< Back to latest news & events

Knowledge Hub

Supreme Court holds that SKY marks were registered in bad faith

November 2024

In a long-awaited judgment https://www.supremecourt.uk/cases/docs/uksc-2021-0181-judgment.pdf, the Supreme Court allowed Skykick’s appeal, agreeing with the High Court that well-known broadcaster, Sky applied for a number of SKY marks in bad faith.  This was based on an allegation that Sky had registered overly broad specifications for the SKY marks with no intention to use all the goods and services but to deploy them as a legal weapon against third parties.  The Supreme Court also held that the narrowing of the categories of goods and services upon which Sky relied by the High Court was fair.  The Court of Appeal had been correct, however, in overturning in part, the judge’s findings on infringement of the SKY marks in relation to Cloud Migration services.

 

The judgment is substantial and dealt with a number of important issues, including what constitutes bad faith when applying for a trade mark, as well as the impact of the UK’s withdrawal from the EU on court cases involving EU trade marks.  The importance of these issues for trade mark owners and practitioners is highlighted by the fact that the Supreme Court handed the judgment down despite an application from the parties withdrawing the appeal following conclusion of a global settlement in their ongoing trade mark disputes.

 

The Supreme Court identified that the circumstances that might justify a finding that an application to register a sign was made in bad faith tended to fall into two categories: (i) where the application was made, not with the intention of engaging fairly in competition but with the intention of undermining, in a manner inconsistent with honest practices, the interests of third parties; or (ii) where the application was made with the intention of obtaining an exclusive right for purposes other than those falling within the functions of a trade mark, in particular, the origin-indicating function.

 

The Supreme Court held that the CoA had been wrong to find that objective circumstances limited to the width or size of the specification of goods or services could never, of themselves, be sufficient to rebut the presumption of good faith.  Whether an inference of bad faith can properly be drawn from a very broad specification will depend on all the circumstances.  Where a person makes an application to register a mark for goods and services for reasons not contemplated by the legislation and in relation to which the person has no intention to use the mark as a badge of origin, that constituted an abuse or misuse of the system.  Lord Kitchin was clear that this was not intended to affect the ability of proprietors to utilise the grace period in which the mark would not be vulnerable for non-use.  Further, allegations of this nature can be rebutted by the proprietor who can provide a reasonable explanation and justification for its actions.

 

The question the Court will ask is whether, absent an explanation and rationale consistent with the functions of a trade mark, it is reasonable to infer from the size and nature of the list of goods and services the subject of the application and in all the other circumstances, including the size and nature of the applicant’s business, that the application constituted, in whole or in part, an abuse of the system and was, for that reason, made in bad faith.

 

This judgment highlights the importance for brand owners of ensuring that applications for trade mark protection are made with the origin function of a trade mark in mind – that is, enabling a consumer to distinguish the goods and services of one brand from another.  This judgment doesn’t prevent legitimate expansion of a brand and seeking trade mark protection to facilitate that but companies should be cautious about overly broad specifications that can’t be objectively justified.

 

This article was prepared by Partner & Head of Law Rachel Fetches.

Latest updates

Event - 2nd June 2026

HGF are proud sponsors of Retail Week General Counsel 2026

HGF is proud to be sponsoring Retail Week General Counsel. This will take place on Wednesday 3rd June at Ham Yard Hotel. The retail legal landscape is undergoing a fundamental …

Event details
Event - 5th May 2026

IP Clinic for SMEs at ETZ EnergyWorks

We’re pleased to announce a free Intellectual Property (IP) clinic taking place at ETZ EnergyWorks in Aberdeen on Wednesday 27th May, from 11.00am to 4.00pm, designed to support SMEs in …

Event details
Event - 11th - 12th May 2026

HGF is proud to be attending the 14th Microbiome R&D and Business Collaboration Forum: Europe 8th Skin Microbiome and Cosmeceuticals Congress: Europe.

HGF is proud to be attending the 14th Microbiome R&D and Business Collaboration Forum: Europe 8th Skin Microbiome and Cosmeceuticals Congress: Europe. It will be held on Monday 11-12th May …

Event details
Event - 27th April 2026

HGF are proud to be Gold Sponsors of IP Counsel Café

HGF are proud to be Gold Sponsors of IP Counsel Café on 12-14th May at Silicon Valley, US. HGF Partner Susan Keston will be speaking at on the topic AI …

Event details
Event - 16th April 2026

MedTech Innovation Summit 2026

HGF Partner and Patent Attorney Adam Hines will be attending the MedTech Innovation Summit Dublin 2026, taking place from 28–30 April at The Shelbourne Hotel. As one of Europe’s premier …

Event details
Event - 2nd - 6th May 2026

INTA 2026 Annual Meeting

HGF’s European team are delighted to be attending the INTA Annual Meeting 2026, taking place from 2nd-6th May in London. As one of Europe’s leading IP firms, HGF brings together …

Event details
Event - 25th March 2026

HGF Women IP Inclusive Event

HGF are hosting Connected Bubbles Networking Event on Wednesday 25 March 2026 and this year they are teaming up with CIPA! In a profession built on collaboration, referrals and trusted …

Event details
Event - 16th, 17th March 2026

HGF are sponsors of IQPC Europe 2026

HGF is proud to sponsor IQPC’s Global IP Exchange Europe 2026, an exclusive invite-only forum bringing together senior in-house IP decision makers from across Europe. In a landscape shaped by …

Event details