A trademark is not just a logo on a building or a name on a sign. It is a legally protected asset that shapes a business’s brand recognition, reputation, and market value. Infringement of trademark rights for goods and services can result not only in civil lawsuits but also in criminal liability.
One of the most notable recent cases is a court ruling regarding the unauthorized use of a designation similar to the well-known trademark of the “KLO” gas station chain, which resulted in a fine of 170,000 hryvnias. This case sent an important signal to business owners: using someone else’s brand without permission is a serious risk, even if it involves a leased business or management decisions made by a manager.
Case Details and the Court’s Position
As part of the criminal proceedings, the court examined the facts regarding the placement at gas stations of markings that were visually and conceptually similar to the registered “KLO” trademark. Expert opinions confirmed the existence of a degree of confusion, i.e., a similarity that could mislead consumers regarding the connection between the businesses.
The key point was that the trademark owner had not granted permission to use the mark. The court found that the use of such a mark in commercial activities without a license or other legal basis infringes intellectual property rights.
The court paid particular attention to the role of the official. In such cases, it is important to note that liability may arise not only for the legal entity itself, but also for a specific manager or director if their involvement in decisions regarding the use of the trademark is proven. This is precisely what makes such cases particularly significant for managers.
As a result, on April 29, 2026, the court found the individual (the company’s manager) guilty and imposed a fine of 170,000 hryvnias. This once again confirms that the trademark protection mechanism in Ukraine actually works, and that violations can be classified not only as civil disputes but also as criminal offenses.
Why This Case Matters for Business
This case is significant not only because of the amount of the fine. It demonstrates the courts’ systematic approach to protecting intellectual property rights and raising standards of fair competition.
First, the use of even a partially similar logo may be sufficient to hold someone liable if an expert opinion confirms a risk of confusion. It is not necessary to copy the mark entirely—sometimes stylistic or graphic similarity is enough.
Second, arguments that the mark was used “historically,” “temporarily,” or “by agreement with previous counterparties” do not always exempt one from liability. A clearly defined legal basis is required: a license agreement, a franchise agreement, or another document confirming the right to use the mark.
Third, business leaders must personally assess the risks. Before launching a new sign, rebranding, renting a space with an existing brand identity, or acquiring an established business, it is advisable to conduct a trademark search. An IP audit helps identify potential conflicts before they escalate into a lawsuit.
This case also demonstrates that brand protection is not just a matter for large corporations. Any registered trademark can be the subject of legal protection, regardless of the company’s size.
Practical takeaways for entrepreneurs
Cases involving the unauthorized use of trademarks are becoming increasingly common. To minimize risks, businesses should:
- check public registries for existing registered trademarks before launching a new brand;
- enter into written agreements regarding the transfer of rights or the granting of licenses;
- define the scope of permitted use of the mark;
- conduct a legal audit of the brand when scaling up or changing the ownership structure;
- consult with lawyers as early as the brand identity development stage.
In today’s environment, a brand is a strategic asset, and its legal integrity directly impacts business stability.
The court’s ruling in the case regarding the use of a designation similar to the “KLO” trademark once again confirms that brand rights are effectively protected in Ukraine, and that infringement can cost a business not only fines but also reputational damage. Intellectual property is an area where prevention is always cheaper than litigation.
If you need to check or register a trademark, obtain a license, protect your brand, or conduct an IP audit of your business, please contact our law firm. We will help you minimize risks and develop a legal strategy to protect your brand.
