Turkish Supreme Court said the final word on non-use cancellation actions

Turkish Supreme Court (TCC) has recently clarified a long-disputed issue on non-use of trade marks.

Background

A Specialized Court of Intellectual and Industrial Property (IP Court) filed a request for the cancellation of Article 14 of the Decree Law no. 556, which includes provisions regarding use of trade marks and their cancellation in case that they are not used within five years from their registration. Meanwhile, the draft law for industrial property was enacted on December 22, 2016 by the Turkish Parliament. The new Industrial Property Law (IPL) was published and came into force on 10 January 2017.

Just before the entry into force of the IPL, the TCC’s decision cancelling Article 14 of the Decree Law No. 556 on January 06, 2017 was published and took effect. The decision of the TCC were established on the grounds that trade mark rights cannot be annulled on the basis of the provisions of Decree Law on the grounds that those rights are proprietary rights and so the fundamental rights in the constitutional meaning which are not allowed to be annulled under the Decree Laws.

As the IPL, which includes use provisions likewise, come into force after the cancellation of Article 14, many non-use pending cancellation actions filed under the Old  Decree Law were dismissed by the IP Courts due to 4-day legal gap before the effective date of the IPL and on the grounds that there are no longer provisions which allow trade marks, which are not genuinely used within the 5-years as from their registration, to be cancelled by non-use cancellation actions at the Courts.

This has not remained limited to only pending non-use cancellation actions but also raised the question about when the non-use cancellation actions can be filed under the IPL. As the IPL came into effect on January 10, 2017 and the laws are not usually made retroactively (as in this case), some academics and IP professionals have argued that non-use cancellation actions can only be filed after January 10, 2022 for the trade marks registered under both the old Decree Law and the IPL  with the following considerations:

• There is no non-use provision before the coming into force of the IPL (as a result of the cancellation of the provision related to the use of trade marks under the Old Decree Law by the TCC)
• the effective date of the IPL is January 10, 2017 and the 5-years use period, as prescribed by the IP Law, can be started as from this date of entry into force.

At the end of all these debates, the Turkish Supreme Court (TSC) has put end to the chaotic situation with its recent decision.

Decision of the Turkish Supreme Court

The TSC has firstly investigated whether the related provisions of the IPL can be applied retroactively and opined that the Laws are not made retroactively as a rule and bear legal consequences prospectively. Whereas it is the general principle, according to the TSC, there is no obstacle for the lawmaker (Turkish Parliament) to make legislations retroactively. The TSC further considered the following facts:

• The provisions of the IPL were enacted on December 22, 2016 by the Turkish Parliament and come into force on January 10, 2017.
• The cancellation decision of the TCC regarding the non-use provisions under the Old Decree Law  came into force on January 06, 2017.

In view of these, the TSC further considered and concluded that:

• It should be accepted that the will of the lawmaker emerged on 22 December 2016 (before the effective date of the decision of the TCC).
• While the main intention of the lawmaker is to implement the non-use provisions retroactively, a legal gap unpredictably emerged due to the TCC’s cancellation decision coming into effect after the enactment date but before the date of entry into force of the IP Law.

The TSC confirmed that non-use cancellation actions can be filed even before January 10, 2022 with regards to trade marks which are not used within 5-years use period.

The TSC has consequently clarified an issue which have been largely debated over 2 years in Turkey. In light of this cas law, anyone can any longer file non-use cancellation actions against trade marks based on non-use claim.