damas | Decision 0013144

CANCELLATION DIVISION
CANCELLATION No 13 144 C (REVOCATION)
Damas Jewellery Ltd, 29 Dawley Avenue, UB8 3BU Uxbridge, United Kingdom
(applicant), represented by Stevens Hewlett & Perkins, 1 St. Augustine’s Place,
BS1 4UD Bristol, United Kingdom (professional representative)
a g a i n s t
Damas Jewellery LLC, P.O. Box 1522, Dubai, United Arab Emirates (EUTM
proprietor) represented by Nucleus IP limited, 10 St. Bride Street, EC4A 4AD London,
United Kingdom (professional representative).
On 04/10/2017, the Cancellation Division takes the following
DECISION
1. The application for revocation is upheld.
2. The EUTM proprietors rights in respect of European Union trade mark
No 3 209 541 are revoked in their entirety as from 21/06/2016.
3. The EUTM proprietor bears the costs, fixed at EUR 1 080.
PRELIMINARY REMARK
As from 01/10/2017, Regulation (EC) No 207/2009 and Regulation (EC) No 2868/95
have been repealed and replaced by Regulation (EU) 2017/1001 (codification),
Delegated Regulation (EU) 2017/1430 and Implementing Regulation (EU) 2017/1431,
subject to certain transitional provisions. All the references in this decision to the
EUTMR, EUTMDR and EUTMIR shall be understood as references to the Regulations
currently in force, except where expressly indicated otherwise.
REASONS
The applicant filed a request for revocation of European Union trade mark registration
No 3 209 541 (figurative mark) (the EUTM). The request is directed
against all the goods covered by the EUTM, namely
Class 14: Jewellery, precious stones, watches, silver jewellery and articles made of
silver.
The applicant invoked Article 58(1)(a) EUTMR.
SUMMARY OF THE PARTIES’ ARGUMENTS
Decision on Cancellation No 13 144 C page: 2 of 8
The applicant argues that the EUTM has not been put to genuine use in the EU since
its registration on 07/06/2005 and that there are no proper reasons for non-use. The
applicant requests that the EUTM be revoked and the costs for the proceedings be
borne by the EUTM proprietor.
The EUTM proprietor argues that the EUTM has been put to genuine use by the EUTM
proprietor and/or its associated companies during the relevant period in respect of the
relevant goods and where use has been interrupted there are valid reasons for non-
use. The EUTM proprietor submits evidence (listed below in the decision) and provides
explanations about its business. There are in particular explanations provided by the
CEO of the EUTM proprietor setting out the reasons why the business stalled in the EU
and the intention to re-establish the business in the EU. The EUTM proprietor points
out that in case the evidence of use is not deemed to be sufficient, these articles set
out proper reasons for non-use of the EUTM.
In it observations in return the applicant contests the genuine use of the EUTM by
analysing in detail the evidence submitted by the EUTM proprietor. The applicant
argues in particular that the EUTM has not been used in the form as registered and
that the use was not in the relevant period. Moreover, according to the applicant if there
is some use at all it is shown for the company name of the EUTM proprietor, where no
connection can be established between the company name and the goods. As to the
evidence submitted in order to show that there are proper reasons for non-use the
applicant considers this attempt to be a tacit acknowledgment that the evidence does
not support a finding of genuine use of the trade mark during the relevant period.
Further, the applicant submits that the reasons set out by the EUTM proprietor cannot
be considered to constitute proper reasons for non-use and refers to Case-Law which
the applicant considers relevant.
In its final round of observations the EUTM proprietor addresses the arguments of the
applicant, in particular with regard to the importance of the absence of the figurative
element of the contested EUTM in light of the possible change of the distinctive
character of the EUTM and with regard to the use of the EUTM during the relevant
period and in relation to the goods as registered. The EUTM proprietor claims that it did
provide proper reasons for non-use, whereas it is not under the obligation to provide
sensitive commercial information.
The EUTM proprietor requests the application to be rejected and the costs to be
awarded to the EUTM proprietor.
GROUNDS FOR THE DECISION
According to Article 58(1)(a) EUTMR, the rights of the proprietor of the European Union
trade mark will be revoked on application to the Office, if, within a continuous period of
five years, the trade mark has not been put to genuine use in the Union for the goods
or services for which it is registered, and there are no proper reasons for non-use.
Genuine use of a trade mark exists where the mark is used in accordance with its
essential function, which is to guarantee the identity of the origin of the goods or
services for which it is registered, in order to create or preserve an outlet for those
goods or services. Genuine use requires actual use on the market of the registered
goods and services and does not include token use for the sole purpose of preserving
the rights conferred by the mark, nor use which is solely internal (11/03/2003, C-40/01,
Minimax, EU:C:2003:145, in particular § 35-37 and 43).
