By Dr. Géza Katona, LL.M., Katona & Partners Law Firm
Introduction
Trademarks are among the most valuable intangible assets of any business. They embody reputation, consumer trust, and competitive distinctiveness. Yet the risk of trademark infringement—whether through imitation, counterfeiting, or unfair competition—remains significant. Companies operating in Hungary and the wider European Union must therefore be prepared to enforce their trademark rights swiftly and effectively. Our law firm assists clients through each stage of this process, combining litigation experience with practical enforcement strategies.
The Legal Framework
In Hungary, trademark protection is primarily governed by Act XI of 1997 on the Protection of Trademarks and Geographical Indications, harmonised with EU trademark law and directives. At the European level, the EU Trade Mark Regulation (Regulation (EU) 2017/1001) provides a uniform regime for EU trade marks registered with the EUIPO. Both national and EU trademarks confer an exclusive right: the owner may prevent third parties from using identical or confusingly similar signs in the course of trade without authorisation.
Trademark infringement arises where an unauthorised party uses a sign identical or similar to a registered mark for identical or similar goods or services, creating a likelihood of confusion among consumers. In cases of identical use for identical goods, no proof of confusion is required. In addition, infringement may be established if a sign takes unfair advantage of, or is detrimental to, the distinctive character or reputation of a well-known mark.
How We Assist Clients
When facing infringement, businesses often hesitate between negotiation, administrative remedies, and litigation. A strategic legal approach is essential, and this is where we provide guidance:
- Pre-litigation assessment
We begin with a comprehensive review of the client’s trademark rights, the alleged infringing use, and the commercial context. This assessment includes a similarity analysis, consideration of the relevant consumer base, and evaluation of potential defences. At this stage, we advise whether informal resolution, such as a cease-and-desist letter, is advisable or whether immediate litigation is warranted. - Cease-and-desist and negotiation
In many cases, a well-structured cease-and-desist letter is sufficient to bring infringing activity to an end. Our letters are tailored to highlight not only the legal risks for the infringer but also the commercial benefits of settlement. Negotiated undertakings, including agreements on rebranding and compensation, can resolve disputes efficiently without reputational damage. - Administrative enforcement
Hungary’s National Intellectual Property Office (HIPO) provides procedures for opposition and cancellation actions. We represent clients in these proceedings to prevent the registration of conflicting marks or to invalidate registrations that unjustifiably restrict our client’s freedom to operate. Where counterfeiting is involved, we liaise with customs authorities to block the entry of infringing goods into the EU market. - Judicial enforcement
Where litigation is unavoidable, we act before Hungarian courts to secure injunctions, damages, and orders for the withdrawal of infringing goods. Interim injunctions can be obtained rapidly in urgent cases to prevent further harm. Remedies under Hungarian law include destruction of infringing goods, recall from commercial channels, and compensation for both material and moral damages. - EU-wide protection
For clients holding EU trade marks, we coordinate enforcement strategies across multiple jurisdictions. Litigation may be pursued before designated EU trademark courts, while parallel measures can be taken through national courts to stop local infringements. Our cross-border network ensures that clients benefit from consistent representation throughout the Union.
Strategic Considerations
Beyond immediate enforcement, effective trademark protection requires forward-looking strategies. We advise clients to:
- Monitor the market: Surveillance services can detect potential infringements early.
- Maintain up-to-date registrations: Ensuring coverage for all relevant goods, services, and territories.
- Document use: Evidence of genuine use strengthens the enforceability of rights and defends against non-use challenges.
- Leverage reputation: For marks with enhanced distinctiveness, demonstrating reputation expands the scope of protection and available remedies.
Conclusion
Trademark enforcement is not merely about legal remedies; it is about safeguarding the goodwill and competitive edge of a business. Infringement poses immediate financial risks and long-term brand erosion. Our firm provides comprehensive support—from preventive monitoring and administrative opposition to urgent injunctions and damages claims. By combining legal precision with strategic negotiation, we ensure that our clients’ brands remain secure and their market position protected.
Contact Information
Dr. Géza Katona
Katona & Partners Law Firm
H-106 Budapest, Tündérfürt utca 4.
Tel.: +36 1 225 25 30
Mobile: +36 70 344 0388
Email: g.katona@katonalaw.com
Website: www.katonalaw.com