules. Addi ionally, as
design unc ionali y canno ensu e channelling he echnical subjec -ma e o
pa en s o u ili y models, he e is s ill space o o e laps be ween ade ma ks,
designs, and pa en s o u ili y models.
Bibliog aphy
Bainb idge, D., ‘Smell, Sound, Colou and Shape T ade Ma ks: An Unhappy Fil a ion’
(2004) 3 JBL 220
Beie , F.-K., ‘Basic Fea u es o Anglo-Ame ican, F ench and Ge man T adema k Law’
(1975) IIC 300
Ben ly, L., She man, B., Gangjee, D., Johnson, P., In ellec ual P ope y Law (5 h ed.
OUP 2018)
Bodenhausen, G. H., Guide o he Applica ion o Pa is Con en ion o he P o ec ion
o Indus ial P ope y (BIRPI Gene a 1969) a www.wipo.in /edocs/pubdocs/en/
in p ope y/611/wipo_pub_611.pd
Bo nkamm, J., ‘Ha monising T ade Ma k Law in Eu ope’ (1999) 3 IPQ 284
B ancusi, L., ‘A icle 8’ in Go dian Hasselbla (ed.) Communi y Design Regula ion.
A icle-by-A icle Commen a y (2nd ed. Ha 2018) 140
B ancusi, L., ‘Designs De e mined by he P oduc ’s Technical Func ion: A gumen s
o an Au onomous Tes ’ (2016) 38(1) EIPR 23
135 Fo a design o be en i ely in alida ed, EUIPO equi es ha all i s dominan ea u es
a e p ohibi ed upon one (o bo h) unc ional p o isions: EUIPO Design Guidelines –
Examina ion o Design In alidi y Applica ions, 5.3.1 h ps://euipo01app.sdlp oduc s.
com/1004805/904777/designs-guidelines/5-3-1- a ionale
136 La inia B ancusi, ‘Designs De e mined by he P oduc ’s Technical Func ion: A gumen s o
an Au onomous Tes ’ (2016) 38(1) EIPR 23. As discussed in Chap e 5, he assessmen o
ade ma ks add esses a sign as a whole whils balancing he unc ional/non- unc ional ele-
men s in o de o conclude whe he he sign consis s ‘exclusi ely’ o shape o o he p oduc
cha ac e is ics de ined by he unc ional p ohibi ions.
137 EU egis e ed designs a e p o ec ed o a mos 25 yea s and un egis e ed o h ee yea s.

The legal amewo k o ade ma ks’ unc ionali y in he EU 37
Calboli, I. ‘Non-T adi ional T adema ks as Ba ie s o Compe i ion, Inno a ion and
C ea i i y: Wha I Thei P o ec ion Could Be E ec i ely Limi ed in P ac ice’ in
Gus a o Ghidini, Vale ia Falce (eds.) Re o ming In ellec ual P ope y (Elga 2022) 1
Calboli, I., Sen leben, M. (eds.) The P o ec ion o Non-T adi ional T ade Ma k: C i i-
cal Pe spec i es (OUP 2018)
Ca ani, C. (ed.), Design Righ s: Func ionali y and Scope o P o ec ion (2nd ed. Kluwe
Law In e na ional 2022)
de Ca alho, Nuno Pi es, The TRIPS Regime o T adema ks and Designs (4 h ed.
Wol e Kluwe 2019)
De claye, E., Leis ne , M., In ellec ual P ope y O e laps: A Eu opean Pe spec i e (Ha
Publishing 2011)
De claye, E. (ed.), The Copy igh /Design In e ace (CUP 2018)
Elmslie, M., ‘The New UK T ade Ma ks Bill’ (1994) 16(3) EIPR 119
EUIPO Design Guidelines – Examina ion o Design In alidi y Applica ions, a :
h ps://guidelines.euipo.eu opa.eu/1934976/1786993/designs-guidelines/
examina ion-o -design-in alidi y-applica ions
F ankel, S., ‘In e p e ing he O e lap o In e na ional In es men and In ellec ual
P ope y Law’ (2016) 19 Jou nal o In e na ional Economic Law 121
F ankel, S., ‘Some Consequences o Misin e p e ing he TRIPS Ag eemen ’, 2009
WIPOJ No 1, 39–40 h p://pape s.ss n.com/abs ac =1862672
F ankel, S., ‘The WTO’s Applica ion o “ he Cus oma y Rules o In e p e a ion o
Public In e na ional Law” o In ellec ual P ope y’, 4 VUWLRP 2/2014, a h p://
ss n.com/abs ac =795986
F ankel, S., Ge ais, D., ‘Plain Packaging and he In e p e a ion o he TRIPS Ag ee-
men ’ (2013) 46 Vande bil Law Re iew 1149
Ge ais, D., The TRIPS Ag eemen : D a ing His o y and Analysis (4 h ed. Swee &
Maxwell 2012)
Gielen, C., ‘Ha monisa ion o T ade Ma k Law in Eu ope: The Fi s T ade Ma k Ha -
monisa ion Di ec i e o he Eu opean Council’ (1992) 14(8) EIPR 262
Helbling, T., ‘Shapes as T ade Ma ks? – The S uggle o Regis e Th ee Dimensional
Signs: A Compa a i e S udy o Uni ed Kingdom and Swiss Law’ (1997) IPQ 421
Hennig-Bodewig, F., Ruijsenaa s, H., ‘Al e na i e P o ec ion o P oduc Deigns: A
Compa a i e View o Ge man, Benelux and US Law’ (1992) 23 IIC 655
Ho on, A., ‘Design, Shapes and Colou s: A Compa ison o T ade Ma k Law in he
Uni ed Kingdom and he Uni ed S a es’ (1989) 11(9) EIPR 315
Ku , A., ‘Ha moniza ion o he T adema k Laws in Eu ope – An O e iew’ 1997
IIC 1
Ku , A., ‘Ma ken ech ’ in Eichmann, Ku (eds.) Design ech . P axishandbuch (1s ed.
2009 Nomos) 134
Ku , A., Le in, M., ‘The Design App oach Re isi ed: Backg ound and Meaning’ in An-
ne e Ku , Ma ianne Le in, Jens Scho sbo (eds.) The EU Design App oach: A Global
App aisal (Elga 2018)
Ku , A., Sen leben, M., Eu opean T ade Ma k Law: A Commen a y (OUP 2017)
Le in, M., ‘Recen De elopmen s in No dic Design P o ec ion’ (1988) IIC 616
Ramsey, L., ‘Reconciling T adema k Righ s and F ee Exp ession Locally and Globally’
in Daniel Ge ais (ed.) In e na ional In ellec ual P ope y: A Handbook o Con em-
po a y Resea ch (Elga 2015)
Ramsey, L., ‘F ee Speech and In e na ional Obliga ions o P o ec T adema ks’ (2010)
35 Yale Jou nal o In e na ional Law 445–447
38 The legal amewo k o ade ma ks’ unc ionali y in he EU
Ricke son, S., The Pa is Con en ion o he P o ec ion o Indus ial P ope y (OUP
2015)
Sande s, A.K., ‘Some F equen ly Asked Ques ions Abou he 1994 UK T ade Ma ks
Ac ’ (1995) 17(2) EIPR 67
Sambuc, T., ‘Zu Schu z (un) ähigkei on P oduk ges al ungen als Wa e ode Auss a -
ung’ (1989) GRUR 54
Scho sbo, J., Dinwoodie, G.B., ‘Design P o ec ion o P oduc s ha A e “Dic a ed by
Func ion”’ in Anne e Ku , Ma ianne Le in, Jens Scho sbo (eds.) The EU Design
App oach: A Global App aisal (Elga 2018) 142
Sen leben, M., ‘Public Domain P ese a ion in EU T adema k Law’, 2013 T adema k
Repo e 784
Sen leben, M., The Copy igh /T adema k In e ace: How he Expansion o T adema k
P o ec ion is S i ling Cul u al C ea i i y (Wol e s Kluwe 2021)
Se ille, C., EU In ellec ual P ope y Law and Policy (Elga 2018)
S one, D., Eu opean Union Design Law: A P ac i ione s’ Guide (2nd ed. OUP 2016)
S owel, B., ‘Benelux: A Guide o he Validi y o Th ee-dimensional T ade Ma ks in
Eu ope’ (1995) 17(3) EIPR 154
S öbele, P., ‘Regis a ion o New T adema k Fo ms’ (2001) IIC 162–169
Tischne , A., Kumula ywna och ona wzo nic wa p zemysłowego w p awie własności
p zemysłowej (Wa szawa C.H. Beck 2015)
T i on, G., In ellec ual P ope y in Eu ope (2nd ed. Swee & Maxwell 1999)
Wee Loon, N.-L., ‘Absolu e Bans on he Regis a ion o P oduc Shape Ma ks: A
B each o In e na ional Law?’ in Calboli, Sen leben, The P o ec ion o Non-T adi-
ional T ade Ma ks: C i ical Pe spec i es (OUP 2018) 147
UNCTAD-ICTSD Resou ce Book on TRIPs and De elopmen (CUP 2010)
Yu, P., ‘The Objec i es and P inciples o he TRIPS Ag eemen ’ (2009) 46(4) Hous.
L. Re . 979, h ps://schola ship.law. amu.edu/ acschola /457
2 ‘La aison d’ê e’ o
unc ionali y in he EUTM
A ool o balancing in e es s
be ween legal exclusi i y and
enhancing compe i ion
Since he enac men o EUTM, ‘public in e es ’ has become he key no-
ion placed a he co e o in e p e ing any unc ional p o ision. This is no a
no ma i e concep ,138 and i is dis inc om he g ounds o public policy o
mo ali y. As de eloped by CJEU, ‘public in e es ’ has dynamically embod-
ied a ious meanings o e ime. Be o e dealing wi h unc ionali y cases, he
CJEU laid down he p inciple ha o he absolu e g ounds o e usal, ha is
desc ip i eness, gene icness, and (absence o ) dis inc i eness, should be in-
e p e ed hough he lenses o ‘public in e es ’. A ch onological discussion
explo es how he concep o ‘public in e es ’ de ined he scope o assessmen
o hese h ee e usal g ounds (2.1.). The second pa ocuses on he CJEU’s
unde s anding o ‘public in e es ’ o unc ionali y pu poses, wi h ega ds o
bo h echnical/u ili a ian and appealing subjec -ma e (2.2.). The hi d pa
se s unc ionali y wi hin he b oade pe spec i e o o he e usal g ounds and
explo es whe he and o which ex en hey may a enua e he e ec s o ade
ma k o e p o ec ion (2.3). This chap e a gues ha unc ionali y se es as a
use ul ex an e obs acle agains o e lapping igh s – howe e , as ‘public in e -
es ’ does no ep esen a clea -cu c i e ion o delinea ing unc ionali y om
o he e usal g ounds, unc ionali y needs o p ese e i s au onomous legal
s a us and assessmen .
2.1. Public in e es a he co e o o he g ounds o e usal o
egis a ion
The ollowing pa examines how he c i e ion o ‘public in e es ’ has been
applied o he assessmen o he e usal g ounds pe aining o dis inc i eness,
desc ip i eness, and cus oma iness which a e cu en ly se in A . 4(1)(b)–(d)
138 Fhima, ‘The Public …’ (n 25) 311. Fo a b oade discussion o a mul i alen concep o
‘public in e es ’ ac oss a ious IPRs, ‘composed o dis inc and di e en ia ed iden i ies and
needs’, Ka en Walsh e al., ‘In ellec ual P ope y Righ s and Access in C isis’ (2021) 52 IIC
379, 380, 383.
DOI: 10.4324/9781003376040-3
40 ‘La aison d’ê e’ o unc ionali y in he EUTM
TMD139 and A . 7(1)(b)–(d) EUTMR.140 The analysis will show he o e lap
and lack o consis ence as conce ns he in e p e a ion o his c i e ion ac oss
hese h ee legal p o isions. Such sho comings will shed ligh on why public
in e es canno be a eliable ac o o delinea ing he scope o e usal g ounds
ela ed o dis inc i eness/desc ip i eness/gene icness om ha o unc ional-
i y, discussed sepa a ely in pa 2.2.
2.1.1. Se ing he scene
In ea lie yea s o EUTM ju isp udence, he ela ionship, hence in e sec ion,
be ween unc ionali y g ounds and a lack o dis inc i e cha ac e was no jus
a ma e o heo y. Func ionali y ope a ed mos ly as a subsidia y g ound o
sus ain he absence o dis inc i e cha ac e , which cons i u ed he main legal
g ound in oked o deny p o ec ion. Func ional componen s o a sign ei he
demons a ed commonness/s anda disa ion o ha ype o goods o we e oo
weak o ensu e dis inc i eness.141 O he oices poin ed o he edundancy o
unc ional p o isions, and e en sugges ed hei dele ion, as long as dis inc i e-
ness g ounds seemed o su ice.142 The a gumen was ha unc ional ea u es
ha mus emain ee o use o o he ade s canno iden i y he comme cial
o igin o goods/se ices o one unde aking. A some poin he CJEU sepa-
a ed he sphe e o applica ion o unc ionali y, by gi ing i p io i y o e ma -
e s o dis inc i e cha ac e . The Cou also made clea ha e en i unc ionali y
was o e uled in casu, o he absolu e g ounds may s ill play a pa .143 Howe e ,
unc ionali y had i s own speci ic pu poses, mingling an i-monopoly conce ns
wi h delinea ing be ween a ious IPRs and being qui e a es ic i e subjec -
ma e : i was con ined o shapes. By con as , he o he e usal g ounds could
co e any sign ha ma ched he basic de ini ion o an eligible sign.144
As men ioned in 1.1., he ex ended scope o unc ional exclusions o any
p oduc cha ac e is ic has al eady blu ed he lines be ween o he ca ego ies o
139 P e iously A . 3 (1) b)–d) o he Fi s Di ec i e.
140 Regis a ion is denied o ade ma ks ‘de oid o any dis inc i e cha ac e ’ (b); ‘which consis
exclusi ely o signs o indica ions which may se e, in ade, o designa e he kind, quali y,
quan i y, in ended pu pose, alue, geog aphical o igin o o he ime o p oduc ion o he
goods o o ende ing o he se ice, o o he cha ac e is ics o he goods o se ice’ (c); o
‘which consis exclusi ely o signs o indica ions which ha e become cus oma y in he cu -
en language o in he bona ie and es ablished p ac ices o he ade’(d).
141 A naud Follia d-Mongui al, Da id Roge s, ‘The P o ec ion o Shapes by he Commu-
ni y T ade Ma k’ (2003) 4 EIPR 173–175, e e ing o BoA EUIPO’ decisions in cases R
70/1998-2; R 142/1999-1; R 563/1999-1; R 272/1999-3; R 74/1998-3 ( ollowed by
GC judgmen T-122/99).
142 Da id T. Keeling, ‘Abou Kine ic Wa ches, Easy Banking and Nappies Tha Keep a Baby D y:
A Re iew o Recen Eu opean Case-law on Absolu e G ounds o Re usal o Regis e T ade
Ma ks’ (2003) 2 IPQ 137–138; Helbling (n 105) 419.
143 C-53/01 o C-55/01 Linde, Winwa d, Rado, EU:C:2003:206, pa as 45, 66–67.
144 These we e abs ac capabili ies o dis inguish goods/se ices and g aphical ep esen a ion.
‘La aison d’ê e’ o unc ionali y in he EUTM 41
signs ha we e p e iously es ed on dis inc i eness. Recen ly, whils discussing
he a ionale o unc ionali y, he Ad oca e Gene al (AG) in he Loubou in case
e e ed pe analogiam o he concep o public in e es es ablished by he CJEU
o e alua ing dis inc i eness o colou s o a combina ion o colou s. He no ed
he simila goal o keeping undis o ed compe i ion, exp essed he e by a ‘gen-
e al in e es in no unduly es ic ing he a ailabili y o colou s’.145 Also in he
con ex o e usal g ounds pe aining o desc ip i eness and gene icness, he
CJEU has equen ly a icula ed an a ailabili y need owa ds signs, aising an i-
compe i i e conce ns. This calls he e o an examina ion o how public in e es
has been in e p e ed o he pu pose o hese legal ba s, whe e he di e ences
be ween hem lie, and how his may a ec he possible o e lap wi h unc ionali y.
2.1.2. A exing o e lap be ween g ounds ela ed o dis inc i e cha ac e
The concep o public in e es has aised se ious doub s in ela ion o he no-
ions o dis inc i eness, desc ip i e cha ac e , o cus oma iness o a sign. The
issue depends on he way hese h ee p o isions a e mu ually in e ela ed. Is
desc ip i eness o cus oma iness a me e exempli ica ion o he lack o dis inc-
i e cha ac e , o does each ha e au onomous s a us? Do hey sha e, up o a
ce ain poin , he same public in e es policies, o do di e en easons call o
denying ade ma k p o ec ion in each case?
F om li e al in e p e a ion, he e is a s ong a gumen implying he sub-
sidia y s a us o desc ip i eness o cus oma iness owa ds dis inc i e cha ac e ,
which s ems om he p o ision ela ed o acqui ed dis inc i eness. The p o i-
sion o A . 4(4) TMD (A . 3(3) o Fi s Di ec i e) indica es ha acqui ed
dis inc i eness may help o e come no only a lack o inhe en dis inc i eness
(b), bu also o he e usal g ounds se ou in pa as c) and d), namely desc ip-
i eness o cus oma iness. F om a logical and p ac ical pe spec i e, a desc ip-
i e o gene ic sign is also wi hou dis inc i e cha ac e , al hough he e may
be signs de oid o dis inc i e cha ac e ha do no ma ch he o he wo legal
ba s.146 This shows a clea sphe e o o e lap be ween hese h ee g ounds,
whe e a p incipal ole is played by he no ion o dis inc i e cha ac e , ea ning
he e m o a ‘ca ch-all’ o ‘umb ella’ p o ision. Al hough i has no com-
ple ely elimina ed any possibili y o in e e ence, he CJEU has consequen ly
ied o en o ce he p inciple ha each legal g ound is independen om he
o he s, has i s own sphe e o applica ion, and e eals a sepa a e, disc e e no ion
o public in e es . Howe e , such a o malis ic app oach ends o be p oblem-
a ic, and e en incohe en , as he ollowing ema ks will demons a e.
145 C-163/16 Loubou in, EU:C:2017:495, pa a 43–47 e e ing o C-104/01, Libe el,
EU:C:2003:244, pa as 54, 60, and C-49/02 Heidelbe ge Bauchemie, EU:C:2004:384, pa a 41.
146 Michael Handle , ‘The Dis inc i e P oblem o Eu opean T ade Ma k Law’ (2005) 27(9)
EIPR 307–310.

42 ‘La aison d’ê e’ o unc ionali y in he EUTM
2.1.2.1. Public in e es and desc ip i eness
The leading case in his a ea was Windsu ing Chiemsee, conce ning he ade
ma k egis a ion o a geog aphical name (i.e. a Ba a ian lake).147 The CJEU
de ined he a ionale o A . 3(1)(c) o Fi s Di ec i e148 as ‘p e en ing such
signs om being ese ed o one unde aking’ so ha ‘may be eely used by
all, including as collec i e ma ks o as pa o complex o g aphic ma ks’.149
This need o emain a ailable o o he ade s was jus i ied no only because
such a sign ca ies in o ma ion on quali y o o he goods’ cha ac e is ics, bu
because i may posi i ely ‘in luence consume as es’ h ough an associa ion
be ween goods and ‘a place ha may gi e ise o a a ou able esponse’.150
The CJEU adop ed an enla ged iew o encompass no only signs ha cu -
en ly unc ion wi h a desc ip i e meaning in he mind o ele an consume s,
bu also signs ha ha e such a capaci y and whe e ‘i is easonable o assume
ha such an associa ion may be es ablished in he u u e’.151 Such a p o- u u e
in e p e a ion was suppo ed by he wo ding o he p o ision o A . 3(1)(c)
which employed he e m ‘may se e’, al hough he ac ha he legisla o had
used di e en o ms (and enses) o he e usal g ounds se in pa as b) o d)
did no cons i u e su icien p oo o delibe a e law-making.152
The co e issue o public in e es consis ed o CJEU’s ejec ion o he Ge -
man doc ine (F eihal ebedü nis – in ansla ion, ‘a need o keep ee’) o he
in e p e a ion o he desc ip i eness equi emen . The CJEU dis anced i sel
om he na ional egis abili y s anda ds o EU membe s. An unw i en bu
se led p inciple o Ge man p ac ice was o deny egis a ion o a ce ain ype
o signs (e.g. colou s, nume als, pe sonal and geog aphical names) i compe i-
o s’ in e es s showed ha he e was a ‘ eal, cu en and se ious’ equi emen
o a ailabili y o ha sign.153 Simila ly, in UK law a sign ha was in ac ully
147 Joined cases C-108/97 and C-109/97 Windsu ing Chiemsee …, EU:C:1999:230. The
CJEU ga e guidance on p elimina y ques ions asked by he Regional Cou o Munich hea -
ing an in ingemen case.
148 Cu en ly A . 4(1)(c) TMD.
149 Windsu ing, ibidem pa a 25.
150 Windsu ing, ibidem pa a 26.
151 Windsu ing, ibidem pa as 30–31.
152 Philips ‘T ade Ma k Law …’ (n 25) 396.
153 A ailabili y was assessed in ela ion o he goods/se ices desc ibed in he iling o egis a-
ion; he isk o impai ing compe i ion could no be simply hypo he ical, al hough u u e isk
suppo ed by cu en accu a e da a was also accep ed; he need mus ha e been impo an . In
case o a e usal o egis a ion based on his p inciple he adminis a i e o gan did no p o-
ceed wi h assessing dis inc i eness, bu i asked he applican o p oduce he e idence o dis-
inc i e cha ac e and lack o a ailabili y impe a i e; mo e Reinha d Inge l, Ch is ian Ronke,
Ma kengese z (C.H. Beck 2010) §8, 92, 197, 209–215; Geo g Fuchs-Wissemann, ‘Absolu e
Schu zhinde nisse’ in F ied ich Ekey, Achim Bende , Geo g Fuchs-Wissemann (eds.) Ma k-
en ech . Band 1 (Ma kengese z und Ma ken ech ausgewähl e ausländishe S aa en) (C.F.
Mülle 2014) §8, pa as 11–15; De le on Schul z, ‘Absolu e Schu zhinde nisse’ in De le
on Schul z (ed.) Kommen a zum Ma ken ech (Deu sche Fach e lag 2012) §8, 105–120.
‘La aison d’ê e’ o unc ionali y in he EUTM 43
dis inc i e could be e used egis a ion i i belonged o a ype o ma k whe e
public in e es (lea ing hem ee o o he ade s) s ood agains con e ing
a comme cial monopoly o one en i y. Such a sign could no ma ch he un-
w i en concep o ‘legal dis inc i eness’, es ablished in he ju isp udence o
p e-Di ec i e days, and hen conside ed emo ed by he EUTM and he new
case-line, including Windsu ing.154 As conce ns he h eshold o acqui ing
dis inc i eness h ough use, he Cou did no pe mi any di e en ia ion in
s anda ds because o a p esumed a ailabili y equi emen , he e he example
o a geog aphical name needed by o he unde akings. The CJEU speci ically
declined any e e ence o a p ede e mined pe cen age, such as abo e 50 pe
cen o ecogni ion ( ade accep ance) o he sign as badge o o igin among
consume s, a c i e ion ha Ge man p ac ice usually equi ed in a p opo ion
de e mined by he need o keep ee.155
In subsequen yea s, he Windsu ing guidance has been de eloped o
encompass signs consis ing o desc ip i e wo ds, which we e no necessa ily
‘exclusi ely desc ip i e’ acco ding o he ac ual condi ions o use.156 Fo he
e usal g ound o ope a e, i su iced ha one ‘possible’ meaning o he e m
composing he ma k may designa e a p oduc cha ac e is ic, and i conce ns
no only p esen in e es s, bu also po en ial compe i o s who may wish o
use ha sign in a desc ip i e manne .157 Simila ly, i is no equi ed ha he
sign should be he only way o designa ing he p oduc cha ac e is ics a issue,
al hough opinion could equally ake he con a y posi ion, namely ha a i-
ous ways o con eying he same in o ma ion may ep esen p oo o lack o
desc ip i eness.158 I was also i ele an whe he he cha ac e is ic a issue had
seconda y impo ance a he han being ‘comme cial essen ial’.159
This e usal g ound was also ound sui able o h ee-dimensional signs
(shapes), independen ly o he possibili y o in oke one o he unc ional ex-
cep ions.160 Ano he case conce ning he colou and shape o a con aine used
o liquid de e gen ma ked he poin whe e objec ions o desc ip i eness (and
unc ionali y oo) ex ended o he packaging o goods wi hou an in insic
154 Angela Fox, ‘Does he T ade Ma k Ha monisa ion Di ec i e Recognize a Public In e es in
Keeping Non-dis inc i e Signs F ee o Use?’ (2000) EIPR 1, 4 quo ing a judgmen o 1913
in W&G du C os L d. Applica ion, 1913 RPC 660, 672 whe e i was s a ed ha dis inc i e-
ness o a ma k ‘mus … depend upon whe he o he ade s a e likely, in he o dina y cou se
o hei business and wi hou any imp ope mo i e, o desi e o use he same ma k, o same
ma k nea ly esembling i , upon o in connec ion wi h hei own goods’.
155 C-109/97 Windsu ing pa as 41–52.
156 C-191/01 OHIM . Wm. W igley J . Company (conc. wo d DOUBLEMINT),
EU:C:2003:579, pa as 32–35; C-363/99, Koninklijke KPN Nede land . Benelux-Me ken-
bu eau (conc. wo d ‘Pos kan oo ’) EU:C:2004:86, pa as 55–58.
157 Recen ly in join cases T-117/18 o T-121/18, Agencja Wydawnicza Technopol . EUIPO,
EU:T:2019:447, pa as 26–59.
158 Fhima (n 25) 313.
159 Se ille (n 39) 295.
160 C-53/01 Linde EU:C:2003:206, pa as 69–77.
44 ‘La aison d’ê e’ o unc ionali y in he EUTM
shape, such as g anules, powde , o liquids.161 Al hough he CJEU p oclaimed
a e i o ial limi a ion o he ele an public o he coun y whe e egis a ion
is sough ,162 egis a ion o desc ip i e shapes may c ea e ba ie s o legi ima e
ee ade, a c i ical issue amongs TRIPS signa o ies. An in e es ing case con-
ce ned an a emp o egis e he shape o a so cake in Ge many, known in
he o me USSR unde he s anda dized name o ‘Ze i ’ cake – he Düssel-
do Cou o Appeal was sensi i e o he isk o undue monopoliza ion and
denied egis a ion on bad ai h g ounds.163
2.1.2.2. Public in e es and gene icness
Ano he e usal g ound se ou in A . 3(1)(d) o he Fi s Di ec i e164 deals
wi h ade ma ks ha consis exclusi ely o signs ha ha e become cus om-
a y in con empo a y language, o in he bona ide and es ablished p ac ices
o he ade o de ining an en i e class/genus o p oduc s, such as he e ms
‘BSS’ (an abb e ia ion o ‘balanced sal solu ion’ used by oph halmologis s)
o ‘ko nspi z’ (a ype o oll).165 This p oblem mos ly conce ns wo d ma ks;
howe e , p ac ice has shown ha a combina ion o g aphics and colou s – a
ed ose design used o England ugby shi s166 – may also all oul o his
p o ision. Shapes also may become gene ic, o ins ance, a ec angula box.
Mo e examples a e discussed in Chap e 7, which deals wi h p oduc ea u es
esul ing om he na u e o goods. This ype o unc ionali y in e sec s clea ly
wi h gene ic signs.
Al hough a gene al in e es in keeping gene ic signs ee o use o o he
ade s could also be placed a he co e o his egis a ion ba ,167 he CJEU
has ocused on he incapabili y o such signs o p ope ly pe o m he sou ce
iden i ica ion unc ion o a ade ma k.168 Wi hou denying a possible o e lap
161 C-218/01 Henkel KGaA . Deu sches Pa en - und Ma kenam , EU:C:2004:88, pa as 33, 44.
162 This means ha a desc ip i e o gene ic e m in a gi en language may be egis e ed in an-
o he EU coun y whe e he language is no spoken C-421/04 Ma a zen Conco d . Hukla
Ge many, EU:C:2006:164.
163 Anke Moe land, ‘The Regis a ion o Desc ip i e Te ms in In e na ional T ade’ in Ch is o-
phe Hea h, Anselm Sande s, Anke Moe land (eds.) In ellec ual P ope y Righ s as Obs acles
o Legi ima e T ade? (Wol e s Kluwe 2018) 85–94 e e ing o he Ge man cou ’s dec. o
31 Decembe 2002 in case 20 U 120/02) a 92–93, n 83.
164 Cu en ly A . 4(1)(d) TMD.
165 C-192/03 Alcon Inc. . OHIM, ECLI:EU:C:2004:587; C-409/12, Backald in Ös e eich
The Ko nspi z Company . P ahnl Backmi el, ECLI:EU:C:2014:130.
166 Case RFU and Nike . Co on T ade s, 2002 ETMR 861, men ioned by Co nish e al. (n
24) 726, a n 265.
167 See opinions o AG Colome in C-404/02 Nichols plc . Regis a o T ade Ma ks,
ECLI:EU:C:2004:30, pa a 43 in ine; and AG Jacobs C-329/02P SAT.1 Sa elli enFe nsehen
GmbH . OHIM, ECLI:EU:C:2004:143, pa a 23.
168 C-517/99 Me z & K ell …, ECLI:EU:C:2001:510, pa as 24–28. The ma k a issue was he
wo d ‘B a o’ iled o ‘w i ing implemen s’. I was also i ele an whe he such a sign was used
as an ad e ising slogan, an indica ion o quali y o an inci emen o pu chase (pa as 40–41).
‘La aison d’ê e’ o unc ionali y in he EUTM 45
wi h desc ip i e signs, i was held ha cus oma y signs may only designa e he
goods/se ices a issue, unde s ood so as o con ey a loose link wi h hem.169
Impo an ly, and by con as wi h desc ip i eness, he imeline o assessing
cus oma iness does no conside po en ial de elopmen s, ha is, whe he ad-
e s in he u u e will s ill need such gene ic ea u es. The CJEU asks o p oo
ha he sign has al eady gained a gene ic meaning. Ano he di e ence, his
ime agains US law, is ha a ade ma k ound gene ic unde US law can ne e
be egis e ed/p o ec ed,170 whe eas in he EU acqui ed dis inc i eness ende s
a cus oma y sign egis able.
2.1.2.3. Public in e es and dis inc i eness
The main e usal g ound pe aining o lack o dis inc i e cha ac e embedded
in A . 3(1)(b) o he Fi s Di ec i e171 aises mos o he c i icisms abou inad-
equa e and incohe en in e p e a ions o he no ion o ‘public in e es ’. In ea -
lie yea s o CJEU p ac ice, his g ound was equen ly in oked oge he wi h
objec ions o desc ip i eness and/o cus oma iness and/o e en unc ional-
i y. The e ec was equen ly con using legal a gumen a ion, which could be
ega ded as a consequence o he o e lapping na u e o hese p o isions.172
Howe e , he CJEU has emphasized he au onomous cha ac e o he dis inc-
i eness equi emen , e lec ed also by a sepa a e unde s anding o he public
in e es a ionale, which was ead in di ec connec ion wi h he essen ial unc-
ion o a ma k. T ade ma ks de oid o dis inc i e cha ac e a e denied p o ec-
ion because o hei incapaci y o gua an ee consume s he speci ic o igin o
he ma ked p oduc s by enabling hem o dis inguish he goods/se ices o
one en i y om hose o ano he wi hou any isk o con usion.173 This p inci-
ple was se apa om he in e p e a ion o public in e es adop ed o desc ip-
i e signs.174 Mo e p ecisely, in ela ion o mos o he signs (wo ds, igu a i e,
169 Ben ly e al . (n 24) 1004 e e s o AG Opinion in Me z & K ell ECLI:EU:C:2001:40, pa a
50 which implied ha he e m ‘designa ion’ did no mean a desc ip ion o a speci ic deg ee
o associa ion be ween sign and goods/se ices.
170 Rochelle Coope D ey uss, ‘Exp essi e Gene ici y: T adema ks as Language in he Pepsi
Gene a ion’ (1990) No e Dame L. Re . 397 h p://schola ship.law.nd.edu/ndl / ol65/
iss3/1; Lisa Ramsey, ‘Desc ip i e T adema ks and he Fi s Amendmen ’, San Diego Legal
S udies Pape No 06–13, May 2005 h p://ss n.com/abs ac =728572 1006–1008; 1021–
1024; S e en Webe , ‘T adema ks and Gene icness: Loss o a Ma k o he Public Domain
h ough I s T ans o ma ion in o a Gene ic Te m’ (1990) 17 W. S U. L. Re . 415.
171 Cu en ly A . 4(1)(b)TMD.
172 In p ac ice he ac ha he judicia y body laid down a gumen s ela ed o legal g ounds
o me ly unmen ioned in he plea aised p ocedu al objec ions o e impai ing a pa y’s igh
o a ai hea ing, mo e Keeling, ‘Abou Kine ic Wa ches …’, 140–145.
173 C-102/77 Ho mann-La Roche . Cen a a m EU:C:1978:108; Joined Cases C-456/01 P
and C457/01 P Henkel . OHIM EU:C:2004:258, pa a 48; C-329/02 P SAT.1 Sa elli en-
Fe nsehen GmbH . OHIM, pa as 25–28 and 36.
174 This issue o in e ela ion was no ob ious; o ins ance AG Colome in C-102/07 Adi-
das AG and Adidas Benelux BV . Ma ca Mode CV & o he s, opined ha he p inciple o
52 ‘La aison d’ê e’ o unc ionali y in he EUTM
subs i u e ea u e). … I would esul in he ade ma k p op ie o ob ain-
ing a signi ican ad an age which would ha e an un a ou able e ec on he
s uc u e o compe i ion on he ma ke conce ned’.203 The same app oach was
ex ended o aes he ic unc ionali y.
The echnical unc ionali y a ionale se ou in he Philips and Lego judg-
men s was e-a i med in he Gömböc case204 (conce ning a sel - igh ing oy
shape) – howe e , he CJEU did no de elop he opic o public in e es , bu
es ained i sel o ma e s o legal in e p e a ion (Chap e s 6–8). In e es ingly,
in he pa allel B omp on case (conce ning he copy igh abili y o a bicycle wi h
echnical ea u es co e ed by an expi ed pa en ) AG Campos Sanchez-Bo dona
amply discussed IPR o e laps and he ole ha unc ionali y exclusion should
play owa ds ade ma ks, designs and copy igh .205 The AG clea ly a ou ed
a holis ic iew o unc ionali y ac oss IP egimes, simila o a no iceable end
in US schola ship (Chap e 3.3.). In B omp on AG’s sugges ion was o ana-
logically apply on copy igh g ounds he ade ma k unc ionali y guidance o
Philips and Lego, 206 whils no ing he cong uence be ween ade ma ks and
design unc ionali y ules.207 Again, he CJEU did no elabo a e on hese as-
pec s, ye u u e p ac ice will enhance he meaning and pu pose o unc ional-
i y ac oss he IP sys em.
2.2.2. The upli ing o aes he ic unc ionali y
The legal ba pe aining o shapes, o o he p oduc ea u es, gi ing ‘subs an-
ial alue’ o goods has c ea ed he mos con o e sial case-law o da e. This
is no only because o di icul ies in implemen ing objec i e assessmen c i e-
ia, bu also because o he impossibili y o con e ing a a ionale which can
achie e cohe ence wi hin he IP s uc u e and ma ch he ma ke condi ions
o consume pu chase decisions. Due o he legisla i e in luence o Benelux
(1.3.1.), i is wo h examining how he Benelux p epa a o y ac s explained
he pu pose o his exclusion. The aim was ‘ o impose a ce ain limi a ion o
he possibili y ha ade ma k p o ec ion coincides wi h he p o ec ion ha
i can be de i ed om copy igh o design igh s. … When conside ing he
na u e o goods, his “a ac i eness alue” is o majo impo ance, he chosen
shape canno be eligible o he p o ec ion as adema k.’208 Aes he ic unc-
ionali y was no a ge ed o exclude all cumula ion be ween ade ma ks and
203 C–205/13 Hauck, Opinion, EU:C:2014:322 pa as 57–58.
204 C-237/19 Gömböc . Szellemi, EU:C:2020:296, pa as 25–26.
205 C-833/18, B omp on Bicycle, Opinion EU:C:2020:79, pa as 39–45, 47–56.
206 Ibidem pa as 66–76.
207 The seminal uling in e p e ing unc ionali y in EU design law was C-395/16 Doce am,
EU:C:2018:172.
208 Explana o y Memo andum o Benelux Uni o m T ade Ma k Law, as quo ed by Cha les
Gielen, ‘Subs an ial Value Rule: How i Came in o Being and Why i Should Be Abolished’
(2014) 36(3) EIPR 165.

