Do large IPs such as cultural goods have a direct impact on DFTs?

As NFT products have become more popular, issues are emerging in the current NFT industry that affect the industry. If cultural heritage and natural resources are approved by regulatory bodies, can NFT products be directly impacted? Example: The Department of Homeland Security issued a license that allows a company to use a trademark. Among them, "XX Mountain" is the trade name of the Leaders, "XX Gifts" and "XX Culture". "Belongs to the company which has not registered the mark A. In this case, the legal effect of the NFT casting?

Today the Sister Sa team will be discussing this issue.

Authorization of others to use registered trademarks

A brand is a business card and serves to differentiate a product or service. According to Article 3 of the Trademark Law, trademarks can be divided into trademarks and unregistered trademarks. A mark approved for registration by the Registrar is a registered mark, and the Registrar has the exclusive right to use the mark.

Authorization for Third Party Use of Trademarks In the above examples, "XX Gifts", "XX Culture" and other commercial products approved by Company B are permitted for use by Company A and affiliated with the trademarks of company C. It is not a party to the contract and has been registered and in force.

The "civil law" does not deal with the validity of the right of authorization to use another trade name, but if there are other payment agreements under Article 646 of the "civil law", they must comply with it; Unless otherwise specified, the terms of the sales contract may apply by law.

Company A is not a registered trademark and does not generally authorize others to use the mark. Company A's license to use Company B's trademark is an infringement, in which case the use may be subject to the illegal provisions of the sales contract.

Regarding the advantages of the contract without the right of disposal, the person cannot dispose of the property of others in accordance with article 51 of the law before the application of "civil law". The contract is valid if the insurer agrees or if the person does not have the right to withdraw from the contract, to withdraw from the contract and has the right to dispose of it. In other words, the benefits of a non-assignment contract have not yet been determined. The "Civil Code" has created new rules for this.

According to article 597 of the Civil Code, if the seller does not obtain the right to dispose and cannot change the ownership of the goods, the buyer can terminate the contract and request that the seller be liable for the breach of the contract. . In other words, a sales contract without proof is valid. A contract that allows another person to use the Trademarks by reference under the terms of the sales contract is a valid contract.

If the license is valid, can Company B obtain the commercial rights such as "XX Culture" and "XX Gift" according to the contract? One is whether the approval of Company A can be granted by Company C, the Registrar of Commerce, and the other is whether Company A has obtained the license through contract access. with the registrar and company C. Others who use the mark. If both conditions are satisfied, Company B can obtain commercial rights such as "XX Culture" and "XX Gift" according to the license agreement with Company A.

If either of the two events is not completed, it is section 57 to use trademarks such as "XX Culture" and "XX Gifts" on similar products from Company B of the original product or in a way that could cause conflicts with similar objects. To do. According to the provisions of the "Trademark Law", in the event of violation of the special license of a registered trademark, it must not only compensate the infringing company C for its loss, but also assume the management and criminal liability. In addition, the license rights of Company A also affect the business policy of Company C, which is an infringement.

Allow others to use unregistered marks

In the example above, are 'XX Gift' and 'XX Culture', which Company A has authorized to use for Company B, without registering the trademarks of others, are they an agreement license? Can company B use a legitimate brand?

The validity of the agreement is agreed

Regarding the effectiveness of the licensing agreement, many people think that the mark that can be licensed must be a registered trademark, and the mark is not a trademark. Names do not have specific rights and cannot be transferred to others. However, the High Court (2012) Minshen Zi No. Under Review Decision 1501, a business license agreement provides licenses to companies that are not registered with others in accordance with the facts of the parties to the contract. You teach others the right to use the mark, and the contract must be a valid contract.

Statements indicating that the mark is not registered may be used by others. Therefore, in the example above, the contractual rule of A and B is valid.

Laws on the use of unregistered trademarks

According to the law of Company B, the use of unregistered trademarks is a concern, because "XX Gift" and "XX Culture" are similar trademarks because, on the other hand, Company B may use the same product. for the same product or the same cause. confusion. The use of a mark similar to another person's mark on similar products also constitutes a violation of the exclusive use of marks provided for in Article 57 of the “Trademark Law”.

According to the “Interpretation of the request for a judgment for a fair trial” in Articles 9 and 10 of the Court of First Instance, the procedure for a “similar” decision refers to trademarks prosecuted for infringement of trade and registration rights. This involves writing, for example, images, speech, meaning, or the composition and color of an image in text, or all of the patterns behind a combination of its similar elements, or triangles and color combinations. similar. , to make it easier for stakeholders to misunderstand the origin of the product, or when it is believed to have a particular connection with the product for which the applicant is registered.

Decisions for a similar market are made as follows:

(1) according to the interests of the affected population;

(2) A comparison of brands and a comparison of the main components of the product should be made and should be made with separate comparisons.

(3) In order to determine whether the marks are similar, it is necessary to determine the distinction and popularity of the marks used for protection.

While "XX Gifts" and "XX Culture" are not similar marks to those of other third parties, Company B may use unregistered marks for certain purposes. protect the law, but at the same time face legal risks.

Legal protection against the use of unregistered trademarks includes:

(1) The owner of an unregistered mark may make use of certain interference by use, and has the right to prohibit others from applying for or registering the mark in accordance with article 32 of the “Code of business ”.

(2) Owners of trademarks which have been used in the past with certain implications are entitled to protection under Section 59 (3) of the "Trademark Law".

(3) The user reserves the right to restrict the use, as well as the name, packaging, decoration, etc. of any product or service with implications under Article 6, Part 1 of the Privacy Policy.

(4) The owner of a business which is not properly registered has the right to prohibit another person from filing or registering a business under Article 13 (2) of the "Business Code" .

(5) The owner of an unregistered trademark has the right not to allow any party to apply for or register a business under Article 15 of the "Commercial Code".

However, the use of unregistered trademarks also carries legal risks which cannot be ignored. If the mark used by the company is not registered, the most fatal case is when the user of the mark is not authorized to use the mark. This means that if you use these brands others can use them as well. This affects the important role of the brand in conveying the story of a good or service, and also allows the brand to show the quality and reputation of a product. a service. In addition, the lesson is very important, because when someone else registers the mark first, the former user of the mark will no longer be able to use the mark.

enter at the end

“Industry is a weapon of war and the challenge of economic growth.

When entering into a business-to-business agreement, you must understand all the legal aspects of the business plan, whether you are an authorized person or a consenting person. For business licenses, allowing others to use the business name is often illegal.

If you allow the use of unregistered trademarks, there is a risk of termination of the contract and part of the non-compliance. Licenses must include all legal aspects of the business purpose when entering into a business license, otherwise the use of trademark rules can result in huge business losses.