KIM&CHANG
IP Newsletter | Fall 2018
TRADEMARK, DESIGN & UNFAIR COMPETITION
Significant Increase in Non-Use Cancellation Actions in Korea
According to data recently published by the Korean Intellectual Property Office, the number of non-use cancellation actions filed in Korea has significantly increased in recent years, resulting in nearly double the number of registrations cancelled in 2017 compared to previous years (between 2013-2015, roughly 1,046 marks were cancelled per year, but in 2017, 2,172 registrations were expunged from the registry following the filing of cancellation actions).
It appears likely that the increase is due to the amendment to the Korean Trademark Act which became effective on September 1, 2016. That amendment made it possible for any party to file non-use cancellation actions, whereas previously only "interested parties" could file non-use cancellation actions. Since the Korean government's stated purpose for the amendment was to clear the Korean Trademark Registry of non-used marks, it appears the amendment has succeeded in this purpose.
Under Korean practice, registered marks that have not been used for a period of three years are vulnerable to such cancellation actions. Further, the owner of a registration that has been cancelled, cannot obtain a registration for marks identical or similar to the cancelled mark in connection with the same or similar goods / services as a result of any application filed while the cancellation action was pending or within three years after the cancellation decision becomes final. This can be particularly problematic if the challenged mark includes a separable portion (such as a house brand) that may need to be filed as part of other combination marks in Korea.
Trademark owners with portfolios comprising any marks not currently in use in Korea should seek legal advice to determine the most effective strategy for protecting their trademark rights in Korea.
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If you have any questions regarding this article, please contact:
Ann Nam-Yeon KWON
nykwon@kimchang.com
Jason J. LEE
jlee4@kimchang.com
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