WT/DS176/AB/R

2 January 2002

United States – Section 211 Omnibus Appropriations Act of 1998

   Complaint by the European Communities

Report of the Appellate Body

 

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Claus-Dieter Ehlermann (Presiding Member)

James Bacchus

Julio Lacarte-Muró

 

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$B#T#R#I#P#S6(Dj!JCNE*=jM-8"$NKG0W4XO"$NB&LL$K4X$9$k6(Dj(B; Agreement on Trade-Related Aspects of Intellectual Property Rights$B!K(B

 

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r$NBP>]HO0O(B>$B#1!%@h7hLdBj(B(Preliminary Matters)

$B>e5i0Q?3::$NBP>](B(The Scope of Appellate Review)

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$B>e5i0Q$O!"(BEC – Hormones$B>e5i0QJs9p!"(BIndia – Patents(US)$B>e5i0QJs9p$r0zMQ$7$D$D!"#W#T#O2CLA9q$N9qFbK!$O;vZ5r$G$"$k$HF1;~$K9q:]K!>e$N5AL3$H$N@09g@-$K4X$9$k>Z5r$G$b$"$j!"9qFbK!$N#W#T#O@09g@-$K4X$9$k%Q%M%k$NI>2A$O%Q%M%k$K$h$kK!E*$J@-3J$E$1$H$7$F>e5i0Q$N?3::$NBP>]$H$J$j$&$k$H=R$Y$?(B(103-106)$B!#(B

$BA(The Nature of the Measure)

$BEv;v9q$O!"#2#1#1>r$,>&I88"$N(ownership)$B$K4X$9$k$b$N$J$N$+!JJF9q$N&I88"$d>&9f$NB8:_$d5}: $B!H(Bconsists in curtailing the enjoyment and existence of certain trademarks and trade names in the hands of certain categories of rightholders$B!I(B$B!K$K$D$$$FAh$C$F$$$?!#(B

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$B#2!%(B$B%Q%j>rLs!J#1#9#6#7G/!K#6>r$N#5(B(Article 6quinquies of the Paris Convention (1967)

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$B"(;29M!'%Q%j>rLs#6>r!J#1!K(B

$B>&I8$NEPO?=P4j5Z$SEPO?$N>r7o$O!"3FF1LA9q$K$*$$$F9qFbK!Na$GDj$a$k!#(B              

(The conditions for the filing and registration of trademarks shall be determined in each country of the Union by its domestic legislation.)

 

$B#3!%(B$B#T#R#I#P#S6(Dj#1#5>r(B(Article 15 of the TRIPS Agreement)

$B!!>e5i0Q$O!"r(B(a)(1)$B$,#T#R#I#P#S6(Dj#1#5!%#1>r$K0cH?$7$J$$$H$N%Q%M%k$N7kO@$r;Y;}$7$?!#-!#T#R#I#P#S6(Dj#1#5>r$,J]8n$7$&$k(B(capable of, eligible)$BI8<1$K$D$$$FDj$a$F$$$k$+$i$H$$$C$F!"2CLA9q$,(B$BJ]8n$7$&$k(B$BI8<1$r(B$B<+F0E*$K(B$B$9$Y$FJ]8n$7$J$/$F$O$J$i$J$$$H$$$&$3$H$K$O$J$i$:(B(not the same as imposing on those Members an obligation to register automatically each and every signs or combinations of signs that are capable of and eligible for registration under Article 15.1)$B!"2CLA9q$O!VJ]8n$NBP>]!W$d2?$,>&I8$H$J$j$&$k$+$K$O4X78$7$J$$8B$j>&I8EPO?$N>r7o$rDj$a$k$3$H$,$G$-$k(B(allows WTO Members to set forth in their domestic legislation conditions for the registration of trademarks that do not address the definition of either $B!H(Bprotectable subject matter$B!I(B or of what constitutes a trademark)(154-156)$B!"-"#T#R#I#P#S6(Dj#1#5!%#2>r$,!"#1#5!%#1>r$K5,Dj$5$l$J$$M}M3$K$h$j>&I8EPO?$r5q@d$9$k$3$H$rG'$a$F$$$k$H$$$&$3$H$+$i$b!">e5-2r(157-159)$B!"-##T#R#I#P#S6(Dj#1#5!%#4>r!"#1#5!%#3>r!"%Q%j>rLs!J#1#9#6#7G/!K#6>r!J#1!K$+$i$b!">e5-2r(160-165)$B!"-$#2#1#1>r(B(a)(1)$B$O!"JF9q$N>&I8K!$GDj$a$i$l$k$"$k&I8$d>&9f$K4X$7!"$"$k>u67$K$*$$$FC/$,=jM-8"$B$J$j$($J$$(B$B$+$KDj$a$F$$$kA(a measure that relates to ownership in that, in certain circumstances, it determines who is not the owner of a defined category of trademarks and trade names under United States trademark law)$B!"#T#R#I#P#S6(Dj#1#5!%#1>r$K5,Dj$5$l$kLdBj$K$D$$$F$O07$C$F$$$J$$(B(166)$B!#(B

