Sky v SkyKick: A Landmark Trademark Dispute and the Supreme Court's Judgment

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James Griffiths - Associate

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Cloudy Skies An In depth Look at the Landmark Trade Mark Dispute Between Sky v SkyKick

Trademark disputes can have wide-reaching consequences for businesses of all sizes.

In this article, our specialist Dispute Resolution Solicitors examine the landmark Supreme Court decision in Sky v SkyKick, exploring its impact on trademark law, bad faith registrations, and its implications for brand protection moving forward.

The long-running trademark dispute between Sky and SkyKick has raised pivotal questions around trademark protection and the concept of bad faith registration.

Following a referral to the Court of Justice of the European Union and a subsequent appeal to the Court of Appeal, the Sky v SkyKick legal battle has concluded.

The dispute began in 2016, following Sky's registration of trademarks (between 2003 and 2008) across a broad range of goods and services, including those with little connection to Sky’s broadcasting and telecommunications business (the ‘SKY’ marks).

Despite Sky’s claim that SkyKick had infringed upon their trademark by supplying email migration and storage products under the ‘SKY’ marks, SkyKick submitted that four of the EU trademarks and one of the UK marks were invalid due to the application being made in bad faith since:

  1. Sky had no intention to use the marks in relation to certain goods: whips and bleach; and
  2. Sky had no intention of using the marks across the breadth of its broad categories: computer software.

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Bad Faith Trademark Registration

The issue of bad faith trademark registration can be raised both during the trademark application process and after a trademark has been registered.

The Sky v SkyKick case focused on post-registration bad faith as SkyKick argued that Sky had no genuine intention to use their mark for all the extensive categories of goods and services covered by Sky’s trademark registration.

It was considered that the use of broad terminology like “computer software” in a trademark specification does not preclude a finding of bad faith for goods and services that clearly were not intended to be covered.

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The UK Supreme Court Judgment

The Supreme Court allowed SkyKick’s appeal against the reversal of the trial judge’s finding that Sky’s trademarks were made partly in bad faith.

When considering the issue of bad faith registration, the Supreme Court emphasised that “If a person applies to register a mark without having made any use of it and without intending to use it about the goods or services for which protection is sought, it may leave the trademark system open to abuse.”

The Nice Classification was established to group similar goods and services within 34 classes of goods and 11 classes of services for trademark registration.

Referring to the Nice Classification, the Supreme Court criticised the “enormous” range of goods and services within “many of the 45 classes” for which Sky had registered their trademark.

Additionally, the Supreme Court also noted that Sky was “prepared to deploy the full armoury”, citing Sky’s aggressive infringement stance against any trader using the mark in a wide variety of classes for which the Sky mark was registered.

Unsurprisingly, following the Supreme Court’s criticism of Sky’s registration of its mark in various classes and willingness to enforce the trademark, the Supreme Court overturned the decision of the Court of Appeal and held that the trademarks had been registered in bad faith.

Subsequently, Sky’s trademarks were deemed partly invalid to the extent that Sky did not have any ‘genuine intention’ to use the mark in a particular class of goods and services.

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Consequences of the Supreme Court decision

The Sky v SkyKick decision may require more considered trademark specifications which are tailored to an applicant’s business, and there may be a possible trimming of existing trademark registrations.

Trademark applications are likely to be assessed in the context of other applications and it is advised that applicants registering their trademark keep records to support the commercial rationale for their application to avoid any future allegations of bad faith registrations.

If you require specialist legal advice regarding trademark infringement claims, including those involving bad faith registrations, please contact our experienced Intellectual Property lawyers.

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Round 1 The High Court

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If you have any questions or would like more information regarding registering a trademark and protecting your intellectual property in general get in touch with our Dispute Resolution Solicitors on:

01619414000

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James Griffiths's profile picture

James Griffiths

Associate

James is an Associate in our Dispute Resolution team. James has specialist expertise in complex contractual disputes, shareholder/partnership disputes, professional negligence disputes, claims under s423 Insolvency Act 1986 and commercial agency claims.

About James Griffiths