EEA Coordination Unit Austrasse 79 9490 Vaduz Liechtenstein

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EEA Coordination Unit Austrasse 79 9490 Vaduz Liechtenstein Brussels, 12 October 2016 Case No: 78795 Document No: 799735 Decision No: 183/16/COL EEA Coordination Unit Austrasse 79 9490 Vaduz Liechtenstein Dear Dr Andrea Entner-Koch, Subject: Letter of formal notice to Liechtenstein concerning the Trademark Act 1. Introduction 1. By letter dated 14 March 2016, the EFTA Surveillance Authority (“the Authority”) informed the Liechtenstein Government that it had received a complaint regarding Article 39 of the Liechtenstein Trademark Protection Act (Article 39 MSchG).1 According to the complainant, the legislation referred to above constitutes a restriction to the freedom to provide services. 2. After examination, the Authority considers: first, that a lawyer who is an EEA national and provides cross-border services in Liechtenstein in trademark matters for clients established outside the EEA cannot be required to be authorised in Liechtenstein, taking into account the principle of the freedom to provide services and more specifically Directive 2006/123/EC2 (“the Services Directive”) and Directive 77/249/EEC3(“the Lawyer Directive”); second, that the obligation placed on the participant in trademark proceedings, who has neither a domestic residence or domicile nor an establishment within the country, to designate a person authorised to accept service in Liechtenstein for any necessary exchange of correspondence with the Liechtenstein authorities and other parties, amounts to an indirect discrimination on grounds of nationality which is prohibited under Article 4 of the Agreement on the European Economic Area (“the EEA Agreement”). Alternatively, the Authority concludes that such provision of 1 Markenschutzgesetz, MSchG, LR 232.11. 2 Directive 2006/123/EC of the European Parliament and of the Council of 12 December 2006 on services in the internal market, OJ L 376, 27.12.2006, p. 36–68 (as annexed at point 1 of Annex X to the EEA Agreement). 3 Council Directive 77/249/EEC of 22 March 1977 to facilitate the effective exercise by lawyers of freedom to provide services, OJ 1977 L 78, p. 17-18 (as annexed at point 2 of Chapter B of Annex VII to the EEA Agreement). _______________________________________________________________________ Rue Belliard 35, B-1040 Brussels, tel: (+32)(0)2 286 18 11, fax: (+32)(0)2 286 18 00, www.eftasurv.int Page 2 the Liechtenstein Trademark Protection Act is in breach of Articles 11 and 36 of the EEA Agreement. 2. Correspondence 3. On 9 July 2012, the Authority received a complaint (Case 72271) against Liechtenstein concerning the obligation to appoint a lawyer established in Liechtenstein in order for a non-resident in Liechtenstein to participate in an administrative or judicial procedure in the field of trademark embodied in Article 39 MSchG. On 30 January 2013, the Authority issued a letter of formal notice (Doc. n° 657496). On 5 March 2014, the Authority delivered a reasoned opinion (Doc. n°680469). 4. In June 2014, Liechtenstein indicated that it was in the process to amending the Liechtenstein Trademark Protection Act, which it did on 1 January 2016. 5. In February 2016, the Authority received a complaint4 concerning the new Article 39 MSchG and opened the current infringement procedure. 6. In April 2016, the case was discussed at the package meeting in Vaduz. 7. In April 2016, the complaint case 72271 against Liechtenstein concerning the previous version of Article 39 MSchG was closed on the basis that the adoption of the amended Article 39 MSchG had resolved the issues raised under EEA law in the reasoned opinion. 8. In July 2016, the Authority sent a request for information (Doc. n° 811455) to Liechtenstein regarding the links between the Trademark Act, the Lawyers Act and the Patent Lawyer Act.5 9. On 18 August 2016, Liechtenstein replied to the Authority’s questions (Doc. n°815136). 3. Relevant national law6 10. Article 41 of the Patent Lawyers Act specifies: 1) The persons referred to in Article 40 must notify this to the Financial Market Authority before engaging in any occupation. The Financial Market Authority must confirm receipt of the notification. 2) The following certificates must be attached to the notification: a) a certificate from which follows that the service provider exercises the occupation in question lawfully in the State of origin and that he is not forbidden from exercising this occupation, not even temporarily, at the moment of submitting the certificate; b) a certificate of professional qualification; c) a certificate concerning the full-time, independent exercise for the period of two years of the profession as patent lawyer in the State of origin for the past ten years, in the event that the occupation as patent lawyer should not be regulated; d) a certification of citizenship; e) a certificate of a personal liability insurance, in accordance with Article 17. 4 Current case, case 78795. 5 Liechtensteinisches Landesgesetzblatt, Jahrgang 1993 Nr. 43 ausgegeben am 19. Februar 1993, Gesetz vom 9. Dezember 1992 über die Patentanwälte (Patentanwaltsgesetz; PAG); Liechtensteinisches Landesgesetzblatt, Jahrgang 2013 Nr. 415 ausgegeben am 23. Dezember 2013, Rechtsanwaltsgesetz (RAG) vom 8. November 2013. 