$B>e5i0Q$O$5$i$K!"r$N!VB>$NM}M3!W$,!"%Q%j(B$B>rLs!J#1#9#6#7G/!KKt$O#T#R#I#P#S6(Dj$KL@<(E*$K5,Dj$5$l$F$$$k;v9`$K8B$i$l$J$$$3$H$K$D$$$F$b!"%Q%M%k$N2rr$,#1#5!%#1>r$KL@<(E*$K8@5Z$7$F$$$k$3$H$+$i!"!VB>$NM}M3!W$O#1#5!%#1>r$K5,Dj$5$l$F$$$k;v9`$K8B$i$l$J$$(B(171)$B!"-"%Q%j>rLs!J#1#9#6#7G/!KKt$O#T#R#I#P#S6(Dj$KL@<(E*$K5,Dj$5$l$F$$$kNc30$G$"$l$P!V%Q%j>rLs$KH?$7$J$$(B(they do not derogate from the provisions of the Paris Convention (1967))$B!W$H$$$($k$3$H$K$D$$$F$OEv;v9q4V$KAh$$$,$J$$(B(173)$B!"-"%Q%j>rLs!J#1#9#6#7G/!K#6>r!J#1!K$O!"3F9q$,9qFbK!$K$h$C$F%Q%j>rLs!J#1#9#6#7G/!K$GL@<(E*$K5,Dj$5$l$F$$$J$$M}M3$K$h$C$F>&I8EPO?$r5q@d$9$k8"Mx$rG'$a$F$$$k$H<(:6$7$F$$$k(B(175-176)$B!#(B

 

$B#4!%(B$B#T#R#I#P#S6(Dj#1#6>r(B(Article 16 of the TRIPS Agreement)

$B!!>e5i0Q$O!"r(B(a)(2)$B5Z$S#2#1#1>r(B(b)$B$,#T#R#I#P#S6(Dj#1#6>r$K0cH?$7$J$$$H7kO@$7$?!#-!#T#R#I#P#S6(Dj#1#6>r$O!">&I88"E*8"Mx!W$rG'$a$k$b$N$G$"$k$,!"$I$N$h$&$K>&I88"(186-188)$B!"-"%Q%j>rLs!J#1#9#6#7G/!K5Z$S#T#R#I#P#S6(Dj$N$=$NB>$N5,Dj$NCf$K$b!">&I88"(189-194)$B!"-##2#1#1>r(B(a)(2)$B5Z$S#2#1#1>r(B(b)$B$K$h$jEPO?>&I8$N8"Mxr$OC/$,8"Mx(199-201)$B!#(B

 

$B#5!%(B$B#T#R#I#P#S6(Dj#4#2>r(B(Article 42 of the TRIPS Agreement)

