Jurisdiction and Trademark Infringement

Christian Dior Couture and Elbien S.A. had entered into several license agreements regarding trademarks owned by the former, and the validity of the said agreements was under discussion. Elbien S.A., in turn, had sublicensed the use of the trademarks to two other companies, Maximiliano S.A. and Compañía de Charly S.A.

Christian Dior Couture filed a lawsuit seeking that Elbien S.A., Maximiliano S.A. and Compañía de Charly S.A. discontinue the use of trademarks “CHRISTIAN DIOR”, “DIOR” and “CD” registered in international class 25. Defendants filed a plea of lack of jurisdiction, arguing that the case had to be decided by the French courts as the parties had agreed on this jurisdiction in the trademark license agreements, and further considering that there was a pending lawsuit regarding such agreements before the French courts.

The appellate court held that since the case at hand was a trademark infringement action, the courts with jurisdiction to hear the case where those of the place where the infringement occurred, regardless of the jurisdiction agreed on by the parties in the license agreements. The court further considered that its decision did not prevent the defendants from winning the case if they could show that the license agreements were still in force, or that their termination could not be used as a basis to take action.

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		Iris V. Quadrio
		María Luisa Santa María