Trademark Infringement Settled: TRY 145,000 in Damages and TRY 200,000 Penalty Clause — Ankara 1st IP Court 2025/141

Settlement is often the most efficient resolution of trademark infringement disputes, saving time and litigation costs for both sides. The decision of Ankara 1st IP Court numbered 2025/141 records just such an outcome — and the settlement terms are instructive.

Background

The plaintiff company held four registered trademarks and filed suit alleging that the defendant was using a confusingly similar sign at its premises. The claim included: a finding of infringement and injunctive relief under Art. 7(2) and 7(3)(d) of the Industrial Property Law; removal of all signage and promotional materials; TRY 1,000 in damages (filed as an unspecified-amount claim under CPC Art. 107, to be increased after discovery); TRY 10,000 in moral damages; and interim measures.

Settlement Agreement

The parties signed a settlement agreement on 21 March 2025 while proceedings were ongoing. Key terms:

• TRY 145,000 in damages — paid by the defendant on 25 March 2025.
• Cessation of use — the defendant declared that the infringing signs were no longer in use and undertook not to use them in the future.
• Withdrawal of trademark applications — any pending applications for similar marks were to be withdrawn within 7 days.
• TRY 200,000 penalty clause — payable for each future trademark application or use of the disputed sign by the defendant or any related entity.
• No costs order — each party bore its own litigation costs.

Decision

Upon submission of the settlement agreement, the court recorded that there was no need to rule on the merits and made no order as to costs. The decision is final.

Commentary

Two features stand out. First, the plaintiff's use of a forensic report prepared during pre-trial criminal proceedings as evidence in the civil case illustrates how parallel proceedings can reinforce each other strategically. Second, the TRY 200,000 penalty clause for future infringement creates a powerful deterrent beyond the immediate settlement — it converts a one-time payment into an ongoing compliance obligation.