‘La aison d’ê e’ o unc ionali y in he EUTM 53
copy igh /designs – a hing ha dly sus ainable oday in iew o he ange o
p o ec able subjec -ma e and he equi emen s o p o ec ion o design and
copy igh law – ins ead i was in ended o ope a e es ic i ely unde speci ic
ci cums ances.209 Such ci cums ances ela e, on one hand, o he ca ego y o
goods o which he sign is used, and, on he o he hand, o hose ac o s
which de e mine an inc eased alue ( ead a ac i eness) in consume eyes.
The c i e ia o assessing aes he ic unc ionali y a e discussed in mo e de ail in
Chap e 8, whils he ema ks below ouch upon he way CJEU has unde -
s ood i s a ionale o e he yea s.
S a ing wi h he ecen Gömböc case, he CJEU ead he a ionale o aes-
he ic unc ionali y h ough he lens o compe i ion – he bene i s om he a -
ac i eness o a p oduc should no belong o a single unde aking, o he wise
i ‘would dis o he condi ions o compe i ion on he ma ke conce ned’.210
The aim o sepa a ing ade ma ks om designs/copy igh was ecognized,
ye clea ly downplayed. The Gömböc shape had al eady enjoyed design p o ec-
ion. Howe e , he CJEU acknowledged he coexis ence and au onomy o
designs and ade ma ks, by no icing ha he e was no hie a chy in-be ween
and no blanke p ohibi ion on subsequen ade ma k p o ec ion.211 This ea-
soning concu s wi h he a ionale o EU design p o ec ion (1.4.), which is no
o co e aes he ic c ea ions, as shown by he EUIPO da abase. The e o e, a
p io design does no say much abou he ‘subs an ial alue’ o a p oduc o
imply aes he ic unc ionali y o ade ma ks. The Gömböc judgmen il s he
balance in a ou o a p o-compe i ion app oach, al hough in he ea ly yea s
he CJEU/GC conside ed using aes he ic unc ionali y as a means o p e en -
ing he cumula ion o igh s.
One o he i s GC decisions conce ned he pencil shaped Bang & Olu sen
loudspeake . The GC did no o e a dis inc explana ion o he a ionale un-
de lying he aes he ic unc ionali y p o ision and ins ead ook he iew ha i
was he same as o echnical unc ionali y.212 The e e ence o he AG opinion
in Philips, ha is, he need o delinea ion be ween ade ma ks and o he
ime-limi ed o ms o p o ec ion, se ed o o mula e i s pu pose gene ally
and aguely as ‘ o p e en he g an ing o a monopoly on hose shapes’.213
209 Fo accep ing he imminence o o e laps be ween adema ks and copy igh /designs , see
Alison Fi h, ‘Signs, Su aces, Shapes and S uc u es – The P o ec ion o P oduc Design
Unde T ade Ma k Law’ in Jan Rosén (ed.) Eu opean In ellec ual P ope y Law (Elga 2016)
289; Es elle De claye, ‘O e lapping Righ s’ in Rochelle D ey uss, Jus ine Pila (eds.) The Ox-
o d Handbook o In ellec ual P ope y (OUP 2018) 632–641; C aig Mende, Belinda Isaac,
‘When Copy igh and T adema k Righ s O e lap’ in Neil Wilko , Shamnad Bashee (eds.)
O e lapping In ellec ual P ope y Righ s (OUP 2012) 138–144.
210 C-237/19 Gömböc, pa a 40.
211 Ibidem pa as 51–55.
212 T-508/11 Bang & Olu sen . OHIM, EU:T:2011:575, pa a 64.
213 Ibidem pa as 65–66.
54 ‘La aison d’ê e’ o unc ionali y in he EUTM
La e on, he Hauck judgmen ea i med he an i-cumula ion a ionale,
adding u he guidance ha aes he ic unc ionali y may encompass p oduc s
pe o ming bo h aes he ic (deco a i e) and ‘o he essen ial unc ions’ (p ac i-
cal) – he in casu chai ’s e gonomic cons uc ion was highly alued by con-
sume s.214 The CJEU’s b oadening o aes he ic unc ionali y o p oduc s wi h
mul iple unc ions was a con i ma ion o he AG Szpuna Opinion, which
ocused on p e en ing an ‘un ai ma ke ad an age which does no esul om
compe i ion based on p ice and quali y’, bu esul ing om an enhanced a -
ac i eness o goods ha ‘s ongly in luence consume p e e ences’.215
An impo an issue ha o da e has no been p ope ly deal wi h by he
CJEU conce ns how epu a ion (goodwill) a ached o a ade ma k may im-
pac he inding o aes he ic unc ionali y. In he opinion o he Loubou in
case, AG Szpuna exp essed he iew ha he cha ac e is ics o goods linked
o he epu a ion o a ade ma k – which would aise consume appeal e en
in case o an una ac i e shape pe se – should no be ac o ed o de e mine
he subs an ial inc ease o alue in he eyes o consume s.216 This would pe -
mi keeping he scope o aes he ic unc ionali y wi hin easonable limi s, so as
no o collide wi h o he impo an in e es s o a ade ma k holde , namely
building a ade ma k’s goodwill. The CJEU in Loubou in did no add ess his
opic ei he , al hough i would ha e been in e es ing o see i hei posi ion
had changed o e ime. In an ea lie case conce ning he h ee-dimensional
appea ance o a s i ching mo i applied o a pai o jeans – conside ed a ‘shape’
o he pu pose o his p o ision – he e e al submi ed o he CJEU asked
whe he he a ac i eness o a shape could de i e om he ecogni ion o a
ade ma k.217 The ac s we e such ha in ensi e ad e ising campaigns had
ensu ed g ea comme cial success o he ouse s because o hei associa ion
wi h he epu ed ade ma k ‘G-S a ’, al hough he la e ma k did no o m
pa o he shape. The CJEU a oided conside ing his ecogni ion as enhanc-
ing he alue o goods, ye ansposed i wi hin he discussion o acqui ing dis-
inc i e cha ac e . The whole con o e sy he e o e shi ed o he well-known
ule ha dis inc i eness acqui ed h ough use could ne e help o o e come
he in e dic ion agains egis e ing a unc ional sign.218 As has al eady been
c i ically no iced in he legal doc ine, he CJEU missed an oppo uni y o en-
gage in a ho ough discussion abou he a ac i e cha ac e is ics o a p oduc
ha may unc ion as comme cial o igin indica o s.219 A simila ole is played
by ed soles on high-heeled shoes, which mos women pe cei e as o igina ing
214 C–205/13 Hauck, pa a 31.
215 C–205/13 Hauck, Opinion, pa as 79–80.
216 C-163/16 Ch is ian Loubou in, Opinion, EU:C:2018:64, pa a 54.
217 C-371/06 Bene on G oup . G-S a In e na ional, EU:C:2007:542, pa as 13–20.
218 Ibidem pa as 24–28.
219 Anne e Ku , ‘“Cumula ion o Righ s wi h Rega d o Th ee-Dimensional Shapes” – Two
Exempla y S udies’ in Alexand e C uquenai e, Se e ine Dusollie (eds.) Le cumul des d oi s
in ellec uels (La cie 2009) 164–165.
‘La aison d’ê e’ o unc ionali y in he EUTM 55
om Loubou in, a highly epu ed luxu y b and. The AG ended o acknowl-
edge he incen i e ace o a ade ma k egis a ion, namely s imula ing he
igh s holde o in es in he sign, a ix i o p oduc s o consis en quali y,
engage in p omo ion s a egies, and build a ade ma k wi h a epu a ion.
Whils consume s a e ge ing o know and app ecia e a ade ma k, unc ional-
i y should no block his na u al pa h o acqui ing and enhancing ecogni ion.
The emaining ques ion is how o ix he balance be ween he in e es s o a
ade ma k’s holde and he public in e es o keep (aes he ically) unc ional
ea u es unp o ec ed and in he public domain. I his is a ques ion o se ing
ou a hie a chy among di e en in e es s, o da e he ju isp udence has no o -
e ed much guidance. These aspec s will be e isi ed u he wi hin a ‘law and
economics’ pe spec i e (Chap e 4.3.).
Pe haps he mos cons uc i e iew is o ocus on he compe i ion a-
ionale and consume choice. An in e es ing AG’s second Opinion o
Loubou in discussed he dynamism o consume p e e ences ha can e ol e
o e ime– depending on ‘ex e nal ci cums ances’, such as changing ash-
ion ends– implying ha i could ha e an impac on he assessmen o aes-
he ic unc ionali y.220 This hough calls o u he conside a ion, also in he
con ex o echnical/u ili a ian unc ionali y (Chap e s 6 o 7), al hough he
CJEU did no elabo a e on he issue. Such a p o-compe i i e logic o he aes-
he ic a ionale seems accep able, howe e , he di icul y consis s o se ing ou
bounda ies o an exclusion ha may co e any p oduc enjoying ma ke ing
success and consume appeal. Nowadays mos p oduc s a e publicly displayed
in a way encou aging pu chase. Wha ‘inc easing alue’ may – and should –
mean o he pu pose o an excep ion o ade ma k p o ec ion equi es ca e ul
in e p e a ion o he legal concep s oge he wi h and insigh in o he ma ke
speci ici y o a gi en case (Chap e 8). This may help achie e a sensible judg-
men o e he isk o impai ing compe i ion.
2.3. In sea ch o app op ia e me hods o sol ing he di icul ies
o ade ma k o e p o ec ion
The cu en CJEU ju isp udence on dis inc i eness ma e s has gene ally aced
se e e c i icism.221 The issue is no only abou he ‘ o malis ic’ iew aken on
public in e es , adop ed o dis inc ly p ese e he sphe e o applica ion o he
p o isions conce ning dis inc i eness, desc ip i eness, and cus oma iness. The
cu en s anda ds o acqui ing dis inc i eness h ough use seem somehow
unsui able, e en unp edic able. I was a gued ha he CJEU’s assump ion ha
consume s a e no in he habi o pe cei ing hese kinds o signs as indica o s
o comme cial o igin, ha is, he p incipal impedimen owa ds hei egis-
abili y may no be sus ained by empi ical psychological s udies desc ibing
220 C-163/16 Loubou in, Opinion o AG Szpuna EU:C:2018:64, pa as 47–52.
221 Ex ensi ely Ku , ‘Absolu e G ounds o Re usal’ in Ku , Sen leben (n 24) pa as 4.61–75.
56 ‘La aison d’ê e’ o unc ionali y in he EUTM
models o consume pe cep ions.222 By con as , consume s may be easily edu-
ca ed o pe cei e any sign as a badge o o igin i i is consequen ly p esen ed
in a ‘ ypical adema k-use con ex ’.223 This would a ou and acili a e en i ies
wi h he inancial means o engage in long- e m s a egies, wo king inhe -
en ly non-dis inc i e signs in o consume s’ minds un il hey acqui e seconda y
meaning and quali y o egis a ion, wi h possible de imen al e ec s on he
public in e es . As p e iously discussed, an open-ended de ini ion o public
in e es may conside a ma ke -o ien a ed, economic pe spec i e o consum-
e s and compe i o s’ needs, which has ound a ce ain elemen o con i ma-
ion in some CJEU judgmen s. Howe e , he e a e ins ances ha call o a
b oade iew, encompassing socie al and cul u al needs. Some imes, ade
ma ks, should mean mo e han ‘a po en ial economic asse ’, 224 and such needs
a e ou lined below.
A ‘need o keep ee’ is ad oca ed o signs wi h so-called ‘inhe en ly alu-
able exp ession’, which ha e al eady con eyed o he public an es ablished se
o messages – p oduc in o ma ion, ideas, emo ions, and so on – whe e mo-
nopoliza ion ia egis a ion on behal o one holde would hea ily es ic o
dep i e ee use and communica ion o hese messages in a ious a eas o ac-
i i y.225 A sign embedding his kind o addi ional ‘exp essi e’ laye p ese es i
alongside he ‘signalling’ unc ion226 equi ed o dis inguish goods/se ices in
ade. Thus, he need o e e o a sign’s exp essi e meaning o business com-
munica ion (such as desc ip i e use, hones e e en ial use, compa a i e ad e -
isemen ), and beyond (e.g. o news, e iews, c i ics, pa ody, educa ion, and
a is ic ac i i ies) could isk claims o ade ma k in ingemen , especially in
cases o ma ks wi h epu a ions p o ec ed ou side he ealm o specializa ion.
This would ad oca e o keeping such signs in ee use in he public domain,
as i is pe cei ed ha his kind o socie al impai men uns agains he op imal
balance, p esumably se be ween igh s holde s’ incen i es and bene i s e sus
socie al es ic ions and cos s.227
E en mo e nega i e e ec s could esul om egis e ing wo ks o a o
impo an cul u al asse s, mos o hese ha ing allen in o he public domain
222 On he inconsis encies be ween he indings o cogni i e psychology abou consume deci -
sion-making and he applica ion by cou s o he no ma i e model o consume , Kimbe lee
Wea he all, ‘The Consume as he Empi ical Measu e o T ade Ma k Law’ (2017) 80(1)
Mode n Law Re iew 57, 61–80.
223 Lo e Anemae , ‘The Public Domain Is Unde P essu e – Why We Should No Rely on Em-
pi ical Da a When Assessing T adema k Dis inc i eness’ (2016) IIC, 314–23.
224 Jenni e Da is, ‘A Eu opean Cons i u ion o IPRs? Compe i ion, T ade Ma ks and Cul u -
ally Signi ican Signs’ (2004) 41(4) Common Ma ke Law Re iew 1005, 370.
225 Lisa Ramsey, ‘Non-T adi ional T adema ks and Inhe en ly Valuable Exp ession’, in Calboli,
Sen leben (n 22) 338–341. The gi en examples ma ch aes he ic unc ionali y such as a
odka bo le shaped on a Yuca an skull, en i onmen ally iendly g een-colou ed packaging,
pina colada scen o a ukulele (see Chap e 8).
226 This is a classi ica ion ope a ed by D ey uss (n 170) 400–401.
227 D ey uss, ibidem 405–412; Ramsey, ‘Non-T adi ional …’ ibidem 358–360.
‘La aison d’ê e’ o unc ionali y in he EUTM 57
a e p e iously being p o ec ed by copy igh .228 Conce ns a e oiced abou
a ‘co osi e e ec on cul u al ollow-on inno a ion’, as any c ea ion, e en in
a is ic domains, mus de elop on – o in con as o – known pieces om
he public domain, which makes he u he possibili y o copy and adap so
impo an .229 The e is also a se ious isk o dep ecia ion, o ‘desec a ion’, 230
o an a wo k by comme cial use as a adema k in ela ion o goods/se ices,
and some imes in a con ex incompa ible wi h he alues o iginally exp essed
by he wo k and/o in ended by i s au ho .
The legal doc ine o e s di e en solu ions o conce ns o ade ma k
o e laps and o e p o ec ion, some o hem being ele an o he in e ac ion
wi h unc ionali y (see also 3.4.). The main ocus is on ex an e con ol, namely
on ca e ully sc u inizing he ci cums ances and legal g ounds applied a he
egis a ion s age. Ano he issue, which goes beyond he scope o his analysis,
conce ns ways o calib a ing he scope o al eady con e ed p o ec ion, by
educing he en o ceabili y o a ade ma k igh by means o de ences and ex-
cep ions. A he opposi e pole lies an app oach denying a gene al social in e -
es in keeping ce ain signs ee, by a guing ha he exis ing closed sys em o
e usal/in alidi y g ounds su ices o ule ou ques ionable egis a ions – ul-
ima ely, he possibili y o acqui ing dis inc i eness h ough use would legally
p e ail, as dis inc i e cha ac e has o be measu ed in ela ion o speci ic goods
/se ices and dynamically e ol es o e yea s.231 Such an app oach appa en ly
does no see he ‘a ailabili y need’ as a sepa a e and essen ial ac o o assess-
ing dis inc i eness, le alone he ho ny hypo hesis ha he e may be public
in e es s pu abo e acqui ing dis inc i eness, such as unc ionali y o public
o de g ounds.
A adical choice may consis in ex an e denying any possibili y o o e lap
ade ma k igh s wi h (al eady) copy igh ed ma e ial, because – in b each
228 Sen leben, The Copy igh /T adema k (n 125) 283 .; I ene Calboli, ‘O e lapping Righ s:
The Nega i e E ec s o T adema king C ea i e Wo ks’ in Susy F ankel, Daniel Ge ais (eds.)
The E olu ion and Equilib ium o Copy igh in he Digi al Age (CUP 2014) 52; Robe
Tomkowicz, In ellec ual P ope y O e laps: Theo y, S a egies, Solu ions (Rou ledge 2012)
93–96; Vi a R. Mo a , ‘Mu an Copy igh s and Backdoo Pa en s: The P oblem o O e -
lapping In ellec ual P ope y P o ec ion’ (2004) 19 Be keley Tech L. J. 1473, 1520–1521,
e e ing o he concep o ‘mu an copy igh ’ o Das a Co p. . Twen ie h Cen u y Fox
Film Co p., 539 U.S. 23 (2003).
229 Ma in Sen leben, ‘A Clash o Cul u e and Comme ce: Non-T adi ional Ma ks and he Im-
pedimen o Cyclic Cul u al Inno a ion’, in Calboli, Sen leben (n 22) 315–318; Ma in
Sen leben, ‘Viegeland and he S a us o Cul u al Conce ns in T ade Ma k Law – The EFTA
Cou De elops Mo e E ec i e Tools o he P ese a ion o Public Domain’ (2017) IIC,
683.
230 Judgemen o EFTA Cou o 6 Ap il 2017 in Viegeland case E-5/16, pa as 92–93, a www.
e acou .in /uploads/ x_n cases/5_16_Judgmen _EN.pd
231 T obias C. Jeho am, Cons an . Nispen, Tony Huydecope , Eu opean T ade Ma k Law:
Communi y T adema k Law and Ha monized Na ional T adema k Law (Kluwe Law In-
e na ional 2010), aking as a s a ing poin he p inciple ha ‘ he e a e no such ee ma ks’,
164–165. Simila ly, Philips, ‘T ade ma k …’ (n 25) 392.

58 ‘La aison d’ê e’ o unc ionali y in he EUTM
o he copy igh ba gain – concu en o sequen ial ade ma k p o ec ion
impedes ai use and he c ea ion o de i a i e wo ks, as well as o eclosing
public access o wo ks ha ha e o he wise allen in o he public domain.232
Implemen ing his op ion in he EU would be di icul , conside ing he lax
equi emen s o p o ec ion agains a b oad no ion o p o ec able c ea i e (a -
is ic) wo ks which may co e almos all ca ego ies o signs, 233 pe haps wi h
minimal impac on wo ds and combina ions o .234 Signi ican ly, he CJEU e-
cen ly con i med he p inciple o cumula ion o copy igh wi h o he o ms
o p o ec ion, au onomously and upon e ms se by each IP egime, and e-
ained om clea -cu p ohibi ions o delinea ions be ween IPRs, e en in case
o wo ks consis ing o pa ially echnical subjec -ma e .235 In addi ion, look-
ing a egis a ion p oceedings, i is no clea whe he an adminis a i e body
o EU membe s is – o should be – capable o app ecia ing ex an e he alleged
copy igh abili y o a sign. As conce ns an i em (sign) al eady subjec o copy-
igh p o ec ion, he exis ing e usal g ound ela ed o collision wi h a hi d
pa y’s ea lie igh , o example copy igh , designs, pe sona igh s, and so
on, has a ela i e na u e. I is in oked only a e a demand iled by in e es ed
pa ies du ing opposi ion o nulli y ac ions. An app oach equi ing ca ego i-
cal exclusion o copy igh able signs would need modi ica ions o he ules o
subs an i e and adminis a i e law, which would ha e o concu wi h he wo-
ie ed ha monized s uc u e o he EUTM sys em and he ac ha he ade
ma k di ec i es kep he speci ics o na ional p oceedings wi hin he au onomy
o Membe S a es. In such condi ions, he aes he ic unc ionali y p ohibi ion
examined ex an e may, a leas in some cases, help achie e he goal o p e en -
ing o e lap wi h copy igh able wo ks.
Amongs less adical choices o deal de lege la a wi h o e laps, one op-
ion conce ns excluding ade ma k p o ec ion up on , bu only in ela ion
o ce ain ca ego ies o signs. Fo hose embedding cul u al, symbolic alue,
ano he e usal g ound, namely ha o public o de and mo ali y, is conside ed
o be mo e obus and a be e i han he cu en ly in oked objec ions o
lack o dis inc i eness and/o unc ionali y.236 This iew concu s wi h he p e-
ha monized Ge man p ac ice, which applied he public policy e usal g ound
232 Calboli (n 228) 70–76.
233 Eleono a Rosa i, Copy igh and he Cou o Jus ice o he Eu opean Union (OUP 2019)
91–93, discussing he di icul ies o accep ing as e (see C-310/17 Le ola Hengelo . Smilde
Food, EU:C:2018:899) and pe umes as copy igh able wo k; o a discussion o ha monized
o iginali y s anda ds, and implici o a subjec -ma e ; mo e in Eleono a Rosa i, O iginali y
in EU Copy igh . Full Ha moniza ion h ough Case Law (Elga 2013).
234 Howe e , anci ul, su p ising e ms and slogans may quali y o copy igh , oo.
235 C-683/17 Co emel . G-S a , EU:C:2019:721 (wo ks o indus ial a : women appa el),
discussed by Anne e Ku , ‘Uni é De L’A Is He e o S ay – Co emel and I s Consequences’
(9 Decembe 2019). Max Planck Ins i u e o Inno a ion & Compe i ion Resea ch Pape
No. 19–16 h ps://ss n.com/abs ac =3500845. See Case C-833/18, B omp on Bicycle,
EU:C:2020:461 (bicycle wi h a pa en ed olding sys em).
236 Sen leben, ‘A Clash …’ (Calboli, Sen leben n 22) 334–336.
‘La aison d’ê e’ o unc ionali y in he EUTM 59
o e ain om g an ing in casu ‘ elle quelle’ p o ec ion. I is wo h no ing
ha EUTM public o de /mo ali y p o isions ha e ne e been in e p e ed so
as o co e he nega i e aspec s o cumula i e p o ec ion be ween ade ma ks
and copy igh .237 The u u e will show i he guidance o he EFTA (Eu opean
F ee T ade Associa ion) Cou in he Viegeland case inds wide suppo ac oss
EU p ac ice. Ano he , less s ingen , app oach sugges s ‘an ou igh exclu-
sion o cul u al signs, desc ip i e signs, abs ac colou s’, 238 and pe haps also
ce ain shapes and non- adi ional ma ks. This may be di icul o implemen ,
hough, because in ligh o EUTM and TRIPS adop ing a ‘nega i e’ de ini ion
o ade ma k is inconcei able o hese ypes o signs, lea ing aside he need
o e en mo e p ecision. I is also less easible o implemen ano he dis inc
e usal g ound wi h no ma i e c i e ia sui able o ca ch and exclude all hese
ca ego ies.
In he au ho ’s opinion, he di icul y wi h ade ma k egis a ions wi h
ad e se e ec s on public access is ha hey do no cons i u e a homogeneous
ca ego y. In consequence, he e a e di e en kinds o public in e es s, wi h
di e en add essees, ha need o be conside ed. Some signs a e amous a is ic
wo ks, uni e sally acclaimed, he s a us o which ma e s o humankind’s he -
i age in gene al; o he s conce n basic p oduc ea u es which a e impo an o
ade (consume s and compe i o s, aken indi idually); o he s a e jus wo ds,
bu en iched wi h speci ic meanings ha should be eely e e ed o by all and
in all a eas o ac i i y, and so on. Finding a legal ins umen capable o sol e
‘en g os’ all kind o dis o ions s emming om adema king use ul/desi -
able signs is unlikely. Mo e likely, he solu ion will be ound in de eloping a
pa chwo ked s uc u e o legal means which selec i ely – bu some imes also
cumula i ely – can add ess all hese a ied ci cums ances.
De lege la a unc ionali y may e ec i ely wo k – in ce ain ins ances – as an
obs acle agains o e lapping igh s, be i a he in e ace wi h echnical subjec -
ma e o wi h aluable, c ea i e wo ks. Ob iously, ansposing i in o p ac ice
depends on in e p e a ion o he no ma i e c i e ia se ou in he unc ional
p o isions. By con as , he public o de g ound – unless he CJEU judici-
a y suddenly changes hei pe spec i e – would a he p ese e i s excep ional
cha ac e . E en i i s cu en scope o applica ion expanded, i would encom-
pass unique (unusual) subjec -ma e pe aining o aluable c ea ions, wi hou
being capable o sol ing all ques ionable in e aces be ween ade ma ks and
copy igh able wo ks o designs.
237 Un il now his g ound has mean o p o ec public secu i y and physical in eg i y o ci i-
zens, sa egua ding legal/social o de , mo ali y; banning ulga i y o any kind o messages
insul ing o a ec ing human digni y, EUIPO T ade Ma k Guidelines sec . 4 ch. 7 h ps://
guidelines.euipo.eu opa.eu/1935303/1785746/ ade-ma k-guidelines/chap e -7- ade-
ma ks-con a y- o-public-policy-o -accep able-p inciples-o -mo ali y--a icle-7-1-- --eu m -.
Consul Sen leben, The Copy igh /T adema k (n 125) 338–339.
238 Anemae (n 223) 332.
60 ‘La aison d’ê e’ o unc ionali y in he EUTM
One leading oice s ongly ecommends adop ing a so-called ‘in eg a ed
app oach’ o he assessmen o g ounds pe aining o dis inc i eness, de-
sc ip i eness and cus oma iness, which would ocus on ‘all in e es s in-
ol ed’ (i.e. consume s, he gene al public, compe i o s).239 Such an analysis
depa s om he CJEU’s cu en o malis ic p ac ice o s ic ly ope a ing
wi h di e en no ions o public in e es , which especially e ains om con-
side ing he a ailabili y need o compe i o s when examining he dis inc i e-
ness equi emen . P o esso Ku emphasizes ha he objec i e o achie ing
a ‘balanced p o ec ion sys em’ calls o pu ing he no ma i e concep o
dis inc i e cha ac e in o he pe spec i e o ca e ully sc u inizing whe he
he egis a ion a issue may ad e sely a ec compe i ion. These conside a-
ions a e o mula ed in espec o a speci ic kind o sign, namely hose ‘ ha
a e in ( ela i ely) sca ce supply’.240 Admi edly, his ca ego y may co e no
only desc ip i e signs and abs ac colou s, bu especially signs consis ing
o p oduc ea u es, which would equally all wi hin he scope o unc ional
exclusions. Implemen ing a compe i ion dimension in o he assessmen o
dis inc i e cha ac e would equi e somehow adap ing CJEU guidance by
s eng hening he ole o compe i ion and ma ke -o ien a ed ac o s. I
would seem necessa y o examine, o ins ance, how many compe i o s a e
al eady using he same o (quasi) simila signs; whe he hese p oduc s a e
comme cially easible subs i u es; and pe haps also o ope a e wi h a lexible,
ha is, p opo ionally dependen , pe cen age o consume s’ pe cep ion and
ecogni ion, all o his being a he os ensibly denied (o neglec ed) by cu -
en CJEU p ac ice.
The essen ial que y emains whe he , and by wha means, i is possible o
na iga e (and op imally delinea e) he di e en scales o compe i ion needs
o he pu pose o assessing dis inc i e cha ac e and unc ionali y. The e is an
ob ious dynamism o he ole o public in e es (i.e. ‘a need o keep ee’) o
dis inc i eness pu poses which makes egis a ion possible on he g ounds o
acqui ed seconda y meaning, a pa h ha canno be ollowed by a sign caugh
by unc ional exclusions. Pu ing compe i o s’/consume s’ in e es s in o he
equa ion o sol ing bo h kinds o e usal g ounds, i is us a ing, albei im-
possible, o use a ‘public in e es s’ a ionale as a clea -cu c i e ion o spli ing
he sphe e o applica ion be ween dis inc i eness and unc ionali y g ounds.
I he guidance we e o ope a e wi h di e en ace s o ‘public in e es ’, ech-
nical unc ionali y could a guably be p ima acie sol ed upon he impe a i e
o sepa a e ade ma k p o ec ion om pa en s. Howe e , as Chap e 6 a -
gues, usually he e is no a pe ec co ela ion be ween he subjec -ma e o a
239 Ku , ‘Absolu e G ounds o Re usal’ in Ku , Sen leben (n 24) pa as 4.72(ci a ion)–4.74,
4.204.
240 Ku , ibidem pa as 4.71(in ine)-4.72. Simila ly, Hendle sugges ed a ‘uni ied es o dis-
inc i eness’, aiming a es ic ing egis a ion o signs ‘ ha impac ino dina ely’ on public
domain, Handle (n 146) 312. Howe e such a b oadly de ined ca ego y o signs will equi e
speci ica ion a a ce ain poin .
‘La aison d’ê e’ o unc ionali y in he EUTM 61
unc ional ade ma k and ha o a pa en /u ili y model, which aises que ies
as o he ex en ha p oduc s o di e en appea ance inco po a ing simila
unc ionali y may be ele an o con e ing/denying ade ma k p o ec ion.
Aes he ic unc ionali y is also mo e amenable o ollowing he app oach o
explo ing compe i ion impai men h ough he c i e ion o subs i u abili y o
goods (Chap e s 4 and 8).
I is easonable o assume ha he solu ion o delinea ing he sphe e o ap-
plica ion be ween unc ionali y and dis inc i eness ma e s may su ace om
a es ic i e in e p e a ion o he no ma i e concep s embedded in he unc-
ional p o isions. By he same oken, unc ionali y should p ese e he s a us
o a legal g ound o be analysed a a p io s age o examina ion. The ollowing
chap e s will add ess possible c i e ia o consolida ion in o au onomous ech-
nical and aes he ic unc ionali y es s.
Bibliog aphy
Anemae , L., ‘The Public Domain Is Unde P essu e – Why We Should No Rely on
Empi ical Da a When Assessing T adema k Dis inc i eness’ (2016) IIC, 314
Ben ly, L., She man, B., Gangjee, D., Johnson, P., In ellec ual P ope y Law (5 h ed.
OUP 2018)
Calboli, I., ‘O e lapping Righ s: The Nega i e E ec s o T adema king C ea i e Wo ks’
in Susy F ankel, Daniel Ge ais (eds.) The E olu ion and Equilib ium o Copy igh in
he Digi al Age (CUP 2014) 52
Coope D ey uss, R., ‘Exp essi e Gene ici y: T adema ks as Language in he Pepsi
Gene a ion’ (1990) No e Dame L. Re . 397, h p://schola ship.law.nd.edu/ndl /
ol65/iss3/1
Co nish, W., Llewelyn, D., Aplin, T., In ellec ual P ope y: Pa en s, Copy igh , T ade
Ma ks and Allied Righ s (8 h ed. Swee & Maxwell 2013)
Da is, J., ‘P omo ing he Public In e es and he Eu opean T ade Ma k Di ec i e: A
Con adic o y App oach’ (2013) 14 ERA Fo um Jou nal o he Academy o Eu o-
pean Law 117
Da is, J., ‘A Eu opean Cons i u ion o IPRs? Compe i ion, T ade Ma ks and Cul u -
ally Signi ican Signs’ (2004) 41(4) Common Ma ke Law Re iew 1005
De claye, E., ‘O e lapping Righ s’ in Rochelle D ey uss, Jus ine Pila (eds.) The Ox o d
Handbook o In ellec ual P ope y (OUP 2018) 632
EUIPO T ade Ma k Examina ion Guidelines
h ps://guidelines.euipo.eu opa.eu/1935303/1790016/ ade-ma k-guidelines/
pa -b-examina ion
Fi h, A., G edley, E., Mania is, S., ‘Shapes as T ade Ma ks: Public Policy, Func ional
Conside a ion and Consume Pe cep ion’ (2001) 23(2) EIPR 86
Fi h, A., ‘Signs, Su aces, Shapes and S uc u es – The P o ec ion o P oduc Design
Unde T ade Ma k Law’ in Jan Rosén (ed.) Eu opean In ellec ual P ope y Law (El-
ga 2016) 289
Follia d-Mongui al, A., Roge s, D., ‘The P o ec ion o Shapes by he Communi y
T ade Ma k’ (2003) 4 EIPR 173
Fhima, I., ‘The Public In e es in Eu opean T ade Ma k Law’ (2017) 4 IPQ 311
Fox, A., ‘Does he T ade Ma k Ha monisa ion Di ec i e Recognize a Public In e es in
Keeping Non-dis inc i e Signs F ee o Use?’ (2000) EIPR 1
68 The US legal amewo k o unc ionali y doc ine
3.2. De eloping he unc ionali y doc ine wi hin he
p o ec ion o ade d ess
The de elopmen o he US unc ionali y doc ine closely ollowed he pa hs
o p o ec ing ade d ess. I i s eme ged unde un ai compe i ion g ounds
and slowly mig a ed o he egis a ion o ade ma ks. Adop ing a his o ic,
ch onological discou se is necessa y he e o illus a e he e olu ion o he
meaning and oles ha unc ionali y doc ine has had o play o e he yea s.
3.2.1. The ea ly yea s
A he u ning poin o he 19 h and 20 h cen u ies, ade d ess was no con-
side ed a p ope subjec -ma e o a ade ma k, ei he o egis a ion o en-
o cemen .261 Ju isp udence con ined egis a ion o so-called ‘ echnical ade
ma ks’, a ca ego y mean o encompass a ‘name, symbol, igu e, le e , o m
o de ice’, while consequen ly dismissing desc ip i e wo ds and ade d ess.262
One a gumen , known also o Eu opean legal sys ems, was ha a p oduc i -
sel could no ac as sou ce indica o due o he in insic insepa abili y be ween
he symbol and he ma ked objec .263 O he jus i ica ions ocused on u ili y
and he assump ion ha consume s looked o p oduc s o a pa icula u ili y,
whils a p oduc o i s u ili y could no s and o a ade ma k.264 This wen
u he , s a ing ha o use ul, unc ional p oduc ea u es, ade ma ks should
no se e as ‘an a enue o escape he limi a ions o he pa en law’ (3.1 and
3.3.),265 so unc ional ade d ess had been ou inely denied egis a ion.266
Al hough un egis e ed bu used in ade, he appea ance o a p oduc could
become a dis inc i e sou ce-iden i ie o goods/se ices while he unde ak-
ings de eloped goodwill. A need eme ged o p o ec ion agains decei ( alse
261 T ade Ma ks Ac o 1905 and 1920 had limi ed scope and o e ed li le guidance on p o ec -
able subjec -ma e , lea ing un ouched he issues o p oduc con igu a ion o unc ionali y,
see Th. Da is (n 253) 605–607; McKenna, ‘The No ma i e’ (n 247) 1862, e acing he
dis inc ion be ween ‘ echnical ade ma ks’ (p o ec able in ac ions o ade ma k in inge-
men ) and ‘ ade names’ (only un ai compe i ion claims) o old English cases.
262 Glynn Lunney, ‘The T ade D ess Empe o ’s New Clo hes: Why T ade D ess Does No Be-
long on he P incipal Regis e (2000) 51 Has ings L.J. 1131, quo ing a 1141 McLean .
Fleming, 96 U.S. 245 (1879) and o he cases.
263 As no ed in he case Da is . Da is, 27 F.490 (C.C.D. Mass. 1886) 492, ‘ he me chandise
i sel , o any me hod o a anging a ious packages, can[no ] be egis e ed as a adema k. …
he adema k mus be some hing o he han, and sepa a e o m, he me chandise’, e e ed
by Cai lin Canahai, Ma k McKenna, ‘The Case Agains P oduc Con igu a ion T ade D ess’
in G aeme Dinwoodie, Ma k Janis (eds.) T adema k Law and Theo y: Re o m o T adema k
Law (Elga 2021), a h p://ss n.com/abs ac =3336366, 1, n 1–3 wi h u he e e ences.
264 Oddi (n 255) 930, e e ing In e Denison M g Co, 39 F.2d 720 (CCPA 1930).
265 Amy Cohen, ‘Following he Di ec ion o T a ix: T ade D ess Law and Func ionali y Re is-
i ed’ (2010) IDEA 593, 600–602 quo ing He z . Loewens ein, 40 App. D.C. 277 (D.C. Ci
1913) 278 conc. oo hpicks packaging wi h a co uga ed embossing on ma gins, and also In
e Oneida Communi y, 41 App. D.C. 260 (D.C. Ci 1913) conc. an O-shaped ilm agains
co osion co e ing spoon bowls.
266 Th. Da is (n 253) 608, n 55 men ioning case-law om 1928–1939.

