Court of Appeal Limits Licensee Damages Recovery in Trade Mark Case

The Court of Appeal has ruled that a trade mark proprietor cannot recover losses suffered by its licensees in infringement proceedings unless the licences have been registered at the UK Intellectual Property Office. In Lifestyle Equities CV v Frasers Group Trading Ltd, the court allowed the defendant's appeal against an earlier High Court decision. It held that section 30(6) of the Trade Marks Act 1994 only applies once an application to record the licence has been made. Late registration cannot revive claims that have become time-barred under limitation rules. The dispute arose from Frasers' alleged infringement of marks licensed within the claimant's corporate group. The decision emphasises the practical importance of timely recordal for enforcement and damages assessment.

Small-business owners should promptly register any trade mark licences to preserve full rights to claim losses in infringement actions.