Decision on Cancellation No 13 144 C page: 3 of 8
When assessing whether use of the trade mark is genuine, regard must be had to all
the facts and circumstances relevant to establishing whether commercial exploitation of
the mark is real, particularly whether such use is viewed as warranted in the economic
sector concerned to maintain or create a market share for the goods or services
protected by the mark (11/03/2003, C-40/01, Minimax, EU:C:2003:145, § 38). However,
the purpose of the provision requiring that the earlier mark must have been genuinely
used ‘is not to assess commercial success or to review the economic strategy of an
undertaking, nor is it intended to restrict trade-mark protection to the case where large-
scale commercial use has been made of the marks’ (08/07/2004, T-203/02, Vitafruit,
EU:T:2004:225, § 38).
According to Article 19(1) EUTMDR in conjunction with Article 10(3) EUTMDR, the
indications and evidence for the furnishing of proof of use must consist of indications
concerning the place, time, extent and nature of use of the contested trade mark for the
goods and services for which it is registered.
In revocation proceedings based on the grounds of non-use, the burden of proof lies
with the EUTM proprietor as the applicant cannot be expected to prove a negative fact,
namely that the mark has not been used during a continuous period of five years.
Therefore, it is the EUTM proprietor who must prove genuine use within the European
Union, or submit proper reasons for non-use.
In the present case the EUTM was registered on 07/06/2005. The revocation request
was filed on 21/06/2016. Therefore, the EUTM had been registered for more than five
years at the date of the filing of the request. The EUTM proprietor had to prove genuine
use of the contested EUTM during the five-year period preceding the date of the
revocation request, that is, from 21/06/2011 to 20/06/2016 inclusive, for the following
contested goods:
Class 14: Jewellery, precious stones, watches, silver jewellery and articles made of
silver.
On 05/10/2016 the EUTM proprietor submitted evidence as proof of use.
The evidence to be taken into account is the following:
Exhibit A Eleven invoices and ‘other related documents’, none of which translated
into the language of proceedings. Four of the invoices are dated outside
of the relevant period. None of the invoices shows the contested EUTM.
Exhibit B Documents, issued by the Companies House providing registration
details regarding the companies ‘Damas Southall Limited and ‘Damas
UK limited’.
Exhibit C A picture extracted from the webpage www.citikey.co.uk dated
05/10/2016 showing a shop displaying the sign .
Exhibit D A picture extracted from the webpage www.citikey.co.uk dated
05/10/2016 showing a shop displaying the sign
Decision on Cancellation No 13 144 C page: 4 of 8
Exhibit E Articles related to the appointment of the star Penelope Cruz as the face
for the Damas’ new product line Sama. The articles relate to an event
which took place in Dubai and are published in September 2016 (outside
of the relevant period).
Exhibit F Articles revealing details about Damas’ business.
1. Preliminary remarks
In response to the EUTM proprietors first submissions in particular when analysing the
evidence of use, the applicant argues that the EUTM proprietor did not submit
translations of some of the evidence and that, therefore, this evidence should not be
taken into consideration. The EUTM proprietor replied that it is not under any obligation
to translate the proof of use, which would incur unnecessary costs when the relevant
information can be clearly understood.
Тhe ratio behind the lack of a general obligation for the EUTM proprietor to provide
translation of each and every document is in principle that self-explanatory documents
don’t have to be translated, so that the EUTM proprietor does not incur unnecessary
costs. However, the application of this principle should not be abused and shall not
preclude the Cancellation Division and the applicant from the possibility to get familiar
with the content of the evidence, in particular the information that is important for
evaluating the time, place, extent and nature of use of the contested EUTM.
Taking into account the above considerations and also the principle of procedural
expediency the Cancellation Division does not find it necessary to request the EUTM
proprietor at this stage of the proceedings to provide translations of the evidence that is
not in the language of proceedings. The EUTM proprietor did not translate at least the
textual elements which are necessary for evaluating the time, place, extent and nature
of use as foreseen in the letter sent by the Office on 30/06/2016. The EUTM proprietor
had another chance to provide translations, namely in its second round of observations
after the applicant raised this issue. The EUTM proprietor did not submit any translation
at this stage of the proceedings either. Translating at least the goods that appear on the
invoices would have not incurred any additional costs on the EUTM proprietor. A
simple, non-certified translation in handwriting would have been sufficient. Finally,
bearing in mind also the pending opposition proceedings between the same parties,
the unwillingness of the EUTM proprietor to translate the most relevant and important
information regarding use of the contested EUTM in relation to the goods in the
specification, speaks rather in favour of applying some delaying tactics to the current
proceedings.
