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When registering a trademark in the European Union 🇪🇺, the golden rule is simple: you must act in good faith. But what happens if a mark is filed with dishonest intentions? In such cases, the application or registration can be challenged for bad faith ⚖️.

This concept protects honest businesses from abusive filings while keeping the system fair.

❓ What Does “Bad Faith” Mean in EU Trademark Law?

Bad faith arises when an applicant files a trademark without genuine commercial intent, or in a way that unfairly exploits others. For example, it can occur when someone files a mark purely to block competitors 🛑, copies a well-known brand to profit from its reputation ✂️, re-files the same mark to avoid proving genuine use 🔁, or stockpiles marks without any plan to use them 📦.

📜 Legal Basis

Under Article 59(1)(b) of the EU Trade Mark Regulation (EUTMR), a trademark can be declared invalid if it was filed in bad faith. This rule applies both at the EUIPO 🏢 for EU trademarks and at national offices for local filings.

⚖️ Key Cases on Bad Faith

The courts have clarified this concept through several landmark cases. In Sky v. SkyKick (CJEU, 2020) 🖥️, the court held that vague claims such as “computer software” are not automatically bad faith, but filing with no real intent to use may be abusive ❗.

In the Hasbro MONOPOLY case (EUIPO Board of Appeal, 2021) 🎲, Hasbro was found to have acted in bad faith by re-filing MONOPOLY trademarks simply to avoid proving use. This strategy was seen as an abuse of the EU system ⏳.

Finally, in Koton v. EUIPO (CJEU, 2019) 👔, the court ruled that bad faith may exist even if the applicant intends to use the mark, provided the main purpose of the filing is to block a competitor.

✅ How to Avoid Bad Faith Allegations

Businesses can protect themselves by filing trademarks responsibly. That means applying only for goods and services they genuinely intend to use 📌, avoiding overly broad claims ✍️, and keeping documentation of business plans 📂 to demonstrate intention. Copying competitor marks 🚫 is risky, even if they are not registered, as well-known marks enjoy protection under EU law. And while re-filings may be justified in some cases, they should always be supported by genuine expansion strategies 🔁.

🛡️ Challenging a Trademark for Bad Faith

If a business suspects a competitor of filing in bad faith, action is possible. During the application stage, one can file an opposition ⚔️. Against a registered mark, an invalidation request can be made 🧾 under Article 59(1)(b) EUTMR. In both cases, evidence is crucial. Proof that the mark was never used, evidence of copying, or signs of anti-competitive strategy can all support a claim 💡.

🌍 Why It Matters

Bad faith is not just a technical rule but a safeguard for fair play 🏆 in the European market. For startups and SMEs, it means protection from trademark squatters 🛡️. At the same time, it serves as a reminder that they must also act responsibly and avoid abusive filing strategies ⚠️.

🏁 Conclusion

The rules on bad faith ensure that trademarks serve their true purpose: distinguishing genuine goods and services in commerce. If you plan to file an EU trademark, it is essential to be clear about your intended use ✅, keep an eye out for abusive competitor filings 🔎, and be ready to use opposition or invalidation tools ⚖️ if needed.

Trademark law is not only about registration — it is about trust, fairness, and balance in the marketplace 🤝.

📝 Apply for a Trademark in the EU with the SME Fund 2025 Grant

If you are considering protecting your brand in the European Union, 2025 is the perfect year to act. Thanks to the SME Fund 2025, small and medium-sized businesses can benefit from a 75% reimbursement on trademark application fees. This initiative makes brand protection more affordable than ever, ensuring that even early-stage startups can secure their identity across the EU 🇪🇺.

Applying through the fund is straightforward: you first request your voucher, then file your trademark, and finally activate your voucher to receive reimbursement. Even if your application is not successful, the grant still covers the costs — meaning there is little to lose and much to gain.

👉 To get started and take advantage of the SME Fund 2025, visit Eesti Consulting’s SME Fund portal.

Protecting your trademark today is not only about compliance — it’s about building long-term trust, credibility, and value for your business 🚀.