Protection

 

The right to a trademark and to the legal protection thereof shall be granted to the applicant, but this ownership can be freely assigned and/or licensed.

Trademark protection is obtained by registration, with retroactive effect to the filing date.

Trademark protection has a duration of ten years, beginning on the date of filing the application.

Trademark protection is renewable for further periods of ten years without limitation of time. In the case of renewal, the new period of protection begins on the day after the date of expiration of the previous period.

Renewal may be requested at the earliest by twelve months before and at the latest by six months after the date of expiry. Documents required for renewal: Power of Attorney, simply signed (required only if the address for service has changed), and a formal request for renewal addressed to the Hungarian Intellectual Property Office. A renewal fee is also applicable and shall be paid when submitting the request for renewal.

 

Use of the Trademark

The trademark owner – on the basis of trademark protection and within the limits fixed by the law – has the exclusive right to use the trademark for goods indicated in the list of goods or to grant licenses to others for the use of the mark.

The trademark can be invalidated if, within a period of five years following registration or during the existence of the trademark, the owner has not put the trademark to genuine use in the Hungarian market in connection with the goods or services registered, unless there are proper reasons for non-use. The 5 year term starts with the registration and not with the filing. The following shall also qualify as use:

• use of the trademark in a slightly different form so that the distinctive character of the mark is not affected;

• affixing the sign to goods or to the packaging thereof solely for export purposes;

• offering the goods, putting them on the market or storing them under that mark, or offering or supplying services thereunder;

• importing or exporting the goods provided with the mark; advertisement, e.g. advertisement in telecommunication media, provided that it is available for a great part of the public.

 

Use of the trademark with the consent of the proprietor shall be deemed as use by the owner.

 

Acquiescence

If the owner of an older trademark has been aware of the use of a later trademark and has tolerated it through five consecutive years, then there will be no more room to protest against this use and to initiate cancellation of the younger mark.

 

Exhaustion of the Trademark Right

The trademark owner cannot prohibit the use of the trademark in relation to goods which have been put on the market of the EEA by him or with his consent. This provision shall not apply where the owner has legitimate reasons to oppose further distribution in particular if the goods have become changed or impaired.

 

Assignment

Trademark protection can be assigned by a contract. The contract of assignment is considered to be null and void if it misleads the consumers.

To be effective against third parties, the assignment should be recorded in the trademark register of the Hungarian Intellectual Property Office. Documents required for the registration of a license: Power of Attorney signed by the assignee. The deed of assignment is to be signed by the assignor and assignee, no legalization is required.

 

License agreements

The law contains dispositive rules for license agreements.

A license agreement grants, the right to use the trademark, at the longest for the duration of trademark protection, for goods or services enumerated on the list of goods. The payment of a license fee in return shall be part of the agreement in accordance with the regulations. Unless expressly stipulated, the user shall have no exclusive right of exploitation and, unless expressly authorized by the proprietor of the trademark, he shall not grant any sub-license to a third party.

Matters relating to assignments and license agreements and not covered by the Trademark Act shall be governed by the provisions of the Civil Code.