$B!!>e5i0Q$O!"Ev;v9q$,>GE@$r$*$$$F$$$k#T#R#I#P#S6(Dj#4#2>r$NBh#1J85Z$SBh#4J8$KCmL\$7$D$D!"#2#1#1>r(B(a)(2)$B5Z$S#2#1#1>r(B(b)$B$O#T#R#I#P#S6(Dj#4#2>r$K0cH?$7$F$$$J$$$H7kO@$7$?!#-!#T#R#I#P#S6(Dj#4#2>rBh#1J8$N!VDs6!$9$k(B(availability)$B!W$H$$$&J88@$NDL>o$N0UL#$+$i!"8"Mxr$N2]$G$"$k8"Mx$N<99T$N$?$a$K8z2LE*$JL1;v>e$N;JK!($B!H(Bright holders$B!I(B are entitled under Article 42 to have access to civil judicial procedures that are effective in bringing about the enforcement of their rights covered by the Agreement)$B$H$$$&$3$H$,<(:6$5$l$k(B(215)$B!"-"!VL1;v>e$N;JK!(civil judicial procedures)$B!W$NFbMF$K$D$$$F$O!"2CLA9q$N!V9qFbK!@)$NAj0c!W$r9MN8$7$F!"3F9q$N:[NL$rG'$a$F$$$k$H2r$5$l$k(B(216)$B!"-#!V8"Mx(right holders)$B!W$K$O!">&I88"(persons who have been established as owners of trademarks)$B$N$_$J$i$:!">&I88"$r(persons who claim to have legal standing to assert rights)$B!"JF9qK!$N2<>&I88"&I8EPO?(trademark registrants who are presumptive owners under United States law)$B$b4^$^$l$k(B(217-218)$B!"-$#T#R#I#P#S6(Dj#4#2>rBh#4J8$h$j!"2CLA9q$OAJ>YEv;v(Members must duly entitle all litigants to $B!H(Bgive substance$B!I(B to, or, $B!H(Bgive good grounds$B!I(B for, their claims in order to prove the truth of a charge, and to demonstrate or verify it by evidence)$B!V$9$Y$F$N4XO"$9$k>Z5r!W$rDs=P$9$k8"Mx$rM?$($J$/$F$O$J$i$J$$(B(parties have the right to file $B!H(Ball relevant evidence$B!I(B in support of their claims with the courts)(219-220)$B!"-%0J>e$h$j!"#T#R#I#P#S6(Dj#4#2>r$O!"(B$B$B8"Mx$K4X$7!"#1!%#3>r$G5,Dj$5$l$kB>$N2CLA9q$N9qL1$KBP$7$F9q:]E*$J:GDc?e=`$r3NJ]$9$k$b$N$G$"$k$H$$$($k(B(These procedural rights guarantee an international minimum standard for nationals of other Members within the meaning of Article 1.3 of the TRIPS Agreement)(221)$B!"-&0lJ}#2#1#1>r(B(a)(2)$B5Z$S#2#1#1>r(B(b)$B$O>&I88"$N8"Mx$B$BMW7o$rDj$a$F$$$k(B(222)$B!"-'#E#C$O!"#2#1#1>r(B(a)(2)$B5Z$S#2#1#1>r(B(b)$B$,!"#2#1#1>r$K5,Dj$5$l$k$Nr$K0cH?$9$k(B(under Article 42, the decision whether or not to abstain from ruling on substantive conditions or requirements other than those mentioned in Sections 211(a)(2) and (b) must be left to the discretion of the courts.  According to the European Communities, a statute must not limit the discretion of the courts by directing the courts to examine certain substantive requirements before, and to the exclusion of, other substantive requirements)$B$Hr$O:[H==j$,H=CG$K;j$kA0$K3F(nothing in $B!D(B Article 42 $B!D(B prevents a Member $B!D(B from legislating whether or not its courts must examine each and every requirement of substantive law at issue before making a ruling)(223-227, 229)$B!"-(#E#C$O#2#1#1>r(B(a)(2)$B5Z$S#2#1#1>r(B(b)$B$NE,MQ(B(application)$B$K$D$$$F$OLdBj$K$7$F$$$J$$$?$a!">e5i0Q$N7kO@$O(B$BJ8LL>e(B(on its face) $B$N#2#1#1>r(B(a)(2)$B5Z$S#2#1#1>r(B(b)$B$K8B$i$l$k(B(232)$B!#(B

 

$B#6!%(B$B%Q%j>rLs!J#1#9#6#7G/!K#2>r!J#1!K$H#T#R#I#P#S6(Dj#3!%#1>r(B(Article 2.1 of the Paris Convention (1967) and Article 3.1 of the TRIPS Agreement)

$B!!$O$8$a$K>e5i0Q$O!"%Q%j>rLs!J#1#9#6#7G/!K#2>r!J#1!K5Z$S#T#R#I#P#S6(Dj#3!%#1>r$K5,Dj$5$l$kFb9qL1BT6x86B'$N=EMW@-$r6/D4$7$?(B(233-243)$B!#(B

