CURRENTS Vol XXIV, No. 2 | 2021

Page 72

a narrow interpretation will complicate

Before analyzing the infringement issue,

Firstly, ban on brand stretching and

the whole trademark system. Third, the

it is noteworthy that there are conceptually

sharing is well in line with the trademark

requirement of use in the course of trade

two categories of products or services

principles of preventing consumers’

is designed to distinguish those uses of

that might be affected by a ban on brand

confusion over the product or service a

trademark in private capacity or in a non-

stretching and sharing, i.e., the original and

trademark represents. For a trademark being

commercial manner that won’t necessitate

new products or services. While the use of a

of commercial value, it can make products

the protection of trademark laws. While

trademark on original products or services is

or services recognizable for consumers

such narrow interpretation may help a

unlikely to trigger legal concern over Article

attributing the product or service to

quick examination on the legality of brand

20, attaching the original trademark to a

certain manufacturers or service providers.

stretching or sharing, it will generate more

new product or service becomes the major

Trademarks also help consumer distinguishing

implications than expected on the integrity

issue over the potential violation of Article

the goods or services of one undertaking

of whole trademark system. Therefore,

20. Given that a ban on brand sharing will

from those of other undertakings. The

this article prefers to a broader approach

prevent any new tobacco product from

trademark law has been designed to protect

interpreting the term “in the course of trade”.

bearing the brand or trademark of existing

not only the effort taken by the owner to

In sum, as brand stretching and brand

non-tobacco products or services, a ban on

increase the value of its trademark, but also

sharing involves the use of brand or trademark

brand stretching will prevent any new non-

the consumers from confusing the given

of either tobacco or non-tobacco products or

tobacco products or services from bearing

goods or services with others. If a tobacco

services, and such brand or trademark has

the brand or trademark of existing tobacco

brand or trademark is “likely” associated

been used in the ordinary course of business,

products. The question lies at whether

with non-tobacco products or services or

Article 20 should be triggered to further

preventing the original trademark from using

vice versa, it would create more confusion

examine if the right to use trademark has

on new products or services, despite being

for consumers to make a meaningful and

been infringed or “encumbered”.

registered, constitutes an infringement of the

genuine connection between the trademark

Infringement of Right to Use a Trademark

right to use a trademark.

and the corresponding products or services.

The next question turns to examine

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Secondly, brand extension has the implications to dilute the value of a trademark.

trademark may be used” rather than governing

Given the unclear scope of right under Article 20 due to different interpretative approaches, it is useful to examine whether there are any plausible causes to justify a government measure banning brand stretching and brand sharing of tobacco products within the TRIPS Agreement.

those regulating “whether a trademark can be

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on brand stretching and sharing, despite

used in certain circumstances”.54 Along the

This article offers following reasons for

restricting the freedom of the owner’s use of

same line of argument, a ban brand stretching

holding a view that a ban on brand stretching

trademark, is pretty much in line with the

and sharing is also consistent with Article 20

and sharing is not incontinent with Article

principle of trademark laws to prevent the

as such ban only restrict a trademark being

20 of TRIPS Agreement as there is no

value of trademark being diluted.

used in certain circumstances.

infringement of right to use a trademark.

whether the right to use trademark has been infringed or encumbered under Article 20. The outcome may vary largely depending on different views on a broad or narrow interpretation of Article 20. It has been argued that plain packaging and health warning requirements are consistent with Article 20 by narrowly interpreting Article 20 as prohibiting governmental measures restricting “how a

70

Currents 24.2 2021

The commercial value of a trademark may be depreciated if a brand or trademark has been applied to various products or services. Unless the value of certain trademark is declining or direct marketing of certain product or service is prohibited, extending brand name or trademark to other products or services would have the likely effect of impeding the owner’s efforts to enhance the commercial value of its trademark. The ban


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