Understanding Geographical Names, Trade Names, and Establishment Labels
Geographical Names
At the Direction of Origin
Understand the designation, directly or indirectly, geographically and place of manufacture, production, or extraction of the product. The LM prohibits the use of claims of false and misleading sources to protect consumers. The use of indications of source in the traffic has to follow the principle of truthfulness, and the use of false indications of origin constitutes a crime (Article 275 CP).
Appellation of Origin
This means the geographical name of the region, place, or locality used to designate a product in the area, having qualities or differentiating characters, mainly due to the natural environment or upbringing and their development (Article 79 of the Statute of the Vineyard).
Features:
- Has to be constituted by a geographical name.
- Has to designate typical products of the geographical area.
- These products have characteristics that are a consequence of the natural and drafting procedures.
- Only members may use this sign, businessmen settled in the respective area, and whose products meet the specifications established by regulation.
Trade Name
Concept
Article 87 LM defines a trade name as the sign used to identify a company in the trading process and to distinguish it compared to other companies developing the same or similar activities.
The rule of specialty operates on the name, i.e., trade names may coincide if devoted to different activities.
The Directorate General of Registries and Notaries said that any legal person is entitled to their own individuality and hence its name, as a distinguishing mark, must be based on the principles of novelty and truth:
- Novelty: The assumption of a name already used may amount to infringement of an essential right of the legal person and can lead to confusion.
- Truth: Should not contain expressions that may mislead others.
Classes
Article 87.2 states that signs or names may be trade names:
- Surnames, the reasons, and the names of legal persons.
- Fanciful names.
- Names alluding to the subject of entrepreneurship.
- Anagrams and logos.
- Images, figures, and drawings.
- Any combination of the above signs.
Regime
The legal regime of trade names is part of the general provisions (Articles 1 to 3 LM), which subjects trademarks and trade names to the same principles. Subsequently, it states that the rules relating to trademarks are applicable to trade names, provided that they are compatible with the nature of the trade name (Article 87.3 LM).
The Label of Establishment
Concept
This means the sign, shop sign, or name that serves to make known to the public and to distinguish it from others used for identical or similar activities.
Regime
The LM has resigned to recognize the label as a distinctive sign capable of registration, and the only provisions they assign to it are transient, in order to establish the validity of these signs registered prior to its entry into force.
This makes the protection of industrial property rights associated with signs that identify rooms where business activities take place, should be raised through the common rules established by the Law on Unfair Competition. It is anticipated that those with special interest in having an exclusive right to the identifying sign of their establishment will try to get a mark or trade name fulfilling a function similar to that under the previous regime satisfying the label.