Archive for: case law

Trade marks and taxes, case IPPB1/415-288/09-2/AG

March 12th, 2010, Tomasz Rychlicki

A taxpayer being also an entrepreneur has requested the Director of the Tax Chamber in Warsaw to issue an interpretation to a question whether by contributing a trade mark to a general partnership (ordinary partnership), he would receive a revenue that is subject to personal tax income. The right of protection for a trademark was granted by the Polish Patent Office. The taxpayer received revenue from licensing the use of that trade mark. However, he decided to form a general partnership, to which he wanted to make a contribution in a trade mark, based on its market value. The partnership would treat such trade mark as a legal and intangible asset and would make it available to other entities under a license agreement. The entrepreneur was also considering the possibility to sale his right of protection for the trade mark to another entity if the general partnership would not count it as the intangible asset.

He argued that making a contribution to a partnership, such as general or ordinary one (these are not having a status of a legal person), is not a source of revenue in personal income tax. His opinion was based on provisions of article 17(1) pt. 9 of the Polish Act on Personal Income Tax – PITA – (in Polish: ustawa o podatku dochodowym od osób fizycznych) of 26 July 1991, Journal of Laws (Dziennik Ustaw) No. 80, item 350, with later amendments

Revenues from financial capital shall be:
9) par value of shares (stocks) of an incorporated company or shares of a cooperative societ received in exchange for a non-financial contribution;

The Director of the Tax Chamber in Warsaw in the interpretation of 25 June 2009, no. IPPB1/415-288/09-2/AG, concluded that the contribution of a trade mark to a general partnership is considered as a sale. The value of a trade mark that was established in the partnership contract serves as a basis to set the revenue from financial capital. Therefore, according to article 14(2) pt. 1 of the PITA it is a revenue from commercial activity of a contributing person. The Director of the Tax Chamber referred to article. 4 § 1 of the Commercial Companies Code, under which the general partnership is a partnership, which may on its own behalf acquire the rights, including real property and other property rights, to incur obligations, may sue and to be sued – it has legal capacity but not the legal personality (a private company not an incorporated one). A non-financial contribution causes a transfer the ownership of things or rights to a general partnership because the capital share of the partner shall equal the value of the contribution effectively made. From the viewpoint of the civil law regulations, it is a payable sale of things or rights. Because the general partnership has no legal personality separate from its partners, therefore is not subject to personal tax income. Only partners are subject to personal tax income in such case.

See my earlier posts entitled “Trade marks and taxes, case II FSK 1003/08” and “Poland: depreciation for registered trade marks only“.

Trade mark law, case VI SA/Wa 233/09

March 8th, 2010, Tomasz Rychlicki

The Polish Patent Office invalidated the right of protection for 3MA R-171362 trade mark owned by the Polish company MARMA Polskie Folie Sp. z o.o. The proceeding were initiated by the 3M Company, the owner of 3M R-84046 and word-figurative 3M R-84047 trade marks. The American company has claimed the reputation of its signs and argued that the registration of 3MA R-171362 trade mark would bring its owner unfair advantage and it would be detrimental to the distinctive character and the reputation of 3M’s trade marks. The complaint of MARMA Polskie Folie Sp. z o.o. company was rejected by the Voivodeship Administrative Court in Warsaw in a judgment of 9 October 2009, case file VI SA/Wa 233/09.

The VAC ruled that in the absence of a legal definition of the reputation it was the legal doctrine and the courts who have defined the essential criteria for determining the reputation of the trade mark. Accordingly, the reputation of the trade mark is associated with the established opinion among customers about the characteristics of the goods bearing the mark. The reputation is not a simple consequence of the use and circulation of a trade mark, but it’s also a well-established and deeply rooted image in the consciousness of buyers of vital goods. The reputation of a trade mark is a result of the care for the high quality of products, the consistent preservation of a sign on the market by long and intensive advertising. An established reputation of a trade mark occurs when the quality of the goods bearing the sign satisfy customers who can easily recognize it and connect with the goods marked by the proprietor, even if it means that the goods are placed on the market for the first time. The reputation of a trade mark means its attractive value of advertising, the positive perceptions of the goods bearing the sign. In assessing whether the sign is reputed, one cannot take into the account only the degree of knowledge of a sign among the customers and the extent and intensity of advertising of goods bearing the sign, but also the quality of these goods. Prizes and certificates awarded for the goods bearing the sign, expert opinions and presentation of the goods at trade fairs in order to promote products also show the reputation of the trade mark.

