Hungary’s trademark regime is governed by Act XI of 1997 on the Protection of Trade
Marks and Geographical Indications, with overall administration and examination
conducted by the Hungarian Intellectual Property Office (HIPO). As a member state of
the European Union, Hungary fully aligns its trademark rules with EU unified directives
while maintaining independent procedural provisions for national applications and judicial
review. One of the most frequently disputed issues in local trademark practice concerns
the registrability of three-dimensional shape marks. Specifically, product shapes that perform
inherent technical functions are subject to statutory exclusion. The landmark case Gömböc
Kft v. Hungarian Intellectual Property Office clearly interprets the application of functional
exclusions and substantial value assessment under Paragraph 4 of the 1997 Trademark Act,
setting a vital precedent for shape mark filing and protection across Hungary.
Gömböc Kft, a Hungarian enterprise engaged in the research, design and sales of special
geometric craftworks, developed a distinctive homogeneous three-dimensional object named
Gömböc. This unique geometric shape features exactly one stable resting position and one
unstable resting position, representing an exclusive technical and structural design. In 2018,
the company filed a national three-dimensional trademark application with HIPO for the
product’s overall shape. In accordance with the Nice Classification, the application covered
Class 14 decorative ornaments, Class 21 crystal and ceramic household goods, and Class 28 toys.
In 2019, HIPO officially refused the trademark application. The decision was made pursuant to
Paragraph 4(1)(e) of the 1997 Trademark Act, which stipulates that signs consisting exclusively
of a product shape necessary to achieve a technical result, or shapes that confer substantial value
on the goods, shall not be registered as trademarks. The examination authority held that the core
structural characteristics of the Gömböc shape directly determined its unique mechanical
equilibrium effect. The shape served essential technical functions and constituted the primary
source of the product’s market value, which fell within the scope of statutory exclusion.
The applicant filed an appeal against the rejection decision with the Metropolitan Court of
Budapest. In 2021, the court upheld HIPO’s original ruling, confirming that the product’s
geometric structure was not a decorative or arbitrary design, but an indispensable part of its core
functions. The company subsequently appealed to the Kúria, Hungary’s Supreme Court. In
2023, the Supreme Court issued a final judgment dismissing the appeal. It explicitly confirmed
that the contested three-dimensional shape complied with the technical function exclusion
clause under Hungarian trademark law and was not eligible for trademark registration.
● Technical Function Exclusion Rules Under Paragraph 4(1)(e) of Hungary’s Trademark Act,
product shapes that are technically indispensable to realize a certain function cannot be
monopolized via trademark rights. The Supreme Court clarified that the mono-monostatic attribute
of the Gömböc was an inherent technical result determined by its structure. Following consistent
EU judicial principles, Hungarian law prohibits using trademarks to block the free use of functional
designs and preserve fair market competition.
● Judicial Criteria for Substantial Value Assessment A product shape will also be denied
registration if it becomes the dominant factor that creates substantial commercial value for the
goods. The courts found that consumers purchased the product mainly for its exclusive geometric
shape and structural features, rather than traditional brand logos or labels. In such circumstances,
granting trademark protection to the shape would unreasonably hinder market competition.
● Burden of Proof for Three-Dimensional Trademark Applicants Under Hungarian trademark
practice, trademark applicants bear the full burden of proof to demonstrate that a product shape
is non-functional and capable of identifying commercial origin. For products with prominent
technical attributes, applicants face extremely high barriers to successfully register shape marks.
● Conduct a comprehensive functionality assessment prior to filing three-dimensional shape marks.
If a design is created to solve technical problems or define product performance, it will most likely
be rejected due to statutory exclusions.
● Separate functional structures from brand identification elements. File independent applications
for word marks, figurative logos and purely decorative designs, and avoid relying solely on product
shapes for trademark protection of functional goods.
● Adopt a combined filing strategy of national Hungarian applications and EUIPO applications.
While functionality rules remain consistent across the EU, dual filings can expand the scope of
rights and enforcement channels.
● Fully archive design sketches, aesthetic explanation documents and market research records.
These materials can serve as evidence to prove the origin-identifying function of a shape mark
in the event of official refusals or judicial disputes.
The Gömböc case has become a guiding precedent for three-dimensional trademark protection
in Hungary. It fully reaffirms that the 1997 Trademark Act prioritizes free competition for
functional designs over exclusive trademark rights. For international brands expanding business
in Hungary and the broader European market, this ruling highlights the necessity of
distinguishing between technical functionality and distinctive decorative features when planning
shape mark protection. By formulating trademark strategies in compliance with local statutory
exclusions and focusing registration on non-functional brand elements, enterprises can build
stable and effective trademark portfolios and effectively safeguard their legitimate market interests.
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