Trademark Infringement in the Digital Space: How the EU Regulates Online Brand Protection

Meta Description:

Learn how the European Union combats trademark infringement online. Discover key regulations on cybersquatting, counterfeit goods, deceptive domains, and digital platform liability.

 Introduction

The explosive growth of the internet and digital commerce has brought new challenges to the protection of intellectual property—particularly trademarks. Online trademark infringement occurs when a trademark is used without authorization in digital environments, through practices such as counterfeit sales, deceptive domain names, or the misuse of advertising keywords. These actions cause consumer confusion, damage brand reputation, and undermine market trust.

To address these evolving risks, the European Union has developed a comprehensive legal framework that strengthens trademark protection in the digital space. This article outlines the key elements of EU legislation and case law that aim to prevent and remedy trademark misuse online.

 1. Legal Framework: Core EU Instruments

Trademark protection in the EU is governed by a combination of regulations and directives that harmonize rules across Member States and address online-specific challenges:

 EU Trademark Regulation (Regulation (EU) 2017/1001) – governs the EU trademark (EUTM) system.

 Trademark Directive (Directive (EU) 2015/2436) – aligns national trademark laws across Member States.

 E-Commerce Directive (Directive 2000/31/EC) – sets out intermediary liability rules.

 Digital Services Act (Regulation (EU) 2022/2065) – introduces new obligations for digital platforms and marketplaces.

These instruments work together to ensure effective protection and enforcement of trademark rights, both offline and online.

 2. Domain Name Disputes and Cybersquatting

Cybersquatting—the bad-faith registration of domain names that imitate trademarks—is a persistent problem. The EU addresses this issue through:

 ADR proceedings for .eu domains under the EURid system, in line with the UDRP principles.

 Support by EUIPO (European Union Intellectual Property Office) for trademark holders in challenging abusive domain name registrations.

While enforcement of global domain names typically involves WIPO’s UDRP, EU mechanisms provide additional protection for rights holders within the EU digital space.

 3. Keyword Advertising and Search Engine Use

The Court of Justice of the EU (CJEU) has clarified the rules regarding the use of trademarks in keyword advertising:

 Google France SARL v. Louis Vuitton Malletier (Joined Cases C-236/08 to C-238/08):

  The CJEU ruled that using a trademark as a keyword in online ads does not, by itself, constitute infringement unless it creates confusion about the origin of the goods or services.

 Interflora Inc. v. Marks & Spencer (C-323/09):

  The use of a competitor’s trademark as a keyword may be prohibited if it adversely affects the trademark’s essential functions, particularly the indication of origin.

These rulings establish that online advertising is permissible within limits, but deceptive or confusing use of trademarks will be considered unlawful.

 4. Platform and Intermediary Liability

Under the E-Commerce Directive, hosting providers and online marketplaces were traditionally shielded from liability for user-generated content, provided they acted upon notice. However, with rising concerns about counterfeiting and abuse, the Digital Services Act (DSA) has introduced stricter obligations for digital platforms:

 Proactive risk assessment and content moderation systems

 Enhanced transparency in content removal processes

 Accountability mechanisms for repeat infringers

 Stronger traceability requirements for business users selling goods online

These measures increase the responsibility of digital intermediaries and offer trademark owners more effective tools for enforcement.

 5. Cross-Border Enforcement and Procedural Tools

The EU provides trademark holders with procedural advantages that facilitate cross-border enforcement:

 EU trademark registrations through EUIPO cover all 27 Member States with a single application.

 Pan-European injunctions under Brussels I Regulation (Recast) allow courts to issue EU-wide relief against infringers.

 Customs enforcement via Regulation (EU) No. 608/2013 permits seizure of counterfeit goods at EU borders.

Such mechanisms ensure that enforcement is not confined to national boundaries and that digital infringements are addressed across jurisdictions.

 Conclusion

Trademark infringement in the digital space is a growing concern in today’s interconnected world. The European Union’s legislative framework offers one of the most comprehensive and adaptive systems globally, effectively addressing domain abuse, counterfeit distribution, misleading advertising, and the role of online intermediaries.

By combining harmonized trademark laws, evolving digital regulation, and landmark judicial decisions, the EU sets a strong precedent for protecting brand integrity in the age of digital commerce.

Dr. Katona Géza, LL.M. ügyvéd (Rechtsanwalt / attorney at law)

___________________________________

Katona és Társai Ügyvédi Társulás 

(Katona & Partner Rechtsanwaltssozietät / Attorneys’ Association) 

H-1106 Budapest, Tündérfürt utca 4. 

