On 7 July 2016 the Court of Justice of the European Union (CJEU) made a landmark decision in respect of landlord liability in the counterfeit cases – Tommy Hilfiger, Urban Trends, RADO, Lacoste, Burberry v. DELTA CENTER a.s.

Upon a request for a preliminary ruling from the Supreme Court of the Czech Republic, the CJEU ruled that persons who sublet market stalls to third parties who sell counterfeits are to be considered an intermediary whose services are being used by a third party to infringe an intellectual property right within the meaning of Article 11 of Directive 2004/48/EC on the enforcement of intellectual property rights.

The Court also confirmed that the conditions for an injunction against such intermediary are identical to the injunctions which may be granted against intermediaries in an online marketplace set out by the Court in the judgement of 12 July 2011 in L’Oréal and Others (C-324/09, EU:C:2011:474).