A German criminal court has found three defendants guilty of fraud for sending misleading invoices to EUIPO customers, according to announcement by EUIPO.
Scam invoices plague IP owners, their representatives and IP offices. Fraudsters are increasingly sophisticated in sending out invoices that appear to be authentic demands for payment of official fees. Anecdotal evidence suggests that many businesses have fallen victim to them.
Commercial gang fraud
In late 2024, a Munich court found three defendants guilty of commercial gang fraud as a result of sending misleading invoices to EUIPO customers. Each defendant was sentenced to one year and 10 months of imprisonment, suspended with a three-year probation period.
The Court also ordered the confiscation of the amount the fraudsters unlawfully obtained (€200,000) in compensation.
The EUIPO says that the German ruling sets an important legal precedent. The decision also paves the way for current and future investigations and proceedings in other jurisdictions.
Details of the case
In December 2020, following reports from customers, the EUIPO filed a criminal complaint for suspected fraud before the competent Public Prosecutor’s Office in Germany.
The fraud scheme consisted of letters sent under the name ‘IP Register UG’, which closely resembled official fee invoices. The letterhead featured the designation "European IP Register", and the subject line highlighted "Data publication from Office for Harmonisation in the Internal Market (OHIM)” – the EUIPO’s former name.
These misleading letters included a "total due" amount, a payment deadline and bank details. Only in small print, barely legible at the bottom of the letters, was the invoice described as a proposal.
In this case, the court convicted the defendants of commercial gang fraud. In a similar case in Sweden in 2017, the defendants were convicted of gross fraud.
What does this mean?
The case highlights the need to be alert for misleading payment requests and to carefully check any communications received in relation to trade mark and design applications or registrations.
Businesses may also want to keep details of misleading payment requests so that they can be shared with IP offices to help raise awareness and as evidence in possible criminal actions.
Keeping a comprehensive record of applications and registered rights, including expected costs and deadlines, is one way to help ensure that you spot anything irregular. We can advise on this and other ways to remain vigilant.
To find out more about the issues raised in this blog contact Rosie Burbidge