Use of Mokka following the termination of a license to use AMOKKA constitutes trademark infringement

Scanomat A/S vs. Restaurationsaktieselskabet Dag Hammarskjölds Allé af 18/8-2004, the Maritime and Commercial Court

Amokka A/S assigned its restaurant business to Restaurationsaktieselskabet Dag Hammarskjölds Allé af 18/8-2004 (“Dag H”) with a right to use the trademark AMOKKA during the term of a cooperation agreement between the parties.

Subsequently Amokka assigned i.a. the trademark AMOKKA to Scanomat and 25 February 2005 Dag H terminated the cooperation agreement effective from 1 April 2005. Scanomat offered Dag H a continued license to use the trademark AMOKKA, but 31 on March 2005 Dag H refused this offer.

Dag H amended its trademark use by deleting the letter “A” in AMOKKA to (A) MOKKA and continued sporadic use of the trademark AMOKKA on e.g. receipts and sugar bags at least until end August 2005 when its rebranding to Dag H was implemented.

Finding the use of the trademark (A) MOKKA a trademark infringement, the court did not find that Scanomat had proven either to have suffered any loss or any market disturbance by the infringing use of Dag H. Irrespective of the testimony by an expert witness that comparable royalty rates in the franchise business range from 12-15% of the revenue, the court awarded compensation with DKK 300,000 (about EUR 40,000) corresponding to approx 5% of the revenue of Dag H during the minimum period of infringement.