6 All the relevant national legislation is provided in English but that it is an unofficial translation Page 3 3) This notification must be renewed on a yearly basis if the service provider intends to provide services temporarily or occasionally in the respective year on the national territory. Moreover, it must be renewed immediately if circumstances change considerably. 4) The Financial Market Authority has the duty to forbid the provision of services and, if need be, to inform the judicial or administrative authorities where the requirements set out in paragraph 2 are not or no longer met. 11. Article 83 of the Lawyers Act indicates: 1) The European lawyer providing services shall be supervised by the bar association. 2) The European lawyer providing services shall notify in advance his intention to engage in an occupation to the bar association and to provide evidence of his status as lawyer. 3) Repealed 4) Repealed 5) The Chair of the bar association has the duty to: a) provide counsel to and to instruct the European lawyer providing services in matters related to a lawyer’s professional obligations; b) supervise the persons subject to these obligations; c) forbid the provision of services and, if need be, inform judicial or administrative authority where the requirements set out in paragraph 2 are not or no longer met. d) inform the authorities in charge in the State of origin about decisions adopted with regard to this person. 12. Article 39 MSchG reads as follows: 1) Who participates in administrative or judicial proceedings laid down in this act and who does not have his residence, domicile or establishment in Liechtenstein, in another EEA State or in Switzerland, may only act before the competent administrative or judicial authorities if he has appointed as his representative a lawyer or patent lawyer who is either locally- established or has been authorised to exercise this profession temporarily. 2) Who participates in administrative or judicial proceedings laid down in this act and who has his residence, domicile or establishment in another EEA State or in Switzerland, may act before the competent administrative or judicial authorities if he has designated a person authorised to accept service in Liechtenstein.7 4. Relevant EEA law 13. Article 1 of the Lawyer Directive states: “1. This Directive shall apply, within the limits and under the conditions laid down herein, to the activities of lawyers pursued by way of provision of services. Notwithstanding anything contained in this Directive, Member States may reserve to prescribed categories of lawyers the preparation of formal documents for obtaining title to administer estates of deceased persons, and the drafting of formal documents creating or transferring interests in land. 7 Unofficial translation by the Authority. Page 4 2. "Lawyer" means any person entitled to pursue his professional activities under one of the following designations (...).” 14. Article 2 indicates: “Each Member State shall recognize as a lawyer for the purpose of pursuing the activities specified in Article 1 (1) any person listed in paragraph 2 of that Article.” 15. Article 4(1) provides: “Activities relating to the representation of a client in legal proceedings or before public authorities shall be pursued in each host Member State under the conditions laid down for lawyers established in that State, with the exception of any conditions requiring residence, or registration with a professional organization, in that State.” 16. Article 4(4) indicates: “A lawyer pursuing activities other than those referred to in paragraph 1 shall remain subject to the conditions and rules of professional conduct of the Member State from which he comes without prejudice to respect for the rules, whatever their source, which govern the profession in the host Member State, especially those concerning the incompatibility of the exercise of the activities of a lawyer with the exercise of other activities in that State, professional secrecy, relations with other lawyers, the prohibition on the same lawyer acting for parties with mutually conflicting interests, and publicity. The latter rules are applicable only if they are capable of being observed by a lawyer who is not established in the host Member State and to the extent to which their observance is objectively justified to ensure, in that State, the proper exercise of a lawyer's activities, the standing of the profession and respect for the rules concerning incompatibility.” 17. Article 5 provides: “For the pursuit of activities relating to the representation of a client in legal proceedings, a Member State may require lawyers to whom Article 1 applies: - to be introduced, in accordance with local rules or customs, to the presiding judge and, where appropriate, to the President of the relevant Bar in the host Member State; - to work in conjunction with a lawyer who practises before the judicial authority in question and who would, where necessary, be answerable to that authority, or with an "avoué" or "procuratore" practising before it.” 18.
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