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    commenced infringement proceedings against the first defendant and its UK subsidiary (the second defendant), alleging that they had infringed the trade mark SPECIAL EFFECTS by using its brand SPECIAL FX and that the defendants were precluded from challenging the validity of the trade mark SPECIAL EFFE
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    In Special Effects Limited v L’Oreal & International Trademark Association (Intervener) [2007] EWCA Civ 1, the Court of Appeal overturned the decision of the Chancery Division of the High Court. The case concerned an opposition to a trade mark registration. The Court in the first instance held that there was no relevant difference between the practice and procedure of the Trade Mark Registry in opposition proceedings under s 38(2) of the Trade Marks Act 1994 and invalidity proceedings under s 47(1) of the Act. The issues in dispute in the two sets of proceedings were identical.

    First Instance Decision

    The claimant company, Special Effects Limited, owned the mark SPECIAL EFFECTS which was obtained by way of an assignment. The trade mark was registered pursuant to s 40(1) of the Trade Marks Act 1994 (‘the Act’) in respect of goods in class 3 (conditioners and hair lotions, and services) and class 44 (beauty and cosmetic therapies).

    Before the trade mark was registered, the first defendant opposed the trade mark application on the grounds set out in ss 3(1)(a), 3(3)(b), 5(2)(b) and 5(4)(a) of the Act. The opposition was dismissed by the hearing officer.

    The claimant then commenced infringement proceedings against the first defendant and its UK subsidiary (the second defendant), alleging that they had infringed the trade mark SPECIAL EFFECTS by using its brand SPECIAL FX and that the defendants were precluded from challenging the validity of the trade mark SPECIAL EFFEC

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    ere was no relevant difference between the practice and procedure of the Trade Mark Registry in opposition proceedings under s 38(2) of the Trade Marks Act 1994 and invalidity proceedings under s 47(1) of the Act. The issues in dispute in the two sets of proceedings were identical.

    First Instance Decision

    The claimant company, Special Effects Limited, owned the mark SPECIAL EFFECTS which was obtained by way of an assignment. The trade mark was registered pursuant to s 40(1) of the Trade Marks Act 1994 (‘the Act’) in respect of goods in class 3 (conditioners and hair lotions, and services) and class 44 (beauty and cosmetic therapies).

    Before the trade mark was registered, the first defendant opposed the trade mark application on the grounds set out in ss 3(1)(a), 3(3)(b), 5(2)(b) and 5(4)(a) of the Act. The opposition was dismissed by the hearing officer.

    The claimant then commenced infringement proceedings against the first defendant and its UK subsidiary (the second defendant), alleging that they had infringed the trade mark SPECIAL EFFECTS by using its brand SPECIAL FX and that the defendants were precluded from challenging the validity of the trade mark SPECIAL EFFE

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    Decision

    The claimant company, Special Effects Limited, owned the mark SPECIAL EFFECTS which was obtained by way of an assignment. The trade mark was registered pursuant to s 40(1) of the Trade Marks Act 1994 (‘the Act’) in respect of goods in class 3 (conditioners and hair lotions, and services) and class 44 (beauty and cosmetic therapies).

    Before the trade mark was registered, the first defendant opposed the trade mark application on the grounds set out in ss 3(1)(a), 3(3)(b), 5(2)(b) and 5(4)(a) of the Act. The opposition was dismissed by the hearing officer.

    The claimant then commenced infringement proceedings against the first defendant and its UK subsidiary (the second defendant), alleging that they had infringed the trade mark SPECIAL EFFECTS by using its brand SPECIAL FX and that the defendants were precluded from challenging the validity of the trade mark SPECIAL EFFE

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    ) and class 44 (beauty and cosmetic therapies).

    Before the trade mark was registered, the first defendant opposed the trade mark application on the grounds set out in ss 3(1)(a), 3(3)(b), 5(2)(b) and 5(4)(a) of the Act. The opposition was dismissed by the hearing officer.

    The claimant then commenced infringement proceedings against the first defendant and its UK subsidiary (the second defendant), alleging that they had infringed the trade mark SPECIAL EFFECTS by using its brand SPECIAL FX and that the defendants were precluded from challenging the validity of the trade mark SPECIAL EFFE

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    commenced infringement proceedings against the first defendant and its UK subsidiary (the second defendant), alleging that they had infringed the trade mark SPECIAL EFFECTS by using its brand SPECIAL FX and that the defendants were precluded from challenging the validity of the trade mark SPECIAL EFFECTS on grounds of:-

    - Estoppel;

    - Issue estoppel; and

    - Abuse of process.

    The defendants opposed these infringement proceedings on the basis that the registration of the trade mark SPECIAL EFFECTS was invalid.

    The Court in the first instance had to establish the following:-

    - whether either or both of the defendants was/were precluded by cause of action estoppel, issue estoppel or abuse of process from challenging the validity of the trade mark SPECIAL EFFECTS; and

    - whether either or both of the defendants was/were precluded by cause of action estoppel, issue estoppel or abuse of process from alleging use of the marks complained of before the application for registration as part of the basis for a defence under s 11(3) of the Act or as part of the basis for a counterclaim for passing off.

    According to Section 38 of the Act:

    ‘…(2) Any person may, within the prescribed time from the date of the publication of the application, give notice to the registrar of opposition to the registration.’

    According to Section 47 of the Act:

    ‘…(1) The registration of a trade mark may be

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