See also my post entitled “Poland: proving the fame of a trade mark“.

This judgment is not yet final. A cassation complaint may be filed to the Supreme Administrative Court.

Press law, case VII Ka 715/09

March 7th, 2010, Tomasz Rychlicki

Two partners of a civil partnership have been accused that in the period from 10 April 2002 to 4 June 2006, they have been acting jointly and in the agreement, and they have been publishing without the adequate and propert registration a periodical entitled “www.bielsko.biala.pl” that was available in the Internet, i.e., they were accused of commiting an offense under article 45 of the Polish Act of 26 January 1984 on Press law – APL – (in Polish: ustawa Prawo prasowe), Journal of Laws (Dziennik Ustaw) No. 5, item 24, with later amendmets.

Anybody who publishes a daily newspaper or a periodical without registration or with registration suspended is subject to a fine penalty or the restriction of liberty.

The Regional Court in Bielsko-Biała in a judgment of 2 June 2009, case file IX K 2011/08, found them guilty. The defendants appealed.

The District Court in Bielsko-Biała, VII Criminal Appeals Division, in a judgment of 14 January 2010, case file VII Ka 715/09, has overturned the earlier sentence and discontinued the criminal proceedings. The court agreed with the court of the first instance that the accused persons commited the offence, however, the court also ruled that the degree of social harmfulness of their activity was minimal. By performing the publishing activities without the registration, both defendants did not cause anyone any harm.

What is more interesting, on 18 April 2008 both partners and later the accused persons, have applied for the registration of press activity/publishing in the form of a website available at www.bielsko.biala.pl. The request contained information that the website is updated daily. The District Court Civil Division I, in a decision of 5 June 2008, case file NS Rej. Pr. 12/08 k. 26-27, ordered the entry of the “www.bielsko.biala.pl” press title into the Register of Daily Newspapers and Periodicals.

See my posts entitled “Polish Courts Say Websites Should Be Registered As Press“, “A sequel to a story on websites that should be registered as press“.

Trade marks and taxes, case II FSK 1003/08

March 3rd, 2010, Tomasz Rychlicki

The Supreme Administrative Court in a judgment of 20 November 2009, case file II FSK 1003/08, confirmed the rule that the Polish taxpayer is allowed only for the depreciation of the registered trade mark. This judgment was based on provisions of article 16b(1)(6) of the Polish Act of 15 February 1992 on legal persons’ income tax – LPIT (in Polish: Ustawa o podatku dochodowym od osób prawnych) consolidated text published in Journal of Laws (Dziennik Ustaw) of 2000, No. 54, item 654 with subsequent amendments.

The following intangible assets, acquired and fit for commercial use as at the date of acceptance for use, shall be depreciated, subject to Article 16c:
(6) rights to: inventions, patents, trade marks, designs.

The SAC ruled that the priority to obtain the right of protection for a trade mark which is determined according to the date of filing of a trademark application with the Polish Patent Office (PPO) is something different than the possibility of introducing such a right in the records of intangible assets, which is allowed by the LPIT only after the PPO issued a positive decision on the grant of a right of protection for a trademark. Such a decision is always taken after having established that the statutory requirements for the grant of the right have been satisfied. Having only a priority does not guarantee such situation will take a favourable turn.

See my earlier post entitled “Poland: depreciation for registered trade marks only“.

Personal rights, case I ACa 1176/09

February 26th, 2010, Tomasz Rychlicki

In the summer of 2008, a popular Polish tabliod Super Express published a nude picture of Justyna Steczkowska that was taken on a Turkish beach during her holidays. The singer sued the publisher for the violation of privacy rights. The Appellate Court in Warsaw in a judgment of 24 February 2010, case file ACa 1176/09, awarded Justyna Steczkowska 80000 PLN compensation and ordered Super Express to publish an apology. The court held that there is no implied consent to the intrusion into privacy, even though it was the hotel’s private beach and a photographed person wasn’t too cautious.