The US legal amewo k o unc ionali y doc ine 69
ep esen a ion causing he likelihood o con usion) and he p ope a enue
o p o ec ion cons i u ed un ai compe i ion o s o palming/passing o .267
Howe e , con e ing an injunc ion agains copying ade d ess collided wi h he
ju isp uden ial p inciple: ‘e e yone has a igh o copy publicly accessible ideas
no p o ec ed by copy igh o pa en ’ (3.1).268 Ju isp udence mos ly a icula ed
he ea o ex ending a monopoly o e p oduc ea u es, pa en able o al eady
pa en ed, ia ade d ess p o ec ion.269 Func ionali y doc ine a ose as an ins u-
men o econcile hese con lic ing in e es s. The cou s s o e o gauge he
ex en ha ce ain p oduc ea u es we e necessa y o be copied. I he need was
de ined as o sell he ‘same’ p oduc , cou s adop ed a ‘p oduc -le el ma ke ’
inqui y ha concen a ed on he ea u es ha consume s exac ly wished o ind
when pu chasing goods, wi hou looking in o possible al e na i es.270 By con-
as , i he necessi y was o e ec i ely compe e in a b oade ma ke , de ined by
he ype/class o goods, hen he assessmen conside ed he a ailabili y o iable
equi alen s.271 In bo h si ua ions, he solu ion mi iga ing consume con usion
was o equi e newcome s o dis inguish hei p oduc s h ough wo ding and
labelling, which made unc ionali y a limi ed de ense o be aised by de endan s,
hus no an absolu e ba o plain i s’ claims, as applied in mode n law.272
267 Ma k Alan Thu mon, ‘The Rise and Fall o T adema k’s Law Func ionali y Doc ine’, (2004)
56 Fla. L. Re . 244, 258–259, men ioning he equi emen s o a palming o claim: dis inc-
i eness o plain i ’s p oduc ( ea u es); de endan ’s copying o hese dis inc i e ea u es;
consume s con used by he appea ance o de endan ’s p oduc .
268 Robe Bone, ‘T adema k Func ionali y Reexamined’ (2015) ol. 7(1) Jou nal o Legal
Analysis 183, 192. P o esso Bone explains ha , apa om pa en s o copy igh , he igh
o copy was a na u al, common law igh , o igina ing om he belie ha an ‘idea’ made pub-
licly accessible, which he owne couldn’ con ol by excluding o he s, became he ‘common
p ope y’ o e e yone (a 194). Rega ding ‘ he design idea ha he ea u e embodied’, ‘e e-
yone, including compe i o s … had he igh o copy p oduc ea u es in all hei speci ic
de ail’ – a 192, e e ing Upjohn . Wm. S. Me ell Chem., 269 F.209, 210–211 (6 h Ci .
1920); Daniel . Elec ic Hose & Rubbe , 231 F.827, 833–834 (3 d Ci . 1916).
269 Seminal case Kellogg . Na ional Biscui 305 U.S. 111 (1938) conc. a pillow-shaped biscui
‘Sh edded Whea ’, p oduced unde a lapsed pa en , a h ps://sup eme.jus ia.com/cases/
ede al/us/305/111/, discussed by Dinwoodie, Janis (n 36) 108–111.
270 Bone (n 268) calls i an ‘in insic necessi y ’ de e mined by how necessa y was he ea u e a
issue o plain i ’s p oduc (a 198–199), and eads i h ough he ulings: Geo ge G. Fox Co
. Glynn (191 Mass. 344 (1906) (a 196–08) conc. copying b ead’s appea ance; Flagg M g.
Co. . Holway, 178 Mass. 83,59 N.E.667 (1901) (a 199) conc. copying shape and a ange-
men o zi he s; Pope Au o. Me ch . McC um-Howell, 191 F.979 (7 h Ci . 1911) (a 200)
conc. a acuum cleane .
271 Thu mon (n 267) discusses a 268 – h ough a ‘compe i i e need a ionale’ de ined by he
a ailabili y o ‘equally e ec i e al e na i es’ – some o he cases e isi ed by p o . Bone,
oge he wi h Lek o-Sha e . Gene al Sha e , 19 F. Supp. 843 (D. Conn. 1937) conc. he
shape and housing o a cu e and a 270 he case o McGill Manu ac u ing . Le i on Manu-
ac u ing 43 F.2d 607 (E.D.N.Y. 1930) conc. ligh ing ix u es.
272 Thu mon, ibidem 270–271. See also C escen Tool . Kilbo n &Bishop, 247 F. 299 (1917)
‘The p ope meaning o he ph ase “non unc ional” is only his: Tha in such cases he
injunc ion is usually con ined o nonessen ial elemen s, since hese a e usually enough o
dis inguish he goods, and a e he leas bu densome o he de endan o change’ a h ps://
ci e.case.law/ /247/299/
70 The US legal amewo k o unc ionali y doc ine
3.2.2. The changing landscape o he Fi s Res a emen o To s
In 1938, he Ame ican Law Ins i u e published he Fi s Res a emen o To s,
273 which ea i med un ai compe i ion law as he app op ia e g ound o ade
d ess p o ec ion agains copying ia he newly named o o ‘unp i ileged
imi a ion’.274 This documen se up a b oade s anda d o unc ionali y. Pa a-
g aph §742 de ined a ea u e as unc ional ‘i i a ec s hei pu pose, ac ion
o pe o mance, o he acili y o economy o p ocessing, handling o using
hem; i is non- unc ional i i does no ha e any o such e ec s’.275 In p ac ice,
he ocus shi ed om he dis inc ion be ween essen ial and unnecessa y copy-
ing o he que y o whe he he ea u e ‘a ec ed’, ha is, ‘con ibu ed’ o he
a o emen ioned pu poses. The e ec was a b oadening o he scope o unc-
ionali y o encompass any u ili a ian meaning, ha is, p oduc pe o mance,
manu ac u e, aspec o use, and ma ke ing. Many cou s ollowed he Res a e-
men li e ally and ejec ed he assessmen based on compe i i e necessi y and
ele ance o subs i u es, 276 al hough an ini ial commen a y o §742 implied
ha a de e mina ion o unc ionali y should e i y whe he he p ohibi ion o
imi a ion by a ade ma k holde will ‘dep i e hem [i.e. compe i o s, LB] o
some hing which will subs an ially hinde hem in compe i ion’.277
An impo an inpu , ouching upon IP cumula ion, came om he con-
lic be ween ede al pa en law and un ai compe i ion s a e law. The Sup eme
Cou cas wo amous ulings, known as he ‘Sup emacy Clause cases’ o
‘Sea s-Compco’ doc ine, in which ede al law was said o p eemp pa en -like
claims based on un ai compe i ion.278 Twen y yea s la e , a signi ican addi ion
273 Res a emen s is no a s a u e acco ding o Eu opean s anda ds, bu a comp ehensi e collec-
ion o guidance in a pa icula ield o law, mo e www.ali.o g/publica ions/show/ o s/
274 Requi emen s ega ding he imi a ed p oduc we e: non- unc ionali y; acqui ed dis inc i e-
ness; likelihood o con usion, see ‘The Public In e es and he Righ o Copy Non unc ional
P oduc Fea u es’, (1977) 19 Wm. & Ma y L. Re . 317, 320 n 17, a h ps://schola ship.
law.wm.edu/wml / ol19/iss2/7
275 A hu L. Goodha , ‘Res a emen o he Law o To s Volume III: A compa ison be ween
Ame ican and English Law’ (1941) 89 Uni e si y o Pennsyl ania Law Re iew 265, 304 n
169, a h p://schola ship.law.upenn.edu/cgi/ iewcon en .cgi?a icle=9122&con ex =penn_
law_ e iew
276 ‘Un ai Compe i ion and he Doc ine o Func ionali y’ (1964) 64 Colum. L. Re . 544,
discussing a : p. 563 elemen s o a oggle clamp ound unc ional upon expi ed pa en , amply
quo ing p io case-law Wes Poin M g. . De oi S amping 122 F. Supp. 741 (E.D. Mich.
1954), e ’d, 222 F.2d 581 (6 h Ci .), ce . denied, 350 U.S. 840 (1955) a h ps://case ex .
com/case/wes -poin -m g-co- -de oi -s amping-co; p. 562 size and shape o a ma king de-
ice limi ed by i s unc ion in Speed y P ods. . D i Ma k P ods. 271 F.2d 646 (2d Ci . 1959);
p. 560 pink colou unc ional because o psychosoma ic e ec s in No wich Pha macal .
S e ling D ug, 167 F. Supp. 427 (N.D.N.Y. 1958), e ’d, 271 F.2d 569 (2d Ci . 1959), ce .
denied, 362 U.S. 919 (1960).
277 As no ed in In e Mo on-No wich P oduc s, Inc., 671 F.2d 1332, 1340 (C.C.P.A. 1982).
278 Sea s, Roebuck & Co. . S i el Co, 376 U.S. 225 (1964) conc. a lamp h ps://sup eme.
jus ia.com/cases/ ede al/us/376/225/ and Compco Co p. . Day-B i e Ligh ing, Inc.,
376 U.S. 234 (1964) conc. a ligh ing ix u e h ps://sup eme.jus ia.com/cases/ ede al/
The US legal amewo k o unc ionali y doc ine 71
was b ough by he Boni o Boa s judgmen , in which he Sup eme Cou uled
ha ede al pa en law p eemp ed a Flo ida s a u e ha p ohibi ed he p ocess
o copying by di ec moulding o unpa en ed boa hulls and hus es ic ed he
ee access ia e e se-enginee ing o p oduc unc ional ea u es o he wise be-
longing in he public domain.279 Al hough i did no conce n he case a hand,
he Cou highligh ed he need o coun e balance he p eemp ion ules wi h
he a ionale o un ai compe i ion law o p e en ing consume con usion, by
s a ing ha ‘ he applica ion o Sea s and Compco o non- unc ional aspec s o
a p oduc which ha e been shown o iden i y a sou ce mus ake accoun o
compe ing ede al policies in his ega d’.280 These ulings uelled he doc inal
discussion a ound he na u e o he ‘ igh o copy’ – whe he i was cons i-
u ionally o p uden ially ounded – and i s scope – whe he i encompassed
unpa en ed designs (p oduc con igu a ions) o hose co e ed by an expi ed
pa en , o hose subjec o expi ed u ili y pa en s.281 As p o esso Dinwoodie
emphasized, he ‘sup emacy clause’ was no mean o sol e all ypes o con lic
in IP law. Mos no ably, any p eemp ion a gumen s could no apply o he
con lic be ween ede al pa en law and ede al ade ma k law (meaning he e
he Lanham Ac , below). In such cases, he p ope solu ion would in ol e bal-
ancing he con lic ing in e es s and he public policies unde lining each egime,
in o de o os e an in e p e a ion ha accommoda es he e ec s o bo h s a -
ues.282 Signi ican ly, he sup emacy clause could also no se e as a legal basis o
p ohibi all p o ec ion o unpa en ed ye sou ce-iden i ying p oduc ea u es.283
3.2.3. The Lanham Ac , and ade d ess becoming egis e able on he
ede al egis e
In 1946, Cong ess enac ed he Lanham Ac , a ade ma k s a u e subjec o se -
e al amendmen s, which p o ided ede al egis a ion on he P incipal Regis e
wi h na ion-wide subs an i e igh s o ‘any wo d, name, symbol, o de ice, o
us/376/234/. Bo h cases deal wi h copying a icles om he public domain because p io
pa en s had been in alida ed. The Sup eme Cou acknowledged he possibili y o equi e
p ecau iona y s eps h ough labelling in o de o a oid sou ce-misleading c . Cohen (2010)
617–618; Thu mon (n 267) 309–311. In 1964 se e al p ominen schola s (such as Ralph
B own, Mil on Handle , Wal e De enbe g) commen ed on hose judgmen s in he collec-
i e s udy Ralph B own e al., ‘P oduc Simula ion: A Righ o A W ong’, 1964 Colum. L.
Re . 1179, a h ps://digi alcommons.law.yale.edu/ ss_pape s/2721/
279 Boni o Boa s . Thunde C a Boa s, 489 U.S. 141, 168 (1989) h ps://caselaw. indlaw.
com/us-sup eme-cou /489/141.h ml
280 Ibidem 166–167. The Flo ida s a u e g an ed pa en -like p o ec ion wi hou equi ing any
consume con usion o b each o us /sec ecy which would ha e been he p e equisi es o
ini ia ing a claim unde he law o un ai compe i ion o ade sec e s.
281 Amply discussed by Dinwoodie, (n 27) 621, 627–632, 717 n 402, 712–718, who a ou ed
a p uden ially, condi ional igh o copy (i.e. o p ac ice an expi ed pa en ) while p io i izing
he sa egua ding o pa en sys em’s in eg i y.
282 Dinwoodie, ibidem 631–632.
283 Dinwoodie, ibidem 667.
72 The US legal amewo k o unc ionali y doc ine
any combina ion he eo ’ used o sou ce iden i ica ion o goods/se ices.284
Al e na i ely, o un egis e ed ma ks i p o ided ede al un ai compe i ion
p o ec ion unde sec ion 43(a) o he s a u e.285 A Supplemen al Regis e o
p o ec ion equi alen o s a e o common law was in oduced o subjec -ma -
e un egis able on he P inciple Regis e , bu ha ing such p ospec s in u u e
(e.g. desc ip i e wo ds). The egis e ga he ed ‘ma ks’ de ined as ‘any ade-
ma k, symbol, label, package, con igu a ion o goods, name, wo d, slogan,
ph ase, su name, geog aphical name, nume al, o de ice o any combina ion o
he o going’.286 These di e ences in s a u o y e minology we e in e p e ed by
ce ain schola s as di ec p oo ha Cong ess did no en isage he p o ec ion
o p oduc con igu a ion and packaging on he P incipal Regis e , o in end o
allow c oss- egis a ion be ween egis e s, while he Supplemen al Regis e had
a educed ambi o simply eco ding a ma k o acili a e i s p o ec ion in hose
ju isdic ions ab oad ha con e ed ade ma k p o ec ion.287
In he ea ly pos -Lanham yea s, he p e ious p ac ice o denying egis a-
ion o p oduc ea u es, due o incapaci y o dis inguishing goods/se ices
o due o unc ionali y issues, was main ained.288 Bu he c i ical u ning poin
came in 1958, wi h he egis a ion on he P inciple Regis e o he Dimple
sco ch bo le du ing appella e p oceedings in on o he Cou o Cus oms
and Pa en Appeals (CCPA).289 The uling ma ked a signi ican shi : om he
dogma ic pe spec i e o conside ing ade d ess un egis able subjec -ma e
pe se on he P incipal Regis e , o he ac ual ques ion o whe he a bo le
284 T adema k Ac o 1946, 60 S a . 427, 428–429. Regis a ion enabled ede al in ingemen
claims and se e al e iden ia y bene i s, such as p esump ion o owne ship and alidi y, and
incon es abili y a e i e yea s o con inuous use. An impo an e ision o 1998, known
as ‘T adema k Law T ea y Implemen a ion Ac ’ (Pub. L. No. 105–330, 112 S a . 3064
(1998)) www.go in o.go /app/de ails/PLAW-105publ330 in oduced unc ionali y as a
s a u o y g ound o cancella ion and a s a u o y de ence agains he in ingemen o incon-
es able adema ks.
285 T adema k Ac o 1946, 60 S a . 427, 441. A plain i had o p o e ha he ade d ess is
p o ec able (i.e. is dis inc i e) and had been in inged, mo e abou sec ion 43(a), Ch is-
ophe Kellne , ‘Re hinking he P ocedu al T ea men o Func ionali y: Con on ing he
Insepa abili y o Use ul, Aes he ically Pleasing, and Sou ce-Iden i ying Fea u es o P oduc
Designs’ (1997) 46 Emo y L J 913, 920–923.
286 T adema k Ac o 1946, 60 S a . 427, 435–436.
287 Glynn Lunney , ‘Non T adi ional Ma ks. The E o Cos s o Making an Excep ion he Rule’,
in Calboli, Sen leben (n 22) 220–223; Lunney, ‘T ade D ess …’ (n 262) 1139–1152. P o-
esso Lunney a gued ha Lanham Ac adop ed he common law de ini ion o ‘ echnical
adema k’ se by he T adema k Ac o 1905, wi h ‘de ice’ e e ing only o a ‘coa o a ms’
o ‘o he he ald y’, and ‘symbol’ only o ‘emblem’, so ha ede al egis a ion should exclude
package and p oduc con igu a ion.
288 Ex pa e Minneso a Mining & Manu ac u ing, 92 U.S.P.Q. (BNA) 74 (1952) conc. shape
o adhesi e cellophane ape as un egis able subjec -ma e , and Syl ania Elec ic P oduc s .
Du a Elec. Lamp 247 F.2d 730 (3 d Ci c. 1957) conc. in alida ed unc ional lashbulbs wi h
a blue do used as a de ec indica o , bo h discussed by Oddi (n 255) 933–934.
289 Ex pa e Haig & Haig, L d, 118 USPQ 229 (Dec. Comm’ Pa . 1958).
The US legal amewo k o unc ionali y doc ine 73
shape alls wi hin he ade ma k de ini ion o a ‘symbol o de ice’ and can ac
as sou ce indica o , ha is, be dis inc i e.290 Howe e , unce ain y pe sis ed
o e whe he he elaxa ion o he eligibili y s anda ds applied only o con ain-
e s, and in he ollowing yea s he same CCPA con inued o deny ade d ess
p o ec ion o p oduc shape, mainly o unc ionali y easons.291
The consolida ion o he a ou able u n owa ds p o ec ing ade-d ess
came wi h he i s ecogni ion o ede al un ai compe i ion claims (based on
sec ion 43(a) o he Lanham Ac ) a he ede al appella e le el, in an in inge-
men case conce ning he appea ance o a uck aile .292 As he a gumen s
on ologically challenging he p o ec abili y o ade d ess began o ade, he
deba e mo ed o issues o p e equisi es o p o ec ion, namely, ul illing he
posi i e pa ame e o dis inc i eness and a oiding he nega i e pa ame e o
unc ionali y.293 The pe iod s a ing om 1980 has been ma ked by a se ies o
in luen ial ulings which ha e been ins umen al in es ablishing he condi ions
and bounda ies o ade d ess p o ec ion o da e.
3.2.4. Consolida ing he pa h o ull ade d ess p o ec ion and he
upli ing o unc ionali y
The heo e ic willingness o accep ade d ess’s capabili y o being a ade
ma k294 did no p e en ha cou s aced di icul ies in handling dis inc i e-
ness, and especially in inding inhe en dis inc i eness.
290 C i ically Lunney, ‘T ade D ess …’ (n 262) 1155–1156.
291 In e Deis e Concen a o , 289 F.2d 496 (C.C.P.A. 1961), h ps://law.jus ia.com/cases/
ede al/appella e-cou s/F2/289/496/392223/, denying egis a ion despi e seconda y
meaning o homboidal ables used o o e concen a ing and coal cleaning, ound ‘in essence
u ili a ian’; In e Shakespea e, 289 F.2d 506 (C.C.P.A. 1961) h ps://law.jus ia.com/cases/
ede al/appella e-cou s/F2/289/506/392572/, denying egis a ion o spi al ma kings
o ishing ods, as esul ing om a pa en ed manu ac u ing p ocess. In bo h cases Judge
Giles Rich no iced: ‘The ue basis o such holdings is no ha hey [ he ma ks] canno o
do no indica e sou ce o he pu chasing public bu ha he e is an o e iding public policy
o p e en ing hei monopoliza ion, o p ese ing he public igh o copy’. By con as , in
In e Mogen Da is, 328 F.2d 925 (C.C.P.A. 1964) h ps://law.jus ia.com/cases/ ede al/
appella e-cou s/F2/328/925/418780/ CCPA e e sed PTO’s denial o egis a ion by
inding he shape ‘pu ely a bi a y’ while o he con aine s could ‘equally well’ pe o m he
same ‘inciden al’ unc ion o holding wine. Judge Rich posi ed ha ‘[w]he he compe i ion
would in ac be hinde ed is eally he c ux o he ma e . … O he s can mee any eal o
imagined demand o wine in decan e - ype bo les … wi hou being in he leas hampe ed
in compe i ion by inabili y o copy he Mogen Da id bo le design’.
292 T uck Equipmen Se ice . F uehau . Co p 536 F.2d 1210 (8 h Ci c. 1976).
293 Dinwoodie (n 27) 652–654 conside s dis inc i eness and unc ionali y as ‘ wo co olla ies o
he ounda ional p inciple’ (o on ological neu ali y o he subjec -ma e o a ade ma k),
whe eas unc ionali y plays he ole o a ‘nega i e pa ame e ’.
294 Fo app o ing he neu al ca ego iza ion o ade ma ks, Jane C. Ginsbu g, ‘“See me, eel
me, ouch me, hea[ ] me” (and maybe smell and as e me oo): I am a adema k – a US pe -
spec i e’ in Lionel Ben ly, Jenni e Da is, Jane C. Ginsbu g (eds.) T ade Ma ks and B ands:
An In e disciplina y C i ique (CUP 2011) 92–97.

74 The US legal amewo k o unc ionali y doc ine
As ho oughly examined by p o esso Dinwoodie, he me hodology was
ini ially in luenced by he c i e ia o assessing wo d and igu a i e ma ks,
which ul ima ely ailed due o he complex s uc u e o mode n ade d ess,
i s con ex o use, and he speci ic way i s eached consume s.295 In 1992, he
Sup eme Cou decided in he Two Pesos case conce ning he un egis e ed
déco o a Mexican es au an ha ade d ess wi h es ablished inhe en dis-
inc i eness may be en o ced wi hou p oo o seconda y meaning (acqui ed
dis inc i eness).296 This judgemen , unde s ood as a con i ma ion o ade
d ess’s capabili y o be inhe en ly dis inc i e, had a wide impac on acili a -
ing no only he p o ec ion o un egis e ed ade d ess on un ai compe i ion
law, bu mo e gene ally, i s egis abili y as a ade ma k.297 Along his line,
in 1995, he Quali ex case con i med he egis a ion o a colou pe se, ha
is, a hue o golden g een used in ela ion o d y-cleaning p essing pads298
( Chap e 8.2). Howe e , his a ou able end was empe ed in 2000 by he
same Cou in he Wal-Ma judgemen 299 conce ning he p o ec ion o he
o e all appea ance o a line o clo hing. The Cou ’s a gumen a ion was based
on he assump ion ha a aching a wo d o a p oduc , o ‘encasing i in a
dis inc i e packaging’ could be a badge o o igin, hus inhe en ly dis inc i e,
howe e , p oduc design o colou did no usually gene a e such consume
p edisposi ion. Upon his dis inc ion be ween p oduc packaging and p oduc
design, he Cou ins alled he ule ha any ea u es ma ching he ca ego y o
p oduc con igu a ion o p oduc design could be egis e ed o en o ced only
upon he p oo o acqui ed dis inc i eness.
295 G aeme B . Dinwoodie, ‘Reconcep ualizing he Inhe en Dis inc i eness o P oduc Design
T ade D ess’ (1997) 75 N.C. L. Re . 471, 485–516 discusses he ya ds ick es o Abe -
c ombie & Fi ch Co. . Hun ing Wo ld, 537 F.2d 4 (2d Ci . 1976) (pp. 485–487) – which
in oduced a classi ica ion o ma ks holding ha o inhe en dis inc i eness a ma k had o
be ei he ‘a bi a y’, ‘ anci ul’, o ‘sugges i e’ in ela ion o he a ixed goods – and he sho -
comings o applying i o ade d ess in Che on Chemical . Volun a y Pu chasing G oups
659 F.2d 695,702 (Fo me 5 h Ci . 1981) (pp. 508–511) – as well as he al e na i e es
o Seab ook Foods . Ba -Well Foods 568 F.2d 1342 (C.C.P.A. 1977) (pp. 512–516), which
de e mined inhe en dis inc i eness by compa ison o o he s designs om he ield. The bo -
om line o he la e di e en ia ed be ween ‘a “common,” basic shape o design, whe he i
[is] unique o unusual in a pa icula ield, o whe he i [is] a me e e inemen o commonly-
adop ed and well-known o ms o o namen a ion o a pa icula class o goods iewed by
he public as a d ess o o namen a ion o he goods’ (p. 513 e e ing case-law). This kind
o a gumen a ion lies closely o he cu en EUTM app oach o shapes.
296 Two Pesos . Taco Cabana, 505 U.S. 763 (1992).
297 Famous egis a ions o non- adi ional signs include he shape o he Coca-Cola bo le
( eg. no. 696,147 o 12.04.1960); he sound o NBC’s h ee chimes ( eg. no. 523,616
o 4.4.1950), he scen o plume ia blossoms on sewing h ead ( eg. no. 916,522 o
13.07.1971) (July 13, 1971), In e Cla ke,17 U. S. P. Q. 2d 1238, 1240 (TTAB 1990).
Mo e examples in Je ey S. Edels ein, Ca hy L. Luede s, ‘Recen De elopmen s in T ade
D ess In ingemen Law’ (2000) 40 IDEA 105, 117–122.
298 Quali ex . Jacobson P ods., 514 U.S. 159 (1995) 165.
299 Wal-Ma S o es . Sama a B o he s, 529 US 205 (2000).
The US legal amewo k o unc ionali y doc ine 75
Complemen a ily, he doc ine o unc ionali y was equen ly applied in
bo h egis a ion p oceedings and in ingemen li iga ion, bu ju isp udence
has been swinging be ween wo opposi e app oaches.300 On one side, he
‘ igh o copy’ unc ional ea u es applied o i ems ha had allen/we e abou
o all in o he public domain a e design/pa en law p o ec ion expi ed. On
he o he side, unc ionali y was measu ed by he ‘need’ o compe i o s o
copy ce ain p oduc ea u es in o de o compe e e ec i ely, ha is, ade in
iable al e na i es.
The la e iew seemed cong uen wi h he Res a emen (Thi d) o Un ai
Compe i ion o 1995, which main ained he place o unc ionali y along he
compe i i e necessi y a ionale. Acco ding o § 17
a design is << unc ional>> o pu poses o he ule s a ed in §16 i he
design a o ds bene i s in he manu ac u ing, ma ke ing, o use o he
goods o se ices wi h which he design is used, apa om any bene i s
a ibu able o he design’s signi icance as an indica ion o sou ce, ha
a e impo an o e ec i e compe i ion by o he s and ha a e no p ac i-
cally a ailable h ough he use o al e na i e designs.
A commen a o on an ea lie d a ead he las pa o his de ini ion as con i -
ma ion ha unc ionali y doc ine ep esen ed a balancing ool be ween ade
ma k p o ec ion and ee compe i ion such as o p e en he monopoliza ion
o ‘ aluable’ design ea u es aising un ai compe i i e ad an ages.301 Func-
ionali y emained a p ohibi ion o ade ma k egis a ion o p o ec ion, 302
bu i s legal e ec s we e also conside ed as de ining he ‘scope o pe missible
use’ o a adema k by a compe i o who should eely copy unc ional ea-
u es, ega dless o hei sou ce-iden i ica ion capaci y.303 This app oach p e-
ceded he 1998 amendmen o he Lanham Ac which made unc ionali y a
s a u o y in ingemen de ence.304
In pa allel wi h he guidance se o h by he Thi d Res a emen , e ol ing
ma ke needs gene a ed a se ies o landma k judgmen s ha es ablished he
300 Ma k McKenna (n 27) 824–836.
301 Ha ey S. Pe lman, ‘The Res a emen o he Law o Un ai Compe i ion: A Wo k in P o-
g ess’ (1990) 80 T adema k Rep 461, 468 explaining hese design ea u es as ‘ alued by
consume s, no o … iden i ica ion’ bu o enhancing ‘ he beau y, e iciency, o cos o he
p oduc ’.
302 Robe C. Denicola, Ha ey S. Pe lman, ‘A Fo ewo d o he Symposium on he Res a emen
o Un ai Compe i ion’ (1995–1996) 47(4) A . 3 S.C. L. Re . i, iii, no ing ha unc ional-
i y ‘de ines he pe missible subjec -ma e o adema k p o ec ion’.
303 Paul J . Heald, ‘Filling Two Gaps in he Res a emen (Thi d) o Un ai Compe i ion: Mixed-
Use T adema ks and he P oblem wi h Vanna’ (1996) 47 S.C. L. Re . 783, 796 e e ing he
Repo e s’ no e o cm . b o § 17.
304 Mau y Aude , ‘Func ionali y Unanimously T umps Incon es abili y a e TLT Ac and Wil-
hem Pudenz . Li le use, Inc. ...’ (2000) 40 IDEA 473, discussing unc ionali y de ence
p io o i s enac men .
76 The US legal amewo k o unc ionali y doc ine
unc ionali y es s s ill cu en ly in use. The ollowing ema ks b ie ly e ace
he essen ial inpu s o hese cases, whils in-dep h de ails o in e p e a ion a e
discussed wi hin Chap e s 6 o 8.
In Mo on-No wich305 he CCPA e e sed he PTO’s e usal o egis e on
he P incipal Regis e he con igu a ion o a con aine o sp ay s a ch and
emanded he case o be eexamined on dis inc i eness. Judge Rich p o ided
ample analysis o unc ionali y, in oducing he emblema ic dis inc ion be-
ween unc ionali y de ac o – ha is, he u ili y in insic o any objec pe -
o ming a unc ion – om unc ionali y de ju e, which exp essed he deg ee o
design u ili y ha de e mined he scope o he legal p ohibi ion.306 The Cou
a icula ed he unc ionali y s anda d ‘as no he igh o sla ishly copy a icles
which a e no p o ec ed by pa en o copy igh , bu he need o copy hose
a icles, which is mo e p ope ly e med he igh o compe e e ec i ely’.307 The
Cou es ablished a mul i- ac o es , including he a ailabili y o al e na i es,
o apply o u ili a ian p oduc s.
Ano he impo an uling o 1982 was Inwood Labo a o ies . I es Labo-
a o ies in which he Sup eme Cou e iewed he appella e g ounds o
con ibu o y in ingemen o he appea ance o a p esc ip ion d ug, wi h a
colou s scheme adap ed o di e en dosages, and a ou ed a u n o he igh
o copy.308 Func ionali y was no he objec o di ec analysis by he Sup eme
Cou , howe e some dic a exp essed in oo no es de ined i as ‘essen ial o
he use o pu pose o he a icle o … a ec [ing] he cos o quali y o he
a icle’.309 This eminded he wo ding o Res a emen o 1938, especially ha
e e ences o Sea s and Kelogg judgemen s a ou ed a es ic i e ‘ igh o copy’
app oach (3.2.2.). P e iously, he Dis ic Cou held he capsules’ colou s
and shapes unc ional because hey ep esen ed a ‘sho hand code’ o pha -
macis s, doc o s, and pa ien s o co ec ly iden i y he d ug and i s dosage.310
The Inwood unc ionali y s anda d seemed dis anced om Mo on No wich,
as es ablished unc ionali y in an absolu e way, wi hou conside ing compe i-
i e necessi y o he ex en o compe i ion o eclosu e. Soon a que y a ose
o e whe he Inwood ep esen ed a modi ica ion done on pu pose o Mo on
305 In e Mo on-No wich P oduc s, Inc., 671 F.2d 1332 (C.C.P.A. 1982).
306 Ibidem 1338. The judge ejec ed he a gumen s which con es ed he shape’s capabili y o be
a ade ma k, by emphasizing ha ‘ his is no a “con igu a ion o goods” case bu a “con igu-
a ion o hecon aine o  he goods” case’ (1336).
307 Mo on-No wich, ibidem 1339, 1340.
308 Inwood Labo a o ies . I es Labo a o ies 456 U.S. 844 (1982). The ac ion was bough agains
he gene ic manu ac u e o cyclandela e (a asodila o ) o he ac s o pha macis s who,
complying wi h p esc ip ion s anda ds, we e obliged o dispense capsules o consume s in
bo les wi hou ini ial labelling.
309 456 U. S. 850, n 10, e e ing Sea s, Roebuck & Co. . S i el Co.,376 U. S. 225,376 U. S.
232(1964) and Kellogg Co. . Na ional Biscui Co.,305 U. S. 111,305 U. S. 122(1938).
310 The colou ed scheme ensu ed sa e adminis a ion, and main ained psychologically eassu -
ing and p ope he apeu ic e ec s, especially in olde pa ien s, who eac ed nega i ely o any
change in a d ug’s appea ance, 456 U.S. 853.
The US legal amewo k o unc ionali y doc ine 77
No wich es , o jus a Cou ’s dig ession.311 Fu u e case-law aced di icul ies
econciling bo h es s o inding he a gumen s o choose be ween hem.
The inal change o he igh o copy was consolida ed by he Sup eme
Cou ’s judgmen in T a Fix, 312 an in ingemen case o a echnically con ig-
u ed p oduc , ha is, a dual-sp ing oad design mechanism, he subjec o a
lapsed u ili y model. The Sup eme Cou e e sed he 6 h Ci cui ’s dismissal
o unc ionali y objec ions which was based on he compe i i e necessi y
analysis, ha is, he absence o disad an ages owa ds compe i o s.313 The
Cou uled ha whe e a design is unc ional unde he Inwood o mula ion,
he e was no need o p oceed u he o conside compe i i e necessi y o
inqui e abou seconda y meaning. T a Fix judgemen was ead as a s ong e-
u n o he igh o copy app oach, especially gi en ha he Cou emphasized
he p og essi e ole o copying i ems om he public domain, lacking pa en
o copy igh p o ec ion314 and ul ima ely placed unc ionali y wi hin he pa -
en ba gain con ex .315
3.3. Whe e nex o US unc ionali y? Common conce ns
sha ed wi h he EU
In ica e, as , dynamic – hese epi he s can ba ely illus a e he complex na-
u e o he unc ionali y doc ine. The di icul ies o dis inguishing be ween
he di e en kinds o unc ional aspec s o a p oduc (such as hose pe aining
o u ili y o eye-appeal), choosing he adequa e es , and con e ing a cohe -
en in e p e a ion, should no minimize he ole ha unc ionali y plays in US
ade ma k law. I s impo ance has been ecen ly bols e ed by a ious schola -
ships ha ha e ad oca ed a holis ic app oach, which ea i ms he meaning and
ope a i e capaci y o unc ionali y ules ac oss di e en IPRs (design, ade
ma k, pa en , copy igh ) in sea ch o a p ope balance ac oss he IP sys em.316
311 Ha old R. Weinbe g, ‘T adema k Law, Func ional Design Fea u es, and he T ouble wi h
T a Fix’ (2001) 9 J. In ell. P op. L. 1, 17–21; And ew F. Halaby, ‘“The T ickies P oblem
wi h Func ionali y” Re isi ed: A New Da um P omp s a Though Expe imen ’ (2007) 63
NYU Annual Su ey o Ame ican Law 151, 167.
312 T a Fix De ices . Ma ke ing Displays, 532 U.S. 23 (2001).
313 6 h Ci cui adop ed he app oach o Quali ex . Jacobson P ods., 514 U.S. 159 (1995) 166,
170. By con as in T a Fix, he Sup eme Cou conside ed ha Quali ex es was con ined
o aes he ic unc ionali y, especially in a case o a g een colou wi hou impac upon he use/
pu pose o cos /quali y o he cleaning pads 532 U.S. 23 (2001) 24–26.
314 T a Fix, 29, e e ence o Boni o Boa s 489 U.S. 141, 168 (1989) and he p e-emp i e ole
o pa en p o ec ion.
315 T a Fix, 34–35. The Cou highligh ed impo an di e ences be ween he Lanham Ac and
pa en law, namely ha i was no he pu pose o ade ma k law o ewa d inno a ion o
an in es men made in a unc ional ade d ess o become a sou ce iden i ie , no should i s
e ec be o enc oach on he limi ed pe iod o legal exclusi i y, which emains he p i ilege
o pa en law.
316 Ch onologically descending: Canahai, McKenna (n 28); Jeanne F ome , Ma k McKenna,
‘Claiming Design’ (2018) 167 Uni e si y o Pennsyl ania Law Re iew, 123; Bucca usco,
84 The US legal amewo k o unc ionali y doc ine
oices ha ad oca e o a p o-compe i i e app oach, which has a i s co e an
inqui y abou he abili y o compe e in a p oduc ma ke , wi h p ime a en-
ion paid o he issue o al e na i e designs, ye wi hou neglec ing he isk
o unbalancing he IP sys em (e.g. by ex ending pa en monopoly ia ade
d ess).343 This pa h should be ollowed also by EUTM judicia y, as his book
ies o demons a e. Wha subs i u es mean, and how de e minan hey a e
o a su icien le el o compe i ion, a e bo h ques ions ha IP law canno
neglec – no only in ela ion o unc ional ade ma ks. P o esso s F ome
and Lemley emphasize ha ma ke subs i u ion should play a cen al ole in
assessing he bounda ies o in inging use: ‘[m]a ke subs i u ion … is ied o
IP’s goal o encou aging inno a ion. A use ha does no in e e e wi h he IP
owne ’s ma ke gene ally does no in e e e wi h he incen i es o inno a e
ha IP igh s c ea e’.344
Legal solu ions should adjus o di e se business necessi ies. Func ionali y
in ade ma k law needs a lexible assessmen , sui able o he new ca ego ies o
non- adi ional signs, and a om ossi ied dogma ic exclusions. Ce ainly, he
assessmen equi es an insigh in o he ma ke en i onmen o igh s holde s
and he way hey make use o hei IP po olio o ex ac economic bene i s.
Pu ing unc ionali y in o a ‘law and economics’ pe spec i e ep esen s use ul
guidance o a cou ha is bound o unde s and and decide o e he an i-
compe i i e e ec s o p o ec ing unc ional ade ma ks (see Chap e 4).
Bibliog aphy
Aude , M., ‘Func ionali y Unanimously T umps Incon es abili y a e TLT Ac and
Wilhem Pudenz . Li le use, Inc.’ (2000) 40 IDEA 473
Ba e , M., ‘Consolida ing he Di use Pa hs o T ade D ess Func ionali y: Encoun e -
ing T a Fix on he Way o Sea s’ (2004) 61 Wash. & Lee L. Re . 79
Bone, R., ‘T adema k Func ionali y Reexamined’ (2015) ol. 7(1) Jou nal o Legal
Analysis 183
Ben ly, L., Da is, J., Ginsbu g, J.C. (eds.), T ade Ma ks and B ands: An In e discipli-
na y C i ique (CUP 2011)
B ancusi, L. ‘Al e na i e P oduc s as a Fac o in De e mining he Func ionali y o
T ade Ma ks – How he C i e ia o US Func ionali y Doc ine Could Be Applied in
343 Rie son, ‘Towa d …’ (n 316) 723–726. The au ho sugges s a ‘ econ igu a ion’ o he Mo -
on No wich es , in which he c i e ion o al e na i e designs should be e i ied as o he
impac on he p oduc ’s cos o quali y. Addi ionally, his ac o should be i ele an in he
case o p oduc ea u es expanding a backdoo pa en monopoly, o ins ance i hese ea u es
cons i u e a ‘signi ican in en i e aspec ’ o an expi ed u ili y pa en (ibidem 747–748). The
schola ship p omo ing an assessmen ocused on compe i i e necessi y includes: clea ly Din-
woodie (n 28) 701–746 and Thu mon (n 267) 340–370; wi h ce ain ese e McKenna (n
28); wi hin a p o- and con a analysis, Bone ‘T adema k …’ (n 268) 227–242.
344 F ome , Lemley, ‘Audience ...’ (n 316) 1291. The au ho s sugges ha a ele an p oduc
ma ke may be de e mined by sales o p oduc s in he same ma ke as he de endan o by
he likelihood o en e ing ha ma ke in he nea es u u e (a 1293).

