１．Background

Company X, which manufactured and sold a certain product in Japan under the license of a famous foreign registered trademark, sent a warning to Company Y, which manufactured and sold the same product, requesting Company Y to cease their use of the trademark. But Company Y argued that the registered trademark was invalid, and Company X was unable to find any path to settlement. Thus, Company X applied for mediation.

２．Purposes of the application

Company X, the applicant, sought to demand from Company Y an injunction of the trademark infringement and compensation for damages.

３．Arguments of the respondent

Company Y, the respondent, claimed that registration of the trademark in question is invalid because it does not meet the conspicuity requirements of Article 3 of the Trademark Law.

４．Point in dispute

The point in dispute was the validity of the registration of the trademark.

５．Conclusion

(1) Company Y will pay ￥1 million to Company X for settlement and sell off its inventory of the product for only one year thereafter.
(2) Company Y will not advertise the inventory.

６．Characteristics of this case

This is a case in which the points in dispute were an argument against the grounds to invalidate a trademark registration and the infringement of that trademark. Because both of the parties accepted the proposal for mediation offered by the mediators, the case was settled promptly.