Polish case law on e-access to public information

January 21st, 2010, Tomasz Rychlicki

In this short post I will try to provide my P.T. readers with the Polish case law on e-access to public information. By “e-access to public information” I mean all issues related to obtaining public information through or with the help of IT technology. All judgments are presented in the chronological order. Just click on the link to find more about each case.

- Judgment of the Voivodeship Administrative Court (VAC) in Szczecin of 16 December 2009, case file II SAB/Sz 148/09.

- Judgment of the Voivodeship Administrative Court in Warsaw, case file II SAB/Wa 57/09.

- Judgment of the Voivodeship Administrative Court in Warsaw of 10 December 2007, case file II SAB/Wa 86/07.

Polish case law on industrial designs

January 12th, 2010, Tomasz Rychlicki

Last updated on February 23, 2010.

I will try to provide my P.T. readers with a short review of Polish case law on industrial designs. I already wrote on this subject in my previous posts entitled “More on designs in Polish law“, “Polish case law on designs” and “R-6048“. Below, you will find a list of couple of judgments decided in the administrative proceedings. Finding cases that were decided in civil proceedings is more problematic becasue they are not so often publicily available. All judgments are presented in the chronological order. Just click on the link to find more about each case.

- Judgment of the Supreme Administrative Court of 20 January 2010, case file II GSK 323/09.

- Judgment of the Supreme Administrative Court of 16 December 2009, case file II GSK 238/09. This judgment was issued on the basis of the cassation complaint brought from the judgment of the Voivodeship Administrative Court (VAC) in Warsaw, of 11 December 2008, case file VI SA/Wa 1827/08.

- Judgment of the Voivodeship Administrative Court in Warsaw of 15 December 2009, case file VIII SA/Wa 332/09. This judgment is not yet final. The parties may file a cassation complaint to the Supreme Administrative Court.

- Decision of the Supreme Administrative Court of 9 December 2009, case file II GSK 772/09.

- Judgment of the Voivodeship Administrative Court in Warsaw of 19 November 2009, case file VI SA/Wa 703/09. This judgment is not yet final. The parties may file a cassation complaint to the Supreme Administrative Court.

- Judgment of the Voivodeship Administrative Court in Warsaw of 13 November 2009, case file VI SA/Wa 1376/09.

- Judgment of the Voivodeship Administrative Court in Warsaw of 9 October 2009, case file VI SA/Wa 189/09.

- Judgment of the Voivodeship Administrative Court in Warsaw of 29 September 2009, case file VI SA/Wa 211/09.

- Judgment of the Voivodeship Administrative Court in Warsaw of 19 August 2009, case file VI SA/Wa 664/09.

- Judgment of the Voivodeship Administrative Court in Warsaw of 10 June 2009, case file VI SA/Wa 498/09

- Judgment of the the Voivodeship Administrative Court in Warsaw of 8 June 2009, case file VI SA/Wa 536/09.

- Judgment of the the Voivodeship Administrative Court in Warsaw of 2 June 2009, case file VI SA/Wa 502/09.

- Judgment of the the Voivodeship Administrative Court in Warsaw of 4 April 2009, case file VI SA/Wa 109/09.

- Judgment of the Voivodeship Administrative Court in Warsaw of 4 February 2009, case file VIII SA/Wa 332/08.

- Judgment of the Supreme Administrative Court in a judgment of 27 January 2009, case file II GSK 612/08.

- Judgment of the Voivodeship Administrative Court (VAC) in Warsaw in a judgment of 11 December 2008, case file VI SA/Wa 1827/08. The cassation compliant bought before the Supreme Administrative Court was rejected in a decision of 16 December 2009, case file II GSK 238/09.

- Judgment of the Voivodeship Administrative Court (VAC) in Warsaw of 4 November 2008, case file VI SA/Wa 1053/08.

- Judgment of the Voivodeship Administrative Court (VAC) in Warsaw in a judgment of 11 August 2008, case file VI SA/Wa 1088/08.

