Background
Nude Brands Limited (NBL) is the proprietor of a Community trade mark consisting of the word NUDE (the "Mark"), registered for a range of goods and services, including cosmetics and perfumes. NBL's NUDE range comprises skincare products and does not currently include a perfume although NBL intends to add a perfume to the range at a later date. NBL's products retail in the mid to high end of the market and are promoted as being free of synthetic ingredients.
Stella McCartney Limited (SML) is a clothing fashion company, making and selling designs by Stella McCartney. In conjunction with YSL Beaute (YSL), SML has also sold perfumes under the brands STELLA and SHEER STELLA and cosmetic products under the brand CARE. SML and L'Oreal are intending to launch an eau de toilette and a scented linen spray under the brand STELLANUDE (the "Sign").
After becoming aware of the proposed launch of the products under the Sign, NBL applied for an interim injunction to prevent the use of the Sign on the basis that it constituted infringement of its Mark. The judge considered the following issues in assessing whether to grant the injunction: