Parabolica Ltd v Tesla Holding AS -[2026] EWHC 386 (Ch)- (23 February 2026)

BAILII

Automated Summary

Key Facts

Parabolica Limited applied for a UK trade mark for 'TESLA' in classes 12, 25, and 28, derived from an EU trade mark application filed on 2007-04-17 with a priority date of 2006-10-17. Tesla Holding A.S. opposed the UK application under sections 3(6) and 5 of the Trade Marks Act 1994, alleging bad faith. The Hearing Officer upheld the opposition using the UK Filing Date of 2021-09-14, but the High Court allowed the appeal, ruling the EU Filing Date (2007-04-17) should be used for assessing bad faith under the Withdrawal Agreement.

Issues

  • The court examined the correct date for assessing bad faith in UK trademark applications that were converted from pending EU applications post-Brexit. The dispute centered on whether the EU Priority Date (17 October 2006), EU Filing Date (17 April 2007), or the UK Filing Date (14 September 2021) should be used. The Applicant argued for the EU Priority Date, while the Respondent and the court considered the EU Filing Date as the appropriate basis, referencing the Withdrawal Agreement and relevant case law.
  • The court analyzed the interpretation of the Withdrawal Agreement and the Trade Marks (Amendment etc.) (EU Exit) Regulations 2019 to determine how the application dates of converted EU trademarks are treated. It discussed the implications of using the EU Filing Date versus the UK Filing Date, considering the intent of the legislation and the need for legal certainty in trademark assessments post-Brexit.

Holdings

The court allowed the appeal, determining that the Hearing Officer used the incorrect date (UK Filing Date) for assessing bad faith. The correct date should be the EU Filing Date, and the case is remitted for reassessment using this date. The court emphasized that Article 59 of the Withdrawal Agreement deems the EU Filing Date as the application date for all purposes, including bad faith assessments, and criticized the Hearing Officer for not considering this provision.

Remedies

  • The appeal was allowed, overturning the Hearing Officer's decision that the UK Filing Date was the correct date for assessing bad faith. The case was remitted back to the Registry for reassessment of the bad faith allegation using the EU Filing Date (17 April 2007) instead of the UK Filing Date (14 September 2021).
  • The costs order made below was set aside. The Deputy Judge directed that the hearing officer reassessing the bad faith ground must also determine the costs under section 3(6) in conjunction with the mixed result under section 5, ensuring an overall assessment of the case.

Legal Principles

  • The court applied the purposive approach to interpret Article 59 of the Withdrawal Agreement, emphasizing the ordinary meaning of the words in light of the treaty's purpose. This interpretation supported the use of the EU filing date for assessing bad faith in UK trademark applications derived from pending EU applications.
  • The case centered on determining the correct date for assessing bad faith under section 3(6) of the Trade Marks Act 1994. The court concluded that the EU filing date (17 April 2007) should be used, not the UK filing date (14 September 2021), to evaluate whether the application was made in bad faith, aligning with the Withdrawal Agreement's intent to maintain legal continuity post-Brexit.

Precedent Name

  • Sky v SkyKick
  • MIND THE GAP
  • Chocoladefabriken Lindt & Sprüngli AG v Franz Hauswirth GmbH
  • Case T-82/14 Copernicus

Cited Statute

  • Vienna Convention on the Law of Treaties
  • Trade Marks Act 1994
  • Withdrawal Act 2019
  • Registered Designs Act 1949

Judge Name

Tom Mitcheson

Passage Text

  • The Hearing Officer addressed the question of which date to use for the bad faith assessment at §11 of the Decision as follows: 'the relevant date for the purposes of the opposition based on section 3(6) of the Act is 14 September 2021.'
  • The court explained: 'the intention of the Withdrawal Agreement was to deem the application date of any EU application ported to the UK to be the EU Filing Date... the Hearing Officer therefore used the wrong date in her assessment of bad faith in this case.'
  • The Deputy Judge concluded: 'the Hearing Officer used the wrong date in her assessment of bad faith in this case, and I allow this appeal.'