- Judgment of the Voivodeship Administrative Court (VAC) in Warsaw in a judgment of 10 June 2008, case file VI SA/Wa 543/08.

- Judgment of the Voivodeship Administrative Court (VAC) in Warsaw of 4 November 2008, case file VI SA/Wa 1054/08.

- Judgment of the Supreme Administrative Court of 20 March 2007, case file II GSK 277/06, published in the electronic database LEX, under the no 321283.

As usually, I will try to update this post everytime I got any interesting judgment. So stay tuned folks.

Polish case law on personal data protection

December 11th, 2009, Tomasz Rychlicki

In this post I will try to provide my P.T. readers with a review of Polish case law on personal data protection, in the context of IT technologies. A more detailed discussion of each judgment may be found in the link provided with the case file. All judgments are presented in the chronological order.

- Judgment of the Voivodeship Administrative Court (VAC) in Warsaw, of 3 February 2010, case file II SA/Wa 1598/09. This judgment is not yet final. The cassation complaint may be filed to the Supreme Administrative Court.

- Judgment of the Supreme Administrative Court (SAC) in Warsaw, of 18 November 2009, case file I OSK 667/09.

- Judgment of the Voivodeship Administrative Court in Warsaw of 3 March 2009, case file II SA/Wa 1495/08.

- Judgment of the Voivodeship Administrative Court in Warsaw of 30 Novmeber 2007, case file II SA/Wa 71/07.

- Judgment of the Voivodeship Administrative Court in Warsaw of 9 February 2005, case file II SA/Wa 1085/04.

See also my post entitled “Polish regulations on personal data protection“.

Polish case law on copyright

December 9th, 2009, Tomasz Rychlicki

Last update on February 4, 2010.

To begin with, I have to write about the less or more important translation problem. The main Polish “copyright” act is the Polish Act on Authors Rights and Neighbouring Rights – ARNR – (in Polish: ustawa o prawie autorskim i prawach pokrewnych) of 4 February 1994, published in Journal of Laws (Dziennik Ustaw) No 24, item 83, consolidated text of 16 May 2006, Journal of Laws (Dziennik Ustaw) No 90, item 631, with later amendments. As you can see there is no “copyright” in the title of this act. Due to the fact that the Polish law originates from the Civil law and Roman law, it shares the concept of authors rights being intangible personal/moral and economic rights owned, in general, by the creator of a protected work (the author or co-authors – the holder). This is the concept of the so-called dualism of author’s rights, which originates from the French doctrine of author’s rights that was first introduced and developed by M. Henri Desbois. However, I am going to use the word “copyright” to describe all economic rights attributed to the author or the owner of a protected work (the holder). These economic rights include inter alia the right to copy a work, distribute, etc.

According to article 1 of the ARNR The subject matter of copyright is any expression of creative activity having individual character and manifested in any material form, regardless of the value, intended purpose and manner of expression thereof (the work). The case-law and the Polish legal doctrine share the view that the immaterial work, under the copyright law should demonstrate all of the following characteristics:
- it must be the result of the activity of man, i.e. the creator of the work, where a manifestation of activity means every manifested result of action see: J. Barta, “Ustawa o prawie autorskim i prawach pokrewnych. Komentarz”. Dom Wydawniczy ABC Warszawa 2001 r., s. 68.
- it must be a manifestation of creative activity,
- it must have an individual character.

Underneath, I decided to present a short review of the Polish copyright case-law in which the Courts discussed issues such as the protected work’s definition and what should be a subject of the copyright protection under the Polish law. All judgments are presented in the chronological order. Just click on the link to find more about each case.

I. Interpretations of the “protected work” definition.
In a judgment of the Appellate Court in Warsaw of 29 June 2007, case file VI ACa 210/07, published in the electronic database Legalis, the Court reached the following conclusions:

Photographs that were taken when a movie was shoot do not need to be treated as derivative works of an audiovisual work (the movie).

