The EU Court annuls the registration of ‘NERO CHAMPAGNE’

and strengthens the protection of Protected Designations of Origin.

The General Court of the European Union has annulled the EUIPO’s decision that allowed the registration of the trademark “NERO CHAMPAGNE” for wine-related goods and services. The judgment (T-239/23) strengthens protection of the PDO “Champagne” by recognizing that its reputation may be unduly taken advantage of and that consumers may be misled, even when products comply with the required specifications.

Key points of the decision: the critique of “limitation theory.”

The EUIPO applied the so-called limitation theory, which indicates that if a trademark is limited to goods that comply with the specifications of a PDO, this cannot be considered as taking undue advantage of its reputation or misleading the consumer. This theory has been utilized as a kind of “presumption of legality” regarding the use of a PDO in a trademark.

The General Court rejected this theory as an automatic presumption (iuris et de iure) and clarifies that:

• A case-by-case analysis must be carried out, even if the products comply with the specifications.
• The use of a PDO in a trademark may unduly take advantage of its reputation or mislead consumers, even if the products are compliant.
• The EUIPO committed an error of law by failing to assess whether the trademark “NERO CHAMPAGNE” could create a false association with a non-existent variety of champagne (such as “black champagne”).

This judgment reinforces the essential function of PDOs: to guarantee the authenticity and reputation of products linked to a specific geographical origin. The Court reiterates that protection is not limited to preventing obvious frauds, but also to prevent uses that, though formally correct, exploit the reputation of a PDO for commercial purposes unrelated to the spirit of the designation.

Link to the decision: click here

June 30th, 2025