TRY 110,000 Damages for Unauthorized Use of Trademark Online: Net-Profit Method Under SMK

Case Overview

The owner of registered trademarks discovered that a construction and real estate company was using the same distinctive sign on its website to market doors and skirting boards — without any trademark registration and without authorisation. The claimant's marks covered exactly those product categories.

Expert Findings

• Infringement confirmed: The defendant started using the sign commercially for door and skirting-board products in 2022; the use creates likelihood of confusion with the plaintiff's registered marks.
• Net profit: Expert calculated TRY 220,000 as the defendant's net profit attributable to the infringement period (SMK Art. 151/2-b).

Equitable Reduction Under SMK Article 151/3

The court confirmed that the 2017 SMK abandoned the old proportional-contribution approach of Decree 556 and now uses the infringer's total net profit as the baseline. However, applying Article 151/3 (economic significance of the IP right, scope and nature of infringement), the court reduced the award by 50%, ordering TRY 110,000 in damages.

Key Takeaway

This decision clarifies that SMK Article 151/2-b sets a higher damages floor than the old decree, but Article 151/3 gives courts flexibility to apply equitable reductions. Businesses using unregistered signs similar to third-party trademarks face substantial liability even without a registered mark of their own.

FAQ

Can using a company name online infringe a registered trademark in Turkey?

Yes, if the sign creates confusion with a registered trademark covering the same or similar goods/services (SMK Art. 29).

What does "net profit" mean in Turkish trademark damages?

Under SMK Art. 151/2-b it is the infringer's revenue after general expenses, without any proportional attribution to the mark. Courts may reduce this under Art. 151/3 on equitable grounds.

Disclaimer: For informational purposes only. Contact Elçi Patent for professional trademark advice.