Taking on board all the particularities of the case, the Cancellation Division does not
find it necessary to re-open the proceedings and request the EUTM proprietor to
submit translation of the evidence. As it will also become evident later on in the
decision, the outcome of the revocation case would not have been any different, had
the EUTM proprietor submitted the translations.
Decision on Cancellation No 13 144 C page: 5 of 8
2. Assessment of genuine use – factors
The factors time, place, extent and nature of use are cumulative (05/10/2010, T-92/09,
STRATEGI / Stratégies, EU:T:2010:424, § 43). This means that the evidence must
provide sufficient indications of all these factors to prove genuine use. The Cancellation
Division finds it appropriate to first examine the nature of use of the contested EUTM.
Nature of use: use as a trade mark
Nature of use requires, inter alia, that the contested European Union trade mark is
used as a trade mark, that is, for identifying origin, thus making it possible for the
relevant public to distinguish between goods and services of different providers.
In view of the number of marks registered and potential conflicts between them, it is
essential that the rights conferred by a mark for a given class of goods or services are
maintained only where that mark has been used on the market for goods or services
belonging to that class (15/01/2009, C-495/07, Wellness, EU:C:2009:10, § 19).
The contested EUTM is not displayed on any of the submitted invoices. The verbal
element ‘DAMAS’ appears on the invoices as part of the company name ‘DAMAS
EUROPE S.P.A. IN LIQUIDAZIONE E C.P.’
The purpose of a company name is not to distinguish goods or services. The purpose
of a company name is to identify a company. Accordingly, use of a company name
cannot be considered as being ‘in relation to goods or services’ within the meaning of
Article 5(1) of the Directive.
It is to be noted further that the company name and the contested EUTM show
significant differences despite the coinciding verbal element ‘DAMAS’. Second, the
addition ‘IN LIQUIDAZIONE E C.P.’ clearly indicates use as a company name since
only a company can be in liquidation. And third, bearing in mind also the usual
business practices, it becomes evident from the use of the company name together
with the company’s registered address in the upper left corner of the invoices that the
perception of the company name ‘DAMAS EUROPE S.P.A. IN LIQUIDAZIONE E C.P.’
will be perceived as such. Thus, the sign as registered does not constitute the EUTM
proprietor’s company name.
Apart from being so different from the mark as registered, it is not evident that the
EUTM proprietor affixes its company name to the goods.
Furthermore, no link can be established between the company name and the goods in
the specification.
Use of the EUTM in relation to the registered goods and services
The only use as a mark of the verbal element ’DAMAS’ in the evidence provided by the
EUTM proprietor is that reflected on the undated shop pictures submitted as Annexes
C and D , which contain the sign , a figurative sign which differs
from the form of the EUTM as registered.
Decision on Cancellation No 13 144 C page: 6 of 8
Article 58(1)(a) EUTMR and Article 10(3) EUTMDR require that the EUTM proprietor
proves genuine use for the contested goods and services for which the European
Union trade mark is registered.
The only possible conclusion that can be drawn on the basis of the submitted
documents is that the sign is used as a shop name, which
could eventually prove use in relation to retail services. Use of the sign ‘Damas’ in
relation to retail services is also supported by the evidence, in particular it is mentioned
in one of the articles (Exhibit 6) that ‘… leading jewellery retailer Damas launched its
luxury jewellery brand Sama…’. Two conclusions can be drawn from this evidence.
First of all, ‘DAMAS’ is a jewellery retailer, and second jewellery products/product
lines are launched under different brands such as ‘Sama’.
Even under the assumption that use of the signs and ‘DAMAS’
could be considered use of the registered EUTM in a form which does not alter its
distinctive character and that such use was made during the relevant period (which is
not supported by the evidence), the services for which the mark has been eventually
used do not fall within any of the categories for which the earlier mark is registered.
Therefore, in the only instance where use of the sign as trade mark (and not as a
company name) could eventually be considered at all, the EUTM proprietor has not
shown use for the goods for which the mark is registered, but for services for which it
has no protection.
3. Overall assessment on the genuine use
The evidence for the nature of use does not show use of the EUTM as a trade mark. It
only shows the name of the company in a way which does not suggest that the
consumer will establish a link between the company name and the relevant goods. In
the only occasion where such use of the sign could eventually be considered despite
other factors of genuine use not being present (such as time and extent) the conclusion
that can be drawn from the submitted evidence is that the sign could have been used in
relation to services which are not covered by the specification. All in all, the evidence
furnished by the EUTM proprietor is clearly insufficient to prove that the contested trade
mark was put to genuine use.
