The Court of Justice of the European Union has ruled for the first time on the distinctive character of a trademark for virtual goods, thereby establishing important guidelines for the protection of trademarks in the digital space.

⚖️ Background

The sign "Glashütte original" was registered for

• downloadable virtual goods – in particular watches and accessories,
• retail services, and
• online provision of these goods in virtual environments (metaverse, online platforms).

The EUIPO rejected the application on the grounds of lack of distinctiveness. The Board of Appeal upheld the decision.

🏛 Decision of the European Court of Justice

The European Court of Justice followed the EUIPO's reasoning:

• "Glashütte" is primarily understood by the relevant public as a geographical reference to the town known for watch manufacturing.
• The sign does not have sufficient distinctive character for virtual watches and related services.
• Key statement: Virtual goods and services are treated legally in the same way as their physical counterparts.

However, the court emphasized that each case must be examined individually, taking into account the specific characteristics of virtual goods. In the present case, the good reputation of the town of Glashütte was transferred from the real world to the virtual space.

📌 Significance for actual practice

The decision provides clarity:

• Virtual goods = real goods: The same criteria apply when assessing distinctiveness.
• Geographical indications of origin remain problematic in the digital space if they are not sufficiently distinctive.
• Adapt trademark strategy: Companies that want to use trademarks in the metaverse should check at an early stage whether their characteristic indicators are also protectable in the virtual environment.

💡 Our tip:

Before registering trademarks for virtual products, check whether the sign is understood as an indication of origin by the relevant public. We are happy to assist you in the process of strategic trademark registration for digital business models.