Codorníu v Council (Case C-309/89) [1994] ECR I-1853

Facts

• Codorníu, a Spanish producer of sparkling wine using the traditional method, held a registered trademark for "Gran Crémant de Codorniu."
• Council Regulation (EEC) No 2333/92 reserved the term "crémant" exclusively for sparkling wines from France and Luxembourg, implementing an international agreement.
• Codorníu challenged the regulation, claiming it infringed upon its pre-existing trademark rights.
• The ECJ was asked to determine whether Codorníu had standing to bring an annulment action against the regulation based on individual concern.

Issues

1. Does Codorníu, as a trademark holder, have standing to challenge an EU regulation that limits the use of a term protected by its registered trademark?
2. Does the regulation's effect on Codorníu's trademark rights fulfill the requirement of individual concern within the meaning of EU law?
3. Should an exception to the strict Plaumann test for individual concern be recognized for intellectual property holders whose legal rights are directly affected?

Decision

• The ECJ held that Codorníu was individually concerned by the regulation as it directly limited the use of its registered trademark.
• The Court reasoned that registered trademark holders constitute a closed and identifiable group where their legally recognized rights are directly impacted by a regulation.
• By contrast with the general Plaumann test, the existence of a pre-existing right that is specifically and individually affected was sufficient to establish standing.
• Codorníu was thus permitted to bring an annulment action before the Court challenging the EU regulation.

Legal Principles

• The Plaumann test generally requires that an applicant demonstrate being affected by a contested act due to unique characteristics or circumstances distinguishing them from all others.
• The ECJ recognized a specific exception for intellectual property holders: where a regulation directly affects an applicant’s specific, pre-existing legal right (such as a registered trademark), this confers individual concern.
• Existence of a registered trademark and a regulation’s direct impact on its use is sufficient for standing to contest the regulation’s validity.

Conclusion

The ECJ’s decision in Codorníu v Council established that trademark holders whose rights are directly and specifically affected by an EU regulation may be individually concerned and thus have standing to seek annulment, providing greater protection for intellectual property within the EU legal order.