CJEU embraces forum shopping in Hummel v Nike
28 July 2017
EU-wide trade mark and design rights can be enforced by way of pan-EU injunctions. Top avoid forum shopping, the relevant legislation provides a "cascade" to determine which court should hear the case – starting with the court of the defendant's domicile.
If the defendant is not domiciled in an EU member state, then the next step is the member state in which the defendant has an establishment. A recent decision of the Court of Justice has found that a separate subsidiary legal entity is an 'establishment' of a non-EU parent company for the purposes of granting pan-EU jurisdiction. The decision will unbalance the jurisdictional cascade and cause a significant increase in forum shopping within the EU.