Today’s judgment by the General Court of the European Union (GCEU) upholds the refusal to register Karna’s ‘K’ trade mark in relation to financial, monetary, banking, insurance and real estate services, primarily confirming its incompatibility with the trade mark protected by Kutxabank in Class 36, a position the Spanish bank has maintained for years.

The judgment confirms that the unauthorised registration of the ‘K’ trade mark by Klarna, which was previously protected by Kutxabank, may give rise to, and indeed has led to, confusion among consumers, a key principle of European trademark law.

The court, which highlights the incompatibility between the contested trade marks in relation to the financial services typically provided by a bank, also reinforces the view that traditional trademark protection remains fully in force, even in the face of global digital players.

Kutxabank has also taken the necessary steps to initiate civil proceedings in Spain to put an end to Klarna’s infringing behaviour, defending the value and exclusivity of its trade mark, just as it has done at every stage of the proceedings.

This procedure has been supported by legal advice from PONS IP, which has worked closely with Kutxabank’s Trademark and Legal departments since the case began, with a multidisciplinary team of experts and lawyers specialising in intellectual property and law, led by José Carlos Erdozain, Director of the Legal Advisory Department at PONS IP, and Emilia López Camba, a lawyer specialising in intellectual property within the Legal Advisory Department at PONS IP.

The judgment of the General Court may be appealed by either party before the Court of Justice of the European Union.