The US legal amewo k o unc ionali y doc ine 85
EU Law’ in Susy F ankel (ed.) Is In ellec ual P ope y Plu alism Func ional? (Elga
2019) 178
B own, R., Leeds, D.R., Handle , M., De enbe g, W.J., Bende , P., ‘P oduc Simula-
ion: A Righ o A W ong’ 1964 Colum. L. Re . 1179, a h ps://digi alcommons.
law.yale.edu/ ss_pape s/2721/
Bucca usco, C., F ome , J.C., ‘Fo ge ing Func ionali y’ (2017) 166 U. Pa. L. Re .
Online 119
Bucca usco, C., Lemley, M., ‘Func ionali y Sc eens’ (2017) 103 Va. L. Re . 1293
Bucca usco, C., Lemley, M., Masu , J., ‘In elligen Design’ (2018) 68 Duke Law
Jou nal 75
Bu ns ein, S., ‘Commen a y Faux Amis in Design Law’ (2015) 105 T adema k Rep. 1455
Canahai, C., McKenna, M., ‘The Case Agains P oduc Con igu a ion T ade D ess’ in
T adema k Law and Theo y: Re o m o T adema k Law (eds. G aeme Dinwoodie,
Ma k Janis) (Elga 2021), a h p://ss n.com/abs ac =3336366, 1
Cohen, A., ‘Following he Di ec ion o T a ix: T ade D ess Law and Func ionali y
Re isi ed’ (2010) IDEA 593
Da is, T., ‘Copying in he Shadow o Cons i u ion: The Ra ional Limi s o T ade D ess
P o ec ion’ (1996) 2408 Minneso a Law Re iew 595
Denicola, R.C., Pe lman, H.S., ‘A Fo ewo d o he Symposium on he Res a emen o
Un ai Compe i ion’ (1995–1996) 47 (4) A . 3 S.C. L. Re . I, a h ps://schola -
commons.sc.edu/cgi/ iewcon en .cgi?a icle=3207&con ex =scl
Dinwoodie, G.B., ‘Reconcep ualizing he Inhe en Dis inc i eness o P oduc Design
T ade D ess’ (1997) 75 N.C. L. Re . 471
Dinwoodie, G.B., ‘The Dea h o On ology: A Teleological App oach o T adema k
Law’ (1999) 84 Iowa Law Re iew 611
Dinwoodie, G.B., Janis, M., T ade D ess and Design Law (Aspen Publishe s 2010)
Edels ein, J.S., Luede s, C.L., ‘Recen De elopmen s in T ade D ess In ingemen
Law’ (2000) 40 IDEA 105
Fe e i, J., ‘P oduc Design T ade D ess Hi s he Wall … Ma : Wal-Ma . Sama a
B o he s’ (2002) 42 IDEA 417
Fischman A o i, O., ‘Reconcep ualizing P ope y in Designs’ (2008) 25 Ca dozo A s
& En e ainmen Law Jou nal 1106
F ankel, S., ‘F om Ba bie o Renoi : In ellec ual P ope y and Cul u e’ (2010) 41(1)
Va. Well. L. Re . 1
F ome , J.C., ‘Exp essi e Incen i es in In ellec ual P ope y’ (2012) 98 Va. L. Re . 1745
F ome , J.C., ‘The Role o C ea i i y in T adema k Law’ (2011) 86 No e Dame L.
Re . 1885
F ome , J.C., Lemley, M.A., ‘The Audience in In ellec ual P ope y In ingemen ’,
(2014) 112 Mich. L. Re . 1251
F ome , J.C., McKenna, M., ‘Claiming Design’ (2018) 167 Uni e si y o Pennsyl ania
Law Re iew, 123
Gambino, D., Ba ow, W., T ade D ess: E olu ion, S a egy, P ac ice (OUP 2013)
Goodha , A.L., ‘Res a emen o he Law o To s Volume III: A compa ison be ween
Ame ican and English Law’ (1941) 89 Uni e si y o Pennsyl ania Law Re iew, 265
a h p://schola ship.law.upenn.edu/cgi/ iewcon en .cgi?a icle=9122&con ex =
penn_law_ e iew
Ginsbu g, J.C., ‘“Cou s Ha e Twis ed Themsel es in o Kno s” (and he Twis ed
Kno s Remain Un angle): US Copy igh P o ec ion o Applied A a e S a s A h-
le ica’ in Es elle De claye (ed.) The Copy igh /Design In e ace (CUP 2018) 297
86 The US legal amewo k o unc ionali y doc ine
Ginsbu g, J.C., ‘“See Me, Feel Me, Touch Me, Hea[R] Me” (and Maybe Smell and
Tas e Me Too): I Am a T adema k – a US pe spec i e’ in Lionel Ben ly, Jenni e Da-
is, Jane C. Ginsbu g (eds.) T ade Ma ks and B ands: An In e disciplina y C i ique
(CUP 2011) 92
Halaby, A.H., ‘“The T ickies P oblem wi h Func ionali y” Re isi ed: A New Da um
P omp s a Though Expe imen ’ (2007) 63 NYU Annual Su ey o Ame ican Law 151
Heald, P.H., ‘Filling Two Gaps in he Res a emen (Thi d) o Un ai Compe i ion:
Mixed-Use T adema ks and he P oblem wi h Vanna’ (1996) 47 S.C. L. Re . 783
Kellne , C., ‘Re hinking he P ocedu al T ea men o Func ionali y: Con on ing he
Insepa abili y o Use ul, Aes he ically Pleasing, and Sou ce-Iden i ying Fea u es o
P oduc Designs’ (1997) 46 Emo y L J 913
Lemley, M.A., McKenna, M.P., ‘Scope’ (2016) 57 Wm. & Ma y L. Re . 2197
Lunney, G., ‘Non T adi ional Ma ks. The E o Cos s o Making an Excep ion he
Rule’, in Calboli, I., Sen leben, M. (eds.) The P o ec ion o Non-T adi ional T ade
Ma ks: C i ical Pe spec i es (OUP 2018)
Lunney, G., ‘The T ade D ess Empe o ’s New Clo hes: Why T ade D ess Does No
Belong on he P incipal Regis e ’ (2000) 51 Has ings L.J. 1131
McKenna, M.P., ‘An Al e na i e App oach o Channeling?’ (2009) 51 Wm. & Ma y
L. Re . 873
McKenna, M.P., ‘(Dys) unc ionali y’ (2011) 48 Hous L R 823
McKenna, M.P., ‘The No ma i e Founda ions o T adema k Law’ (2013) 82 No e
Dame L. Re . 1839
McKenna, M.P., Sp igman, C., ‘Wha ’s In, and Wha ’s Ou : How IP’s Bounda y Rules
Shape Inno a ion’ (2017) 30 Ha . J. L. & Tech. 491
Oddi, S., ‘The Func ions o “Func ionali y” in T adema k Law’ (1985) 22 Hous. L.
Re . 925
(Du) Mon , J.J., Janis, M.D., ‘Func ionali y in Design P o ec ion Sys ems’ (2012) 19
J In ell. P op. L. 261
(Du) Mon , J.J., Janis, M.D., ‘Func ionali y in U.S. Design Pa en & Communi y De-
sign Law’ (30 Ap il 2016) Resea ch Handbook on Design Law, a h ps://ss n.com/
abs ac =2773070
Mo a , V.R., ‘Mu an Copy igh s and Backdoo Pa en s: The P oblem o O e lapping
In ellec ual P ope y P o ec ion’ (2004) 19 Be keley Tech L. J. 1473
Pe lman, H.S., ‘The Res a emen o he Law o Un ai Compe i ion: A Wo k in P o-
g ess’ (1990) 80 T adema k Rep 461
Rie son, S.L., ‘Towa d a Mo e Cohe en Doc ine o T adema k Gene icism and Func-
ionali y: Focusing on Fai Compe i ion’ (2017) 27 Fo dham In ell. P op Media &
En L.J. 691
S einman R., ‘Taking a Mulligan: Mo al Righ s and he A o Gol Cou se Design’
(2011) 51 IDEA 47
Thu mon, M.A., ‘The Rise and Fall o T adema k’s Law Func ionali y Doc ine’
(2004) 56 Fla. L. Re . 244
‘The Public In e es and he Righ o Copy Non unc ional P oduc Fea u es’ (1977)
19 Wm. & Ma y L. Re . 317, a h ps://schola ship.law.wm.edu/wml / ol19/
iss2/7
‘Un ai Compe i ion and he Doc ine o Func ionali y’ (1964) 64 Colum. L. Re . 544
Weinbe g, H.R., ‘T adema k Law, Func ional Design Fea u es, and he T ouble wi h
T a Fix’ (2001) 9 J. In ell. P op. L. 1
DOI: 10.4324/9781003376040-5
4 Func ionali y wi hin
he amewo k o law
and economics
Compe i ion conce ns agains
p o ec ing unc ional ade ma ks
The impo ance o ensu ing an app op ia e le el o ma ke compe i ion lies
a he co e o he ‘public in e es ’ a ionale ha unde lies ade ma k unc-
ionali y ules. This complemen s he discussion wi h a compe i ion law in-
sigh in o he economic implica ions and isks o g an ing legal exclusi i y
o unc ional signs. The chap e begins by se ing ade ma ks wi hin he
amewo k o compe i ion law, wi h a ocus on hei economic bene i s (4.1.).
I nex explo es how ade ma ks may nega i ely a ec compe i ion, keeping
in mind he possible applica ion o unc ional signs (4.2.). The discussion
comp ises he issues o highe socie al cos s gene a ed by he s a egic use o
ade ma ks (e.g. in conjunc ion wi h o he IPRs, o o compa ibili y needs)
which helps main ain ma ke dominance and sup a-compe i i e p ices. These
issues a e pa icula ly ele an o echnical unc ionali y. Ano he opic, his
ime signi ican o aes he ic unc ionali y, consis s o mapping he concep o
‘ alue’ o epu a ion agains goodwill and b and componen s (such as b and
image), wi h an insigh in o consume co-b anding and economic, ma ke ing
and accoun ing s anda ds (4.3.). The las pa explo es how a compe i ion
pe spec i e on ma ke de ini ion and p oduc subs i u abili y may be ins u-
men al o ade ma ks unc ionali y p ac ice (4.4.). The chap e ad ances a
ma ke -o ien a ed ool o be in eg a ed wi hin he unc ionali y assessmen ,
one which su icien ly e lec s su icien ma ke compe i ion and sa is ies con-
sume needs.
4.1. Placing IP and ade ma ks wi hin he amewo k o
compe i ion law
Compe i ion’s p ime pu pose o ensu ing ma ke access o compe i o s
seemingly collides wi h he exclusiona y na u e o IPRs. A a deepe le el,
hough, compe i ion and IP a e iewed as seeking compa ible, complemen-
a y objec i es. The ollowing pa ou lines he pu poses o EU compe i ion
law and looks in o how ade ma ks may bene icially ma ch his amewo k,
by educing consume sea ch cos s and s imula ing he ou pu o quali y
p oduc s.
88 Func ionali y wi hin he amewo k o law and economics
4.1.1. A b ie in oduc ion o he objec i es and amewo k o EU
compe i ion law
The pu pose o EU compe i ion law is shaped by a plu ali y o – o en –
con lic ing policies, socie al alues, public in e es s, and economic models.
F om an economic pe spec i e based on a s a ic de ini ion o compe i ion, com-
pe i ion law should p omo e economic wel a e, de e mined by a maximiza ion
o consume su plus h ough inc eased alloca i e and p oduc i e e iciencies–
in e en ion is needed when a monopolis may impose highe p ices wi hou
cons ain s and educe ou pu while c ea ing deadweigh losses.345 Comple-
men a ily, he dynamic app oach, o compe i ion seen as a p ocess, conside s
ha wha ma e s is he pace o inno a ion and he abili y o in oduce new
p oduc s o make use o new p oduc ion p ocesses, hus no necessa ily low-
e ing p ices, so ha compe i ion law should p e en es ain s on inno a ion
(e.g. hwa ing be e echnologies om en e ing he ma ke place).346 Apa
om hese economic goals, EU ju isp udence has added ce ain wel a e pu -
poses as necessa y o he p ope unc ioning o he EU, namely he in eg a-
ion o in e nal ma ke , he p e en ion o consume ha m, and he economic
eedom o unde akings o compe e on he ma ke .347 The la e is pe cei ed
as a e lec ion o he o dolibe al Ge man doc ine ha in luenced he c ea-
ion o he Single Ma ke and Eu opean Economic Communi y (la e EU),
ha is, he ision o a Eu opean s uc u e, wi h i s economy cons i u ionally
in e ela ed wi h he poli ical and legal sys em, in which he e is inc eased s a e
in e en ionism, whils compe i ion law ac s as he gua dian o ‘comple e’
(pe ec ) compe i ion, in which ‘no i m has he powe o coe ce o he i ms
345 E iciency is an economic ool wi h mul iple meanings and is an indica o o wel a e – i
may e e o he amoun o goods/se ices p oduced o which he e is a demand, ha is,
willingness o pay (i.e. alloca i e), o o a le el o ou pu supplied a a lowes cos (i.e. p o-
duc i e). The no ion o wel a e is based on he assump ion ha consume s end o maximize
hei u ili y, by ge ing he igh amoun o goods a a lowes possible p ice – kep closely o
cos s – in condi ions o allegedly pe ec s a ic p ice compe i ion. C. Sco Hemphill, ‘In el-
lec ual P ope y and Compe i ion Law’ in Rochelle D ey uss, Jus ine Pila (eds.) The Ox o d
Handbook o In ellec ual P ope y Law (OUP 2018) 875–877; Je ey Ha ison, Law and
Economics in a Nu shell (6 h ed. Wes Academic Publishing 2016) 30–78. In eali y he e
a e many limi a ions o he e iciency model challenged by a di e si y o economic heo ies.
346 He be Ho enkamp, ‘Res ain s on Inno a ion’ (2007) 27(1) Ca dozo Law Re iew 247,
253–254; Luc Peepe ko n, Vincen Ve ouden, ‘The Economics o Compe i ion’ in Jona han
Faull, Ali Nikpay (eds.) The EU Law o Compe i ion (OUP 2014) pa as 1.120–133 e e ing
he seminal wo k Robe Solow, ‘Technical Change and he Agg ega e P oduc ion Func ion’
(1957) Re iew o Economics and S a is ics, 312–320 a www.js o .o g/s able/1926047 –
who a gued ha mo e economic g ow h came om inno a ion han om inc eased p ice
compe i ion.
347 Ioannis Lianos, ‘Some Re lec ions on he Ques ion o he Goals o EU Compe i ion Law’
CLES Wo king Pape Se ies 3/2013, 14–32 a h p://dx.doi.o g/10.2139/ss n.2235875.
Fo a discussion in eg a ing he ene s o EU T ea y, see Wal e F enz, Handbook o EU
Compe i ion Law (Sp inge Ve lag 2016) 3–20.
Func ionali y wi hin he amewo k o law and economics 89
in a ma ke ’.348 This app oach, embedded in he i s EC T ea y, emphasized
he need ‘ o p ese e a compe i i e ma ke s uc u e’ which mean ha he
gua an ee o ‘undis o ed compe i ion’ ep esen ed a alue pe se, p o ec ed as
an ins i u ion ha indi ec ly p o ec ed all ma ke pa icipan s.349
Compe i ion law in e enes only in si ua ions o ma ke dominance/powe ,
which means he powe o an unde aking o cha ge highe han compe i i e
p ices by educing ma ke ou pu , which compe i o s canno answe wi h an
inc ease o subs i u able p oduc s o e ed o consume s.350 A cen al ool o
de e mine ma ke dominance is ma ke de ini ion, which se es o iden i y
he ange o close subs i u es o p o ide a cons ain on he beha iou o he
unde akings supplying hose p oduc s – ma ke dominance has been adi-
ionally de e mined using he calcula ion o ma ke sha es o he in es iga ed
unde aking(s).351 The e a e di e en ways o assess ma ke dominance and i s
impac on compe i ion, and EU p ac ice has shi ed om a so-called no ma-
i e, ‘ o m-based’ app oach – easy o handle by lawye s due o educed eco-
nomic analysis and a ou ing o eseeable esul s and legal ce ain y – o a mo e
‘economic’, ‘e ec -based’ app oach, equi ing case-by-case empi ical e idence
and economic models ha may lead o di e en ia ed, pe haps unp edic able
ou comes.352
F om a legal s andpoin , he e a e h ee ypes o economic beha iou ha
may be challenged by compe i ion au ho i ies, ha is, abuse o dominan po-
si ion, an icompe i i e ag eemen s, and consolida ion o businesses. In he
348 J. Thomas Rosch, ‘Can Consume Choice P omo e T ans-A lan ic Con e gence o Compe-
i ion Law and Policy’ in Paul Nihoul, Nicolas Cha bi , Elisa Ramundo (eds.) Choice: A New
S anda d o Compe i ion Law Analysis? (Ins i u e o Compe i ion Law 2016) 265, a 268
quo ing Da id Ge be , ‘Cons i u ionalizing he Economy: Ge man Neo-libe alism, Compe-
i ion Law and he “New” Eu ope’ (1994) 42 Am. J. Com. L. 25, 36.
349 Jose D exl, ‘Consume Wel a e and Consume Ha m: Adjus ing Compe i ion Law and Poli-
cies o he Needs o De eloping Coun ies’ in Michal Gal e al. (eds.) The Economic Cha -
ac e is ics o De eloping Ju isdic ions: Thei Implica ions o Compe i ion Law (Elga 2015)
272–274 discussing he seminal case C-6/72 Eu opemballage Co po a ion & Con inen al
Can . Commission EU:C:1973:22.
350 Ho enkamp (n 32) 4–2 .
351 Alison Jones, B enda Su in, EU Compe i ion Law (6 h ed. OUP 2016) 56; Ch is ian Melis-
chek, The Rele an Ma ke in In e na ional Economic Law: A Compa a i e An i us and
GATT Analysis (CUP 2013) 29; as o o he han ma ke -sha e me hods o assessmen : Jan
Kupcik, ‘Fi m’s Own P ice Elas ici y o Demand in Dominan Posi ion Analysis’ (2022)
JECL&P, published 17 Ma ch 2022, h ps://doi.o g/10.1093/jeclap/lpac015; We ne
Be g, Sophia Real, ‘How Close is Too Close? A C i ical Re iew o he Eu opean Commis-
sion’s Assessmen o Closeness o Compe i ion’ (2016) 7(7) JECL&P 442.
352 Fo an o e iew Claudia Sei z, ‘Economic P inciples in An i us law in he A e ma h o he
Mo e Economic App oach’ in Klaus Ma his (ed.) Law and Economics in Eu ope: Founda ions
and Applica ions (Sp inge 2014) 368–383; o acing EU de elopmen s Jose D exl, ‘Is
The e a “Mo e Economic App oach” o In ellec ual P ope y and Compe i ion Law?’ in
Jose D exl (ed.) Resea ch Handbook on In ellec ual P ope y and Compe i ion Law (Elga
2008) 27–35.

90 Func ionali y wi hin he amewo k o law and economics
EU, he basic legal ame is con e ed by he T ea y on he Func ioning o
he Eu opean Union (TFEU), in pa icula by he A . 101 TFEU which
deals wi h an icompe i i e ag eemen s and A . 102 TFEU banning abuse o
a dominan posi ion.353 The e a e mul iple addi ional EU ac s, ha is, egula-
ions ollowed by Commission guidelines, such as hose pe aining o me ge s
and acquisi ions354 o o ag eemen s co e ing he ans e and exploi a ion o
IPRs.355 The exclusiona y powe o IPRs does no equal he abili y o exclude
compe i o s in economic e ms, and is a ely pe cei ed as unique sou ce o
ma ke dominance, howe e , no IP egime is immune o an ex e nal co ec-
ion based on he compe i ion ules.356 The que y abou he ex en o which
IPR con ibu es o de eloping and consolida ing ma ke dominance, and he
ypes o beha iou ela ed o he owne ship and/o exe cise o an IPR ha
may iola e he compe i ion ules o A s. 101–102 TFUE and/o seconda y
ac s, alls a beyond he scope o his book.357
The ollowing ema ks will ouch upon ce ain aspec s o he in e ace be-
ween IP and compe i ion law ha a e use ul o map he ole o ade ma ks
in he ma ke place.
4.1.2. The p o-compe i i e discou se on ade ma ks wi hin he pe spec i e
o IP and compe i ion goals
Any IPR con e s exclusi e con ol o e he exploi a ion o he p o ec ed asse ,
which enables he igh holde o cha ge a highe p ice o an i em han in con-
di ions o dis ibu ion go e ned by ee ma ke and lack o legal p i ileges.358
353 T ea y on he Func ioning o he Eu opean Union, Dec. 13, 2007, 2007 O.J. (C306) 1.
P e ious e sions o he TFEU had A . 101 numbe ed as 81 (also 85) and A . 102 as 82
(also 86).
354 Council Regula ion (EC) No. 139/2004 o 20 Janua y 2004 on he con ol o concen a-
ions be ween unde akings, [2004] OJ L 24/1.
355 Commission Regula ion (EU) No. 316/2014 o 21 Ma ch 2014 on he applica ion o A .
101(3) o he T ea y on he Func ioning o he Eu opean Union o ca ego ies o echnology
ans e ag eemen s, [2004] OJ L 93/17 and Commission Regula ion (EU) No. 330/2010
o 20 Ap il 2010 on he applica ion o A . 101(3) o he T ea y on he Func ioning o he
Eu opean Union o ca ego ies o e ical ag eemen s and conce ed p ac ices [2010] OJ L
102 /1 – bo h eplacing ea lie e sions. These ac s in oduced exemp ions o he applica ion
o A . 101 TFEU o he ag eemen s he ein de ined, howe e he e is no exemp ion om a
challenge o abusi e beha iou c . A . 102 TFEU.
356 Ma ia e esa Maggiolino, In ellec ual P ope y and An i us : A Compa a i e Economic Anal-
ysis o US and EU Law (Elga 2011); Ka a zyna Czap acka, In ellec ual P ope y and he
Limi s o An i us : A Compa a i e S udy o US and EU App oaches (Elga 2010).
357 Fo a succinc classi ica ion o EU compe i ion cases applied o IPRs: Gus a o Ghidini, Re-
hinking In ellec ual P ope y: Balancing Con lic s o In e es s in he Cons i u ional Pa adigm
(Elga 2018) 338–380. Da id Miąsik, S osunek p awa och ony konku encji do p awa własności
in elek ualnej (Wol e Kluwe Wa szawa 2012) 358–412.
358 This p ice is hypo he ically calcula ed as being abo e he ma ginal cos o ep oducing an
IP-p o ec ed wo k o in en ion, Ho enkamp (n 32) 1–9 o 1–12.
Func ionali y wi hin he amewo k o law and economics 91
IPRs come a a p ice: he e a e adminis a i e cos s o ope a ing he sys em
(see egis a ion/opposi ion/in alidi y p oceedings), ansac ion cos s o in-
ingemen li iga ion and nego ia ing licences, and cos s o en seeking ac i i-
ies.359 Howe e , he e is a ma ke and socie al need o IPRs. Despi e c i ics,
inno a ion and c ea ion a e conside ed c ucial o economic g ow h and in-
angible esul s should be co e ed by p ope y igh s, o he wise he e would
be no u he incen i e o pu sue and in es in such ac i i ies a he de imen
o dynamic compe i ion.360 Al hough some imes dispu able, a es ic ion o
compe i ion a he consump ion le el – due o highe p ices o he asse s co -
e ed by IPRs – may be jus i ied by enhancing compe i ion a he p oduc ion
o inno a ion le els.
F om his economic pe spec i e, ade ma ks ha e appea ed as bene icial,
p o-compe i i e ma ke ools, mainly hanks o he wo ks o William Landes
and Richa d Posne o Chicago Law School, which cons i u e he benchma k
o any discou se on he ela ionship be ween ade ma ks and compe i ion.361
A ade ma k helps consume s selec goods/se ices co esponding o hei
needs and p e e ences h ough he in o ma ion i ca ies abou he comme -
cial o igin and he cha ac e is ics o hose goods/se ices.362 Because i is im-
p ac ical o impossible o a consume o es and lea n abou all no iceable
and unno iceable quali ies o di e en p oduc s/se ices be o e pu chase, he
consume chooses hem upon a ou able pas expe iences, ecommenda ions,
359 W illiam Landes, Richa d Posne , The Economic S uc u e o In ellec ual P ope y Law (Ha -
a d 2003) 16–21; G aham Du ield, Uma Su he sanen, Global In ellec ual P ope y Law
(2nd ed. Elga 2020) 39–40.
360 Jus ine Pila, Paul To emans, Eu opean In ellec ual P ope y Law (OUP 2016) 615–17. Am-
ple deba es ha e gauged he ex en o which an IP ‘monopoly’ may posi i ely se e as pla -
o m o inno a ion, which would call o cau iousness whene e deciding on a compe i ion
in e en ion. One a gumen says ha a ce ain amoun o (p ice) monopoly is necessa y o
achie e economies o scale – hus gene a ing mo e ou pu a a lowe ed p ice – bu also o
ans e p o i s o R&D ac i i ies which s imula e u he inno a ion and dynamic e icien-
cies. This app oach goes back o Joseph A. Schumpe e , The Theo y o Economic De elopmen
(Ha a d Economic S udies, 1934) and Capi alism, Socialism and Democ acy (1942), mo e
in Fede ico E no, Compe i ion, Inno a ion and An i us : A Theo y o Ma ke Leade s and
i s Policy Implica ions (Sp inge 2007) 189–195 ocusing on pa en s. C i ically, S e en An-
de man, ‘O e playing he Inno a ion Ca d: The S onge In ellec ual P ope y Righ s and
Compe i ion Law’ in Pe e D ahos, Gus a o Ghidini, Hans Ull ich (eds.) K i ika: Essays
on In ellec ual P ope y ( ol. 1 Elga 2015) 22–25; Michele Bold in, Da id Le in, Agains
In ellec ual Monopoly (CUP 2008) 243–267 poin ing a he sho ages o IP sys em in line
wi h F i z Machlup’s conside a ions o 1958 in ‘An Economic Re iew o he Pa en Sys-
em’, a www.mises.a /s a ic/li e a u /Buch/machlup-economic- e iew-pa en -sys em.pd .
Howe e , Ch is ophe Bucca usco e al., ‘Expe imen al Tes s o In ellec ual P ope y Laws’
C ea i i y Th esholds’ (2014) 92 Tex L Re 1921, 1935–1977, explo ed ia expe imen al
es s he impac o ex insic mo i a ion (i.e. incen i es p o ided by copy igh and pa en , and
h esholds o legal p o ec ion) and in insic ac o s (in e nal mo i a ion) upon he p ocess
o c ea ion/inno a ion.
361 Landes, Posne (n 31) 265, (n 359).
362 Ibidem (n 31) 268–270.
92 Func ionali y wi hin he amewo k o law and economics
o ad e isemen o ade ma ks.363 Fo his eason ade ma ks a e seen o
educe consume sea ch cos s.364 In esponse o his mechanism, ade ma k
owne s a e mo i a ed o main ain a consis en quali y o goods/se ices –
mo e p ecisely, ensu ing ha he e is he se o ‘p oduc cha ac e is ics’ which
consume s expec – and o de elop goodwill h ough a speci ic ela ionship
wi h cus ome s (see 4.3.1.2.); complemen a ily, ade ma k owne s a e in-
e es ed in shaping he consume mind h ough in o ma i e and pe suasi e
ad e ising.365 Pu ing oge he hese wo posi i e e ec s, ha is, he econo-
mizing ole o lowe ing consume sea ch cos s and incen i ising igh holde s
owa ds quali y main enance, ade ma ks a e sough o ensu e ma ke ans-
pa ency and s imula e igo ous compe i ion.366 The p o-compe i i e e ec s
o ade ma ks gi e g ounds o he sys em o non-limi ed in ime ade ma k
p o ec ion as long as a sign is in use. The a gumen says ha legal exclusi i y
co e s he comme cial sou ce o goods/se ices o one unde aking as dis in-
guished om ano he – in o he wo ds, he link be ween consume s and he
en i y con olling he ade ma k – and he e is no monopoly co e ing he sign
o he goods as such.
Consume s’ op imized sea ch o quali y explains why ade ma k hold-
e s a e able o cha ge a highe p ice o goods/se ices bea ing a ade ma k
han o non- adema ked ones. The ade-o is conside ed socie ally bene i-
cial; i also becomes a sel -en o cing p omise, which s imula es he need o
p oduc a ie y, in o he wo ds, o mo e compe ing p oduc s. Admi edly,
ade ma ks’ unc ion o iden i ying he comme cial o igin o goods/se ices,
sus ained by a gua an ee o speci ic quali y, ine i ably leads o p oduc di e -
en ia ion. This is heo e ically a good hing, as long as p oduc di e en ia ion
is suppo ed by objec i e di e ences in p oduc cha ac e is ics which accoun
o demanding a highe p ice.367 Howe e , ma ke de iciencies may also occu :
an o e -op imal numbe o di e en ia ed p oduc s, unde p oduc ion o some
363 Nicholas S. Economides, ‘The Economics o T adema ks’ (1998) 78 T adema k. Rep. 523.
364 Landes, Posne (359) 166–168.
365 G i i hs (n 33) 54–62 and 105–110; o a seminal s udy abou ade ma ks as indica o o
quali y Geo ge A. Ake lo , ‘The Ma ke o “Lemons”: Quali y Unce ain y and Ma ke
Mechanism’ (1970) 84 Q. J. Econ. 488; o a c i ique ha a business cos sa ings s a egy
may op o main aining ‘a good epu a ion a leas cos ’ whe e a lowe quali y is compen-
sa ed by ma ke ing s a egies uelling consume s belie s o i s (alleged) consis en le el, Jona-
han Ald ed, ‘The Economic Ra ionale o T ade Ma ks: An Economis ’s C i ique’ in Ben ly,
Da is, Ginsbu g (eds) (n 294) 271–272.
366 Fo a co ec ing iew ha incen i es a e no a su icien jus i ica ion o ade ma ks, Ma k
Lemley, ‘P ope y, In ellec ual P ope y, and F ee Riding’ (2005) 83 Texas Law Re iew
1031; o an analysis o ade ma ks alue h ough i al ous/non- i al ous uses Da id W.
Bu nes, ‘A New Economic o T adema ks’ (2006) 22 Nw. J. Tech. & In ell. P op. 22.
367 Pe e Da is, Ki s en Edwa ds-Wa en, ‘An In oduc ion o he Compe i i e E ec s o B and-
ing’ in De en R. Desai, Ioannis Lianos, Spence W. Walle (eds.) B ands, Compe i ion Law
and IP (CUP 2015) 13; William Co nish, In ellec ual P ope y – Omnip esen , Dis ac ing,
I ele an ? (OUP 2004) 81–82.
Func ionali y wi hin he amewo k o law and economics 93
ade ma ked p oduc s, dis o ed pu chase decisions esul ing om pe suasi e
ad e ising, 368 o om he b anding phenomenon which me amo phoses he
image and alue o ade ma ks independen ly om he quali y and objec-
i e p ope ies o he signi ied goods/se ices (4.3.1.1.). Conce ns abou he
impac o ade ma ks on a s a e o impe ec compe i ion was he objec o
Edwa d Chambe lin’s in es iga ions om he ea ly 1930s, whe e he belie ed
ha p oduc di e en ia ion enabled each selle o impose a p ice o his own
p oduc and enjoy a monopoly o an ex en de e mined by he exis ence and
scale o o he compe i o s’ p oduc s, pe cei ed as impe ec subs i u es.369
Chambe lin hough ha ade ma ks, and IPRs gene ally, we e diminishing
e ec i e p oduc subs i u ion, due o consume s’ p e e ences o i ems co -
e ed by IPRs.370 Because consume p e e ences a e oday s ee ed by s a egic
b anding, deba able ques ions emain as o he op imal amoun o ade ma ks
and p oduc di e en ia ion needed o economic and social wel a e. The p o-
li e a ion o ade ma ks/b ands may be seen as a i icially s imula ing demand
and c ea ing dead-weigh losses, because consume money is no being spen
on gene a ing inno a ion o quali a i e di e en ia ion o p oduc s. The capa-
bili y o ade ma ks enhanced by b anding s a egies o model and de e mine
consume s p e e ences so as o diminish he choice o simila goods/se ices
om di e en b ands (i.e. educing p oduc subs i u abili y) ep esen s a i id
conce n o policy-make s and legisla o s. To a ce ain ex en his issue is also
signi ican o unde s anding he compe i ion a ionale unde lining he unc-
ionali y ules (see 2.2.).
F om ano he angle, a d i e o heal hy compe i ion esides in he capabili y
o subsequen inno a ion buil on p e-exis ing ma e ial a ailable in he public
domain.371 The schola ship amply discusses he cos s and ba ie s c ea ed by
IPRs o ollow-on inno a ion, o example, how he scope, e ms, and leng h
o p o ec ion o IPRs de e mine a c ea o o inno a o ’s choice o inno a ion
pa h, namely, deciding whe he o use exis ing IPRs and pay licence ees, o
o gene a e some hing new by wo king a ound exis ing IPRs.372 A u ili a ian
368 Economides (n 363) 532–535.
369 Edwa d Chambe lin, The Theo y o Monopolis ic Compe i ion (1s ed. 1933).
370 De en R. Desai , Spence W. Walle , ‘B ands, Compe i ion, and An i us Law’ in Desai,
Lianos, Walle (eds.) (n 367) 84–85.
371 Robe P. Me ges, Amy L. Lande s (eds.) In ellec ual P ope y and Public Domain (Elga
2017).
372 Ch is ophe Bucca usco, S e an Bech old, Ch is ophe Jon Sp igman, ‘The Na u e o Se-
quen ial Inno a ion’ (2017) 59 Wm. & Ma y L. Re . 1, 4–47, discussing ac o s a ec ing
ollow-on inno a ion, such as he ma u i y o inno a ion space, consume s as es, c ea o s’
beha iou al a i udes; S e an Bech old, Ch is ophe Bucca usco, Ch is ophe Jon Sp ig-
man, ‘Inno a ion Heu is ics: Expe imen s on Sequen ial C ea i i y in In ellec ual P ope y’
(2016) 91(4) Indiana Law Jou nal 1252, 1255–1266, discussing he less a ional side o
decision making, in ligh o ‘beha io is ic’ expe imen s: c ea o s/inno a o s a e mo e in lu-
enced by hei own belie s abou he inno a ion en i onmen han by objec i e ac o s, such
as bo owing cos s and he bene i s om inno a ing (a 1283).
100 Func ionali y wi hin he amewo k o law and economics
se ices inc eases he chances o con lic s and li iga ion cos s. This is because
unc ional ea u es a e usually ‘weak’ and undis inc i e, and some imes in-
co po a ed as in o ma ion pa o a combined sign.396 Acqui ing ade ma k
p o ec ion o e he unc ional sign en ails egis a ion di icul ies, as compe i-
o s usually moni o ade ma k ilings and ini ia e opposi ion o in alida ion
p oceedings. La e , assuming ade ma k p o ec ion is g an ed, en o cemen
ollows, as he ade ma k owne may sue compe i o s o e he use o simila
signs, wi h he aim o d i ing hem away om he ma ke .397 The ou comes o
such legal con on a ions depend on he inancial and o ganiza ional s eng h
o he business en i ies in ol ed: a deep-pocke playe may easily exhaus a
smalle i al wi h a li iga ion bu den.
Economic s udies show ha la ge incumben i ms s a egically oppose
ade ma k applica ions om i als – and hen delay p oceedings – no only
o o ce e-alloca ion o esou ces o he dispu e, bu in ac o in e up hei
p oducing and ma ke ing p ocesses.398 Filing opposi ions di ec ly inc eases he
alue o ade ma k po olio, especially i an unde akin builds ‘a epu a ion
o oughness’.399 Ano he s udy ha discussed he conges ion/deple ion o
wo d ma ks a gued ha incumben s ong co po a ions adop ‘ ade ma k
bullying’ in imida ion s a egies o p ohibi smalle en i ies om he use o a
simila (and equen ly desc ip i e) elemen , e en i i is non-con using as o
sou ce iden i ica ion.400 Such examples may suppo he assump ion ha simi-
la beha iou s may occu in ela ion o unc ional signs. S a egis s equen ly
desc ibe IPRs as a business le e age ool because o he abili y o ile in inge-
men sui s agains ulne able compe i o s.401
396 Mo e on educing he scope o p o ec ion g an ed o combined signs con aining ‘weak’
elemen s, Anne e Ku , ‘Rela i e G ounds o Re usal o In alida ion’ in Ku , Sen eleben
(eds.) (n 24) pa as 4.351–353.
397 Lemley , McKenna (n 316) 2214–2219 and 2224–2225; Canahai, McKenna (n 263) 21–23.
398 Philipp Schau schick, Ch is ine G eenhalgh, ‘Empi ical S udies o T ade Ma ks – The Exis -
ing Economic Li e a u e’, Depa men o Economics Discussion Pape Se ies 2013 (No.
659), Uni e si y o Ox o d, e e ing on pp. 33–34 o a s udy unde aken on a da ase o
Canada opposi ion cases be ween 1996 and 2009 by E.J. Colle e, ‘Inc easing Ri al Cos s:
T ade-ma k Opposi ion as a Tool o En y-De e ence’, chap e o disse a ion, Ca le on
Uni e si y, Canada (2012). Along simila lines Lunney, ‘The E o …’ (n 287) c i icizes he
o e -p o ec ion o ade d ess as used ‘ o sca e o compe i i e en y’ (a 231) and exempli-
ies i wi h Two Pesos . Taco Cabana, 505 U.S. 763, 23 U.S.P.Q.2d 1081 (1992), in which
inding Two Pessos liable o he in ingemen o he es au an déco o Taco Cabana pu
him ou o business and o ced o sell i o he plain i Taco Cabana ( n 42, a 229).
399 Philipp Sandne , The Valua ion o In angible Asse s: An Explo a ion o Pa en and T adema k
Po olios (Gable Wiesbaden 2009) 46, e e ing Geo g on G ae eni z, ‘Which Repu a-
ions Does a B and Owne Need? E idence om T ade Ma k Opposi ion’ (2007) Discussion
Pape No. 215, 1 DOI:10.5282/ubm/epub.13337.
400 Beebe, F omme (n 381) 1022, gi ing he example o ENTREPRENEUR ade ma k e -
icien ly li iga ed by En ep eneu Media.
401 Ge ald B. Hal , J . e al., In ellec ual P ope y and Financing S a egies o Technology S a -
ups (Sp inge 2017) 59.

