Trademark Co-Existence Agreement in Israel
Co-existence Agreements play an important role in settling potential disputes between two competing marks for registration/use of the marks without any confusion or infringement so long as the parties adhere to the terms of the agreement. As compared to trademark licences, the co-existence agreements are more prevalent.
Depending on the registration system, under a coexistence agreements an opposition or cancellation action is filed, and the action is terminated because the applicant/registrant and the challenging party reach agreement on the coexistence of their respective marks.
Coexistence agreements have a number of distinctive issues such as whether these agreements deal with both registration and use of the respective marks; limit itself only to registration or solely to use of the respective marks. However, this is dependent on the circumstances. However, if the agreement is intended to resolve an infringement action,
in that case a licence between the two parties could resolve the confusion since both parties are tied to a single mark. So far as the registration is concerned, the focus on the coexistence agreement is different if a third party has challenged a pending application or existing registration. In that case the terms of the coexistence agreement limits itself solely to the issue of registration so as to eliminate the likelihood of confusion with respect to use of the mark, thereby enforcing for breach under both IP and contract gropunds.
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