The European Court of Justice made a ruling in a trademark dispute in Ferrari’s favor

The European Court of Justice (CJEU) ruled in a case related to car companies that car manufacturers can rely on second-hand sales evidence of their vehicles to prove that their trademarks have been "actually used". The EU trademark law stipulates that the trademark right can be revoked if the right holder cannot prove that he has put the trademark in actual use. These provisions are intended to prevent companies from unfairly monopolizing brands they do not use.

In this case, the question that the European Court of Justice must consider is whether Ferrari will put the trademark "Testarossa" into actual use. The key point of legal challenge is that Ferrari’s use of "Testarossa" is limited to the high-priced luxury sports car market, and this is not sufficient to prove that it is carried out on the broader vehicle category (especially motor vehicles and their parts) registered by the trademark for actual use.

However, the European Court of Justice stated that as long as the trademark is actually used in some goods or on the replacement parts and accessories of some of these goods, the trademark should be considered to be used on all goods in the category of goods for which the trademark is registered for actual use. The exception is that relevant facts and evidence show that consumers who wish to purchase these goods regard them as a separate sub-category of the category of goods for which the trademark is registered.

The European Court of Justice also stated that according to EU trademark law, when a trademark owner resells second-hand goods placed on the market under the trademark, it can be deemed that the owner has actually used the trademark.

In another ruling welcomed by Ferrari, the European Court of Justice found that as long as the trademark owner provided services related to the previously sold goods bearing the trademark, and these services were also provided in the name of the trademark, the trademark could be determined as actually used. Ferrari stated that its supply of replacement parts and accessories for the "Testarossa" models and repair services for these vehicles are evidence of the use of the "Testarossa" trademark.