Func ionali y wi hin he amewo k o law and economics 101
F om ano he angle, con ac s may se e o sol e his kind o eme ging
legal con lic . One example is co-exis ence ag eemen s, which ga he holde s
o highly simila ma ks o delinea e he use o hei signs in ela ion o speci ic
ca ego ies o goods/se ices in o de o a oid unnecessa y and unp edic able
judicial dispu es.402 I le ing he si ua ion be li iga ed, he ou come could
be a double-edged swo d, ha is, a inding o ei he in ingemen , o hon-
es concu en use, an ex emely isky gamble o he i s pa y o sue, who
may hen ace u he in alida ion p oceedings, po en ially e en leading o
he loss o he ade ma k a issue. Fo his eason, licence ag eemen s may
condi ion p oduc ion, dis ibu ion, and o he ac i i ies upon a p ohibi ion
on licensees challenging he alidi y o he ade ma k a issue.403 Howe e ,
in he EU he inclusion o his ype o es ic ion in a licence o co-exis ence
con ac is no always le en i ely o he disc e ion o pa ies; i may be in es-
iga ed unde he compe i ion law amewo k o A . 101 TFEU (p e iously
A . 85). EU ju isp udence has demons a ed ha compe i ion conce ns may
be aised by no-challenge clauses upon which a pa y should e ain om sub-
mi ing a cancella ion mo ion ( o easons o lack o genuine use) o opposing
a egis a ion, o submi ing an in alidi y claim based on absolu e g ounds o
e usal, such as lack o dis inc i eness, desc ip i eness, o gene icness.404 In
hose cases, he au ho i ies looked o ‘app eciable’ es ic ions o compe i-
ion and analysed whe he he main enance o a ade ma k would amoun
o an unjus i ied ba ie o en y o compe i o s, o i he con ac ual es ic-
ions had he main pu pose o hampe ing dis ibu ion o new goods/se ices
o a new e i o y. This end o sc u inizing con ac ual p ohibi ions om a
compe i ion s andpoin is s ill isible. EU Regula ion No. 316/2014 pe ain-
ing o echnology ans e ag eemen s405 does no insula e om compe i ion
con ol he so-called ‘ e mina ion on challenge’ clauses which allow a licenso
o e mina e a license ag eemen , i he licensee a emp s o challenge he a-
lidi y o he IPR; howe e , such clauses a e s ill pe mi ed in case o exclusi e
licenses.406
402 The legisla o ’ s acquiescence o such ag eemen s may be in e ed om he EUTM’s o mula-
ion o he scope o a ade ma k igh , whe e e e ence is made o ‘ hi d pa ies no ha ing
his [ igh holde ] consen ’ (LB), as a gued by Ghidini (n 357) 289–290.
403 Valen ine Co ah, In ellec ual P ope y Righ s and he EC Compe i ion Rules (Ha 2006)
126–128.
404 Case C-35/83 BAT Ciga e en-Fab iken . Commission, [1985] E.C.R. 00363, pa as 32–
37 (as an appeal om Commission Decision o 16 Decembe 1982, Case IV/C-30.128);
Moosehead/Whi b ead, Commission Decision No. 90/186/EEC, 1990 O.J. L. 100, 32; case
Ai am/Os am epo ed in he Ele en h Repo on Compe i ion Policy (1981) 97. These
cases we e discussed in La inia B ancusi, ‘Assessing he Impac o Regis e ing Non-T adi-
ional Ma ks: A Eu opean Union Compe i ion Law Analysis’ in Calboli, Sen leben (eds.)
(n 22) 240–242.
405 See n 355.
406 Thomas V inje, ‘Eu opean Union’ in Thomas Vinje (ed.) The In ellec ual P ope y and An i-
us Re iew (3 d ed. The Law Re iews 2018) 50.
102 Func ionali y wi hin he amewo k o law and economics
Pu ing hese indings in he pe spec i e o unc ional signs, he e a e
g ounds o sugges analogical applica ion. I unc ionali y means a se o desi -
able ea u es o a ce ain p oduc ca ego y, a ade ma k holde can o ches-
a e a se ies o con ac ual ela ionships wi h selec ed hi d pa ies in o de o
delimi a e hei use in co ela ion wi h no-challenges clauses. The la e would
p o ec licensees agains legal ac ion om he ade ma k owne , whils si-
mul aneously con e ing ma ke ad an ages o hem when compa ed o hose
compe i o s le ou side he ag eemen s. Such compe i o s would hen ha e
been denied access o a unc ional sign which p esumably would ha e been
in alid om he s a . F om a compe i ion s andpoin his ype o ag eemen
has o be e alua ed as a whole and on a case-by-case basis – i obliga ions a e
no jus i ied o well balanced by con ac ual ad an ages enjoyed by each pa y,
whe eas he main e ec o he con ac consis s o es ic ing ma ke compe i-
ion, hen he con ac may appea ques ionable.407
4.2.2. The le e aging capabili ies o unc ional ade ma ks o induce
compe i i e ad an ages
The no ion o le e aging IP de ines he means o ex ac ing and exploi ing he
alue o IP po olios in o de o con e compe i i e ad an ages o he igh s
holde s.408 Business s a egy de elopmen desc ibes how IPRs may e ec i ely
coun e balance he di e en ypes o ma ke o ces ha in luence he ma -
ke posi ion o an unde aking. One model belongs o p o . Michael Po e ,
who has ex ensi ely analysed he de elopmen o compe i i e s a egy.409 This
model places an unde aking in a ‘hub’ unde p essu e om i e o ces: he
deg ee o i al y among exis ing i ms, cus ome s’ pu chasing powe , ba ie s
o en y, supplie s’ powe , and h ea s o subs i u es.410 The unde aking may
engage in esponding s a egies based on ‘o e all cos leade ship’, ‘di e en ia-
ion’, and ‘ ocus’ on a cus ome o p oduc segmen o geog aphical ma ke .
Wha bea s signi icance o ade ma ks is he s a egy linked o p oduc di -
e en ia ion, ha is, p o iding a unique p oduc , especially ia b and image
and echnology ea u es. The app oach, suppo ed by ma ke da a and s ud-
ies, is ha a b anding iden i y gene a es p ice insensi i e and swi ching cos s
whils exe ing in luence upon pu chasing powe , a ailabili y o subs i u es,
and ba ie s o en y. The ollowing pa add esses wo kinds o compe i i e
407 Ibidem, 52–53.
408 Hal (n 401) 51.
409 Fo a seminal wo k: Michael E Po e , ‘Compe i i e S a egy: Techniques o Analyzing
Indus ies and Compe i o s (1980)’ Uni e si y o Illinois a U bana-Champaign’s Academy
o En ep eneu ial Leade ship His o ical Resea ch Re e ence in En ep eneu ship, h ps://
ss n.com/abs ac =1496175
410 Ch is ophe A ena, Edua do Ca e as, The Business o IP (OUP 2008) 85–89 e e ing o
Michael Po e , Compe i i e S a egy, Technique o Analyzing Indus ies and Compe i o s
(NY The F ee P ess 1980) 4.
Func ionali y wi hin he amewo k o law and economics 103
ad an age: he complemen a y use o ade ma ks as means o ein o cing pa -
en s a egies, wi h a ocus on he pha ma indus y, and he use o indispensa-
ble asse s o block access o in e ela ed ma ke s. These issues a e discussed in
iew o hei possible applica ion o unc ional signs.
4.2.2.1. The syne gy be ween ade ma ks and pa en s
The e a e s udies ha sugges ha ade ma ks belong o ma ke -speci ic busi-
ness decisions in o de o no only cap u e inno a ion and suppo g ow h
s a egies ocused on p oduc and quali y di e en ia ion, bu also complemen
he p o ec ion o echnological inno a ion.411 Al hough no uni e sal ule ap-
plies, as he e a e many s a egic and indus y-dependen mo i a ions o iling
o ade ma k egis a ion, 412 i ms a e gene ally in e es ed in using mul iple
o ms o p o ec ion (such as pa en s and ade ma ks) in ela ion o di e -
en p oduc ea u es, in o de o enhance he economic bene i s ha can be
achie ed indi idually, complemen a ily, and a di e en momen s o ime.413
This conce ns, o ins ance, he medicine and chemical sec o s, and somewha
applies o he in o ma ion and communica ion sec o s.414
Pa en s usually play an essen ial ole in he ea ly phases o he inno a ion
alue chain, whils ade ma ks ope a ionalize la e p oduc comme cializa-
ion, 415 de elopmen o epu a ion, b and c ea ion, and ex ension o new
ma ke s416. I is acknowledged ha ade ma ks can be used o p olong, o
subs i u e o o he IPRs (e.g. in ela ion wi h small p oduc changes) – his,
in i sel , is no a nega i e hing, i ade ma ks become an indica o o inc e-
men al inno a ion417 – bu conce ns a ise when accumula ing laye s o IPRs
p o ec ion, ha is, ‘IPR s acking’418 u n in o ba ie s o en y. As a ule, he
exis ence o one IPR can a ely block new en an s – a mo e dange ous en-
411 Cha les de G azia, Amanda Mye s, And ew Toole, ‘Inno a ion Ac i i ies and Business Cy-
cles: A e T adema ks a Leading Indica o ?’ (2020) 27(2) Indus y and Inno a ion 184,
186–187.
412 Ex ensi ely and c i ically , De Gangjee, ‘T ade Ma ks and Inno a ion?’ in G aeme Din-
woodie and Ma k Janis (eds.)T adema k Law and Theo y II: Re o m o T adema k Law
(Elga 2021) a : h ps://ss n.com/abs ac =3658725
413 McKenna, ‘An Al e na i e’ (n 316) 873–884.
414 Gangjee, ibidem, 23–24.
415 Companies p io i ize ade ma ks ’ p ocu emen , so p o ec ion o packaging/ design/p od-
uc shape is gene ally sough a a la e s age o de elopmen , see Hal (n 401) 54.
416 Ca olina Cas aldi ‘On he Ma ke : Using T adema ks o Re eal O ganiza ional Asse s, S a -
egies and Capabili ies’ (Ma ch 2019) 8–9 a h p://dx.doi.o g/10.2139/ss n.3255864;
howe e , o se ice sec o s and c ea i e/cul u al indus ies, ade ma ks may subs i u e o
pa en s as ‘so inno a ion’.
417 Meinde Flikkema, Ca olina Cas aldi, A d-Pie e de Man, Ma cel Seip, ‘T adema ks’ Re-
la edness o P oduc and Se ice Inno a ion: A B anding S a egy App oach’ (2019) 48
Resea ch Policy 1340, 1341–1342 h ps://doi.o g/10.1016/j. espol.2019.01.018
418 Ca olina Cas aldi, ‘The Economics and Managemen o Non-T adi ional T adema ks’ in Cal-
boli, Sen leben (n 22) 270.
104 Func ionali y wi hin he amewo k o law and economics
i onmen is c ea ed by IPR exclusi i y in co ela ion wi h o he ac o s ha
a ec new en an s, such as inc eased p oduc ion cos s and ma ke ing ime o
dec eased p oduc unc ionali y.419
Du ing he e m o pa en p o ec ion, a combina ion wi h ade ma ks may
success ully sus ain IP compe i i e ad an ages. Geox’s s o y is an example o
he syne gy o ade ma ks wi h echnology. By cap u ing and posi ioning
speci ic p oduc unc ionali y (co e ed by pa en s on ma e ials, pa o p od-
uc s, me hods o manu ac u ing) and c ea ing in consume s’ minds eno mous
b and awa eness o he ‘shoe ha b ea hes’, hey la e expanded o o he lines
o windp oo and wa e p oo appa el and shoes.420 Ano he ype o s a egy,
ha is, ‘p oduc space packing’, consis s o using ade ma ks along wi h pa -
en s, designs, and u ili y models in o de o ill any p o i able niches o p od-
uc s in possible demand, such as he app oaches adop ed by he ma ke leade s
Kellogg in he b eak as ce eals indus y o Henkel in o de e gen s.421 B oad IP
po olios allow en i ies o choose a con enien igh om hei ‘menu’ and
en o ce i agains smalle i als, in o de o obs uc o discon inue hei ac i -
i y. I is easonable o assume ha many o he ade ma ks in e sec ing wi h
he subjec -ma e o pa en s o designs i he ca ego y o shapes o posi ion
ma ks which gene a e li iga ion upon legal g ounds ela ed o dis inc i eness
o unc ionali y. Indeed, a quick sea ch o he EUIPO da abase displays, o
ins ance, a long lis o Henkel ade ma k egis a ion/opposi ion/in alidi y
p oceedings conce ning he shapes o dishwashe able s, oile de ices, pack-
aging, as well as design p oceedings conce ning oile blocks and cosme ics
con aine s.422 To achie e s a egic le e age, a ade ma k po olio usually con-
ains signs consis ing o p oduc ea u es, because his is an e icien way o
impeding compe i o s om o e ing al e na i es o simila unc ionali y.
A e he expi a ion o a pa en , ade ma ks ein o ced by b anding s a e-
gies ensu e he main enance o highe , sup a-compe i i e p ices cha ged du -
ing he exclusi i y pe iod, which enables s ong unde akings o con inue and
ex end hei ma ke dominance.423 Se e al equen ly discussed cases ha e oc-
419 A ena, Ca e as (n 410) 148.
420 F ancesca Cecchina o, Tiziano Vesco i, ‘The Geox: The Shoe ha B ea hes’ in Byoungho
Ellie Jin, Ced ola Elena (eds.) P oduc Inno a ion in he Global Fashion Indus y (Palg a e
Macmillan 2018) 57, 66–69.
421 Ma kus Rei zig , ‘S a egic Managemen o In ellec ual P ope y’ (2004) Ap il
MIT Sloan Managemen Re iew 5–6, h ps://sloan e iew.mi .edu/a icle/
s a egic-managemen -o -in ellec ual-p ope y/
422 Among 27 ade ma k decisions see: T-393/02 (CTM 001162395); C-457/01P (CTM
000703231); EUIPO appeals R 1237/2013-1 (CTM 010401255); R 1153/2004-1 (CTM
001272541); EUIPO In . Dec. 31/08/2012 (CTM 010630317); 05/08/2004 (CTM
003024189). Among 18 design decisions see: EUIPO appeals R 2113/2015-3, T-296/17
(RCD 001663618-0003); R 2113/2015-3, T-296/17 (RCD 001663618-0003) and In .
Dec. 08/09/2006 (RCD 000387089-0002).
423 Jose D exl, ‘Real Knowledge Is o Know he Ex en o One’s Own Igno ance: On he
Consume Ha m App oach in Inno a ion Rela ed Compe i ion Cases’, MPI Resea ch Pape
Func ionali y wi hin he amewo k o law and economics 105
cu ed in he pha maceu ical indus y. Baye aspi in is a ema kable example
o how he ini ial echnological ad an age o p oducing a ‘pu e and du able
o m o ace ylsalicylic acid’ by he end o 19 h cen u y was s a egically en-
hanced o e yea s by he adema k ‘Aspi in’, and de eloped h ough con-
sume b and awa eness, loyal y, and a s able pe cep ion o supe io i y o e any
o he equi alen s. This, in u n, con e ed Baye a pe sis en ma ke sha e e en
in he coun ies whe e he ade ma k became gene ic (USA), whils in hose
whe e egis a ion was p ese ed (A gen ina, Ge many) analgesic ma ke
sha es demons a ed i s dominan posi ion.424 Baye ’s addi ional ad an ages
came om a global dis ibu ion ne wo k and high p ice posi ioning, hence
a highe absolu e p o i ma gin, which encou aged he pha macies o s ock
mo e Baye p oduc s han cheape subs i u es, gene a ing mo e demand and
consolida ing he company’s posi ion.425 Indeed, s ocking policy ep esen s a
sensi i e ac o o in luence signi ican cos sa ings in case o shi ing medicine
consump ion o lowe p iced gene ics.426
Baye ’s success ul s o y was based o he asse o a wo d ma k, as was app o-
p ia e o ha pe iod. Nowadays, he pha ma indus y complemen s business
de e ence s a egies wi h p o ec ion o ade d ess, ha is, shapes, colou s,
packaging, by means o non- adi ional signs. Because a la ge pa o US (aes-
he ic) unc ionali y cases deal p ecisely wi h he shape, size, and/o colou o
pills, 427 i is use ul o ha e a ma ke pe spec i e on his ma e .
4.2.2.2. A ocus: unc ional ade d ess as a de e en o he en y o gene ic
medicines
In he pha ma indus y he e is a clea in e dependency be ween he alue
and li ecycle o a ade ma k and an owne ’s a i udes and business s a egies,
such as he in en o gain and main ain ma ke powe .428 T ade ma ks belong
Se ies 09–15, a h p://ss n.com/abs ac =1517757, 19–20. Fo a di e en s udy sug-
ges ing ha pa en / adema k syne gy can be e iciency-enhancing (i.e. lowe p ices du -
ing pa en exclusi i y an icipa e highe p o i s du ing subsequen ade ma k p o ec ion),
Gideon Pa chomo sky, Pe e Siegelman, ‘Towa ds an In eg a ed Theo y o In ellec ual
p ope y’ (2002) Facul y Schola ship a Penn Law, 1364 h ps://schola ship.law.upenn.
edu/ acul y_schola ship/1364
424 Klaus Jennewein, In ellec ual P ope y Managemen : The Role o Technology-B ands in he
App op ia ion o Technological Inno a ion (2005 Physica Ve lag) 31–53.
425 Ibidem, 55.
426 Alexand a Came on e al., ‘Swi ching om O igina o B and Medicines o Gene ic Equi a-
len s in Selec ed De eloping Coun ies: How Much Could Be Sa ed?’ (2012) 15 Value in
Heal h, 671 h ps://doi.o g/10.1016/j.j al.2012.04.004.
427 A ul Aca ia, Ka ya Mammen, ‘Non-T adi ional T adema ks in he Pha maceu ical Sec o ’ in
Calboli, Sen leben (n 22) 274–285; I ene Calboli ‘Beyond Pa en s: The P oblems o Non-
T adi ional T adema k P o ec ion o Medicines and Heal h Technologies’ (2020) 51 IIC 1.
428 Shukh a Nasi o , ‘T adema k Value Indica o s: E idence om he T adema k P o ec ion
Li ecycle in he U.S. Pha maceu ical Indus y’ (2020) 49(4) Resea ch Policy 1, h ps://doi.
o g/10.1016/j. espol.2020.103929

106 Func ionali y wi hin he amewo k o law and economics
o a la ge p ocess o ‘li ecycle managemen ’ which e e s o he subsequen
pa en ing o mino a ia ions o he o iginal ac i e pha maceu ical ing edien
(i.e. seconda y pa en s), o adding o he o ms o exclusi i y, in o de o s i le
compe i o access o he ma ke – i hey a e unde aken by he o igina ing
company, such p ac ices a e known as ‘e e g eening’.429 T ade ma ks suppo s
he p ac ice o in oducing pa en a ian s oge he wi h new b ands ha ben-
e i om, and/o supe sede consume s’ loyal y owa ds olde b ands, so as o
main ain p emium p ices.430 E en in ela ion o wo d ma ks, because o ex e -
nal egula ions a ound chemical and gene ic names which c ea e di icul ies
when de eloping a d ug’s b and name, companies use he ac ic o p e-emp-
i e egis a ion o block he access o compe i o s o aluable ade ma ks.431
Howe e , i is he p o ec ion o ade d ess ha has become he main s a-
egic ool o con olling consume p e e ences. One eason o his is ha in
he US, unlike in he EU, p esc ip ion d ugs a e epackaged by pha macies
be o e being sold o pa ien s, so consume s canno ely on wo d and g aphic
ade ma ks a ixed on packaging, bu mos ly on he appea ance o he d ug
i sel . Repea ed habi s a e impo an , he e o e a colou ul and appealing look
o a daily pill makes i easy o emembe and i a ionally bonds consume s
o ha pa icula b and. An impo an s udy by Hannah B ennan a gues ha
consume s and doc o s p e e b anded d ugs o gene ics because he com-
plex b anding s a egies, especially he hea y ad e ising o ade ma ks, c e-
a e ‘a i icial di e en ia ion’ based on he alleged supe io i y o he o igina o
b anded d ug.432 Ano he s udy a gues ha pa ien s subjec o di ec ad e is-
ing ha e an in luence on p esc ip ion d ug demand, as doc o s willingly p e-
sc ibe medicine ha a pa ien has lea n abou and expec s o ecei e.433
429 Robin Feldman , ‘May You D ug P ice be E e g een’ (2018) Jou nal o Law and he Bio-
sciences 590, 596; Chie Hoon Song, Jeung-Whan Han, ‘Pa en Cli and S a egic Swi ch:
Explo ing S a egic Design Possibili ies in he Pha maceu ical Indus y’ (2016) 5 Sp ing-
e Plus, 692, 6–11 h ps://doi.o g/10.1186/s40064-016-2323-1; Hazel Moi , Luigi
Palombi, ‘Pa en s and T adema ks: Empi ical E idence on “E e g eening” om Aus alia’,
2013, pape p esen ed a 4 h Asia-Paci ic Inno a ion Con e ence, Na ional Taiwan Uni e -
si y, h ps://open esea ch- eposi o y.anu.edu.au/handle/1885/11418?mode= ull, 1–3; C.
Sco Hemphill, Bha en N. Sampa , ‘E e g eening, Pa en Challenges, and E ec i e Ma ke
Li e in Pha maceu icals’ (2012) 31 Jou nal o Heal h Economics 327, 328. Some imes he
o igina o decides o p o ide hei own gene ics and posi ions hem ad an ageously agains
o he gene ics, c . Hemphill, ‘In ellec ual …’ (n 345) 891–892 discussing wi hd awals and
‘p oduc swi ch’.
430 Song , Han, ibidem, 12 (see able); Moi , Palombi, ibidem, 4–5. Some imes he new b and
‘cannibalises’ he olde one, bu equen ly ‘ ace-li ing’ he o iginal b and wi h le e s o
wo ds (such as adding ‘XR’ o ‘Plus’) su ices o u he exploi ing he b anding bene i s.
431 Nasi o (n 428) 7.
432 Hannah B ennan, ‘The Cos o Con usion: The Pa adox o T adema ked Pha maceu icals’
(2015) 22 Mich. Telecomm. Tech. L. Re . 1. Doc o s a e also encou aged o p esc ibe
b anded d ugs, which i sel inc eases pa ien s’ ce ain y o he d ug’s e ec i eness.
433 Anish V aishna , ‘P oduc Ma ke De ini ion in Pha maceu ical An i us Cases: E alua ing
C oss-P ice Elas ici y o Demand’ (2011) Colum Bus L Re 586, 599–601.
Func ionali y wi hin he amewo k o law and economics 107
In eali y, gene ics mus be bio-equi alen in o de o ge ma ke app o al,
he e o e a gumen s abou lowe he quali y and p esumably wo se manu ac-
u ing condi ions o gene ics a e no sus ained by clea p oo (such as inspec-
ion o acili ies).434 When compe i o s a e o ced o change he appea ance o
a gene ic d ug because he o iginal o m is co e ed by a ade ma k, he e a e
p oo s o educed adhe ence om he pe spec i e o ulne able pa ien s who
conside ed he change in appea ance con using.435 The e is also a educ ion
in d ug e ec i eness ia placebo e ec s, because pa ien s usually mis us any
change and doub he quali y o a gene ic.
In many cases, ade-d ess p o ec ion con ibu es o a sel - ul illing my h o
he supe io i y o a pa icula b and o e any o he subs i u e, which allows
he igh s holde o main ain highe p ices and e enues. A p ominen exam-
ple is he amous ‘Pu ple Pill’ o As aZeneca, used o he d ug omep azole
and sold unde he name P ilosec – he wo ld’s op-selling d ug in 2000, and
la e eplaced (ye no ‘cannibalised’) by he new pa en ed e sion o he ac-
i e enan iome , named ‘Nexium’. The new d ug, d essed as a new e sion
o he exis ing pu ple pill, enjoyed he shi o epu a ion, b and salience and
consume loyal y om P ilosec and main ained i s sales le el o a pe iod o en
yea s a e he expi a ion o he i s pa en on omep azole.436
As he US ju isp udence has con i med, in speci ic ci cums ances he unc-
ionali y doc ine p e en s he con e ing o en o cing o ade ma k p o ec-
ion o ea u es o appea ance o a d ug o pu poses ela ed o he use o he
e ec i eness o a d ug (Chap e s 3, 6, and 8). Simila applica ion may occu
unde he EUTM, now ha he ewo ded unc ional excep ions encompass
colou s, alone o wi hin combina ions o o he kinds o p oduc ea u es.
4.2.2.3. Func ional ea u es as ‘indispensable’ asse o ollow-on ‘new
p oduc s’
I is gene ally accep ed ha p o ec ing a p oduc ’s unc ionali y ia IPRs a -
ec s p oduc subs i u abili y, especially when coupled wi h b and loyal y and
sale s a egies ( eba es, ying/bundling). This is e en mo e ue when he p o-
ec ed asse is essen ial o he unc ioning o o he p oduc s/se ices. Some
asse s physically connec p oduc s, o he s simply embody he ea u es o in-
o ma ion ha need o be copied/ ans o med o de elop ollow-on p oduc s.
Legal exclusi i y o e he asse enables he igh s holde o ans e a ious
434 B ennan (n 432) 19–24. Fo an a gumen abou he lack o quali y assu ance om gene ic
manu ac u e s, Richa d Posne , ‘In ellec ual P ope y: The Law and Economics App oach’
(2005) 19 Jou nal o Economic Pe spec i es 57, 67.
435 B ennan (n 432) 33–35; Moi , Palombi (n 429) 17 e e ing o an Aus alian ial conce n-
ing a ian s o he an i-dep essan d ug E exo , in which he cou jus i ied an injunc ion
agains a gene ic upon e idence ha men ally ill pa ien s we e con used abou swi ching o
a medica ion o a di e en appea ance.
436 B ennan (n 432) 27–29; Moi , Palombi (n 429) 27–31; Song, Han (n 429) 7.
108 Func ionali y wi hin he amewo k o law and economics
bene i s gene a ed in he o iginal ma ke o he co e p oduc , o o he in-
e ela ed, downs eam ma ke s, such as consolida ing hei posi ion on he
exis ing ma ke , acili a ing en y o a new ma ke , o b inging in addi ional
e enues. A classic example ep esen s o iginal spa e pa s and/o add-on ac-
cesso ies, as compa ed o independen ly manu ac u ed pa s.437 Mo e ecen
e olu ionizing examples cons i u e ‘sma connec ed p oduc s’, comp ised
o so wa e and connec i i y componen s enabling hei unc ioning wi hin
an ‘In e ne o Things’ ne wo k (e.g. he Bose wi- i sys em, coupled wi h a
p oduc cloud which allows music s eaming o e he In e ne , o Tesla ca s
which ha e so wa e connec ed o a moni o ing sys em unning emo e se -
ices and upg ades).438 P oduc s anda diza ion and connec i i y amoun o a
dis up i e wa e o ‘IT d i en ans o ma ion’ which changes bo h he ex e -
nal compe i ion en i onmen and he in e nal o ganiza ion o manu ac u ing
companies.439 This ende s opical he issue o how o p o ec such aluable
asse s by means o IPRs, and in which condi ions hey should be made a ail-
able o compe i o s. The e is a huge a ea o law dealing wi h he condi ions in
which pools o s anda dized essen ial pa en s – ins umen al o global in e -
ope abili y echnologies such as Wi-Fi, USB, 4G, o Blue oo h – a e licenced
upon ‘ ai ’, ‘ easonable’, and ‘non-disc imina o y’ (FRAND) e ms, se by he
s anda d-de elopmen o ganiza ions.440 I is beyond his chap e o engage in
a discussion, bu he e i will be no ed ha compa ibili y can be essen ial o
a ious indus ies, and, apa om pa en s on p oduc s o p ocesses, p od-
uc appea ance may be co e ed by designs o unc ional ade ma ks, which
equally se e o block compe i o s’ access o p oduc ea u es. The pu pose o
his pa is o explo e he gene al guidance ha EU compe i ion ‘ e usal o
license/deal’ cases – conce ning asse s held essen ial o supplying p oduc s
o se ices on in e - ela ed ma ke s – ha e con e ed on he c i e ia o ‘new
p oduc ’ and ‘indispensable’ cha ac e (o he asse ), in o de o hypo he ically
conside he si ua ion o p oduc unc ionali ies co e ed by ade ma ks.
S a ing om he p inciple ha owning and exe cising an IPR is no abu-
si e pe se, e en o an unde aking wi h a dominan posi ion, he CJEU laid
down he ‘excep ional’ ci cums ances when a e usal o licence cons i u ed an
437 Lau e Schulz, ‘The Economics o A e ma ke s’ (2015) 6 JECL&P 123.
438 Michael Po e , James Heppelmann, ‘How Sma Connec ing P oduc s a e T ans o m-
ing Compe i ion’ (2014) 11 Ha a d Business Re iew, h ps://hb .o g/2014/11/
how-sma -connec ed-p oduc s-a e- ans o ming-compe i ion
439 Michael Po e , James Heppelmann, ‘How Sma Connec ing P oduc s a e T ans o m-
ing Companies’ (2015) 10 Ha a d Business Re iew, h ps://hb .o g/2015/10/
how-sma -connec ed-p oduc s-a e- ans o ming-companies
440 Ra ał Siko ski, ‘Access o S anda d Essen ial Pa en s and An i us En o cemen : The Case
o Licensing Componen Manu ac u e s’ (2020) 82(2) RPEiS 19, 20–31; Jo ge Con e as,
‘Global Ra e Se ing: A Solu ion o S anda ds-Essen ial Pa en s?’ (2019) 94 Wash. L. Re .
701, 713–721; on classi ica ion o s anda ds and se ing o ganisa ions, Alexand a Kuźnicka-
Cholewa, S anda yzacja nowych echnologii – jej wpływ na zak es swobody wykonywania
up awnień z pa en u (Wa szawa C.H. Beck 2022) 9–47.
Func ionali y wi hin he amewo k o law and economics 109
abuse o dominan posi ion. The lagship uling IMS Heal h, 441 which buil
no ably on Magill, 442 and Osca B onne , 443 o mula ed he ollowing e-
qui emen s: (i) he p o ec ed asse was indispensable o compe e in a ma ke ;
(ii) he e usal p e en ed he appea ance o a new p oduc /se ice o which
he e was po en ial consume demand; (iii) he e usal had no objec i e jus i-
ica ions; and (i ) i es ic ed/excluded compe i ion in he seconda y ma ke .
The ‘new p oduc ’ equi emen eme ged in he Magill case, in which ac-
cess was e used o copy igh ed in o ma ion abou indi idual TV p og ammes,
necessa y o compiling a comp ehensi e weekly TV guide. Such a p oduc
had no p e iously exis ed, as iewe s accessed only lis ings o indi idual s a-
ions, i was no o e ed by he IP holde , and me a ‘speci ic, cons an and
egula po en ial’ consume demand.444 The IMS Heal h judgmen (conc.
copy igh o e a da abase con aining pha maceu ical sales da a ga he ed om
local Ge man pha macies acco ding o a ‘b ick s uc u e’ buil upon geo-
g aphical sec o s) emphasized he speci ici y o he new p oduc h ough i s
di e en na u e, unde s ood as no duplica ing p e-exis ing goods/se ices.445
AG Tizzano indica ed ha al hough he compa ed p oduc s could be in pa -
ial compe i ion due o a limi ed deg ee o subs i u abili y, he new p oduc
should answe new consume needs, unsa is ied by he exis ing o e .446 One
di e gen commen a o no ed ha in he IMS case, compe i o s we e no in-
e es ed in making a di e en al e na i e, bu in copying he exis ing p oduc ,
hus o cing p ice compe i ion.447 An in e es ing de elopmen was b ough by
he Mic oso judgmen , which ound abusi e he e usal o sha ing in e ope a-
bili y in o ma ion wi h compe i o s in he wo kg oup se e ope a ing ma ke ,
e en i no pa icula new p oduc had been iden i ied, as long as he conduc a
issue limi ed ‘ echnical de elopmen ’.448 In o he wo ds, Mic oso ’s ‘a i icial
in e ope abili y ad an age’ and ma ke posi ion discou aged compe i o s om
de eloping al e na i e se e ope a ing sys ems.
The equi emen o an ‘indispensable’ cha ac e o he asse ( o con-
duc ing business ac i i ies on he seconda y ma ke ) ep esen ed a key issue
known as he ‘essen ial acili ies’ doc ine.449 The B onne case b ough im-
po an explana ions, howe e , i did no deal wi h IPR. The case conce ned
441 C-418/01 IMS Heal h . NDC Heal h, EU:C:2004:257, pa as 49–52.
442 Join ly C-241/91P, C-242/91P RTE and ITP . Commission (Magill) EU:C:1995:98.
443 C-7/97 Osca B onne . Mediap in , EU:C:1998:569.
444 C-241/91P, C-242/91P Magill, pa as 52–54.
445 C-418/01 IMS, pa a 49.
446 C-418/01 IMS Opinion, EU:C:2003:537, pa as 62, 66.
447 Jose D exl, ‘In ellec ual P ope y and An i us Law: IMS Heal h and T inko – An i us
Placebo o Consume s Ins ead o Sound Economics in Re usal- o-Deal Cases’ (2004) 35
IIC 788, 799–800.
448 T-201/04 Mic oso . Commission, EU:T:2007:289, pa as 653–665. Ano he ype o abuse
conce ned bundling se ices: in he media playe ma ke , Mic oso ied he media unc ion-
ali y o Windows Media Playe o hei Windows PC ope a ing sys em.
449 Maggiolino (n 356) 141–179.
116 Func ionali y wi hin he amewo k o law and economics
be associa ed wi h a b and, i m, o a ade ma k and gene ally encompasses
a se o posi i e alues, e ealed by ‘ a ou able men al s a es’ ha de e mine
consume s o epe i i e pu chase habi s.482 Goodwill is linked o epu a ion,
as enhanced by he capabili y o a ade ma k o ensu e consis en quali y o
goods and acqui e epu a ion ia ad e ising, communica ion, and in es men
unc ions – ne e heless, he goodwill o a business is mo e han he epu a-
ion o an indi idual asse ( ade ma k). I is impo an o no e ha accoun -
ing s anda ds alue goodwill di e en ly han he alue o ade ma ks/b ands
(4.3.2.2.).
Unde EUTM, epu a ion is a p e equisi e o g an ing enhanced ade
ma k p o ec ion beyond he con usion o o igin and ou side he p inciple o
speciali y agains speci ic o ms o use, ha is, one ha akes un ai ad an age
o , o is de imen al o, he dis inc i e cha ac e o he epu e o a ade ma k
– he law p o ides o an in ingemen g ound and o a ela i e g ound o
e usal o in alidi y o a ade ma k.483 This special egime aims o p o ec
egis e ed ade ma ks ha ha e de eloped a epu a ion and supe sedes he
p e ious means o p o ec ion in EU coun ies, which mos ly elied on ade
ma k claims based on dilu ion o ci il law o liabili y.484 The egime is com-
plian wi h A . 16(3) TRIPS and di e s om he model o p o ec ing well-
known ma ks se o h in A . 6bis o he Pa is Con en ion. The la e model,
al hough implemen ed much ea lie , only p o ec s un egis e ed ade ma ks
wi hin he p inciple o speciali y and agains egis a ion o use by hi d pa ies
o iden ical o simila signs o iden ical/simila goods o se ices in case o a
likelihood o con usion.485
Some doub s conce ned he in e ac ion, especially he di e ences be ween
he concep s o ‘well-known’ and ‘ epu a ion’. The o me was linked o no-
o ie y, ha is, being known by pa s o he public, whils he la e seemingly
ela ed o he ‘independen a ac i eness’, ‘ad e ising alue’, ‘ he quali y’ o
a ade ma k.486 A ha ime p o esso Ku had al eady opined ha ‘some
deg ee o enown’ among he public could be equi ed o p o e epu a ion,
482 Ex ensi ely, Robe Bone, ‘Hun ing Goodwill: The His o y o he Concep o Goodwill in
T adema k Law’, 2006 Bos on Uni e si y Law Re iew 547, 549–554; 569–572. P o esso
Bone conside s goodwill an ‘amo phous, abs ac ’ no ion (a 583), a iously de ined by law-
ye s, economis s, accoun an s, which aises di icul que ies as o he kind o ‘p ope y’ ha i
ep esen s, i s sou ce and link wi h o he business asse s, i s ans e abili y condi ions (usually
upon he sale o he business), and he means o enjoying ade ma k p o ec ion.
483 A s. 8(5) and 9(2(c) o EUTMR and A s. 5(3)(a) and 10(2(c) o TMD.
484 Compa a i ely, Michal Bohaczewski, Special P o ec ion o T ade Ma ks wi h a Repu a ion
unde Eu opean Union Law (Wol e s Kluwe 2020) 10–30.
485 The p o ec ion was in oduced by he Hague Con e ence o 1925 (wi h amendmen s) ini-
ially only o co e goods, c . Bodenhausen (n 61) 92, whe eas A . 16(2) TRIPS ex ended
i s scope o include se ices.
486 Anne e Ku , ‘Well-Known Ma ks, Highly Renowned Ma ks and Ma ks Ha ing a (High)
Repu a ion Wha ’s I All Abou ?’ (1992) IIC 218, 224–227.

