Trademark Act Article 54: Effect of Finalized Cancellation Decision
When a decision for a 'cancellation trial for improper use' becomes final and binding, the trademark right is extinguished after the decision becomes final (Article 54, Paragraph 1 of the Trademark Act). On the other hand, when a cancellation trial for non-use decision becomes final and binding, the trademark right is deemed to have been extinguished on the date of registration of the request for the trial (Article 54, Paragraph 2 of the Trademark Act).
In the case of a finalized decision in a cancellation trial for non-use, the extinction of the right is deemed to have occurred retroactively to some extent. This is based on: (i) preventing the prolongation of trials and lawsuits by the trademark holder; (ii) the fact that a trademark right without substance (a trademark right that has become an empty right) should not be maintained until the decision becomes final, and claims for damages, etc., should not be made; and (iii) the belief that no goodwill is embodied in a non-use trademark, or that any embodied goodwill has already vanished, meaning that a non-use trademark has no existing property value, and therefore, making the cancellation retroactive poses no risk of causing damage to third parties who relied on that value.
Please note that even when a decision to extinguish a trademark right becomes final and binding, the effects of the finalized decision differ between a cancellation trial for improper use, a cancellation trial for non-use, and an invalidation trial.
・Trademark Act Article 54
Article 54 (1) When a decision to the effect that a trademark registration is to be cancelled becomes final and binding, the trademark right shall be extinguished thereafter.
(2) Notwithstanding the provisions of the preceding paragraph, when a decision to the effect that a trademark registration is to be cancelled through a trial under Article 50, Paragraph 1 becomes final and binding, the trademark right shall be deemed to have been extinguished on the date of registration of the request for the trial under said paragraph.
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