4. Reasons for non-use
In accordance with Article 58(1)(a) EUTMR, the EUTM proprietor may either prove
genuine use of the contested European Union trade mark or prove that there are
justifiable reasons for non-use. These reasons cover circumstances arising
independently of the EUTM proprietor’s will which prevent use of the contested
European Union trade mark.
The EUTM proprietor itself does not claim directly the reasons for non-use but instead
refers to some articles allegedly revealing the reasons ‘why the business stalled in the
EU and the intention to re-establish the business in EU’ and lets the Cancellation
Division extract the reasons for non-use from these documents.
Decision on Cancellation No 13 144 C page: 7 of 8
In an article dated 25/11/2013 the CEO of Damas (Dubai-based jeweller) the chief
executive Anan Fakhredin refers to the markets in the U.S., China, Europe and India as
markets where the company wants ‘to explore the possibility of securing market share
for Damas’. This is an indirect evidence that the possibilities to expand to the European
market were considered for the first time not earlier than 2013 and supports the finding
that the Cancellation Division reached in the above section.
The article also mentions ‘an embarrassing’ chapter in 2010 when the jeweller (Damas)
‘was fined by the Dubai regulator after the three brothers heading the business then
took gold from the company for personal investment purposes.’ In another article Mr.
Fakhredin speaks about ‘a major crisis in 2010’. It can be inferred from the article that
the crisis might have been caused by the conviction of the owners of the business of
withdrawing USD 167 million in unauthorised transactions by the Dubai Financial
Standards Authority, which led to a drop in the shares’ price of the company and to the
latter owing hundreds of millions to banks.
Without going into further detail this information allows the Cancellation Division to
conclude that the reasons for non-use of the contested EUTM (in the absence of a
particular claim on behalf of the EUTM proprietor) might have been these commercial
difficulties. However, financial difficulties encountered by a company as a result of its
own financial problems are not considered to constitute proper reasons for non-use
within the meaning of Article 47(2) EUTMR, as these kinds of difficulties constitute a
natural part of running a business. It is established Case-Law that the concept of
proper reasons must be considered to refer to circumstances arising independently of
the will of the owner that make use of the mark impossible or unreasonable, rather than
to circumstances associated with commercial difficulties it is experiencing (decision of
14/05/0008, R 0855/2007-4, PAN AM, § 27; judgment of 09/07/2003, T-162/01, Giorgio
Beverly Hills, EU:T:2003:199, § 41, (judgment of 18/03/2015, T-250/13, SMART
WATER, EU:T:2015:160, § 67-69).
Bearing in mind the above, the EUTM proprietor’s claim for proper reasons for non-use
is hereby rejected.
5. Conclusion
It follows from the above that the EUTM proprietor has neither proven the genuine use
of the contested EUTM for any of the goods for which it is registered, nor has it proved
that there are proper reasons for non-use. As a result, the application for revocation is
wholly successful and the contested EUTM must be revoked in its entirety.
According to Article 62(1) EUTMR, the revocation will take effect from the date of the
application for revocation, that is, as of 21/06/2016.
Decision on Cancellation No 13 144 C page: 8 of 8
COSTS
According to Article 109(1) EUTMR, the losing party in cancellation proceedings must
bear the fees and costs incurred by the other party.
Since the EUTM proprietor is the losing party, it must bear the cancellation fee as well
as the costs incurred by the applicant in the course of these proceedings.
According to Article 109(1) and (7) EUTMR and Article 18(1)(c)(ii) EUTMIR, the costs
to be paid to the applicant are the cancellation fee and the representation costs, which
are to be fixed on the basis of the maximum rate set therein.
The Cancellation Division
José Antonio GARRIDO
OTAOLA
Plamen IVANOV Carmen SÁNCHEZ
PALOMARES
According to Article 67 EUTMR, any party adversely affected by this decision has a
right to appeal against this decision. According to Article 68 EUTMR, notice of appeal
must be filed in writing at the Office within two months of the date of notification of this
decision. It must be filed in the language of the proceedings in which the decision
subject to appeal was taken. Furthermore, a written statement of the grounds of appeal
must be filed within four months of the same date. The notice of appeal will be deemed
to be filed only when the appeal fee of EUR 720 has been paid.
The amount determined in the fixation of the costs may only be reviewed by a decision
of the Cancellation Division on request. According to Article 109(8) EUTMR, such a
request must be filed within one month of the date of notification of this fixation of costs
and will be deemed to be filed only when the review fee of EUR 100 (Annex I A(33)
EUTMR) has been paid.

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