Func ionali y wi hin he amewo k o law and economics 117
487 an issue la e con i med by he CJEU, which a ou ed a quan i a i e ap-
p oach.488 Repu a ion has been de ined upon he knowledge o a ade ma k
by a ‘signi ican pa ’ o he ele an public, and no h ough a quali a i e as-
sessmen indica ing posi i e associa ions o a speci ic ‘image’ acqui ed in he
cou se o ade.489 Due o simila quan i a i e c i e ia being used bo h o de-
ining well-known ma ks and ma ks wi h epu a ion, he di e ences be ween
hese wo egimes pe ain mos ly o he ype and scope o p o ec ion a o ded,
490 which diminishes he p ac ical impo ance o well-known ma ks as com-
pa ed o hose wi h epu a ion.491
Al hough he CJEU does no equa e epu a ion wi h uniqueness, o igi-
nali y, exclusi e image, o o he quali a i e indica o s o a ade ma k, no-
o ie y amongs he ele an public mus imply posi i e consume eedback:
he public we e able o lea n abou he ade ma k ei he ia pe sonal expe-
ience (plausibly, epea ed pu chases) o h ough he e ec s o p omo ion,
which, pe se, bols e s and dissemina es he a ac i eness o ha ma k agains
o he . P o esso G i i hs no ed ha a ade ma k, ha ing been unc ioning
on he ma ke and ‘ ecognised’ by consume s, unde goes a ans o ma ion
and acqui es ‘ epu a ion’. This epu a ion is a conglome a e o in o ma ion
conce ning quali y and p oduc cha ac e is ics, ‘encapsula [ing] consume s’
expec a ions o hese p oduc s based on hei collec i e expe ience and o he
in o ma ion a ailable o hem’.492 I i is no p es ige and ame, bu consis en
quali y le el and consume p edic able expec a ions o he adema ked goods/
se ices ha de e mine epu a ion, hen ‘e e yday consume p oduc s, which
a e a ely associa ed wi h excellen quali y, can also be quali ied as epu ed’.493
Howe e , doub s emain as o wha ex en posi i e messages – hose ha may
be summed up as he ‘a ac i eness’ o a ade ma k – cons i u e an essen ial
laye o epu a ion. To make hings mo e complica ed, wha i a ade ma k
se es as he co e o a b and, o is a b and? Would epu a ion mean some hing
di e en o he o he posi i e componen s ha de ine he b and?
These conce ns ha e been exace ba ed by he EUTM en o cemen p ac-
ice ha has de eloped new ypes o ade ma k unc ions akin o b and-
ing. In ela ion o high-class/luxu y goods, he CJEU has al eady based he
‘ alue’ o a ade ma k upon he ‘allu e’, ‘au a o luxu y’, ‘p es igious image’ o
goods, which equi ed p o ec ion unde he adi ional quali y o ad e ising
487 Ibidem, 228.
488 C-375/97 Gene al Mo o s . Yplon, EU:C:1999:408.
489 Sen leben , in Ku , Sen leben (n 24) pa as 5.193–5.204; Ku in Ku , Sen leben (n 24) pa as
4.411–4 discussing a g adual scale wi h well-known and amous ma ks.
490 As indica ed, epu a ion p o ec s egis e ed ade ma ks, wi h espec o iden ical/simila
signs e en when applied o dissimila goods/se ices.
491 Bohaczewski (n 484) 70–75, indica ing he use ulness o elying on well-known ma ks in
case o ‘ in age’ signs ha may be e oked o non-use easons.
492 G i i hs (n 33) 111.
493 Bohaczewski (n 484) 46.
118 Func ionali y wi hin he amewo k o law and economics
unc ion.494 Subsequen ly, a new ‘communica ion’ unc ion add essed he ca-
paci y o a sign o communica e ‘impo an ’ messages (i.e. posi i e associa-
ions), by cap u ing he ma ke ing e o s aimed a building a b and ‘image’.495
A e wa ds, he ‘in es men ’ unc ion eme ged as ‘acqui ing o p ese ing a
epu a ion capable o a ac ing consume s and e aining hei loyal y’ ia ad-
e ising o o he comme cial echniques.496 The CJEU con ended ha any
kind o ade ma ks, no necessa ily jus hose wi h epu a ion, was capable o
pe o ming he communica ion and/o in es men unc ions.497
These ulings ha e mingled epu a ion wi h he o he alues and associ-
a ions cha ac e izing b ands in a way ha i is di icul o ell wha ‘ alue’
is a s ake. Schola s a gue ade ma ks ha e acqui ed au onomous alue in
need o p o ec ion.498 Howe e , b anding echniques (especially pe suasi e
ad e ising) make consume s assign alue o a ibu es, ha is, p oduc ‘a -
mosphe ics’499 ha a e, p edominan ly, un ela ed o quali y and eal p oduc
di e en ia ion. These alues in e connec and me amo phose o ensu e he
speci ic pe sonali y o a p oduc .500 This was, and s ill is, he quin essence o
b anding. Fo example, an olde su ey showed how b anding was p ima ily
e e ed o as ‘ alues’ and ‘pe sonali y’, and o a lesse ex en ‘accumula ed
weigh o goodwill’.501 Recen ly, ano he s udy showed ha ‘b and expe i-
ence’ (in e ms o being unique, memo able, o supe io ) de e mines mos
o he pe cei ed alue o a b and o consume s.502 Al hough concep ually
he e a e di e ences be ween ade ma ks and b ands, he alues unde lining
494 C-337/95 Dio . E o a ECLI:EU:C:1997:517, pa a 45; C-59/08 Copad . Dio
ECLI:EU:C:2009:260, pa as 24–26; Se ille (n 39) 361–362.
495 C-487/07 L’O éal . Bellu e ECLI:EU:C:2009:378, pa as 49–50; Opinion AG Mengozzi
ECLI:EU:C:2009:70, pa a 54.
496 C-323/09 In e lo a . Ma ks & Spence , ECLI:EU:C:2011:604, pa as 62–63. Fo a
b oade discussion o applying he ‘ unc ions heo y’ in p ac ice and in e e ence wi h do-
mes ic ules o un ai compe i ion law, see Anne e Ku , ‘T adema ks Func ion, Don’ They?
CJEU Ju isp udence and Un ai Compe i ion P ac ices’, Max Planck Ins i u e o Inno a ion
& Compe i ion Resea ch Pape No. 14–05, a h ps://ss n.com/abs ac =2401536, 10 .
497 C-323/09 In e lo a, pa a 40.
498 Michel V i an , ‘Re isi ing T ade Ma ks’ (2013) 3(4) Queen Ma y Jou nal o In ellec ual
P ope y 307, 310–311.
499 This e m belongs o Jessica Li man, ‘B eak as wi h Ba man: The Public In e es in he Ad-
e ising Age’ (1999) 108 Yale L.J. 1717, 1726–1730. Discussing ad e ising agencies’ ole
on he ade ma ks/b ands ela ionship, Pa icio Sáiz, Ra ael Cas o, ‘T adema ks in B and-
ing: Legal Issues and Comme cial P ac ices’ (2018) 60 Jou nal o Business His o y 1105.
500 And ew G i i hs, ‘B ands, “Weigh less” Fi ms and Global Value Chains: The O ganisa ional
Impac o T ade Ma k Law’ (2019) 39 Legal S udies 284, 293.
501 Che na ony, Riley (n 467) 432.
502 Klaus-Pe e Wiedmann e al., ‘The Powe o Expe ien ial Ma ke ing: Explo ing he Causal
Rela ionships among Mul isenso y Ma ke ing, B and Expe ience, Cus ome Pe cei ed Value
and B and S eng h’ (2018) 25(2) J B and Manag 101, 105 – he e discussing he s a egy o
mul isenso y ma ke ing in he luxu y ho els business.
Func ionali y wi hin he amewo k o law and economics 119
each o hem end o mix and o e lap o e ime.503 Fo hese easons, dis-
cussing he alue o ade ma ks by using b anding concep s b ings unclea
ou comes. Addi ionally, i he e is a need o di e en ia ing epu a ion and
i s alue wi hin o e all ade ma k alue and b and componen s, hen he ask
g ows immensely, and may be un easible.
4.3.2. The mul i- ace ed ‘ alue’ o a b and
A b and ep esen s a comme cial no ion, no a legal one. The alue o a b and
is cap u ed by he e m ‘b and equi y’, meaning ‘ he economic alue o a b and
as a sou ce in he c ea ion o alue o b and owne s’.504 The ollowing pa
i s explo es how ma ke ing places b and image and epu a ion amongs he
o he compo men s o b and alue. A complimen a y app oach discusses
whe he inancing and accoun ing s anda ds cap u e he alue o b and image
and epu a ion when alua ing ade ma ks and b ands. A inal poin accen u-
a es he signi icance o consume inpu in b and c ea ion and alua ion.
4.3.2.1. B and image – A ma ke ing iew
Amongs a ious ways o measu ing b and equi y, ma ke ing mos ly uses con-
sume pe cei ed alue, de ined as he di e en ial impac o ‘b and knowledge’
ha a b anded p oduc has on indi idual consume as compa ed o a non-
b anded one.505 B and knowledge is de ined by wo majo componen s: b and
awa eness and b and image.
‘B and awa eness’ e e s o he s eng h o a b and in he memo y o a cus-
ome , es ed on wo on lines: ecognizing a b and when con on ed wi h
i amongs o he compe ing b ands – called ‘b and ecogni ion’ – and ecall-
ing a speci ic b and while b owsing di e en p oduc s o expe iencing speci ic
needs, ‘b and ecall’.506 This capabili y depends on a b and’s salience, ha is,
he ans e o posi i e in o ma ion ac oss p oduc ca ego ies. ‘B and image’
occu s la e based on b and awa eness. B and image is abou consume s’ pe -
cep ions and associa ions, he meaning o a b and o cus ome s, how hey
see and eel abou i .507 The bundle o posi i e associa ions (ca ego ized as
503 Jenni e Da is, ‘The Value o T ade Ma ks: Economic Asse s and Cul u al Icons’ in Ysolde
Gend eau (ed.) In ellec ual P ope y: B idging Aes he ics and Economics (Mon eal 2006)
110–125; Jona han Sch oede , ‘B and Cul u e: T ade Ma ks, Ma ke ing and Consump ion’
in Ben ly, Da is, Ginsbu g (n 294) 161–176 seeing b ands as ‘combina ion o s a egy, cul-
u e and consume imagina ion’ (a 176).
504 Neil W ilko , ‘B anding, Co-b anding and Inno a ion: Expec a ions and Limi a ions’ (2018)
13 JIPL&P 611–612, 614 (ci a ion).
505 Fo a seminal wo k, Ke in Lane Kelle , ‘Concep ualizing, Measu ing, and Managing Cus-
ome -Based B and Equi y’ (1993) 57(1) Jou nal o Ma ke ing 1, 8–9.
506 Ibidem, 3.
507 Ibidem, 3–4.
120 Func ionali y wi hin he amewo k o law and economics
a ibu es, bene i s, a i udes) in e ac ecip ocally and should be ‘ a ou able’,
‘s ong’, and ‘unique’ in o de o induce consume loyal y and inc ease he
p obabili y o b and choice.508 O e all, his ma ke ing model conside s b and
equi y as a ‘mul idimensional concep ’ ha depends on he b and ‘knowledge
s uc u es’ exis ing in consume minds, and on an unde aking’s ac ions capi-
alizing on hese knowledge s uc u es.509 S ic ly speaking, b and equi y does
no include epu a ion as a dis inc componen .
A emp ing an analogy, i he ade ma k concep s o ecogni ion and epu-
a ion we e o i in o his model, ecogni ion would mean he iden i ica ion o
a ma k/b and among o he b ands on he ma ke , 510 whils epu a ion would
lie close o b and image and deal wi h consume belie s and pe cep ions
abou he ma k/b and.511 Howe e , i would be e y di icul o gauge he
di e ences be ween epu a ion and b and image (as pa o b and expe ience),
much less hei in insic alue (see 4.3.1.2.). The e a e s udies ha use hese
wo concep s, albei wi hou clea delinea ion. Fo example, he WIPO Repo
on b ands ook a wo-dimensional app oach ocused on ‘ epu a ion’ and ‘im-
age’. I desc ibed epu a ion in he con ex o ‘quali y, unc ionali y, eliabili y
and o he a ibu es’, whils ‘b and image’ ia examples o ‘luxu y, endiness
o social esponsibili y’.512 The Repo acknowledged ha success ul b anding
s a egies ‘combine[d] epu a ion and image in such a way ha ein o ce[d]
each o he and appeal[ed] o a a ie y o consume s as es’.513 In he au ho ’s
opinion, he Repo illus a es how di icul is o concep ually sepa a e epu a-
ion om b and image, especially i epu a ion is unde s ood h ough a se o
b and componen s ha ac ually pe ain o he ealm o ‘b and image’.
4.3.2.2. Valua ion o ade ma ks and b ands – a inancial and
accoun ing iew
Sea ching o he alue o a ade ma k and i s epu a ion needs ac s and
igu es, which b ings o mind he inancial eco ds o companies. Se e al di -
icul ies appea . Such documen s usually show an agg ega e o all ade ma ks,
which may obs uc iden i ying he alue o each ade ma k. Ano he gene al
issue is ha co po a e g oup epo s ea u e li le anspa ency conce ning
he ype and ex en o IPRs alloca ed be ween he pa en and he di e en
subsidia y holding companies.514 The way economis s assess ade ma k alue
508 Ibidem, 8.
509 Ibidem, 14.
510 Unless ecogni ion is equa ed wi h epu a ion measu ed upon public awa eness.
511 Al hough CJEU ejec s a quali a i e s anda d, see 4.3.1.2.
512 WIPO Repo 2013: B ands – Repu a ion and Image in he Global Ma ke space, 21 (he ea -
e WIPO Repo ) a www.wipo.in /publica ions/en/de ails.jsp?id=384
513 WIPO Repo , 114.
514 Janice Denoncou , ‘Company Classi ica ion Taxonomy and Co po a e In ellec ual P ope y
Righ s Owne s’ in Daniel Ge ais (ed.) The Fu u e o In ellec ual P ope y (Elga 2021) 55,
69–72.
Func ionali y wi hin he amewo k o law and economics 121
does no ell us much abou he alue o epu a ion alone. Al hough ade
ma ks as epu a ional asse s ie in o b and alua ion, he dissonance be ween
he accoun ing s anda ds o calcula ing b and alue and he ma ke ing/man-
agemen pe spec i e on b and alua ion c ea es di icul ies when disen angling
and quan i ying b and image, goodwill, much less epu a ion. The ollowing
ema ks a emp o ou line hese issues.
Economic s udies demons a e ha when in angibles a e e alua ed o he
pu pose o de e mining he alue o a company, he inancial ma ke s mos ly
ocus on knowledge asse s, ha is, R&D in es men s and pa en s due o hei
p ospec i e e u ns on in es men han on ade ma ks.515 When e alua ion
includes ade ma ks, he indica o s used o de e mining he alue o a ade
ma k a e he ollowing: he Nice Classi ica ion o co e ed goods/se ices (in-
dica ing he ‘b ead h’ o a ade ma k); he numbe o p e ious iden ical/
simila egis a ions in o he ju isdic ions ( hese ‘senio i ies’ indica e consume
amilia i y wi h he ade ma k); he numbe o opposi ions lodged agains
i als ( he g ea e he endency o de end a po olio, he mo e aluable i
becomes); he numbe o opposi ions ecei ed om i als.516 The e a e s ud-
ies ha see ade ma ks as ‘indica o s o epu a ional asse s’, 517 which means
ha epu a ion in luences he ma ke alue, howe e , epu a ion on i s own
is no a quan i ied, leading ac o o measu emen . I is also a gued ha ade
ma ks combined wi h s ong b anding in es men c ea e a ‘ma ke o b ands’,
as ade ma ks become ex ensi ely aded commodi ies.518 Simila ly, inancial
ma ke s a ou ade ma ks ha de elop exis ing b ands, especially when u-
u e cash lows a e expec ed om b and ex ensions.519 In ce ain indus ies
ade ma ks can accoun o a signi ican sha e o a i m’s ma ke alue, also
depending on hei ela ionship wi h b anding s a egies.520 In he au ho ’s
opinion, hese s udies sugges ha when ade ma ks con ibu e o a i m’s
alue, hen alua ion does no desc ibe he alue o ade ma ks alone, e en
less so hei epu a ion, bu ins ead exis s in ega d o he de eloped b ands.
As conce ns b and alua ion, his ask is he ha des , because adi-
ional ax/accoun ing me hods do no cap u e he essence o a b and and
i s eal alue. B ands, quali ied by accoun ing as ‘non- ecognisable’/‘sel -
c ea ed’/‘in e nally gene a ed’ in angible asse s, canno appea in he balance
shee and a e no dis inguished om he cos o de eloping he o e all business
515 Sandne (n 399) 35–39 wi h e e ences.
516 Ibidem, 37, 44–47.
517 Ca olina Cas aldi ‘All he G ea Things You Can Do wi h T adema k Da a: Taking S ock and
Looking Ahead’ (2020) 18(3) S a egic O ganiza ion 472, 474.
518 Ibidem, 478.
519 Joe n Block, Ch is ian Fisch, Philipp Sandne , ‘T adema k Families: Cha ac e is ics and Ma -
ke Value’ (2014) 21(2) Jou nal o B and Managemen 151, 167.
520 Ma ini Dosso, An onio Vezanni, ‘Fi m Ma ke Valua ion and In ellec ual P ope y Asse s’
(2020) 27(7) Indus y and Inno a ion 705, 720–723 discussing he signi icance o ade
ma ks o au omobiles, compu e s, and pha maceu icals.

122 Func ionali y wi hin he amewo k o law and economics
ac i i y – any b and in es men is deduc ed om income and conside ed ‘cu -
en expenses’.521 F om an economic s andpoin , hough, b ands cons i u e
asse s b inging u u e bene i s.522 Accoun ing equi es disclosu e o he b and
alue in he balance shee only in case o me ge s o acquisi ions.523 Fo such
ansac ions, he alue o an acqui ed b and is de e mined by ha pa o he
p ice exceeding he ai ma ke ne alue o iden i iable asse s, shown in he
balance shee unde he e m o ‘goodwill’. Accoun ing unde s ands ‘goodwill’
as a miscellaneous ca ego y comp ising in angible asse s alloca ed o i e b oad
ca ego ies, one being ‘ma ke ing asse s’, such as ade ma ks and b ands.524
The e is much c i icism agains aluing b ands unde goodwill. Fo ins ance,
he alue o acqui ed goodwill is ixed a he poin o acquisi ion; he e o e,
i canno cap u e he possible inc ease o b and alue o e ime.525 Ano he
p oblem is ha i he p ice paid o sha es is less han he book alue, he e is
no goodwill, so no b and alue is included.526
The di icul y o cap u ing he alue o b ands ac oss he di e en s ages o
business ac i i y has p omp ed managemen specialis s o ad ance new pe -
spec i es. ‘Finance should ecognize ha b and is abou alue c ea ion. B ands
exis in he minds o a ge ed cus ome s. They a en’ some hing a company
owns. A b and is he alue ha a cus ome adds o he in insic alue o a
p oduc ’527. This subjec i e consume alue can be ans o med in o inancial
esou ces o a company, especially i business ac i i ies a e ocused on pe o -
mance, in es men and main aining consume s’ loyal y. A b and is conside ed
an in angible inancial asse ha a company ‘con ols’ and should mone ize o
i s pu poses.528 This shi owa ds de ining alue ia expe ience/pe cep ion is
e lec ed by he b anding li e a u e ha ope a es wi h he e ms o ‘b and’ and
‘(co po a e) epu a ion’. Salinas o e s he de ini ion o ‘co po a e epu a ion’
by Cha les Fomb un as ‘ he o e all es ima ion in which a company is held by
i s cons i uen s, ep esen ing he “ne ” a ec i e eac ion o cus ome s, in es-
o s, employees, and he gene al public o he company’s name’.529 Howe e ,
Salinas c i icizes he synonymous use o ‘b and’ and ‘ epu a ion’, by conside -
521 Thomas Gün he , Ca ha ina K iegbaum-Kling, ‘B and Valua ion and Con ol: An Empi ical
S udy’ (2001) 53 Schmalenbach Business Re iew 263, 264; Gab iela Salinas, The In e na-
ional B and Valua ion Manual (Wiley 2009) 3–4. An example o ‘ ecognised in angible
asse s’, as acqui ed sepa a ely by an en i y, a e ade ma ks.
522 Salinas (n 521) 3.
523 h ps://co po a e inanceins i u e.com/ esou ces/knowledge/accoun ing/goodwill/
524 Salinas (n 521) 25–26; Sandne (n 399) 43 n 37; www. eshbooks.com/hub/accoun ing/
goodwill-accoun ing-de ini ion
525 Da is, ‘The Value …’ (n 503) 106, n 28.
526 Salinas (n 521) 358 wi h e e ences.
527 Bobby J. Calde , Ma k L. F igo, ‘The Financial Value o a B and’, S a egic Finance, 1 Oc-
obe 2019, a <U>h ps://s magazine.com/pos -en y/oc obe -2019- he- inancial- alue-
o -b and/, 3</U>
528 Ibidem, 4.
529 Salinas (n 521) 8.
Func ionali y wi hin he amewo k o law and economics 123
ing ha because ‘co po a e epu a ion’ esul s om b and managemen and
is abou ‘g an ed’ pe cep ion, ha is, some hing ‘non con ollable’, ‘co po a e
epu a ion does no quali y as an in angible asse because i ails o mee he
sepa abili y c i e ion; i canno be bough , sold o ans e ed’.530
This discussion eaches us wo hings. Fi s , he e is a dis inc , s ill ambigu-
ous concep o (co po a e) epu a ion in he b anding a ea ha should no be
aligned wi h he concep o ‘ epu a ion’ in ade ma k law. Second, i public
pe cep ion indeed ep esen s an impo an dimension when de e mining alue
( o a b and o o a co po a e epu a ion), hen specialis s a e s ill g appling
wi h how o measu e i . The impo ance o consume s’ expe iences o he
exis ence and alue o a b and is elabo a ed u he in 4.3.2.3. below.
E en wi h ega d o b ands, he absence o a s anda dized b and alua ion
ela es o he huge di e si y o calcula ion models applied by se ice p o ide s
(e.g. B andien , In e b and, Nielsen e c.). These models ollow, o combine,
one o he h ee gene al app oaches ocused on cos /ma ke /income, and
he e is usually a wo-p onged s uc u e encompassing a inancial dimension
– measu ed by pas / u u e p o i s o e enues om oyal ies/licensing ees
– and a consume dimension – de ined by cus ome s’ a i udes, measu ed di-
ec ly om su eys, in e iews, polls, and so on, o indi ec ly, by expe pan-
els.531 Fo ins ance, In e b and analyses h ee key componen s: he inancial
pe o mance o b anded p oduc s/se ices, he ole o he b and as pu chase
d i e , and he b and’s compe i i e s eng h, ha is, he abili y o c ea e con-
sume loyal y, demand, and u u e p o i .532
Repu a ion is no among he en key ac o s used by In e b and o measu e
b and s eng h, such as di e en ia ion (i.e. being a dis inc i e p oposi ion),
consis ency (keeping p omises), and main aining a p esence in consume
li e.533 These ac o s may ela e o o build epu a ion in a ade ma k sense,
bu ce ainly hey a e no iden ical o i . Simila ly, ano he s udy shows ha
epu a ion is no among he 12 enume a ed main de e minan s o de e min-
ing b and equi y, whils b and image holds i s place.534
4.3.2.3. Consume s co-c ea ing b and image and alue
The ma ke ing a gumen s ha b and alua ion me hodology should e lec
he ‘added alue’ by consume s concu s wi h in e disciplina y discussions o e
530 Salinas (n 521) 365. Di e en ly, a s udy measu ing co po a e epu a ion: Benjamin P is e ,
Man ed Schwaige , Tobias Mo a h, ‘Co po a e Repu a ion and he Cos o Fu u e Equi y’
(2020) 13 Business Resea ch 344.
531 Robe o Mo o Viscon i, The Valua ion o Digi al In angibles (Palg a e Macmillan 2020)
246–250; WIPO Repo , 45–46.
532 Mike Rocha, ‘An Exceedingly Good Solu ion: Looking back on 30 yea s o B and Valua ion’,
a www.in e b and.com/ iews/exceedingly-good-solu ion-30-yea s-b and- alua ion/
533 www.in e b and.com/bes -b ands/bes -global-b ands/me hodology/
534 Viscon i (n 531) 252.
124 Func ionali y wi hin he amewo k o law and economics
consume s’ in ol emen and in es men in b ands, om he pe spec i e o
an h opology, psychology, and sociology. A decade ago Debo ah Ge ha d
posi ed ha consume s a e capable o such s ong pe sonal a achmen and
inancial ‘sac i ices’ o suppo a b and – h ough a ious ac i i ies, ha is,
building an communi ies, ee ad e ising, c ea ing b and his o y, discou -
aging pu chase o coun e ei p oduc s – ha hey decide he exis ence and
meaning o a b and.535 This app oach has been ecen ly con i med by a s udy
o Bu be y’s b anding de elopmen , s e ching o e 100 yea s, which ini ially
bene i ed om consume a achmen o his o ical e en s and ashionable li e-
s yle, only o be nega i ely a ec ed by inciden s o oo ball hooliganism by
suppo e s wea ing Bu be y caps.536 The diminished consume pe cep ion o
he b and quickly led o a d op in demand om he p ima y clien ele, whils
he i m needed ime o econnec wi h consume s and ebuil he b and’s
‘a is oc a ic’ image.537 Ano he in e es ing s udy abou ade ma ks’ commu-
nica ion/in es men unc ions a gued ha b and image ep esen ed he esul
o a ‘pe o ma i e ole o consume s’, and no necessa ily he ui s o in es -
men unde aken by he ade ma k owne s.538 This a gumen builds on he
an h opological assump ion ha iden i y is o med as a esul o he p ocess o
‘in e ex ual pe o mance’ (o i s sel -image) o ‘pe o ma i e ci a ion’.539 Con-
sume s a e seen o con inuously pe o m he daily ac o choosing/wea ing a
ade ma k/b and, and by doing so, hey co-c ea e he b and image. Making
a b and pa o e e yday li e cons i u es a key ea u e o he ‘an h opological
ma ke ing’ app oach emb aced by IKEA, Apple, Lego, and Google.540 This
p o es ha an h opological ma ke ing applies o di e en kinds o goods, in-
cluding u ili a ian ones, wi hou being es ic ed o p es ige goods, which a e
p esumably chosen o conspicuously showcase money, s a us, o powe . The
doc ine names hese Veblen goods, gene ally a ilia ed wi h luxu y b ands,
a e he au ho Tho s ein Veblen who, by he end o 19 h cen u y, desc ibed
women’s d essing as a way o pu ing in o e idence men’s weal h.541
535 Debo ah Ge ha d , ‘Consume In es men in B ands’ (2010) 88 N.C. L. Re . 427, 450.
Ge ha d ad oca ed o he p o ec ion o consume s’ in e es s in using signs as in o ma ion
ools.
536 Luminiţa Ol eanu , ‘Reb anding S a egies and Thei Boome ang E ec – The Cu ious Case
o Bu be y’ (2020) 23 JWIP 777, 784–791.
537 Ibidem, 791–792.
538 Luke McDonagh , ‘F om B and Pe o mance o Consume P oduc i i y: Assessing Eu opean
T ade Ma k law a e he Rise o An h opological Ma ke ing’ (2015) 42 Jou nal o Law and
Socie y 4, 611.
539 Ibidem , 624–625, e e ing he seminal s udies o Judi h Bu le , ‘Pe o ma i e Ac s and
Gende Cons i u ion: An Essay in Phenomenology and Feminis Theo y’ (1988) 40 Thea-
e J. 519 and Cons an ine Nakassis, ‘B and, Ci a ionali y, Pe o ma i i y’ (2012) 114 Am.
An h opologis , 629.
540 McDonagh (n 538) 626 e e ing IKEA ma ke ing s a egy.
541 Tho s ein Veblen, The Theo y o Leisu e Class (1899), e e ed o in he con ex o he
poli ics o clo hes and women’s sel -c ea ion by Diane Zimme man, ‘Ups ai s/Downs ai s,
Func ionali y wi hin he amewo k o law and economics 125
Today ma ke e s need consume s o eel and hink ha b anded goods/
se ices a e indispensable ools o sel -exp ession and socializing. This dy-
namic dialogue be ween consume s and b ands is essen ial o he unde s and-
ing o mode n b and c ea ion, a ac al eady capi alized on by ma ke e s.542
Lawye s s ill ha e o map i s implica ions o ade ma k law.543 Fo ins ance,
in he con ex o p o ec ing epu ed ade ma ks, Ol eanu’s analysis led o he
conclusion ha p oo o b and epu a ion could no be solely based upon he
owne ’s s a egies o posi ioning and p omo ing he b and, ins ead he ocal
poin should be ‘how he b and was ecei ed and pe cei ed by he public’.544
This seems an in e es ing poin o his book. The signi icance o a consume ’s
bond wi h a b and (co-b anding) o he assessmen o aes he ic unc ionali y
is discussed below.
4.3.3. The ‘ alue’ o epu a ion wi hin he assessmen o aes he ic
unc ionali y
The abo e discussion shows ha he a emp o assess he alue o epu a ion
o aes he ic unc ionali y pu poses leads o some us a ing esul s. Lawye s,
ma ke e s, and economis s ace concep ual gaps in amewo ks and me hodol-
ogy when dealing wi h ade ma ks ha con ey alue o goods and ha e he
po en ial o de elop in o b ands. I is ex emely di icul o dis inguish epu a-
ion om o he sou ces o posi i e in o ma ion, especially hose pe aining o
b and image. This ansla es in o u he di icul ies in sepa a ely measu ing
he alue de i ed om epu a ion om he o he economically aluable com-
ponen s o a ade ma k/b and.
Concep ually, he e is no clea co espondence be ween he legal no ion
o a ade ma k and he complex ma ke concep o a b and. Del ing in o he
na u e o he magne ism o ce ain symbols, he e is also an unclea channel
be ween epu a ion and b and image, le alone goodwill. A p oduc may ha e
mul iple ea u es and a ibu es ha a e aluable o a consume , and he c ux
o aes he ic unc ionali y equi es dis inguishing he sou ce o some pa icula
aspec s. Fo a ade ma k wi h epu a ion, usually su ounded by b anding
s a egies, such an assessmen is di icul o conduc . Nowadays he ela ion-
ship be ween consume s and b ands co e s nume ous psychological/socio-
logical bene i s. Consume s d i e a ious alues om b ands, no necessa ily
Fashionwise: A View o Design P o ec ion om Lowe Down he Food Chain’ in Sun,
Beebe, Sunde (n 466) 179–196. Simila ly, Ann Ba ow, ‘The Gende o T adema ks and
Luxu y B anding’ in Sun, Beebe, Sunde (n 466) 145.
542 Je ey Belson, ‘Re lec ions on B anding and T ade Ma ks: Then and Now’ (2019) 14
JIPL&P 601, 604–605.
543 An a enue o deba e will likely e ol e a ound ensu ing ee access o symbols, wi h ega d o
undamen al igh s and eedoms. See Jens Scho sbo, ‘“Ma k My Wo ds” – T adema ks and
Fundamen al Righ s in he EU’ (7 Augus 2017) a : h ps://ss n.com/abs ac =2928031
544 Ol eanu (n 536) 791.
132 Func ionali y wi hin he amewo k o law and economics
o only ‘enough subs i u es’ o enable SSNIP.569 Ano he issue is ha con-
sume p e e ences can a ec he analysis o demand-side subs i u abili y. Fo
ins ance, in he ield o a is ic and li e a y p oduc ion, consume s a e d i en
by subjec i e as es a he han by objec i e needs.570
Al hough economic and ma ke da a cons i u e objec i e g ounds o as-
sess p oduc subs i u abili y, judgmen s may lead o unexpec ed ou comes,
because he legal in e p e a ion may a ou ce ain subjec i e c i e ia. A clas-
sic example ep esen s he CJEU Uni ed B ands case, in which bananas we e
ound o be a dis inc (na ow) ma ke om o he esh ui s, because o spe-
ci ic cha ac e is ics (i.e. appea ance, as e, so ness, seedlessness, easy handling)
which made hem sui able o sa is ying he cons an needs o a sensi i e g oup
o consume s (i.e. hose e y young, old o sick).571 The choice o p oduc
ea u es and a ge ed public – which, as ega ding bananas gained he play ul
name o he ‘ oo hless allacy’ – was c i icized as igno ing economic e idence
which would ha e p o ed he opposi e: ha he e was subs i u abili y be ween
bananas and o he ui s.572 The s a ical ocus on a g oup o consume s o in-
elas ic demand isks neglec ing he adjus ing dynamism o ma ke o ces. The
a gumen is ha compe i ion may depend on he balance be ween locked-in
and ee consume s, and also on e ol ing ma ke condi ions which oge he
may de e mine ha he ee pa o consume s wi h high p ice elas ici y en-
de s he inc ease o p ice o locked-in consume s unp o i able.573
This is no o say ha i is always a mis ake o de ine a ma ke na owly.
Such a inding may be jus i ied by combining a pa icula demand o spe-
cialized p oduc s (e.g. spa e pa s, luxu y goods) wi h speci ic ma ke condi-
ions (e.g. a speci ic p oduc ion echnology o dis ibu ion sys em) – oge he
hey may gene a e he dependency o a smalle unde aking upon a dominan
supplie .574 A na ow ma ke de ini ion may esul om he speci ici y o he
indus y. Fo pha maceu icals, ma ke de ini ion uses he classi ica ion o he
569 Joseph Fa ell, Ca l Shapi o ‘An i us E alua ion o Ho izon al Me ge s: An Economic Al-
e na i e o Ma ke De ini ion’ (2010) 10(1) A . 9 The B.E. Jou nal o Theo e ical Eco-
nomics 1, a 4 e e ing o FTC. . Whole Foods 502 F. Supp. 2d 1 (D.D.C. 2007).
570 Sen leben, ‘Impac …’ (n 456) 262–263, discussing copy igh able wo ks in e e ence o
a s udy led by Joseph D exl, Copy igh , Compe i ion and De elopmen , Repo by he Max
Planck Ins i u e o In ellec ual P ope y and Compe i ion Law’, Decembe 2013, 75–80
h ps://www.ip.mpg.de/ ileadmin/ipmpg/con en / o schung_ak uell/02_copy igh _
compe i ion/ epo _copy igh -compe i ion-de elopmen _decembe -2013.pd
571 C-27/76 Uni ed B ands . Commission, ECLI:EU:C:1978:22, pa as 20–35, conce ning he
abuse o dominan posi ion due o ag eemen s imposing e-sale es ic ions.
572 Melischek (n 351) 65; Be na d an de Walle de Ghelcke, ‘Economic Reasoning be o e he
Eu opean Union Cou s in Compe i ion Law’ (2018) 44 B uges Eu opean Economic Policy
B ie ings 1, 20 a h p://aei.pi .edu/97330/
573 Flo ian Wagne - on Papp, ‘Unila e al Conduc by Non-dominan Fi ms: A Compa a i e
Reapp aisal’ in Fabiana di Po o, Rupp ech Podszun (eds.) Abusi e P ac ices in Compe i ion
Law (Ascola Elga 2018) 225, 263–264.
574 F enz (n 347) 675–676; by con as , o a b oad ma ke de ini ion e en o spa e pa s: Anne
Wagne , Sophie Obe hamme , ‘The Applica ion o Compe i ion Law o he Au omo i e
Indus y’ (2015) 6(9) JECL&P 669, 672, 677.