Tel.: +36 1 225 25 30

Mobil: + 36 70 344 0388

Fax: +36 1 700 27 57

g.katona@katonalaw.com

www.katonalaw.com

Trademark Infringement in the Digital Space: How the EU Regulates Online Brand Protection

Meta Description:

Learn how the European Union combats trademark infringement online. Discover key regulations on cybersquatting, counterfeit goods, deceptive domains, and digital platform liability.

 Introduction

The explosive growth of the internet and digital commerce has brought new challenges to the protection of intellectual property—particularly trademarks. Online trademark infringement occurs when a trademark is used without authorization in digital environments, through practices such as counterfeit sales, deceptive domain names, or the misuse of advertising keywords. These actions cause consumer confusion, damage brand reputation, and undermine market trust.

To address these evolving risks, the European Union has developed a comprehensive legal framework that strengthens trademark protection in the digital space. This article outlines the key elements of EU legislation and case law that aim to prevent and remedy trademark misuse online.

 1. Legal Framework: Core EU Instruments

Trademark protection in the EU is governed by a combination of regulations and directives that harmonize rules across Member States and address online-specific challenges:

 EU Trademark Regulation (Regulation (EU) 2017/1001) – governs the EU trademark (EUTM) system.

 Trademark Directive (Directive (EU) 2015/2436) – aligns national trademark laws across Member States.

 E-Commerce Directive (Directive 2000/31/EC) – sets out intermediary liability rules.

 Digital Services Act (Regulation (EU) 2022/2065) – introduces new obligations for digital platforms and marketplaces.

These instruments work together to ensure effective protection and enforcement of trademark rights, both offline and online.

 2. Domain Name Disputes and Cybersquatting

Cybersquatting—the bad-faith registration of domain names that imitate trademarks—is a persistent problem. The EU addresses this issue through:

 ADR proceedings for .eu domains under the EURid system, in line with the UDRP principles.

 Support by EUIPO (European Union Intellectual Property Office) for trademark holders in challenging abusive domain name registrations.

While enforcement of global domain names typically involves WIPO’s UDRP, EU mechanisms provide additional protection for rights holders within the EU digital space.

 3. Keyword Advertising and Search Engine Use

The Court of Justice of the EU (CJEU) has clarified the rules regarding the use of trademarks in keyword advertising:

 Google France SARL v. Louis Vuitton Malletier (Joined Cases C-236/08 to C-238/08):

  The CJEU ruled that using a trademark as a keyword in online ads does not, by itself, constitute infringement unless it creates confusion about the origin of the goods or services.

 Interflora Inc. v. Marks & Spencer (C-323/09):

  The use of a competitor’s trademark as a keyword may be prohibited if it adversely affects the trademark’s essential functions, particularly the indication of origin.

These rulings establish that online advertising is permissible within limits, but deceptive or confusing use of trademarks will be considered unlawful.

 4. Platform and Intermediary Liability

Under the E-Commerce Directive, hosting providers and online marketplaces were traditionally shielded from liability for user-generated content, provided they acted upon notice. However, with rising concerns about counterfeiting and abuse, the Digital Services Act (DSA) has introduced stricter obligations for digital platforms:

 Proactive risk assessment and content moderation systems

 Enhanced transparency in content removal processes

 Accountability mechanisms for repeat infringers

 Stronger traceability requirements for business users selling goods online

These measures increase the responsibility of digital intermediaries and offer trademark owners more effective tools for enforcement.

 5. Cross-Border Enforcement and Procedural Tools

The EU provides trademark holders with procedural advantages that facilitate cross-border enforcement:

 EU trademark registrations through EUIPO cover all 27 Member States with a single application.

 Pan-European injunctions under Brussels I Regulation (Recast) allow courts to issue EU-wide relief against infringers.

 Customs enforcement via Regulation (EU) No. 608/2013 permits seizure of counterfeit goods at EU borders.

Such mechanisms ensure that enforcement is not confined to national boundaries and that digital infringements are addressed across jurisdictions.

 Conclusion

Trademark infringement in the digital space is a growing concern in today’s interconnected world. The European Union’s legislative framework offers one of the most comprehensive and adaptive systems globally, effectively addressing domain abuse, counterfeit distribution, misleading advertising, and the role of online intermediaries.

By combining harmonized trademark laws, evolving digital regulation, and landmark judicial decisions, the EU sets a strong precedent for protecting brand integrity in the age of digital commerce.

Dr. Katona Géza, LL.M. ügyvéd (Rechtsanwalt / attorney at law)

___________________________________

Katona és Társai Ügyvédi Társulás 

(Katona & Partner Rechtsanwaltssozietät / Attorneys’ Association) 

H-1106 Budapest, Tündérfürt utca 4. 

Tel.: +36 1 225 25 30

Mobil: + 36 70 344 0388

Fax: +36 1 700 27 57

g.katona@katonalaw.com

www.katonalaw.com

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