In a judgment of the Appellate Court in Warsaw of 14 May 2007, case file I ACa 668/06, published in the Jurisprudence of Appellate Courts (in Polish: Orzecznictwo Sądów Apelacyjnych) of 2008, No 12, item 39, p. 48, the Court reached the following conclusions:

1. A trivial and simple language phrase being a short fragment of “Baśka” song and not being a citation or borrowed quote, that was included in the disputed advertisement, and at most being an inspiration and a reference to the distant associations, does not justify the assumption of copyright infringement.

2. The particular freedom concerns the advertising market. Indeed, such activity because of its short forms and the need for articulated skills must operate by abbreviations, references to familiar themes, characters and situations. An advertising is also a trade statement of informational nature, so it enjoys the right to freedom of expression and freedom of information. Restrictions of these rights may occur only to the extent necessary, by third party interests (…).

3. While preserving the principle of non-transferability of author’s personal (moral) rights, it is permitted to waive of the exercise of these rights by the creator, to third parties, including entrepreneurs.

In a judgment of the Appellate Court in Warsaw of 14 March 2006, case file VI ACa 1012/05, published in the Jurisprudence of Appellate Courts (in Polish: Orzecznictwo Sądów Apelacyjnych) of 2007, No 12, item 36, p. 56, the Court reached the following conclusions:

For the legal protection of the author’s work it does not matter how the infringer came into the possession of the work, or how the work arrived to him, in particular, it does not matter that the work, which is the subject of the infringement came to the infringer as unsolicited correspondence sent electronically, the so-called spam.

The protection is not only afforded to the well known creator, whose works are published in big numbers, but to anyone whose rights to a protected work have been infringed in any possible way, copyright law makes no distinctions in the field of protection depending on the value of the work and the recognition enjoyed by the author.

In a judgment of the Supreme Court of 25 January 2006, case file I CK 281/05, published in the Supreme Court’s Bulletin of 2006, No 5, the Jurisprudence of the Supreme Court, the Civil Chamber (in Polish: Orzecznictwo Sądu Najwyższego Izba Cywilna) of 2006, No 11, item 186, p. 64, the “Wokanda” magazine of 2006, No 7-8, p. 17, the Court reached the following conclusions:

The novelty requirement is not the essential feature of the creation process understood as an expression of human intellectual activity. The work within the meaning of article 1 of the Polish Act on Authors Rights and Neighbouring Rights, can be a compilation that is using publicly available data, provided that the choice of their segregation and the way of presentation indicates originality.

In a judgment of the Supreme Court – Civil Chamber of 13 January 2006, case file III CSK 40/05, published in the Supreme Court’s Bulletin of 2006, No 3, the “Wokanda” magazine of 2006, No 6, p. 6, the Review of Economic Legislation (in Polish: Przegląd Ustawodawstwa Gospodarczego) of 2006, No 7, p. 32, the Court reached the following conclusions:

The expression of human intellectual activity which lacks adequate individuating characteristics, ie. that it would distinguish it from other products of similar nature and purpose, cannot be regarded as a work that is a subject to copyright protection. The dependent copyright may arise if there already is – and simultaneously exists – the right to the “original/primary” work, which was creatively worked out by a person who claims the right to dependent copyright.

In Judgment of the Supreme Court of 13 January 2006, case file III CSK 40/05, published in electronic database LEX, under the no 176385, the Court reached the following conclusions:

The “creative” and “individual” character of a work entitled for copyright protection can of course be based on the arguments relating to the subjective relationship between the creator and his work (“personal imprint”, “characteristics of personality”), or the objective aspects, i.e. relating to the product of the human mind. In the case of the application of the second test, which must be considered in light of the views of doctrine as better justified, it is assumed that the result of intellectual effort cannot be routine, standard and typical.

Judgment of the Supreme Court – Civil Chamber of 15 November 2002, case file II CKN 1289/00, published in the Supreme Court’s Bulletin of 2003, No 6, p. 7, the Jurisprudence of the Supreme Court, the Civil Chamber (in Polish: Orzecznictwo Sądu Najwyższego Izba Cywilna) of 2004, No 3, item 44, p. 66, the Court reached the following conclusions:

The development of a grid of entries, and a way how to define the composition of difficult entries (lexemes/lemmas) are a manifestation of the creative activity of the authors of the Polish language dictionary within the meaning of article 1 of the Polish Act on Authors Rights and Neighbouring Rights.

