[Unfair Competition Act Attorney – What laws apply when granting usage rights to those who jointly hold unregistered trademarks? - 2023Da216302 ruling]

[Unfair Competition Act Attorney – What laws apply when granting usage rights to those who jointly hold unregistered trademarks? - 2023Da216302 ruling]

[Unfair Competition Act Attorney – What laws apply when granting usage rights to those who jointly hold unregistered trademarks? - 2023Da216302 ruling]

Hello. I am Attorney Lee Young-kyung of Cheongchul Law Firm.

Today, I would like to introduce an important Supreme Court ruling regarding the right to use well-known marks and the right to claim prohibitions against unfair competition. The ruling 2023da216302, which was announced on July 11, 2024, addressed whether the law applicable to the permission of use by those who jointly own a well-known mark that is not registered is the Civil Act or the Trademark Act.


[Question]

According to Article 4, Paragraph 1 of the Act on the Prevention of Unfair Competition, does the person who can claim the prohibition or prevention of such acts include not only the holders of such marks but also licensees, etc., who have unique and legitimate interests regarding the use of those marks?


[Answer]

[1. Summary of the Case]

This case is known in the media as the Dongseo Furniture case, which concerns who the legitimate user of the 'Dongseo Furniture Trademark (Mark)' is, and who can file a prohibition claim under the Act on the Prevention of Unfair Competition. The development of the case can be summarized in the following table:


Time

Content

Around 1973

The establishment of the former Dongseo Furniture Co., Ltd. (hereinafter referred to as 'Former Dongseo Furniture') and the beginning of the use of the mark in question as a product label

Around 1978

The mark in question became widely recognized among domestic traders and customers

1986

The former Dongseo Furniture registered the trademark for the mark in question (hereinafter referred to as 'the registered trademark in question')

2002

The former Dongseo Furniture faced bankruptcy, transferred the registered trademark in question to four individuals, and established plaintiff Company A with exclusive usage rights

2011-2012

Various disputes related to the use of the mark in question emerged, leading to agreements and adjustments in operational rights

August 13, 2016

The registered trademark in question is shared by eight individuals

August 14, 2016

The registered trademark in question expired due to the lapse of the validity period

September 3, 2013

Establishment of the defendant company, using the mark in question in an online shopping mall


The Act on the Prevention of Unfair Competition and Protection of Trade Secrets (hereinafter 'Unfair Competition Prevention Act') Article 2, Item 1, Sub-item (a) defines

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