PAGANI Lost Trademark Opposition Against PAGANI DESIGN

PAGANI S.p.A. lost in a bid to oppose TM Reg no. 6731316 for word mark “PAGANI DESIGN” in class 14 as the JPO denied a likelihood of confusion with Italian sports car brand “PAGANI”.
[Opposition case no. 2023-900251, decided on September 3, 2024]


PAGANI DESIGN

The contested mark, consisting of word “PAGANI DESIGN” in standard character, was filed by a Chinese company for use on watches in class 14 with the Japan Patent Office (JPO) on August 31, 2022.
The watches bearing the contested mark have been distributed via the internet.

In the course of substantive examination, the JPO examiner issued an office action based on Article 4(1)(xi) of the Japan Trademark Law by citing senior IR no. 979660 for wordmark “PAGANI” covering horological and chronometric instruments of class 14.

As a countermeasure, the applicant filed a non-use cancellation action against the cited mark in order to overcome the examiner’s office action.

Since IR no. 979660 was partially cancelled because PAGANI could not demonstrate actual use of the mark “PAGANI” in connection with the goods in question for the past three years at all [Cancellation case no. 2022-670054], the examiner withdrew her refusal and granted registration of the contested mark on August 25, 2023. The JPO registered the contested mark on August 30, 2023 and published it for a post-grant opposition on September 7, 2023.


Opposition by PAGANI

Italian sports car manufacturer, PAGANI, filed an opposition against the mark “PAGANI DESIGN” with the JPO on November 7, 2023, shortly before the lapse of the two-month statutory period counting from the publication date.

In the opposition, PAGANI argued that the contested mark “PAGANI DESIGN” should be cancelled in contravention of Article 4(1)(xv) of the Trademark Law because the relevant consumers, especially those who like sports cars and hyper cars, are likely to confuse a source of watches bearing the contested mark with the opponent, well known as an Italian manufacturer of the prestigious high-end sports cars PAGANI.


JPO decision

The JPO Opposition Board questioned a high degree of popularity and reputation of the opponent mark “PAGANI” among relevant consumers by stating that:

The produced evidences show that in Japan, the public gets to see the opponent cars in 2013 for the first time, and from 2020, the cars were displayed by the authorized import car dealers in their showrooms located in Kobe and Tokyo. However, the number of “Pagani Huayra” sold in Japan, only two units, is extremely small. It is undeniable that most of Japanese consumers has not purchased the opponent cars.

Taking account of several presence in magazines and events at major motor car races in Japan, the opponent mark “PAGANI” has obtained a certain degree of recognition among the consumers who have a high interest to automobiles. However, the evidence is insufficient to find a high degree of recognition of the opponent mark among relevant consumers in question.

Given the mark “PAGANI” has not acquired a high degree of recognition, the Board has no reason to find that the consumers consider the term “PAGANI” as a dominant element to indicate a source of the contested mark.

Moreover, cars are rarely related to watches by nature, purpose and consumers.

Therefore, a mere fact that the contested mark contains the term “PAGANI” is not enough to find a likelihood of confusion based on the above findings.

As a conclusion, the Board dismissed the opposition entirely.