Func ionali y wi hin he amewo k o law and economics 133
Ana omical The apeu ic Chemical (ATC) sys em which di ides medicines by
ypes o p ope ies. Howe e , he choice o he ATC le el may es ain he
ma ke o a single d ug o a molecule (e.g. a ma ke comp ised o he pa en -
p o ec ed d ug and he gene ic) which may acili a e inding a dominan posi-
ion held by he pa en ed d ug p oduce .575 The si ua ion o a na owly de ined,
one-p oduc ma ke , may be also linked o long- e m b anding s a egies – an
impo an issue o his book. B anding can induce low esponsi eness o p ice
changes and a ec he subs i u abili y o p oduc s (4.3.3. below). This issue
bea s signi icance when discussing ade ma ks’ unc ionali y in he con ex o
access o, and choice o , al e na i e p oduc s.
In spi e o he sho comings o ma ke de ini ion, and al hough di e en
me hods ha e been ad anced o eplacing o adap ing he adi ional ame-
wo k, 576 ma ke de ini ion emains a cen al elemen o compe i ion law inqui es.
4.4.3. How can b ands a ec ma ke compe i ion and p oduc subs i u ion?
The abili y o a i m o hold ma ke powe and cha ge monopoly p ices de-
pends on he esis ance o i s posi ion o new en an s. Obs acles ha may
de e en y o hinde he ma ke expansion o compe i o s a e known unde
he e m o ‘ba ie s o en y’, al hough he e a e di e ging iews o e i s exac
meaning and scope.577 The ollowing pa looks in o how b ands a ec con-
sume choice and p oduc subs i u ion, wi h a dis inc conside a ion on he
link be ween b ands and na owly de ined ma ke s.
4.4.3.1. B ands as ba ie s o en y and educing consume swi ching
One classi ica ion o ba ie s o en y dis inguishes sunk cos s, s uc u al ba -
ie s, and he s a egic beha iou o an incumben .578 Se e al pa ame e s ha
de e mine ba ie s o en y may ela e o ade ma ks/b ands. Ad e ising and
575 Recen ly in T -691/14 Se ie . Commission, EU:T:2018:922, he GC disag eed wi h
he Commission’s con ining o he ele an ma ke o Se ie ’s d ug pe indop il (ap-
peals C-176/19P & C-201/19P); in Losec case T321/05, As aZeneca . Commission,
EU:T:2010:266, C-457/10P, EU:C:2012:770, a p o on pump inhibi o o med a dis inc
ma ke om o he an i-acid blocke s used o ulce ea men .
576 Fa ell, Shapi o (n 569) abou assessing he closeness o compe i ion ia p ice p essu e es s;
Rupp ech Podszun, ‘The Pi alls o Ma ke De ini ion: Towa ds an Open and E olu iona y
Concep ’ in di Po o, Podszun (eds.) Abusi e P ac ices in Compe i ion Law (Ascola Elga
2018) 68–90.
577 R. P es on McA ee, Hugo Mialon, Michael Williams, ‘Economic and An i us Ba ie s o
En y’ (2003) a : h ps:// i a.mca ee.cc/PDF/Ba ie s2En y.pd discuss he wide ap-
p oach o Joe Bain, Ba ie s o New Compe i ion (Camb idge 1956) who de ined ba ie s
as any hing ha allows an incumben o ea n abo e he cos o p oduc ion and dis ibu ion
wi hou he h ea o en y, and he mo e es ic i e iew o Geo ge S igle , The O ganiza-
ion o Indus y (Chicago 1968), who ocused on he cos s o be incu ed by new en an s
which an incumben need no o bea .
578 Jones, Su in (n 351) 81–85.
134 Func ionali y wi hin he amewo k o law and economics
p omo ion a e usually held o be ‘i ecupe able cos s’, because any newcome
needs o bea hem in o de o become known on he ma ke . F om a di e -
en pe spec i e, ad e ising al eady unde aken by an incumben cons i u es
a ‘ i s mo e ad an age’ ha may become a s uc u al ba ie .579 As ea lie
discussed (4.3.), ad e ising, apa om in o ming consume s abou p od-
uc di e en ia ion, is ins umen al o de eloping epu a ional asse s (b and-
ing, goodwill). The s onge and mo e posi i e he con eyed p oduc image,
he g ea e he eeling o esis ance among loyal cus ome s o ying ano he
p oduc – his mechanism wo ks as s uc u al ba ie , oo. An incumben may
also engage in a ious ac i i ies o s a egically an icipa e, delay, o ac agains
he en y o compe i o s (e.g. ying p ac ices, exclusi i y ag eemen s, ideli y
and bundled eba es) which aim a keeping cus ome s pleased wi h he cu en
choice o p oduc , and discou aging hem om swi ching o al e na i es.580 A
classic example is o e ing ee d ug samples o doc o s in o de o di ec hei
p esc ip ion habi s, as hey a e unwilling o choose unad e ised d ugs, despi e
simila medical e icacy.581
Consume swi ching capabili y, co ela ed o p oduc subs i u abili y, can be
hea ily in luenced by b anding. The assump ion ha b ands allow o cha ging
p emium p ices o loyal locked-in consume s and educe in e -b and compe-
i ion (4.3.1.) was colloquially e i ied in an expe imen by p o esso Glynn
Lunney amongs his s uden s. I conce ned he choice o Coca-Cola e sus
Pepsi. Ini ially, ending machines a he campus sold bo h ypes o sodas a
a simila p ice; hen he p ice o Coke was a i icially inc eased (a ound he
SSNIP h eshold) in o de o examine how many s uden s would buy Pepsi
ins ead.582 The ou come p o ed an insensi i eness o SSNIP and an unwilling-
ness o swi ch, which in compe i ion e ms mean ha Coke and Pepsi we e
impe ec subs i u es and each cons i u ed a dis inc , p oduc ma ke .583
Va ious ac o s may in luence consume decision-making o unde mine he
swi ching impulse. Manu ac u e s may use ma ke ing s a egies o manipula e
he way consume s iew, o a he ail o unde s and, p oduc a ibu es and
bene i s, which induces i a ionally igge ed pu chase beha iou s – schola -
ship de ines hese so s o con olled p ac ices as ‘labo a o ies o consume ism’,
a ma ke manipula ion which amoun s o a ma ke ailu e, due o impe ec
p oduc in o ma ion and a subop imal le el o consump ion.584 I s ill emains
579 Ibidem, 82, 84–85.
580 Ibidem, 84.
581 McKenna, ‘An Al e na i e’ (n 316) 889, n 50, ci ing Richa d F. Adai , Leah R. Holmg en,
‘Do D ug Samples In luence Residen P esc ibing Beha io ? A Randomized T ial’ (2005)
118 AM. J. MED. 881.
582 Lunney, ‘T adema k ...’ (n 391) 424–426.
583 See also McKenna, ‘Is Pepsi …’ (n 37).
584 Jon D. Hanson, Douglas A Kysa , ‘Taking Beha io alism Se iously: The P oblem o Ma ke
Manipula ion’ (1999) 74 New Yo k Uni e si y Law Re iew 103, 194–217, h ps://ss n.
com/abs ac =1288182
Func ionali y wi hin he amewo k o law and economics 135
di icul o map he neu o-e ec s o b ands igge ed in b ain egions ha a e
no s imula ed by di ec expe ience o p oduc ea u es, such as du ing blind
as es. Knowledge o a b and, some imes bols e ed by high p ices, makes a
p oduc as e o wo k be e han cheape al e na i es despi e ha ing simila
unc ional cha ac e is ics.585 Fo he ca ego y o luxu y (Veblen) goods, he
mo e expensi e an i em, he mo e i is in demand – an exclusi e clien ele needs
expensi e b ands in o de o demons a e hei weal h, and u ns away om
hem when oo many look-alikes a ge mo e budge -conscious clien s.586 Be-
ha iou al pa e ns a e in luenced by sociological and cul u al ac o s. O sig-
ni icance a e ‘ne wo k e ec s’, whe e ‘ he u ili y ha a use de i es om he
consump ion o a good inc eases wi h he numbe o o he agen s consuming
he good’.587 The popula i y o a b and boos s ne wo k e ec s, as he mo e e-
quen ly consume s choose a b and o enjoy communi y bene i s, he s onge
he b and g ows, becoming less ulne able o compe i i e p essu e.588 Finally,
consume s may no engage in swi ching o di e en mundane easons: long-
e m cul i a ed habi s, he echnical ease o ollowing he bea en ack, 589 o
an inhe en eluc ance o isk money on ying al e na i es.
4.4.3.2. Some EU compe i ion cases on b ands
The in e es o he doc ine in challenging he common iew o ade ma ks
as p o-compe i i e ools inds suppo in hose EU compe i ion cases ha
ha e cap u ed he impo ance, and some imes he nega i e impac s, o
b anding.
One example which challenges he ule ha sole p ocu emen and he ex-
is ence o an IPR (he e a ade ma k) does no gi e ma ke powe and is no
an icompe i i e pe se, shows ha a ade ma k o a ade ma k licence, sub-
jec o a ans e o owne ship o igh o use, may quali y o con ol agains
concen a ion by acquisi ion o con ol, unde EU Me ge Regula ion No.
585 Da id Eagleman, The B ain (Canonga e 2016) 121–123; McKenna (n 37) 2081 e e ing
Samuel McClu e ‘Neu al Co ela es o Beha iou al P e e ences o Cul u ally Familia D inks’
(2004) 44(2) Neu on, 379–387 a h ps://doi.o g/10.1016/j.neu on.2004.09.019, dis-
cussing b anded d ugs (a 2082–2083) and bleach p oduc s (a 2084).
586 Lau ie Bagwell , Douglas Be nheim, ‘Veblen E ec s in a Theo y o Conspicuous Consump-
ion’ (1996) 86 (3) The Ame ican Economic Re iew 349.
587 Ma k Lemley, Da id McGowan, ‘Legal Implica ions o Ne wo k Economic E ec s’ (1998)
86 Cali . L. Re . 479, 483.
588 Daniel C ane, ‘B ands and Ma ke Powe : A Bi d’s-Eye View’ in Desai, Lianos, Walle (eds.)
(n 361) 128, 132–133.
589 Benjamin Edelman ‘ Does Google Le e age Ma ke Powe Th ough Tying and Buying’
(2015) 11(2) JCL&E 365, discussing he di icul y o a use in swi ching om au oma ic,
habi ual ac i i y o delibe a e ac i i y (e.g. choosing se ices o he han Google’s), by e e -
ing (a 372) o he s udy o Adam Candeub, ‘Beha io al Economics, In e ne Sea ch, and
An i us ’ (2014) 9 I/S: A Jou nal o Law and Policy o he In o ma ion Socie y 407,
h ps://ss n.com/abs ac =2414179
136 Func ionali y wi hin he amewo k o law and economics
139/2004.590 This demons a es ha ade ma ks/b ands do ha e economic
alue and quali y as ‘asse s’. The e we e cases in which he ans e o a ade
ma k o an exclusi e ade ma k licence o signi ican impo ance, amoun ed
o ‘concen a ion’ because he b and names and epu a ion con e ed he un-
de aking wi h a ‘ma ke p esence’ o he equi ed ‘ma ke u no e ’.591
Mo e signi ican o his book is when b anding is ac o ed in o he al-
go i hm o assessing ma ke dominance and an icompe i i e conduc s. EU
Me ge guidelines indica e consume loyal y o a b and and he impo ance
o p omo ion and ad e ising as o ms o ba ie s o en y which es ic he
abili y o i al i ms o compe e.592 Simila ly, EU guidelines on e ical e-
s ain s conside dis ibu ion ag eemen s o b anded goods o se ices as mo e
ha m ul han es ain s o non-b anded goods, because o b anding’s capabil-
i y o induce a lowe esponsi eness o p ice changes and educe p oduc s’
subs i u abili y.593 This s imula es a p ice inc ease o b anded goods which
is no necessa ily co ela ed wi h an inc ease in quali y o changes in o he
objec i e p oduc ea u es. The p ac ice o selec i e dis ibu ion594 has also
aised an icompe i i e conce ns. Con ac ual es ic ions linked o p e e en ial
ea men o luxu y goods and b ands we e in e p e ed by he CJEU h ough
subjec i e c i e ia o assessmen , such as whe he hey con ibu ed o he epu-
a ion o goods, sus ained ‘ he au a o luxu y’, 595 o p ese ed he ‘p es igious
image’ o goods, which in o al canno accoun o clea ly measu able socie al
bene i s.596 The e is a no iceable endency o exploi he exclusi e s a us o
590 A . 3 Reg. de ines concen a ion as a change o con ol causing a las ing change in he ma -
ke ’s s uc u e which may eme ge om he acquisi ion o con ol o he whole/pa s o an
unde aking(s) allowing he exe cise o decisi e in luence, and his may esul ia pu chase o
asse s o by con ac s (e.g. licence).
591 Damiano Canapa, T adema ks and B ands in Me ge Con ol (Wol e s Kluwe 2016) 64–
68 discussing EC Case No. Comp/M.5859, Whi lpool/P i ilege Righ s o 07.07.2010,
h ps://ec.eu opa.eu/compe i ion/me ge s/cases/decisions/m5859_473_2.pd
592 Guidelines on he assessmen o ho izon al me ge s …, OJ C 31, 5.2.2004, pp. 5–18, pa a 36.
593 Guidelines on Ve ical Res ain s, OJ C 130, 19.5.2010, pp. 1–46.
594 A selec i e dis ibu ion sys em ep esen s a e ical es ain , because o he limi ed numbe
o au ho ized deale s and esale op ions, chosen upon speci ic c i e ia, jus i ied by he na u e
o he p oduc and by he capabili y o pe o m dedica ed se ices (e.g. special condi ions
o display/sale, ained s a , indi idual ad ice). These es ic ions a e jus i ied by imp o ing
compe i ion by o he ac o s han p ice, c . F enz (n 347) 605–609.
595 C-59/08 Copad . Dio , EU:C:2009:260. C i ically, Ma in Sen leben, ‘T adema k T ans-
ac ions in EU Law – Re ining he App oach o Selec i e Dis ibu ion Ne wo ks and Na ional
Un ai Compe i ion Law’ in Jacques de We a, I ene Calboli (eds.) Law and P ac ice o
T adema k T ansac ions (Elga 2015) h ps://ss n.com/abs ac =2586765
596 In C-230/16 Co y DE, EU:C:2017:941, he CJEU uled ha a selec i e dis ibu ion sys em
designed o p ese e he luxu y image o he goods, is compa ible wi h A . 101(1) TFUE,
whils he p ohibi ion on e aile s using online hi d-pa y sales pla o ms did no cons i u e
ha dco e es ic ions ‘o cus ome s’ o ‘o passi e sales o end use s’, unde A . 4(b)-(c) o
Regula ion No. 330/2010. Such p ohibi ions we e deemed app op ia e (i uni o mly ap-
plied and p opo iona e) and jus i ied o he quali y, p esen a ion, and di e en ia ed sale
channels, deemed essen ial o p ese e he b and’s ‘luxu y image’. This di e ged om CJEU
Func ionali y wi hin he amewo k o law and economics 137
b ands o con ol di e en ypes o esale ac i i ies, 597 al hough i is deba -
able whe he consume s would p e e a educ ion o p ices o goods sold
in no mal selling condi ions. To adap o echnological de elopmen s, and
especially he inc ease o e-comme ce, he e a e new e sions o he Ve ical
Block Exemp ion Regula ion and Guidelines on Ve ical Res ain s, o en e
in o o ce in la e 2022.598
4.4.3.3. B ands na owly de e mining a ‘one p oduc ’ ma ke
As ma ke de ini ion usually assesses he in e changeabili y o p oduc s wi h
ega d o a p oduc ’s cha ac e is ics, p ices, and in ended use, b anding can
cons i u e an addi ional p e e ence o consume s, diminishing p oduc sub-
s i u abili y. This may esul in si ua ions o a one-p oduc ma ke (ma ke
segmen a ion), de ined by a single b and.
Compe i ion p ac ice has deal wi h cases when b anding was essen ial o
de e mining a sepa a e ma ke o locked-in consume s, c ea ing ba ie s o
en y and suppo ing a inding o ma ke powe . The e a e indus ies in which
b anding ep esen s a signi ican compe i ion pa ame e – s ong ma ke ing,
ad e ising, and p omo ion ac i i ies educa e consume s o hink o ‘b ands’
ins ead o ‘companies’ o ‘p oduc ca ego ies’. Fo ins ance, luxu y cosme ics
ma ke ed unde p es ige b and name we e limi edly subs i u able wi h simila
p oduc s, because he au a o exclusi i y and high quali y we e e lec ed in
he high p ice, and app op ia e ma ke ing bols e ed he speci ic aes he ic o
unc ion quali y o indi idual/line o p oduc s.599 Simila indings may occu
o mo e o dina y ypes o p oduc s. In US ju isp udence, bu e , lou , issue,
and b ead cons i u ed dis inc b anded ma ke p oduc s, despi e he p esence
o impo an p i a e labels p oduce s o hese goods.600 EU p ac ice ound
b anding o be he majo demand-d i e o spi i s, because b ands we e no
ea lie app oach in C-439/09 Pie e Fab e, EU:C:2011:649, ha ‘ he need o main ain a
p es igious image [was] no a legi ima e aim o es ic ing compe i ion’ so ha a con ac ual
clause pu suing such aim would all unde A . 101(1) TFUE. CJEU uled ha p ohibi ions
o In e ne sales and ma ke ing o cosme ics/pe sonal ca e p oduc s cons i u ed a es ic ion
‘by objec ’ c . A . 101(1) TFUE, as well as ‘ha dco e’ es ic ions o ac i e/passi e sales o
end use s, c . A . 4(c) Reg. 330/2010.
597 Fo ins ance Obe landesge ich Düsseldo o 06.03.2018, I-20 U 113/17 o bade REAL
DE (as a subsequen eselle ) o sell beau y b ands Kanebo and Sensai ins o e and online –
al hough he goods we e au hen ic and wi hou physical al e a ion – because he loca ion
and selling condi ions we e de imen al o he epu a ion and luxu y image o he b ands.
598 h ps://ec.eu opa.eu/compe i ion-policy/public-consul a ions/2021- be _en
599 Commission Case No. IV/33.242 – Y es Sain Lau en Pa ums, OJ L 12, 18.1.1992, pp.
24–35.
600 W alle , Desai (n 471) 1464 ci ing Uni ed S a es . Dai y Fa me s o Am., 2001-1 T ade Cas.
(CCH) 73,136 (E.D. Pa. 2000); Uni ed S a es . Kimbe ly-Cla k Co p. and Sco Pape Co.,
1996-1 T ade Cas. (CCH) 71,405 (N.D. Tex. 1995); Uni ed S a es . In e s a e Bake ies
Co p., 1996-1 T ade Cas. (CCH) 71,271 (N.D. Ill. 1995).

138 Func ionali y wi hin he amewo k o law and economics
easily ans e able among spi i s (‘ he e is no Johnnie Walke gin o Go don’s
whisky’) and each b and sa is ied speci ic consume demands ( e lec ed by
as e, p ice, and image), leading o sepa a e ma ke s o each b anded spi i .601
Simila ly, bo led a sou ce mine al wa e was sepa a ed om so d inks o
bo led pu i ied ap wa e on he F ench ma ke , because he b anding policy
o he main supplie s c ea ed a special ‘image o na u al, pu e and heal hy
p oduc associa ed wi h sou ce wa e s’ which discou aged consume s om
ecognizing so d inks as subs i u es o mine al wa e in home daily use.602
The pic u e o b anding a ec ing consume choice and demand-side subs i-
u ion equi es he addi ion o supply-side subs i u ion. B ands may unc ion
as ba ie s o en y i a p oduce launching an al e na i e p oduc needs some-
hing mo e han echnical capabili ies o compe e on he ma ke . A signi ican
example is ep esen ed in he cola segmen o he d inks ma ke , which was
ound o be dis inc om o he la ou ed ca bona ed so d inks.603 Despi e
he ac ha compe i o s had he capaci y o use exis ing illing lines and swi ch
p oduc ion om one ype o so d inks o ano he , his was no su icien o
en e ing he cola ma ke , because b anding s a egies and in ense ma ke ing
posi ioning would be needed in ad ance.
B ands can also a ec p oduc subs i u abili y om ano he angle. Long-
e m use o a b and may ha e he ou come o a p ice inc ease o a gene ic
g oup o p oduc s. The consume ge s a alse ma ke pic u e, as hey deem
p oduc s in e changeable, which unde lowe p ice compe i ion condi ions
would ha e no belonged o he same p oduc ma ke . This si ua ion o a
w ongly de ined wide ma ke is known in he doc ine as ‘ he cellophane al-
lacy’. I e e s o a U.S. case in which cellophane was ound subs i u able o
o he lexible w apping ma e ials, enabling DuPon o a oid a inding o ma -
ke powe , e en hough he company had al eady cha ged monopolis ic p ic-
es.604 The issue o he cellophane allacy suppo s he hypo hesis ha a single
b and may de ine a p oduc ma ke .605
4.4.4. P oduc subs i u ion – an analogy o a ma ke -o ien a ed
unc ionali y es
P e ious discussion in 4.4.1.–4.4.3. has a gued ha su icien ma ke compe i-
ion equi es ha consume s enjoy ee choice ac oss a ange o compe i i e
al e na i es. The ex en o p oduc subs i u abili y and consume swi ch-
ing capabili ies is cap u ed by he concep o ma ke de ini ion. In ce ain
601 Commission Case No. IV/M .938 – Guinness/G and Me opoli an, OJ L 288, 27.10.1998,
pp. 24–54.
602 Commission Case No. IV/M.190 – Nes lé/Pe ie , OJ L 356, 05.12.1992, pp. 1–31.
603 Commission Case No. IV/M.794 – Coca-Cola/Amalgama ed Be e ages, OJ L 218, 9.8.1997,
pp. 15–42.
604 Uni ed S a es . E.I. du Pon de Nemou s, 351 U.S. 377 (1956).
605 Canapa (n 591) 145.
Func ionali y wi hin he amewo k o law and economics 139
ci cums ances b anding may in luence ma ke de ini ion, ei he by na owing
i , o al e ing he compe i ion condi ions. These aspec s may become ele an
wi hin he amewo k o unc ional ade ma ks.
4.4.4.1. P oduc de ini ion o unc ionali y pu poses
A i s co e, he unc ionali y doc ine is conce ned wi h no unduly es ic ing
compe i ion. F om a posi i e s andpoin , i is abou enabling compe i o s o
e icien ly ade in subs i u es (i.e. p oduc s ha mee consume p e e ences).
This p o-compe i ion objec i e pe mea es all majo CJEU ulings on unc-
ionali y, whe he echnical o aes he ic (Chap e 2). As a gued elsewhe e, his
app oach ad oca es o conduc ing assessmen s o unc ional ade ma ks on
pa ame e s sensi i e o ma ke ealia, able o cap u e he ex en o p oduc
subs i u abili y.606 I may be posi ed ha bene icial e ec s on p icing and p o-
duc ion condi ions would low om a si ua ion in which an asse belongs o
he public domain and may be copied. Using a pa allel wi h he US law (Chap-
e 3), he ‘ igh - o-copy’ app oach, denying ade ma k p o ec ion o p oduc
ea u es ha we e p e iously p o ec ed by o he IPRs (mainly pa en s) would
be a handy, s aigh o wa d solu ion ha bypasses he cos s o e alua ing he
possible al e na i es. Howe e , such a ‘one size i s all’ assessmen is de imen-
al o ce ain kinds o o e lapped o ms o p o ec ion, especially hose pe ain-
ing o combina ions o p oduc ea u es and hose a ising on aes he ic g ounds
(Chap e 8). I would also e oneously dis ega d dynamic ma ke condi ions,
consume needs, echnological ad ancemen , and o he social pa ame e s ha
play a pa when deciding whe he o no o con e ade ma k p o ec ion o
a unc ional sign. Fo hese easons, i is p e e able o gi e due conside a ion
o he al e na i e ‘need- o-copy’ app oach, which ocuses on ci cums ances o
compe i i e necessi y. Func ionali y ough o be cen ed on e alua ing sub-
s i u es and hei e ec i eness and comme cial easibili y. US ju isp udence
has uled on cases using he compe i i e necessi y es , bo h in ega d o u il-
i y and aes he ic unc ionali y (see Chap e s 3, 6.1.2., 6.4.2. and 8.4.3.1.).
P ominen schola s ha e ad oca ed o he adop ion o a ma ke -o ien a ed
assessmen , d awn upon an i us pa allels.607 Simila ly, in o he a eas o law,
ma ke subs i u ion was conside ed a use ul ool o assessing he simila i y o
goods om he consume ’s an age poin o in ingemen pu poses, 608 o o
606 B ancusi ‘Al e na i e P oduc s …’ (n 241) 185, 204.
607 Fo he mos comp ehensi e s udy, Dinwoodie (n 27) 684–746; simila ly, Weinbe g (n
311) 48–53; M. A. Cunningham, ‘U ili a ian Design Fea u es and An i us Pa allels: An
Economic App oach o Unde s anding he Func ionali y De ense in T adema k Li iga ion’
(1996) 18 Has ings Comm. & En . L.J. 569, 584–588; Diana Elzey Pino e , ‘Aes he ic
Func ionali y: The Need o a Fo eclosu e o Compe i ion’ (1993) 83 T adema k Rep 571,
600–604; Daniel McClu e, ‘T adema ks and Compe i ion: The Recen His o y’ (1996) 59
Law and Con empo a y P oblems 13.
608 F ome , Lemley, ‘Audience …’ (n 316) 1255–1256 and 1291–1297.
140 Func ionali y wi hin he amewo k o law and economics
es ablish he ele an p oduc ca ego y and a ailabili y o subs i u able e ms
o es ing gene icness.609 The analogical implemen a ion o a ma ke -o ien-
a ed unc ionali y es on EUTM g ounds – using some c i e ia de eloped by
he US ju isp udence – will be examined in Chap e s 6 o 8, which discuss he
in e p e a ion o EUTM unc ionali y p o isions s ep-by-s ep.
A his s age, i is essen ial o no e ha an inqui y o e p oduc al e na-
i es equi es p oduc dema ca ion. The e is an in e se ela ion be ween he
b ead h o a p oduc ca ego y and he ex en o he possible subs i u abili y.
The wide he p oduc ca ego y de ined by speci ic p oduc ea u es, he easie
o ind subs i u es accep able o clien s, o mi iga e he isks o con e ing
ade ma k exclusi i y on behal on one en i y. Con e sely, a na ow p oduc
ca ego y educes he chances o inding subs i u es, which would speak agains
adema king a unc ional sign, as compe i o s would need o copy hose ea-
u es in o de o e ec i ely compe e.
P oduc delinea ion may be modelled upon he an i us ma ke de ini ion,
bu i is no an iden ical exe cise. P ominen schola s suppo he no ion ha
an analogy o ma ke de ini ion o IP pu poses would mean e alua ing ‘ he
ange o i al y’ be ween unde akings, and no a que y o e ma ke powe
and capaci y o impose highe p ices.610 This esul s om he assump ions ha
IPRs a ely con e monopoly powe , b ands a e no ma ke s, and a e cases o
single-b and ma ke s equi e some hing mo e han a powe ul b and, such as
‘ma ke dominance in an unde lying p oduc ’.611 Howe e , e en his app oach
acknowledges he di icul ies ha migh appea i p oduc ea u es ‘spill o e
in o unc ionali y’, and ‘[a] “design” ha commandee s he en i e se o ea-
sonable al e na i es can end up domina ing a ma ke ’.612 Func ionali y may
hinde compe i ion in a ious ways, depending on he indus y, a company’s
ma ke posi ion, co ela ion wi h o he IPRs, s a egy o g ow h, and b and-
ing policies. I should come as no su p ise ha he ma ke en i onmen buil
upon and a ound IPRs ein o ces he bene i s o exclusi ely using an asse – a
unc ional ade ma k may e ec i ely obs uc ce ain p oduc ea u es on be-
hal o one en i y. Explo ing he impac o unc ional ade ma ks on compe i-
ion equi es a ool ha adap s ma ke de ini ion o he pu poses o analysing
he swi ching mechanism and p oduc subs i u abili y.
As al eady sugges ed, he ansposi ion o ma ke de ini ion o IP pu -
poses should ocus on explo ing he ‘quali y’ o a ailable compe ing p od-
uc s se wi hin ‘a spec um o compe i ion’, whe e di e en ac o s de e mine
hei subs i u abili y (such as p ice, quali y, b anding, o he indices o p oduc
609 Co e dale (n 379) 882–890; Folsom, Teply (n 379) 1347–1358.
610 He be Ho enkamp, ‘Ma ke s in IP and An i us ’ (2012) 100 Geo. L. J. 2133, 2134. This
a icle engages wi h McKenna (n 37).
611 Ho enkamp (n 610) 2138 (quo e); Ho enkamp, Janis, Lemley (n 32) 4–8 o 4–10; Beebe,
Hemphill (n 316) 1388.
612 Ho enkamp (n 37) 2144.
Func ionali y wi hin he amewo k o law and economics 141
di e en ia ion).613 The impedimen s on p oduce s in e ms o necessi y and
cos s o design a ound ce ain p oduc ea u es should be supplemen ed wi h
conside a ions abou consume demand showing a low deg ee o p oduc in-
e changeabili y, especially i his is d i en by b and-mo i a ed choices and
p ice insensi i eness. An addi ional inqui y should ocus on whe he he con-
sume p e e ences a issue dese e speci ic a en ion, wi h ega d o he e ec-
i eness o he business ac i i y o he p imacy o public policies o e he IPR’s
pu poses. Fo ins ance, wide access o d ugs a con enien p ices is a p io i y
embedded by in e na ional con en ions which should impac he decision o
con e ing ade ma k p o ec ion o a unc ional d ug’s appea ance. In such
con ex , legal exclusi i y on behal o a p i a e unde aking would unde mine
he highe , socie al pu pose o ensu ing con enien access o d ugs. Simila ly,
ensu ing he compa ibili y o p oduc s ies in o he need o s anda disa ion,
which u ges ca e ul sc u iny o unc ional ea u es. E en mo e so, as connec-
i i y is a key asse o he mode n echnological in as uc u e.
4.4.4.2. Whe e can in o ma ion abou p oduc subs i u ion be ound?
This essen ial que y ep esen s he ype o p oo s which a e needed o assess
p oduc subs i u abili y o unc ionali y pu poses. Again, an analogy can be
d awn wi h he e idence used o ma ke de ini ion in compe i ion/an i us
cases. The ollowing ema ks build on e idence men ioned by he US com-
pendium o an i us guidelines, al hough i is impo an o conside hem
mo e as possible s a ing poin s/sugges ions.614
To unde s and manu ac u e s and ma ke condi ions, he i s and mos di-
ec sou ce o in o ma ion comes om he in e es ed pa ies, because companies
usually unde ake indus y s udies o e alua e hei s a us is-à- is compe i-
o s.615 This kind o analysis co e s a ious opics: he spec um o a company’s
own p oduc s e sus compe ing ones ac oss di e en p oduc ca ego ies, con-
cen a ion o capi al, business s a egies conce ning p oduc inno a ion, b and
ex ensions, ad e isemen , p omo ions, p icing decisions, models o consum-
e s beha iou s, and subs i u ion pa e ns in esponse o he in oduc ion o a
new p oduc (e.g. which p oduc and how much olume would be los , which
compe ing p oduc s consume s would swi ch o). Bea ing in mind he nega i e
aspec s o b anding, e idence o ma ke segmen a ion implying a ‘one b anded
p oduc ’ ma ke can be indica i e o limi ed subs i u ion o he p oduc s a issue.
Business co espondence and co po a e decisions a e also ele an o e-
ealing b anding s a egies ela ed o he launching o new p oduc s.616 Such
613 McKenna (n 37) 2102.
614 ABA Sec ion o An i us Law, Ma ke De ini ion in An i us : Theo y and Case S udies (Chi-
cago 2012) 9, 14, 99–112.
615 Ibidem, 102.
616 Go e (n 560) 3.
244 Technical unc ionali y
Bibliog aphy
Ben ly, L., She man, B., Gangjee, D., Johnson, P., In ellec ual P ope y Law (5 h ed.
OUP 2018)
Bone, R., ‘T adema k Func ionali y Reexamined’ (2015) ol. 7(1) Jou nal o Legal
Analysis 183
B ancusi, L., ‘Designs De e mined by he P oduc ’s Technical Func ion: A gumen s
o an Au onomous Tes ’ (2016) 38(1) EIPR 23
B ancusi, L., ‘Al e na i e P oduc s as a Fac o in De e mining he Func ionali y o
T ade Ma ks – How he C i e ia o US Func ionali y Doc ine Could Be Applied in
EU Law’ in Susy F ankel (ed.), Is In ellec ual P ope y Plu alism Func ional? (Elga
2019) 178
Bucca usco, C., Lemley, M., ‘Func ionali y Sc eens’ (2017) 103 Vi ginia Law Re iew,
1293
Bu k, D.L., ‘Cybe ma ks’ (2010) 94 Minn. L. Re .1375
Ca e on, P., ‘Les con ins du modèle e du b e e d’in en ion’ in Mélanges o e s à
Ma cel Plaisan (Pa is 1960)
Casalonga, A., T ai é de la b e é abili é (Pa is 1939)
Cha y, S., ‘Rubik’s Cube: An IP Allego y’ (2017) JIPL&P 12(9), 773
Ch onopoulos, A., ‘De Ju e Func ionali y o Shapes D i en by Technical Conside a-
ions in Manu ac u ing Me hods’ (2017) IPQ 286
De claye, E., ‘O e lapping Righ s’ in Rochelle D ey uss, Jus ine Pila (eds.) The Ox o d
Handbook o In ellec ual P ope y (OUP 2018), 632
Dinwoodie, G.B., ‘The Dea h o On ology: A Teleological App oach o T adema k
Law’ (1999) 84 Iowa Law Re iew 611
Dinwoodie, G.B., Janis, M., T ade D ess and Design Law (Aspen Publishe s 2010)
End ich, T., ‘Pinning Down Func ionali y in EU Design Law’ (2019) 14(2) JIPL&P, 156
Fishe , M., Fundamen als o Pa en Law: In e p e a ion and Scope o P o ec ion (Ha
2007)
Gambino, D., Ba ow, W., T ade D ess. E olu ion, S a egy, P ac ice (OUP 2013)
Domokos, G., ‘Gömböc Pill’ (2019) 41 The Ma hema ical In elligence , 9
Du ield, G., Su he sanen, U., Global In ellec ual P ope y Law (2nd ed. Elga 2020)
EUIPO (cu en ) Guidelines Pa B Examina ion, a h ps://guidelines.euipo.eu opa.
eu/1935303/1790016/ ade-ma k-guidelines/pa -b-examina ion
Fhima, I., ‘Func ionali y in Eu ope: When Do T adema ks Achie e a Technical Resul ’
(2020) 110(3) The T adema k Repo e 659
F ançon, A., Pe o -Mo el, M.-A., Les dessins e modèles en ques ion, le d oi e la p a ique
(Pa is 1986)
F ome , J.C., Lemley, M. A., ‘The Audience in In ellec ual P ope y In ingemen ’
(2014) 112 Mich. L. Re ., 1251
G e e, P., G e e, F., T ai é des dessins e modèles (Pa is 1974)
G e e, P., G e e, F., T ai é des dessins e modèles. F ance. Union eu opéenne. Suisse
(Pa is 2003)
Ha ison, R., ‘Pa en s and U ili y Models’ in Neil Wilko , Shamnad Bashee (eds.)
O e lapping In ellec ual P ope y Righ s (OUP 2012) 106
Hasselbla , G., ‘A icle 7’ in Hasselbla , G. (ed.) Eu opean Union T ade Ma k Regu-
la ion. A icle-by-A icle Commen a y (2nd ed. Nomos 2018) 83
Gangjee, D., ‘Eye, Robo : A i icial In elligence and T ade Ma k Regis e s’ in Niklas
B uun, G aeme B. Dinwoodie, Ma ianne Le in, Ansga Ohly (eds.) T ansi ion and
Cohe ence in In ellec ual P ope y Law (CUP 2021) 178

