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Breaking the Heart of EU Policy? - EU Trademark Exhaustion and its Implications for Upcycling and the Union’s Circular Economy Objectives

Jagorstrand, Alicia LU (2025) JURM02 20252
Department of Law
Faculty of Law
Abstract
In response to the environmental crisis and growing consumer awareness, increasing attention has been directed towards sustainable production models centred on circularity, resource efficiency, and reduced environmental impact. Against this background, practices such as upcycling, which aim to extend product lifespans and reduce waste, have gained increased attention.

The European Union has articulated a strong commitment to sustainability and the transition to a green and circular economy through extensive environmental policies, objectives, and legal obligations. By contrast, EU trademark law remains largely structured around a linear economic model, prioritising strong proprietary rights designed to secure market exclusivity and... (More)
In response to the environmental crisis and growing consumer awareness, increasing attention has been directed towards sustainable production models centred on circularity, resource efficiency, and reduced environmental impact. Against this background, practices such as upcycling, which aim to extend product lifespans and reduce waste, have gained increased attention.

The European Union has articulated a strong commitment to sustainability and the transition to a green and circular economy through extensive environmental policies, objectives, and legal obligations. By contrast, EU trademark law remains largely structured around a linear economic model, prioritising strong proprietary rights designed to secure market exclusivity and control, rather than reuse or product recycling.

When upcycling is carried out by third parties without the authorization of trademark proprietors, significant legal challenges arise, particularly where protected trademarks remain visible on reworked products. Central to this tension is the exception to trademark exhaustion in Articles 15(2) EUTMR and 15(2) TMD, which allows trademark proprietors to oppose further commercialization where the condition or quality of the goods has been ‘changed’. This exception closely mirrors the defining characteristics of upcycling and generates legal uncertainty for upcyclers.

The thesis examines whether the existing trademark framework, particularly the exhaustion doctrine, can accommodate upcycling and thereby support the EU’s sustainability objectives through the application of environmental integration clauses, or whether it instead operates as a barrier. The analysis indicates that the exhaustion exception functions as a barrier to upcycling, thereby potentially discouraging such sustainable practices. Against this back-drop, the thesis highlights the Court of Justice of the European Union’s obli-gation, pursuant to Article 11 TFEU, to integrate environmental protection into its balancing of interests in trademark cases. Nevertheless, the Court’s case law reveals a persistent tendency to disregard environmental considera-tions in cases involving sustainable practices, even where its decisions carry environmental consequences.

In light of these findings, the thesis argues that environmental interests should, in accordance with Articles 11 TFEU and 37 CFR, be reflected in the balancing of interests within trademark law and should not be regarded as inherently subordinate to property protection. (Less)
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author
Jagorstrand, Alicia LU
supervisor
organization
course
JURM02 20252
year
type
H3 - Professional qualifications (4 Years - )
subject
keywords
Trademark exhaustion, Upcycling, EU circular economy objectives, Article 15(2) EUTMR, Article 15(2) TMD
language
English
id
9217175
date added to LUP
2026-01-22 13:33:41
date last changed
2026-01-22 13:33:41
@misc{9217175,
  abstract     = {{In response to the environmental crisis and growing consumer awareness, increasing attention has been directed towards sustainable production models centred on circularity, resource efficiency, and reduced environmental impact. Against this background, practices such as upcycling, which aim to extend product lifespans and reduce waste, have gained increased attention.

The European Union has articulated a strong commitment to sustainability and the transition to a green and circular economy through extensive environmental policies, objectives, and legal obligations. By contrast, EU trademark law remains largely structured around a linear economic model, prioritising strong proprietary rights designed to secure market exclusivity and control, rather than reuse or product recycling.

When upcycling is carried out by third parties without the authorization of trademark proprietors, significant legal challenges arise, particularly where protected trademarks remain visible on reworked products. Central to this tension is the exception to trademark exhaustion in Articles 15(2) EUTMR and 15(2) TMD, which allows trademark proprietors to oppose further commercialization where the condition or quality of the goods has been ‘changed’. This exception closely mirrors the defining characteristics of upcycling and generates legal uncertainty for upcyclers.

The thesis examines whether the existing trademark framework, particularly the exhaustion doctrine, can accommodate upcycling and thereby support the EU’s sustainability objectives through the application of environmental integration clauses, or whether it instead operates as a barrier. The analysis indicates that the exhaustion exception functions as a barrier to upcycling, thereby potentially discouraging such sustainable practices. Against this back-drop, the thesis highlights the Court of Justice of the European Union’s obli-gation, pursuant to Article 11 TFEU, to integrate environmental protection into its balancing of interests in trademark cases. Nevertheless, the Court’s case law reveals a persistent tendency to disregard environmental considera-tions in cases involving sustainable practices, even where its decisions carry environmental consequences.

In light of these findings, the thesis argues that environmental interests should, in accordance with Articles 11 TFEU and 37 CFR, be reflected in the balancing of interests within trademark law and should not be regarded as inherently subordinate to property protection.}},
  author       = {{Jagorstrand, Alicia}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Breaking the Heart of EU Policy? - EU Trademark Exhaustion and its Implications for Upcycling and the Union’s Circular Economy Objectives}},
  year         = {{2025}},
}