Industrial Cleaning Equipment (Southampton) Limited v Intelligent Cleaning Equipment Holdings Co, Ltd & Ors

Decision date: 27 February 2023

Neutral citation: [2023] EWHC 411 (IPEC)

Overall AI summary confidence: high

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Short overview

This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.

AI confidence in this short overview: high

This was a two-day liability-only trial about trade mark invalidity, infringement and passing off between Industrial Cleaning Equipment (Southampton) Ltd ("C") and members of the ICE Group (D1–D3). The court found D1's 2015 and 2020 ICE trade marks invalid (under ss47/5(2)/5(3)/5(4)(a) and s3(6) as to 2020), held that C had not acquiesced under s48 TMA, and found Killis liable for infringement with D1 jointly liable as a joint tortfeasor (claims against D3 dismissed). Remedies and quantum were reserved.

Ratio decidendi

This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.

AI confidence in this ratio decidendi summary: medium

From the judgment as recorded in the notes: (1) The five-year acquiescence defence under s48 TMA requires the proprietor of an earlier right to have known of the later mark's registration and of post-registration use before the five-year period can start; mere prior knowledge of pre-registration use is insufficient. (2) For s5(4)(a) invalidity the correct comparator is the notional and fair use of the later mark, and where substantial goodwill exists a quia timet approach to damage can be appropriate. (3) A trade mark proprietor can be jointly liable with a distributor where it enters or continues an exclusive distribution arrangement with knowledge of the risk and gives material assistance forming part of a common design.

Obiter dicta

This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.

AI confidence in this obiter dicta summary: medium

The notes record observations that limited earlier use by a third-party distributor (e.g. WCS) does not prevent invalidity if notional/fair use of the later mark would cause confusion, and that adding descriptive subsidiary words to an otherwise dominant identical element (e.g. "ROBOTICS"/"COBOTICS" to "ICE") may not avoid consumer confusion if the overall impression remains dominated by the common element.