European Court Upholds EUIPO Decision Denying OpenAI Trademark for Name in EU

OpenAI, the US-based company behind the ChatGPT chatbot, suffered a legal setback in the European Union regarding trademark protection for its name. On Wednesday, the European Court of Justice (ECJ) upheld the decision of the European Union Intellectual Property Office (EUIPO) to refuse registration of "OpenAI" as a trademark.

The dispute originated when OpenAI sought to overturn EUIPO's earlier ruling. While the EUIPO agreed to protect OpenAI's logo as a trademark, it rejected the registration of the company’s name. The office reasoned that the name "OpenAI" combines two common English words—"open" and "AI"—which are descriptive terms frequently used in the artificial intelligence sector.

Under European Union trademark regulations, a brand name that merely describes a product or service cannot be trademarked. This rule exists to prevent companies from monopolizing generic terms that competitors need to use in their advertising and business activities.

An exception to this rule allows trademark registration if a company can demonstrate that its name has acquired distinctiveness through long-term use. However, OpenAI was unable to meet this criterion in the EU context.

The ECJ confirmed the EUIPO's position, emphasizing that the name "OpenAI" lacks sufficient distinctiveness to qualify for trademark protection. This ruling means that other entities operating in the artificial intelligence field within the EU remain free to use the terms "open" and "AI" in their branding and marketing.

Despite the refusal to trademark the name, OpenAI retains protection for its logo, which the EUIPO accepted as distinctive and eligible for trademark registration.

This decision underscores the EU's commitment to maintaining a competitive marketplace by restricting trademark protection to marks that are distinctive and not merely descriptive. It also highlights the challenges technology companies face when seeking trademark rights for names composed of common or descriptive terms.

OpenAI’s legal team has not publicly commented on the ruling. The company continues to operate its AI services across the European Union under the existing brand name without trademark protection for the name itself.