Judgment of the Supreme Court – Civil Chamber of 26 September 2001, case file IV CKN 458/00, published in the electronic database Legalis, the Court reached the following conclusions:

Questions making up the so-called “question bank” that is used in the test driving exams are deemed as public materials within the meaning of article 4(2) of the Polish Act on Authors Rights and Neighbouring Rights and therefore they are not afforded the copyright protection.

In a judgment of the Supreme Administrative Court of 30 June 1999, case file I SA/Lu 408/98, unpublished, the Court reached the following conclusions:

The result of creative activity, original one, characterized by individuality is the protected work. The result of a work which is determined by a described object or phenomenon, complex functions or goals, which is one of the results originating from the possible options that could be reached/solved by people (specialists) making the same task, is not the protected work. The copyright protection does not extend also to creative process, creative method or technique used in creating the work.

In a judgment of the Supreme Court of 26 June 1998, case file I PKN 196/98, published in the Jurisprudence of the Supreme Court, the Chamber of Administrative, Labour and Social Insurance (in Polish: Orzecznictwo Sądu Najwyższego Izba Administracyjna, Pracy i Ubezpieczeń Społecznych) of 1999, No 14, item 454, the Court reached the following conclusions:

If the performance of the duties that are originating from the employment relationship has to rely on the creative activity of an employee then it depends on the will of the parties to whom the author’s economic rights will be attributed. If the ownership of these rights is indefinable in the employment contract it means that within the limits of the employment contract and consistent intention of the parties, the author’s economic rights to these works are acquired by the employer in the moment of their acceptance (article 12(1) f the Polish Act on Authors Rights and Neighbouring Rights).

In a judgment of the Appellate Court in Warsaw of 5 July 1995, case file I ACr 453/95, unpublished, the Court reached the following conclusions:

On the grounds of the copyright law one has to oppose the actions of a creative nature against the technical operation and actions. The result of the latter is verifiable and repeatable, and its accomplishment only requires specific knowledge and efficiency. It is possible to predict a specific result of such actions. The feature of creativity, and thus the work itself, is the individual recognition and uniqueness of the accomplished result, in other words, the objective novelty, originality, autonomous creation, the creator’s personality projection as reflected in the work, whose effect is unpredictable, as the final result of the creative work (at least some elements).

In a judgment of the Supreme Administrative Court of 13 October 2005, case file FSK 2253/04, published in electronic database LEX, under the no 173097, the Court reached the following conclusions:

Whether a given subject is deemed as a work as defined under the copyright law is not determined by the will of the contract’s parties, but by the findings of facts. Created computer programs cannot be considered as copyrighted works, if the activities of their creator do not have the characteristics of originality and individuality.

In Judgment of the Supreme Court of 8 November 1932, case file II. 1K. 1092/32, published in Zb. Orz. 1933/I poz. 7., the Court reached the following conclusions:

A collection of posters or advertisements, calendars, catalogues, railway timetables, cookbooks, patterns, forms – may be subject to copyright law, if the form of their design, layout or explanations have independent and individual character.

Are these copyrighted works?

April 29th, 2009, Tomasz Rychlicki

The Polish Supreme Court has repeatedly indicated that the copyrighted can be any work, if – at least in its form – it shows some elements of creativity, even the minimum. See for instance a judgement of the Supreme Court of 31 March 1953, case file II C 834/52. As a subject of copyright law have been considered health and safety instructions – judgement of the Supreme Court of 23 July 1971, case file II CR 244/71, unpublished, instructions for operating a machine – judgement of the Supreme Court of 25 April 1969, case file I CR 76/69, published at OSNCP 1970, No. 1, item 15, train timetables, cookbooks, patterns and forms – judgement of the Supreme Court of 8 November 1932, Zb OSN 1933, poz.7.

One of the latest judgment of the Supreme Court of 27 February 2009, case file V CSK 337/08 tried to answer the question whether the specification of essential terms of the contract (also defined by the public procurement system) can be deemed as copyrighted work. There will be another post regarding this issue soon.