$B!!>e5i0Q$O!"57Q?M(B(successors-in-interest)$B$K4X$7$F#2#1#1>r(B(a)(2)$B$,#T(B$B#R#I#P#S6(Dj#3!%#1>r!"#T#R#I#P#S6(Dj#2!%#1>r5Z$S%Q%j>rLs!J#1#9#6#7G/!K#2>r!J#1!K$K0cH?$7$F$$$k$H7kO@$7$?!#-!%Q%M%k$O#O#F#A#C$,%i%$%;%s%9$rM?$($k$+H]$+$K$D$$$F:[NL$rM-$7$F$$$k$H$$$&E@$KCmL\$7!"#2#1#1>r(B(a)(2)$B$OFb9qL1BT6x$K0cH?$7$J$$$H=R$Y$F$*$j!"#O#F#A#C$N:[NL$K78$k$3$NG'Dj<+BN$O;Y;}$7$&$k$,!"%Q%M%k$O#2#1#1>r$K$h$k!V$b$&$R$H$D$N%O!<%I%k(B(extra hurdle)$B!W$N0U5A$K$D$$$F$b8!F$$9$kI,MW$,$"$C$?(B*(254-260)$B!"-"JF9q?M$NMx1W>57Q?M$KBP$7$F$O#1$D$7$+%O!<%I%k$,$J$$$N$K309q?M$,Mx1W$N>57Q?M$,#2$D$N%O!<%I%k$KD>LL$9$k2DG=@-$,$"$k$H$$$&$3$H$O!"$?$H$($=$N2DG=@-$,>.$5$/$H$b!"(B$BK\$B$G$"$k$H$$$($k(B(even the possibility that non-United States successors-in-interest face two hurdles is inherently less favourable than the undisputed fact that United States successors-in-interest face only one)(261-265)$B!"-#JF9q$O!"309q$NKW<}$rG'$a$J$$$H$$$&D9G/$N86B'(B(the longstanding doctrine of non-recognition of foreign confiscation)$B$K4p$E$-!"$?$H$(#O#F#A#C$NFCDj%i%$%;%s%9$rF@$F$bJF9q?M$NMx1W>57Q?M$O8"Mx$r<99T$9$k$3$H$,$G$-$J$$$H57Q?M$NZL@$7$F$*$i$:!"$^$?$3$N86B'$OJF9q?M$K$bJF9q?M0J30$N$b$N$K$bE,MQ$5$l$k$N$G$"$j!"#2#1#1>r(B(a)(2)$B$K$h$kJF9q?M$H309q?M$H$N4V$N:9JL$rBG$A>C$9(B(offset)$B$b$N$G$O$J$$(B(266-267)$B!#(B

$B!!>e5i0Q$O!"Mx1W$N>57Q?M$K4X$7$F#2#1#1>r(B(b)$B$,#T#R#I#P#S6(Dj#2!%#1>r5Z$S%Q%j>rLs!J#1#9#6#7G/!K#2>r!J#1!K!"#T#R#I#P#S6(Dj#3!%#1>r$K0cH?$7$J$$$H$$$&E@$K$D$$$F$O!"%Q%M%k$N7kO@$r;Y;}$7$?(B(270-272)$B!#(B

