The High Court has ruled that a party bringing an unsuccessful trade mark invalidity action cannot later counter-claim that the same registration is invalid on grounds that could have been raised in the earlier invalidity action. This is so even though the earlier invalidity action was at the Registry and the later action in court (by way of a counterclaim in an infringement action).
In this case, the Defendant to an infringement action counterclaimed that the UK and EUTM registrations asserted against it were invalid based on the Defendant's prior passing off rights and bad faith. The Defendant had previously and unsuccessfully brought actions to invalidate these registrations at the UKIPO and EUIPO based on its prior UK trade mark registrations. These actions had failed as the prior UK registrations were themselves revoked for non-use.
The court held that, after successfully defending an invalidity claim, a party is entitled to rely on the finality of those proceedings and should not have to meet a further challenge on different grounds that could and should have been raised before. This conclusion could not be avoided on the basis that the disputed issue was raised by way of a defence or counterclaim rather than by initiating a claim.
The invalidity counterclaims in relation to the UK registrations were barred under the principle in Henderson v Henderson and abuse of process more generally. The invalidity counterclaims against the EUTM registration were barred on the basis that they constituted an abuse of process under domestic law. Article 60(4) EUTM Regulation (EUTMR) did not purport to set out any general principle of abuse of process and therefore the domestic procedural rules of abuse of process remained applicable under Article 129(3) EUTMR. (Note that the infringement action had been commenced prior to the end of the Brexit transition period, which is why the UK court still had jurisdiction over the EUTM infringement claim.)
Those bringing invalidity actions (including at the UKIPO and EUIPO) will need to bear in mind that they may not get a second chance to argue the case. While the law in this area is not completely clear, it is less likely that an opposition to a trade mark application would preclude a later claim for invalidity of any resulting registration.