How can a registered Community design be exploited?

Registered Community designs are property rights. As well as, or instead of, exploiting a design himself, the proprietor of a registered Community design can license the registered Community design to generate revenue. A registered Community design can also be sold or used as security.

Where a registered Community design covers more that one design, the designs can be licensed separately. It is also possible to grant a licence in respect of a specific range of products.

As a registered Community design is a unitary right, it can only be assigned in respect of the whole of the European Union. In contrast, licences may be granted on a country by country basis, subject to competition law and provisions governing the free movement of goods.

In order to avoid loss of rights, an assignment should be recorded with the Community Design Office (OHIM) in a timely manner. It is also advisable to record licences.

When can a registered Community design be declared invalid?

A registered Community design may be declared wholly or partially invalid on the following grounds: (1) the design does not meet the requirements for protection (see what can be protected by a registered Community design?); (2) a court has ruled that the proprietor is not entitled to the design; (3) the design conflicts with an earlier right such as copyright, a national design right or a right to prohibit the use of a sign under national or Community law; (4) the design constitutes improper use of a protected symbol.

An application for a declaration of invalidity will be heard before the Community Design Office (OHIM) unless invalidity is raised as a counterclaim in infringement proceedings, in which case the matter will be heard before the relevant Community design court.

As a registered Community design is a unitary right covering the whole of the European Union, it will be declared invalid across all twenty-five EU member states even if grounds for invalidity only exist for one or some member states. Unlike for Community Trade Marks, there is no procedure to convert a registered Community design into national design applications in countries where there are no grounds for invalidity.