$B!!>e5i0Q$O!"r(B(a)(2)$B!"#2#1#1>r(B(b)$B$,#T#R#I#P#S6(Dj#2!%#1>r5Z$S%Q%j>rLs!J#1#9#6#7G/!K#2>r!J#1!K!"#T#R#I#P#S6(Dj#3!%#1>r$K0cH?$7$F$$$k$H7kO@$7$?!#-!F1$8$+N`;w$7$?>&I88"$K$D$$$FJF9qL1$N85$N>&I88"&I88"u67$K$*$$$F!"#2#1#1>r(B(a)(2)$B5Z$S#2#1#1>r(B(b)$B$OJF9qL1$K$OE,MQ$5$l$:!"%-%e!<%P9qL1$N85$N>&I88" (Sections 211(a)(2) and (b) apply to original owners that are Cuban nationals.  Original owners that are United States nationals are not covered by the definition of $B!H(Bdesignated national$B!I(B and, thus, are not subject to the limitations of Sections 211(a)(2) and (b).)(275-281)$B!"-"JF9q$N!"#2#1#1>r(B(a)(2)$B5Z$S#2#1#1>r(B(b)$B$O85$N>&I88"Dj$K4p$E$$$F$$$k(B(282)$B!"-#JF9q$N!"-!$GA[Dj$5$l$?$h$&$J>u67$O@8$8$J$$$H$$$&(283-284)$B!"-$JF9q$N!"%-%e!<%P$+$i$OM"F~$,$G$-$J$$$?$a%-%e!<%P9qL1$N85$N>&I88"&I88"$r&I88"(285)$B!"-%JF9q$O!"%-%e!<%P9qL1$N85$N>&I88"]30(B (unblocked)$B!W$H$5$l$?>l9g$K$OJF9qL1$HF1$807$$$r]30!W$H$5$l$k$o$1$G$O$J$$(B(286-290)$B!"-&JF9q$O!"5,B'#5#1#5!%#2#0#1>r$K$h$jJF9qL1$b%-%e!<%P9qL1$HF1MM$N@)8B$rl9g$,$"$k$H(291-294)$B!"-'JF9q$O!"309q$NKW<}$rG'$a$J$$$H$$$&D9G/$N86B'$K8@5Z$7$F$$$k$,!"$=$N$h$&$J8@5Z$OKW<};~$KJF9qFb$KB8:_$7$?>&I8$K$OE,MQ$5$l$J$$(B(295)$B!#(B

*$BJ,@O$K#O#F#A#C$+$i%i%$%;%s%9$rr(B(a)(2)$B$N5,@)$NBP>]$H$J$k$,!"JF9q?M$O#2#1#1>r(B(a)(2)$B$NBP>]$H$J$i$J$$!#$7$?$,$C$F!"JF9q?M$KBP$7$F$O#1CJ3,$N

 

$B#7!%(B$B#T#R#I#P#S6(Dj#4>r(B(Article 4 of the TRIPS Agreement)

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$B!!>e5i0Q$O!"&I88"r(B(a)(2)$B5Z$S#2#1#1>r(B(b)$B$,#T#R#I#P#S6(Dj#4>r$K0cH?$7$F$$$k$H7kO@$7$?!#-!F1$8$+N`;w$7$?>&I88"$K$D$$$F%-%e!<%P9qL10J30$N85$N>&I88"&I88"u67$K$*$$$F!"#2#1#1>r(B(a)(2)$B5Z$S#2#1#1>r(B(b)$B$O%-%e!<%P9qL10J30$K$OE,MQ$5$l$:!"%-%e!<%P9qL1$N85$N>&I88"(306-309)$B!"-"JF9q$O85$N>&I88"e5--"$+$i-'$NJF9q$N(310-318)$B!#(B

 

$B#8!%(B$B%Q%j>rLs!J#1#9#6#7G/!K#8>r!'>&9f(B(Article 8 of the Paris Convention (1967) – Trade Names)

$B!!>e5i0Q$O!"&9f$O#T#R#I#P#S6(Dj$NBP>]$K$O4^$^$l$J$$$H$9$k%Q%M%k7hDj$rGK4~$7$?!#-!%Q%M%k$N2rr$N!VBhFsIt$NBh0l@a$+$iBh<7@a$^$G$N5,Dj$NBP>]!W$H$NJ88@$,3FIt$N%?%$%H%k$H$O$J$C$F$$$J$$8"Mx$r$b4^$`$3$H$rL5;k$7$F$$$k(B(335)$B!"-"#T#R#I#P#S6(Dj#2!%#1>r$OL@<(E*$K%Q%j>rLs!J#1#9#6#7G/!K#8>r$rAH$_9~$s$G$$$k(B(336-338)$B!"-#8r>D2aDx$+$i$O!">&9f$,#T#R#I#P#S6(Dj$NBP>]$G$"$k$+H]$+$K$D$$$FCGDj$G$-$J$$(B(339)$B!#(B

$B!!>&9f$K4X$9$k#2#1#1>r$N#T#R#I#P#S6(Dj@09g@-$r8!F$$9$Y$-$+H]$+$K$D$$$F!">e5i0Q$O!"@hNc$K=>$$!"%Q%M%k?3::$K$*$$$F==J,$K5DO@$5$l$F$$$J$$!V?7$?$J!WO@E@$K$D$$$F$O$3$l0J>e8!F$$7$J$$(B(we declined to complete the analysis with respect to a $B!H(Bnovel$B!I(B issue that had not been argued in sufficient detail before the panel.)$B!"$H=R$Y$?(B(343)$B!#(B

