Crafts Group LLC vs M/S Indeutsch International & M/S KnitPro International

This case involved a dispute between Crafts Group LLC and M/S Indeutsch International & M/S KnitPro International over the validity and infringement of trade marks, with significant implications for post-Brexit intellectual property law.

TLDR:

• Crafts Group LLC filed a lawsuit against KnitPro for trade mark infringement.
• KnitPro sought a stay of proceedings, citing ongoing EUIPO proceedings.
• The court granted a stay for parts of the case, pending EUIPO's decision.

The claimant, Crafts Group LLC, and the defendants, M/S Indeutsch International and M/S KnitPro International, were involved in a trade mark dispute. The dispute centered around the use of chevron patterns on knitting needles and crochet hooks. Crafts Group alleged that KnitPro had infringed its trade marks by selling similar products.

Crafts Group had initially applied for a trade mark in the United States in 2009, while KnitPro filed for trade marks in the EU in 2010. The relationship between the parties deteriorated, leading to various legal actions, including takedown requests on Amazon and allegations of unjustified threats of infringement.

In 2020, Crafts Group issued a claim form in the High Court, alleging that KnitPro's communications with Amazon constituted unjustified threats of infringement. KnitPro responded with a counterclaim, alleging that Crafts Group had infringed its EU and UK trade marks.

KnitPro sought a stay of the proceedings, arguing that the validity of its EU trade marks was already in issue before the EUIPO. The court had to consider whether to grant a stay under Article 132(1) of the Trade Mark Regulation.

The court found that Article 132(1) applied and that the proceedings should be stayed insofar as they related to the EU Chevron Mark. The court also considered the implications of Brexit and the Withdrawal Agreement, ultimately deciding that the direct effect of Article 67(1) of the Withdrawal Agreement should prevail.

The court also granted a stay for claims related to the UK Chevron Mark, the EU and UK Symfonie Marks, and passing off, pending the final resolution of the EUIPO proceedings. The court emphasized the importance of avoiding wasted costs and achieving a balance of justice between the parties.