On 18 January 2023, the General Court of the European Union (GC) handed down its decision in case T-726/21 (Rolex SA v European Union Intellectual Property Office and PWT A/S) (the “Decision”) concerning the similarity between watches (listed under class 14 of the Nice Classification) and clothes (listed under class 25 of the Nice Classification). The Decision upheld the findings of the EUIPO Board of Appeal in the context of an opposition based on Article 8(1)(b) EUTMR (i.e. likelihood of confusion), which considered clothes and watches to be dissimilar. Notably, the GC rejected the argument according to which clothes and watches belong to market segments which are proximate since – in the luxury goods sector – they are sold under well-known brands of designers and manufacturers, and clothing manufacturers also offer watches. The GC specified that in trademark opposition proceedings comparison of the goods must be carried out by taking as a parameter the objective description of the goods covered by the trademarks at issue, while the goods for which the trademarks are actually used (i.e. luxury watches) shall not be taken into account.