German fraud case sets legal precedent over misleading EUIPO invoices

The fraudulent scheme: A deceptive pperation

The case involved fraudulent invoices sent under the guise of ‘IP Register UG,’ a company that closely mimicked official correspondence from the EUIPO, formerly known as the Office for Harmonisation in the Internal Market (OHIM). These letters were deliberately designed to resemble legitimate fee invoices, using official-sounding titles like “European IP Register” to mislead customers. The invoices included payment details, deadlines, and amounts due, creating a false sense of urgency.

Only a small, nearly illegible disclaimer at the bottom of the invoice clarified that the document was merely a payment proposal, not an official bill. Between November 2020 and April 2021, the fraudulent scheme allowed the defendants to unlawfully obtain around €200,000 from unsuspecting EUIPO customers.

Legal action and sentencing

Following numerous reports from affected users, the EUIPO took swift action by filing a criminal complaint in December 2020 with the Public Prosecutor's Office in Germany. The case eventually led to a trial in Munich, where the court convicted the three defendants of commercial gang fraud. Each defendant received a prison sentence of one year and 10 months, though the sentences were suspended with a three-year probation period. In addition to the suspended sentences, the court ordered the confiscation of the €200,000 obtained through fraudulent means, to be used for compensating the victims.

An important legal precedent

This ruling is viewed by the EUIPO as a critical legal precedent, as it confirms that sending misleading payment requests to IP users constitutes criminal fraud. By convicting the perpetrators, the court has set a new standard for how such fraudulent activities will be treated in the future. This decision paves the way for similar cases to be prosecuted across the European Union, offering greater protection to IP users.

The Munich ruling follows a similar case in Sweden in 2017, where the defendants were convicted of gross fraud for running a comparable operation. Both cases are seen as important legal milestones, setting a strong deterrent for individuals or groups involved in fraudulent schemes targeting the IP community.

EUIPO’s continued efforts to protect users

In response to the growing number of IP-related scams, the EUIPO has taken several measures to protect users. One of the most effective tools is a publicly searchable database of misleading payment requests, where users can check if any correspondence they have received is part of a known scam. This database, along with frequent warnings published on social media, is designed to help IP holders avoid falling victim to such schemes.

The EUIPO continues to advise users to carefully scrutinize any communications they receive related to their trademark or design applications. The organization emphasizes the importance of verifying the authenticity of payment requests and encourages customers to report any suspicious correspondence.

A call for vigilance

This case serves as a stark reminder of the risks faced by IP users, particularly in a digital age where scams can appear highly convincing. Both businesses and individuals involved in intellectual property matters must remain vigilant, ensuring they only engage with legitimate entities when it comes to payments and official correspondence.

With the court's ruling in Munich, the message is clear: fraudulent activities targeting the IP community will not go unpunished. The EUIPO remains committed to supporting IP users and fostering an environment where intellectual property rights are protected from fraudulent exploitation.

Sophie Stevenard