Assuming that the coexistence agreement is binding, it can sometimes be unenforceable. This can happen in the rare event that the agreement is seen as a disguised attempt to divide the market or impose a restriction on trade, the resulting harms competition. If a coexistence agreement is intended to cover countries other than those of the United Kingdom, it may extend to countries in which such agreements are treated with suspicion, assuming that they attempt to create a certain degree of confusion among consumers by allowing two different companies with similar names to continue trading. In such cases, professional advice may be required. An important issue to consider before negotiating a coexistence agreement is the public interest. A court may invalidate an agreement if it considers that the coexistence of similar marks in a given case is contrary to the public interest. This can happen especially in the field of public health when two different medical devices bore the same brand, even if the companies operate in different geographical areas. Many coexistence agreements, once concluded, are abandoned and forgotten, while the companies that concluded them move forward and return from the negotiating table to their normal business activities. In most cases, forgetting the coexistence agreement is the best proof that it has done its job well. Due to the type of trademark and registration procedure, coexistence agreements are concluded.

Over time, the California Associated Raisin Company changed its name to Sun-Maid Raisin Growers. This company went bankrupt and gained (and the „Sun-Maid“ brand) a new property. In the 1930s, the new owners learned about the coexistence agreement and wanted to get out of it. The new owners stated that they were a bona foi foit buyer without knowledge of the coexistence agreement and that it only binds the previous parties to the agreement. The dilution of trademark rights increases the problems associated with the enforcement of trademark rights against third parties. Weakening brand value can have negative consequences when a business grows or sells. In a coexistence agreement, there is no way to control the quality of the goods or services that connect the other party to the trademark. .

Categories: Allgemein