Technical unc ionali y 245
Gangjee, D., ‘Paying he P ice o Admission: Non-T adi ional Ma ks ac oss Regis a-
ion and In ingemen ’ in Calboli, I., Sen leben, M. (eds.) The P o ec ion o Non-
T adi ional T ade Ma ks. C i ical Pe spec i es (OUP 2018) 59
G ynbe g, M., ‘AI and he ‘Dea h o T adema k’ (2019) 108 Ky LJ 199
Ho on, A., ‘Design, Shapes and Colou s: A Compa ison o T ade Ma k Law in he
Uni ed Kingdom and he Uni ed S a es’ (1989) 11(9) EIPR 315
Kellne , C., ‘Re hinking he P ocedu al T ea men o Func ionali y: Con on ing he
Insepa abili y o Use ul, Aes he ically Pleasing, and Sou ce-Iden i ying Fea u es o
P oduc Designs’ (1997) 46 Emo y L J 913
Kolle, G., ‘The Pa en able In en ion in he Eu opean Pa en Con en ion’ (1974) IIC 140
Ku , A., Sen leben, M., Eu opean T ade Ma k Law: A Commen a y (OUP 2017)
Ku , A., ‘Wha o P o ec , and How? Un ai Compe i ion, In ellec ual P ope y, o
P o ec ion Sui Gene is’ in Na i Lee e al. (eds.) In ellec ual P ope y, Un ai Compe-
i ion and Publici y: Con e gences and De elopmen (Elga 2014) 11–32, Max Planck
Ins i u e o In ellec ual P ope y & Compe i ion Law Resea ch Pape No. 13–12,
a : h ps://ss n.com/abs ac =2268585
Liaka ou, V., Mania is, S., ‘Lego-building a Eu opean Concep o Func ionali y’
(2010) EIPR 32(12) 653
Muske , D., ‘The O e lap be ween Pa en and Design P o ec ion’ in Wilko , Bashee
(eds.) O e lapping In ellec ual P ope y Righ s (OUP 2012) 23
Nguyen, V., ‘Op ing o Flexibili y: How he Exis ence o a Design Pa en Should
Shape E iden ia y Bu dens in Li iga ion o e T ade D ess P o ec ion o he Same
Fea u es’ (2015) 82(4) Uni e si y o Chicago Law Re iew 2249
McCa hy, J.T., McCa hy on T adema ks and Un ai Compe i ion (4 h ed. 2007)
Pe o -Mo el, M.-A., Les p incipes de p o ec ion des dessins e modèles dans les pays du
ma ché comun (Pa is, la Haye 1968)
Pila, J., ‘A icle 52(2) o he Con en ion on he G an o Eu opean Pa en s: Wha Did
he F ame s In end? A S udy o he T a aux P épa a oi es’ (2005) IIC 755
Pila, J., ‘Dispu e o e he Meaning o “In en ion” in A . 52(2) EPC – The Pa en -
abili y o Compu e -Implemen ed In en ions in Eu ope’ (2005) IIC 173
Quaed lieg, A., ‘Shapes wi h a Technical Func ion: An E e Expanding Exclusion?’
(2016) 17 ERA Fo um 101
Richa dson, M., ‘Aus alian In ellec ual P ope y Law: The Fo m/Func ion Dilemma–
A Case S udy o T ade Ma k and Design Law’ (2000) EIPR 314
Rie son, S.L., ‘Towa d a Mo e Cohe en Doc ine o T adema k Gene icism and Func-
ionali y: Focusing on Fai Compe i ion’ (2017) 27 Fo dham In ell P op Media &
En LJ 691
Scho sbo, J., Dinwoodie, G.B., ‘Design P o ec ion o P oduc s ha A e “Dic a ed by
Func ion”’ in Anne e Ku , Ma ianne Le in, Jens Scho sbo (eds.) The EU Design
App oach. A Global App aisal (Elga 2018) 142
Schöbe , N., ‘The Func ion o a Shape as an Absolu e G ound o Re usal’ (2013) IIC 35
Senechal, M., ‘Gömböc Pill Con inuing’ (2022) 44 The Ma hema ical In elligence , 119
Sen leben, M., ‘T adema k Law, AI-d i en Beha iou al Ad e ising and he Digi al
Se ices Ac – Towa ds Sou ce and Pa ame e T anspa ency o Consume s, B and
Owne s and Compe i o s’, in Ryan Abbo (ed.), Resea ch Handbook on In ellec-
ual P ope y and A i icial In elligence (Elga 2022) ibidem, h ps://ss n.com/
abs ac =3947739
S one, D., Eu opean Union Design Law. A P ac i ione s’ Guide (OUP 2016)
S andbu g, K., ‘Rounding he Co ne on T ade D ess’ (2012) 29 Yale J on Reg 387
246 Technical unc ionali y
Su he sanen, U., ‘Excluding Design (and Shape Ma ks): Whe e Is he EU Cou o
Jus ice Going?’ (2019) IIC 157
Su he sanen, U., Du ield, G., ‘U ili y Models and O he Al e na i es’ in Uma Su he -
sanen, G aham Du ield, Ki Boey Chow (eds.) Inno a ion wi hou Pa en s – Ha nessing
he C ea i e Spi i in a Di e se Wo ld (Elga 2007) 18
Su he sanen, U., Mimle , M., ‘An Au onomous EU Func ionali y Doc ine o Shape
Exclusions’ (2020) 69(6) GRUR In 567
The Public In e es and he Righ o Copy Non unc ional P oduc Fea u es’ (1977)
19 Wm. & Ma y L. Re . 317
Thu mon, M.A., ‘The Rise and Fall o T adema k’s Law Func ionali y Doc ine’
(2004) 56 Fla. L. Re . 244
Visse , D., Lai, L., de Lange, P., Suominen, K., Visse ’s Anno a ed Eu opean Pa en
Con en ion (Wol e s 2021)
DOI: 10.4324/9781003376040-8
7 Gene ic unc ionali y
Signs esul ing om he na u e
o goods
Ano he EUTM unc ionali y p o ision pe ains o signs de e mined by he
na u e o goods. Despi e modes beginnings, he p ac ice has e ol ed o e he
yea s o encompass basic p oduc ea u es, conside ed o be gene ic o a ce -
ain ype o p oduc – he e desc ibed by he e m ‘gene ic unc ionali y’. The
i s pa o his chap e e aces ea ly in e p e a ion in EUIPO p ac ice, in pa -
allel wi h he de elopmen o Ge man, Benelux, and UK case-law (7.1). The
second pa shows he momen um achie ed by he CJEU’s Hauck judgmen
(7.2.1), which b oadened he in e p e a ion o such an ex en ha i became
di icul o ame and delinea e om o he e usal g ounds. This is c i ically
discussed in Pa 7.2.2. I Hauck’s key c i e ion in ol es consume p e e ences
o gene ic ea u es o a gi en ype o p oduc , his canno emain an abs ac
exe cise, especially i unc ionali y hen expands o a a ie y o non- adi ional
p oduc ea u es. Pa 7.3. looks o p ac ical solu ions. Pa 7.3.1. looks in o
he US gene icness doc ine, which e ol ed om wo d ma ks o ade d ess
and de eloped es s ha examined he ac ual ma ke en i onmen , whils bal-
ancing he in e es s o igh -holde s, consume s and compe i o s. Pa 7.3.2.
seeks o anspose some o hese c i e ia in o he EUTM a ea, and ad oca es
o a lexible examina ion o gene ic unc ionali y.
7.1. Ea ly in e p e a ion o he e usal g ound
The ini ial p ac ice o he EUIPO and se e al na ional cou s es ic i ely
applied he unc ionali y o signs pe aining o he na u e o goods. Wha
ma e ed o he assessmen was he de ini ion o ele an goods, and he pos-
sibili ies o a ying he p oduc appea ance. The easy adap a ion o he exami-
na ion p ocess be ween unc ionali y and dis inc i eness was also a no iceable
end.
7.1.1. The EUIPO’s ‘na u al’ app oach
Ini ially, he EUIPO con ined he unc ionali y o signs esul ing om he
na u e o goods o cases o ealis ic ep esen a ion o goods, ha na u ally
exis ed o we e manu ac u ed, o example, he ue- o-li e shape o a banana
248 Gene ic unc ionali y
o bananas1031 o a oo ball o oo balls.1032 The la e i he ca ego y o
‘ egula ed p oduc s’, explained by la e e sions o Guidelines as ‘p esc ibed by
legal s anda ds’, 1033 including con en ional ules (e.g. oo ball/ ugby games).
AG Ruiz-Ja abo Colome in Philips and Linde named he p ohibi ion ‘na u al
unc ionali y’.1034 P ac ice was sca ce, as i only applied in a e cases o na u al
shapes wi hou subs i u es; he me e exis ence o o he shapes wi hou he
ea u es a issue dismissed he objec ion (e.g. he g oo es and he bending in-
wa ds along he leng hs o a ‘bone’ soap).1035 Simila ly, a ehicle g ill wi h old-
ashioned ea u es beyond hose commonly used was no es ed unc ionally,
whils i displayed a minimum o dis inc i eness, 1036 whe eas a shoe angled
s ip wi h do ed lines was ound solely undis inc i e.1037
Such a es ic i e in e p e a ion o he unc ionali y g ound in e e ed wi h
he o he absolu e e usal g ounds (conc. dis inc i eness, desc ip i eness o
gene icness) which ul ima ely ook he lead. Fo ins ance, he EUIPO Guide-
lines indica ed ha a igu a i e sign conside ed ‘desc ip i e’ o a cha ac e is ic
o goods/se ices would exclusi ely consis ‘o a basic na u al o m which
[wa]s no signi ican ly di e en om a ue- o-li e po ayal’ indica ing ‘ he
kind o in ended pu pose’ o he goods/se ices.1038 This de ini ion clea ly
mi o s he EUIPO’s in e p e a ion o a ( unc ional) shape condi ioned by
he na u e o goods, al hough heo e ically hese we e wo dis inc legal
g ounds. Indeed, he ea ly EUIPO p ac ice showed ha mos o he basic,
s anda d shapes, wi h ea u es ha ing p ac ical pu poses, we e examined wi h
ega d o dis inc i eness.1039 The case-law lacked an in-dep h analysis o wha
he ‘na u e’ o goods and ‘s anda ds’ o a ious kinds (legal, comme cial,
e c.) should mean.
1031 EUIPO Guidelines o 02/01/2014, Pa . B, 2.5.2., 65, a h ps://euipo.eu opa.eu/
ohimpo al/pl/web/gues /guidelines- eposi o y
1032 EUIPO Guidelines o 04/2008, Pa . B, 7.6.2, 38, a h ps://euipo.eu opa.eu/ un-
nel-web/secu e/webda /gues /documen _lib a y/con en Pd s/law_and_p ac ice/
guidelines/c m/examina ion_en.pd
1033 EUIPO Guidelines o 01/02.2016, Pa B, 2.5.2, 83, a h ps://euipo.eu opa.eu/
unnel-web/secu e/webda /gues /documen _lib a y/con en Pd s/law_and_p ac ice/
decisions_p esiden /ex15-7_en.pd
1034 AG Opinion in C -299/99 Philips EU:C:2001:52, pa as 16–17 and AG Opinion in
C-53/01 o C-55/01 (Linde & o he s), EU:C:2002:614, pa a 29.
1035 T-122/99 P oc e & Gamble . OHIM, EU:T:2000:39, pa as 54–56.
1036 T-128/01 Daimle Ch ysle . OHIM, EU:T:2003:62.
1037 C-307/11 Deichmann . OHIM, EU:C:2012:254.
1038 Guidelines o 02/01/2014, Pa . B, 2.3.3, 53, e e ing o T-385/08 & T-386/08 Nadine
T au wein . OHIM – EU:T:2010:295 & EU:T:2010:296 ( ep esen a ion o a dog/ho se).
1039 Go don Humph eys, ‘Non-con en ional T ade Ma ks: An O e iew o Some o he Lead-
ing Case-law o he Boa d o Appeal’ (2010) 32(9) EIPR 437, 442–445 discussing BoA
decisions: R-756/2005-2 (undis inc i e, sha p-edged, ec angula ciga e e packe wi h
hinging op); R-618/2005-4 (undis inc i e, ec angula den al con aine wi h olding la
su ace enhancing s ackabili y); R-1156/2004-4 (undis inc i e spec acle side as common
a ian ); R-262/2004-2 (simple ay wi h acqui ed dis inc i eness).
Gene ic unc ionali y 249
7.1.2. A ocus on Ge man and Benelux p ac ice, dealing wi h unc ional
a che ypes and a ia ion o ea u es
Ge man law embedded he unc ionali y exclusion as a s a u o y exempli ica-
ion o he p inciple o concep ual independence be ween he ma k and he
goods, eading ha wha ep esen ed he essence o a p oduc should no be
adema ked.1040 The speci ic p ohibi ion o a sign condi ioned by he na u e
o goods e e ed o componen s o a p oduc (‘design elemen s’) ha cons i-
u ed ‘ he a che ype o he p oduc ’, ha is, basic/gene ic and indispensable
cha ac e is ics, examined in he abs ac (e.g. ehicle wheels o o k ines).1041
Howe e , no all p oduc s equi ed an a che ype, o ins ance chocola e o
swee s (e.g. he bea -shaped ones om Ha ibo) could ake on a ious appea -
ances o be p o ec ed as a ade ma k upon gene al e ms. Schola s opined
ha a che ypal shapes could be ei he amilia o he use (a sphe ical ball),
o newly c ea ed, and inno a i e; howe e , he exclusion would s ill a ely
apply, o example, a py amid suppo ing a chai wi hou legs could be s ill
adema ked.1042 A se ies o judgmen s om he Fede al Cou o Jus ice in-
qui ed whe he a ian s o /in addi ion o an a che ypal o m we e possible,
o p oduc ea u es going beyond basic componen s ha we e echnically de-
e mined o necessa y.1043 An impo an judgmen conce ning a milk- la o ed
sliced cake1044 summa ized he de ini ion o a shape esul ing om he na u e
o goods: i should consis exclusi ely o ea u es essen ial o a ype o goods
in o de o ul ill hei pu pose. Es ablishing he ele an ‘ ype’ o goods e-
mained he key issue – he cou de ined i as a gene ic e m om he lis o
goods (i.e. eady-made cakes), and no upon he p oduc ep esen ed by he
sign (i.e. a slice o cake wi h a c eam illing). The cou wen u he by na -
owing he ca ego ies o cake slices, such as hose wi h laye s o c eam o wi h
dough, and no ed ha he e was no s anda dized basic shape o any o hese
ypes. These indings dismissed he unc ional p ohibi ion.
1040 See A §3 o Gese z übe den Schu z on Ma ken und sons igen Kennzeichen (Ma kenge-
se z) o 1994 www.gese ze-im-in e ne .de/ma keng/Ma kenG.pd , wi h commen a ies o
Geo g E bs, Max Kohlhaas, S a ech liche Nebengese ze (C.H. Beck 2021) §3 pa a 3;
Ka l-Heinz Feze , Ma ken ech (4 h ed. C.H. Beck 2009) pa as 647–648.
1041 Feze (n 1040) pa as 650–653.
1042 Ibidem, pa as 651–652.
1043 Po sche Boxs e shape eligible o adema k p o ec ion (BGH GRUR 2006, 679, 689);
simila ly, he shape o a o kli uck (BGH GRUR 2001, 334, 335 – Gabels aple ), due o
he pen agon ound-shaped d i e ’s cab ame, wi h ounded edge lines and ea ; a w is -
wa ch displayed a cha ac e is ic uni y be ween he wa ch case and he w is band and a glass
co e ing he en i e case (BGH WRP 2001, 269, 271 – Rado-Uh ); a lashligh ea u ed
addi ional design elemen s on he illumina ing body and he ba e y compa men (BGH
WRP 2001, 265, 267 – S ab aschenlampen – and BGH GRUR 2004, 506 – S ab aschen-
lampen II). Howe e , in he case o a sign showing an eigh -shaped ‘ illing ma e ial’, all
elemen s we e de e mined by he na u e o good and undis inc i e, wi hou any ea u e
sepa a ed om he echnical/p ac ical pu pose o he goods – (1998) (28)1 IIC 91.
1044 GRUR 2008, 510 – Milchschni e.

250 Gene ic unc ionali y
The Ge man p ac ice ep esen ed an impo an backg ound elemen o he
CJEU’s la e de elopmen o he unc ionali y exclusion (7.2.1.). The Ge man
app oach suppo ed he posi ion o a Max Planck S udy, which ad ised in sec .
III pa a 2.37 ha ‘[a] icle 7 (1)(e)(i) CTMR and A icle 3 (1)(e)(i) TMD
should be e o mula ed so as o ex end o all signs which exclusi ely esul
om he na u e o he ( echnical) pe o mance o he goods’.1045
Simila issues conce ning he na u e o goods aced Benelux law, which,
al hough i con ained speci ic unc ionali y p o isions (1.1.2.2.), ea u ed a i-
able case-law1046 due o unclea c i e ia o in e p e a ion. Examples o shapes
esul ing om he na u e o goods included: a pe o a ed packaging o oma-
oes; a d ainage ile, due o ea u es helping an excess o wa e d ain o ; non-
anspa en ca dboa d packaging o ma ga ine, in ended o educe exposu e
o ligh /ai ; a gas ca idge, due o i s cylind ical shape, hollow bo om, and
ounded-o uppe side.1047 Howe e , in he case o he Lego b ick and an S-
shaped illing ma e ial o packaging, any dependence on he na u e o goods
was dismissed, ye he echnical issues emained ele an .1048 F equen ly, he
exis ence o simila p oduc s wi h a di e en appea ance (in cons uc ion/
size/colou ) was su icien o p o e independence om he na u e o goods
o : a lemon juice bo le; a salad oil bo le; packaging o Ba bie dolls; pack-
aging o adhesi e ape; a bo le o cleaning p oduc s.1049 Ano he no able
case conce ned an a emp o in alida e he iangula shape o Toble one
chocola e ba s, aised by a compe i o acing in ingemen claims – he cou
dismissed he a gumen s conce ning he na u e o goods, because he appea -
ance was unnecessa y o he manu ac u ing o chocola e p oduc s, as nume -
ous shapes we e a ailable on he ma ke .1050
These examples demons a e he di icul y o sepa a ing he e ec s pe ain-
ing o echnical unc ionali y om hose de e mined by he na u e o goods,
1045 S udy (n 627) 74.
1046 The case-law o igina es om he Du ch ‘Repo Q148’ (Be endscho , Fe men , an Kaam,
Kooy, Me kus, an Assen, Visse , Vos) o AIPPI ques ionnai e on he subjec o ‘Th ee-dimen-
sional Ma ks: The Bo de line Be ween T adema ks and Indus ial Designs’ – pe sonal a chi e
o LB.
1047 Dis ic Cou Ro e dam, 6.6.1996 (BIE 1997/35, oma oes packaging); Cou o Ap-
peal’s-He ogenbosch, 13.9.1988 (BIE 1989/151, ile); Dis ic Cou ’s-G a enhage,
1.9.1971 (BIE 1972/39, ma ga ine packaging); Cou o Appeal A nhem, 23.5.1973
(BIE 1973/40, ca idge).
1048 Cou o Appeal o Luik, 30.6.1993 (BIE 1996/84, Lego); Dis ic Cou ’s-G a en-
hage, 19.6.1996 (IER 1996/32) and Cou o Appeal’s-G a enhage on 2.10.1997 (BIE
1999/60, S-shaped ma e ial).
1049 Cou o Appeal o An we p, 3.4.1980 (BIE 1983/90, lemon juice); Dis ic Cou ’s-
G a enhage, 4.2.1992 (BIE 1995/74, salad oil); Cou o Appeal’s-He ogenbosch,
28.02.1990 (IER 1990/24, Ba bie doll); P esiden o he Dis ic Cou Maas ich ,
7.08.1978 (BIE 1980/37, cello- ape); Cou o Appeal’s-G a enhage, 6.6.1996 (BIE
1997/2, bleach bo le).
1050 Ma ie-Ch is ine Janssens, ‘The “Toble one” Chocola e Ba Case in Belgium’ (2004)
26(12) EIPR 554, 556.
Gene ic unc ionali y 251
as well as he ease o applying he c i e ion o al e na i e shapes/packaging in
o de o a oid unc ionali y. I also showed ha packaging could mo e easily
o e pass he unc ionali y objec ion, as i usually con ained addi ional ea u es
beyond hose simply copying he shape o he p oduc .1051
7.1.3. UK case-law, pi o ing a ound he de ini ion o ‘goods’
UK ju isp udence b ough an in e es ing dimension o he in e p e a ion o a
sign, condi ioned by he ‘na u e’ o goods, by ocusing on he ca ego iza ion
o ‘goods’, an issue ha mi o ed he Ge man Milchschni e case. In he Philips
case be o e he UK Cou o Appeal, Aldous L.J. held i o be ele an ha
he goods we e designa ed by he egis a ion documen a ion, ha is, ‘elec ic
sha e s’, and no as depic ed by he ep esen a ion o he sign, ha is, ‘ o a y
sha e s ha ing h ee equila e al heads and a ace pla e’.1052 In he lowe cou ,
Jacob J also chose he ca ego y o ‘elec ic sha e s’, bu a gued di e en ly. The
answe was a ma e ‘o deg ee’ – because o g ea e possibili y o manoeu ing
om a na ow o a b oade ca ego y ( o a y sha e s/ elec ic sha e s/ sha -
e s) – hus, es ablishing he na u e o goods should no be an academic que y,
bu as a ‘p ac ical business ma e ’, based upon how he goods we e seen as ‘a -
icles o comme ce’.1053 Simul aneously o Philips, ano he case conce ned wo
h ee-dimensional ma ks o Vienne a ice c eam (pa allelepipeds o whi e/
da k chocola e showing a wa y uppe s uc u e and se e al ho izon al laye s)
which we e iled o ‘ice c eam desse p oduc s’.1054 Nes le opposed he egis-
a ion, a guing ha he ca ego iza ion was ‘ h ee-dimensional ice-c eam wi h
chocola e go up in a ancy way’, while he na u e o he goods was ‘ he shape’
alone.1055 Jacob J declined he unc ionali y claims, by e e ing o he UK
Philips judgmen and o he AG’s opinions in Philips and Linde.1056 The unc-
ionali y o A . 3(1)(e)(i) TMD applied only o ‘na u ally occu ing shapes’,
and hus no o ‘a i icially c ea ed shapes’, such as Vienne a ice-c eams.1057 A
schola hen ques ioned whe he his dis inc ion could p ope ly wo k in p ac-
ice, by o e ing he examples o pencils, scisso s, and sauce s as non-na u al,
ha is, a i icially c ea ed p oduc s, which ne e heless had a mo e s anda d-
ized appea ance han Vienne a ice-c eams.1058 This inding e ealed he need
o an in-dep h cla i ica ion o he e m ‘na u e’ (o goods).
1051 William Co nish, Je emy Phillips, ‘Indus ial Design P o ec ion a e Philips Elec onics –
The Shape o Things o Come’ (1999) 3 Jou nal o Business Law 177.
1052 Philips . Reming on [1999] R.P.C. 809, 820, discussed by Fi h, G adley, Mania is (n 85)
92. CJEU in Philips did no b ing guidance on he unc ionali y o A . 3(1)(e)(i) TMD.
1053 Philips . Reming on [1998] R.P.C. 283.
1054 Unile e . Nes le [2003], R.P.C. 651.
1055 Ibidem, 657.
1056 C-299/99; C-53/01 o C-55/01.
1057 Unile e (n 1054) 658.
1058 Philips (n 24) 145.
252 Gene ic unc ionali y
The issue o how s a egically ca ego izing goods can ci cum en he objec-
ions pe aining o na u al unc ionali y eme ged la e in he Rubik cube case.
The EUIPO and GC e e ed o he speci ica ion o goods as ‘ h ee-dimen-
sional puzzles’. The GC no ed ha e en i he examina ion was es ic ed o
puzzles wi h a o a ing capabili y, he mul i ude o di e en shapes ( anging
om geome ic o buildings, animals, e c.) would p o e ha he goods did
no need o ake he shape o a cube wi h a g id s uc u e su ace.1059 AG Szpu-
na did no sha e he GC’s iew, es ic ed o s anda dised, p e-de e mined
shapes wi hou al e na i es, op ing o a na owe ca ego y o ‘magic cubes’,
o which Rubik’s cube would ha e been ‘undoub edly a na u al shape’.1060
Howe e , because o p ocedu al es ic ions – ha is, es ablishing he app o-
p ia e ca ego y o he goods ep esen ed a ac ual ma e belonging o he
GC’s compe ence and could no be appealed, unless he e was dis o ion o
he ac s o e idence1061 – he CJEU cancelled he egis a ion o easons o
echnical unc ionali y alone.1062
7.2. Mo ing om ‘na u al unc ionali y’ owa ds ‘gene ic
unc ionali y’
The Hauck judgmen was he u ning poin o expanding he scope o he
p ohibi ion o gene ic/basic ea u es o a shape de e mined by speci ic con-
sume p e e ences (7.2.1.). This aised, and will con inue o aise, di icul ies
a ound in e p e a ion and applica ion, especially i mo e p oduc cha ac e is-
ics all wi hin he ambi o he unc ionali y p ohibi ion. Pa 7.2.2. looks in o
hese issues in de ail. As o a easonable solu ion, he au ho will conside he
bene i s o a ma ke -o ien a ed es la e in Pa 7.3.
7.2.1. The CJEU Hauck judgmen
The CJEU judgmen ha changed he in e p e a ion o wha was ini ially
hough o ‘na u al unc ionali y’ conce ned S okke’s T ippT app child en’s
chai , he objec o copy igh and ade ma k in ingemen p oceedings in
on o he Sup eme Cou o he Ne he lands, wi h a coun e claim seeking
in alida ion o he Benelux ade ma k.1063 Lea ing aside he success ul copy-
igh claims endo sed ac oss many ju isdic ions, 1064 he Du ch cou asked
he CJEU whe he he shape o ‘a sa e, com o able, eliable child en’s chai ’
1059 T450/09, Simba Toys, pa a 82.
1060 AG Opinion o C-30/15P, EU:C:2016:350, pa a 45. These p oceedings ook place sho ly
a e CJEU’s Hauck, which b oadened he in e p e a ion o ‘na u al’ unc ionali y (7.2.
below).
1061 Ibidem, pa as 46–51.
1062 C-30/15P, EU:C:2016:849, pa as 47–54.
1063 C-205/13, Hauck . S okke, EU:C:2014:2233, pa as 9–13.
1064 C-205/13, pa as 8–9.
Gene ic unc ionali y 253
was de e mined by he na u e o goods, and i i also ga e subs an ial alue o
he goods (see Chap e 8). The ollowing ema ks add ess he que y a ound
whe he a na u al shape e e s o ‘a shape indispensable o he unc ion o he
goods, o can i also e e o he p esence o one o mo e subs an ial unc ional
cha ac e is ics o goods which consume s may possibly look o in he goods
o compe i o s’.1065 The CJEU depa ed om he p e ailing in e p e a ion o
na u al/p e-de e mined shapes indispensable o he unc ion o he goods,
by a guing ha i applied no only o such signs as would ha e been denied
egis a ion because o a lack o dis inc i e cha ac e , bu would ha e also
unde mined he a ionale unde pinning all h ee unc ional p o isions (Chap-
e 2), ha is, p e en ing cumula ion wi h o he ime-limi ed IPRs, while
‘lea ing he p oduce o hose goods no leeway o make a pe sonal essen-
ial con ibu ion’.1066 The e o e, he in e p e a ion should encompass shapes/
signs wi h essen ial cha ac e is ics ha a e ‘inhe en o he gene ic unc ion(s)
o goods’, ha is, ‘essen ial o he [iden ical o simila ] unc ion o ha p od-
uc ’, because compe i o s should no be hinde ed in choosing a shape ‘sui ed o
he use o which he goods a e in ended’, and which consume s ‘will be looking
o in he p oduc s o compe i o s’ (LB).1067
The Cou ollowed he opinion o AG Szpuna , who men ioned he Ge -
man app oach o inqui ing in o he ypical ea u es o a pa icula seman ic
ca ego y (o goods), conside ed gene ic because hey esul ed om he p od-
uc ’s unc ion; howe e , ‘peculia ea u es o he p oduc o esul ing om
a speci ic use o he p oduc ’ ough o be dis ega ded.1068 The AG ci ed he
examples o he ‘shape o an oblong in ela ion o a b ick, he shape o a con-
aine wi h a spou , a lid and a handle in ela ion o a ke le, o o k-shaped
p ongs in ela ion o a o k’, 1069 and o e ed o he examples o ‘legs wi h a
ho izon al le el in ela ion o a chai , o an o hopaedic shaped sole wi h a
V-shaped s ap in ela ion o lip- lops’.1070 The la e examples a e pa o he
cu en EUIPO Guidelines.1071 Howe e , he p ohibi ion should no apply
i , besides gene ic unc ional ea u es, he e a e o he essen ial ea u es which
‘mus be solely an exp ession o he speci ic applica ion o ha unc ion’, such
as ‘ he body o a gui a shaped in a manne which di e s om he no mal
idea o he shape o ha ins umen ’ (LB).1072 The AG conside ed he p oo
o al e na i e shapes i ele an , 1073 ye he Cou did no elabo a e on ha
in his espec .
1065 Ibidem, pa a 14.
1066 Ibidem, pa as 19 and 23.
1067 Ibidem, pa as 25–27.
1068 Opinion (n 1060) pa a 48.
1069 Ibidem, pa a 49.
1070 Ibidem, pa a 59.
1071 EUIPO Guidelines Pa B Sec ion 4 Chap e 6.2.
1072 Opinion (n 1060) 64.
1073 Ibidem, pa a 65.
260 Gene ic unc ionali y
o ea u es esul ing om he na u e o goods unde he EUTM (7.3.2.). The
au ho ad oca es o inco po a ing mo e lexibili y in o he assessmen o ge-
ne ic unc ionali y. This seems a use ul inpu o he p ocess, i espec i e o he
possible o e lap wi h o he unc ionali y g ounds.
7.3.1. A glimpse in o he US gene icness ules
US gene icness p ac ice ini ially applied o wo d ma ks. The Lanham Ac de-
nies ade ma k p o ec ion o a wo d o e m ha has become gene ic o he
goods/se ices designa ed, e en i a a ce ain poin i was inhe en ly dis inc-
i e o acqui ed seconda y meaning.1093 Gene icness doc ine goes back in
ime o he common-law oo s o un ai compe i ion.1094 I s aim has been o
ensu e ee communica ion o e e ms ha became he signi ie s o a ype/
se (genus) o p oduc s ela ed o ha one inco po a ing he ini ial ma k –
classical examples include he e ms ‘aspi in’, ‘cellophane’, ‘sh edded whea ’,
‘ he mos’, ‘linoleum’.1095
Gene icness has been also applied o ade d ess, albei less equen ly. This
was seen in he example o he ‘Mu phy bed’ which olds down om he
wall1096 o a ec angula macadamia nu sho b ead cookie diagonally dipped
in chocola e.1097 The schola ship has summa ized he ca ego ies o gene ic
ade d ess as encompassing:1098
– an ‘o e b oad’/‘gene alized’ design o ‘s yle o doing business’;
– a ‘basic’ o ‘necessa y o ma ha no one should ha e monopoly’ o e
(such as he egula shape o ca dboa d, as he mos cos -e ec i e way o
packaging1099);
– a ‘common’ design in an indus y, incapable o sou ce-iden i ica ion.
1093 Gene icness ep esen s a cancella ion g ound and also an in ingemen de ence, Lanham
Ac , § 14 (15 U.S.C. § 1064 (3)) o 2013.
1094 De en Desai, Sand a Rie son, ‘Con on ing he Gene icism Conund um’ (2007) 28 Ca -
dozo L. Re . 1789.
1095 D ey uss (n 170) 417.
1096 Mu phy Doo Bed . In e io Sleep, 874 F.2d 95, 101 (2d Ci . 1989).
h ps://case ex .com/case/mu phy-doo -bed-co- -in e io -sleep-sys ems?__c _
chl_jschl_ k__=pmd_e9oCKp7yiD_ h0XJIea042cX4wD NDFuwSY kxzkD0–
1631798705-0-gqN ZGzNAlCjcnBszQi9
1097 Big Island Candies . The Cookie Co ne , 269 F. Supp.2d 1236, 1243–1244 (D Hawaii
2003), h ps://case ex .com/case/big-island-candies-2
1098 Nae e (n 1088) 308; Gambino, Ba ow (n 248) 268–269 e e ing o Valen ine’s Day ca ds
depic ing hea s and a ows o ca ds wi h abby ca s (Je ey Mils ein . G ege , Lawlo , 58
F.3d 27, 33 (2d Ci . 1995)) o o he in e io design o a cen ally loca ed ba (Landscape
Fo ms . Columbia Cascade, 113 F.3d 373 (2d Ci . 1997)).
1099 Ami Khou y, ‘Th ee-dimensional Objec s as Ma ks: Does a “Da k Shadow” Loom o e
T adema k Theo y’ (2008) 26 Ca dozo A s & En e ainmen 335, 351.

[Document text truncated for crawler view.]