$B!!>e5i0Q$O!">&9f$K4X$9$k#2#1#1>r$N#T#R#I#P#S6(Dj@09g@-$K$D$$$F!"(i)$B#2#1#1>r(B(a)(2)$B5Z$S#2#1#1>r(B(b)$B$,J88@>e>&9f$H>&I8$r6hJL$7$F$$$J$$$3$H(B(the fact that Section 211(a)(2) and (b) do not distinguish on their face between trade marks and trade names)$B!"(B(ii)$BJ6Ah;22C9q$,>&9f$H>&I8$NJ]8n$K4X$7$FF1$85DO@!"F1$8J,@O$r9T$C$F$$$k$3$H$+$i!">&9f$NJ]8n$K4X$9$k5AL3$H>&I8$NJ]8n$K4X$9$k5AL3$H$O0[$J$i$J$$$H9M$($i$l$k$3$H(B(the participants$B!G(B approach in submitting the same arguments and using the same analyses regarding trade names and trademark protection, suggesting that the obligations regarding protection of one are no different from those regarding protection of the other)$B!"(B(iii)$B;22C9q$N%Q%j>rLs!J#1#9#6#7G/!K#8>r$N2r(the information in the Panel record about the participants$B!G(B interpretation of Article 8 of the Paris Convention (1967))$B!"(B(iv)$BJF9qK!$N2<$G$N>&9f$NJ]8n$K4X$9$k%Q%M%k$N5-O?(B(the information in the Panel record about trade name protection under United States law)$B!"$H$$$&;v>p$K4p$E$-!">&9f$K4X$9$k#2#1#1>r(B(a)(2)$B5Z$S#2#1#1>r(B(b)$B$N#T#R#I#P#S6(Dj#2!%#1>r5Z$S%Q%j>rLs!J#1#9#6#7G/!K#2>r!J#1!K$H#T#R#I#P#S6(Dj#3!%#1>r!"#T#R#I#P#S6(Dj#4>r!"#T#R#I#P#S6(Dj#4#2>r!"#T#R#I#P#S6(Dj#2!%#1>r5Z$S%Q%j>rLs!J#1#9#6#7G/!K#8>r@09g@-$K$D$$$F$O$3$l$r8!F$$9$k==J,$J;v(we conclude that the Panel record contains sufficient factual findings and facts undisputed between the participants to permit to complete the analysis$B!D(B)(345-352)$B!"-">&9f$K4X$9$k#2#1#1>r(B(a)(2)$B5Z$S#2#1#1>r(B(b)$B$N#T#R#I#P#S6(Dj#2!%#1>r5Z$S%Q%j>rLs!J#1#9#6#7G/!K#2>r!J#1!K$H#T#R#I#P#S6(Dj#3!%#1>r!"#T#R#I#P#S6(Dj#4>r!"#T#R#I#P#S6(Dj#4#2>r@09g@-$K$D$$$F$O!">&I8$K4X$9$k>e5-7kO@$,F1MM$KE,MQ$5$l$k(B(353-358)$B!"-#%Q%j>rLs!J#1#9#6#7G/!K5Z$S#T#R#I#P#S6(Dj$O>&9f$K4X$7$F$b>&I88"r(B(a)(2)$B5Z$S#2#1#1>r(B(b)$B$O#T#R#I#P#S6(Dj#2!%#1>r5Z$S%Q%j>rLs!J#1#9#6#7G/!K#8>r$K0cH?$7$J$$(B(359)$B!#(B

 

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(a)    $B#2#1#1>r(B(a)(1)$B$O!"#T#R#I#P#S6(Dj#2!%#1>r5Z$S%Q%j>rLs!J#1#9#6#7G/!K#6>r$N#5#A!J#1!K$K0cH?$7$F$$$J$$$H$$$&%Q%M%k$N7kO@$r;Y;}$9$k!#(B

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4.       $B#2#1#1>r(B(a)(2)$B5Z$S#2#1#1>r(B(b)$B$O#T#R#I#P#S6(Dj#2!%#1>r5Z$S%Q%j>rLs#8>r$K0cH?$7$J$$!#(B

 

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