The iconic four rings emblem of Audi holds significant trademark status in Europe, officially registered for a range of purposes spanning vehicles, spare parts, and automotive accessories. Emblematic of the brand, Audi's logo derives from this trademark.

Recently, a Polish retailer has been advertising non-original grilles tailored for older Audi models on its website, featuring a component resembling or identical in shape to the Audi trademark, specifically designed to accommodate the Audi emblem.

Audi has taken legal action against the retailer, aiming to halt the marketing of these non-original grilles bearing a sign identical or similar to the Audi trademark. This case was referred to the Court of Justice to determine whether the marketing of automotive parts, such as these grilles, constitutes "use of a sign in the course of trade" potentially undermining the functions of the Audi trademark under EU law. In addition, Audi is questioning its authority as the trademark owner to prohibit a third party from engaging in such use.

The Court rendered its decision on 25 January 2024. In the judgment, the Court has concluded that the fixing the Audi logo to the grille does indeed constitute the use of trademark in the meaning of European trademark law. The defendant company's use of the trademark in the course of trade by affixing the trademark emblem to the radiator grille and importing and selling those grilles is deemed to potentially impair one or more functions of the trademark.

Furthermore, the Court has ruled out the application of the so-called necessary reference exception, stating that the use of a sign like in this case does not serve to designate or refer to goods as those of the proprietor but rather to faithfully reproduce a product of that proprietor. Thus, it does not fall within the exception of necessary reference.

In essence, this legal saga underscores the imperative for trademark owners like Audi to rigorously defend their brand identity against unauthorized use. The Court's ruling not only reaffirms Audi's rights to protect its trademark within the European Union but also underscores the broader significance of upholding trademark protections in preserving brand integrity and consumer trust.