Market announcement

Title

Arco Vara won a lawsuit

Message

The chronology of the proceedings was as follows:

On April 27, 2016, Brave Capital OÜ (hereinafter: Brave) filed an action against
Arco Vara AS (hereinafter: Arco), requesting to prohibit Arco from using the
domain name ?veskimoldre.ee (http://veskimoldre.ee)", to establish Arco's
obligation to submit a declaration of intent to transfer the domain name to
Brave and to replace the corresponding declaration of intent with a court
judgment and to oblige Arco to refrain from registering a domain name that
contains the sign "veskimoldre".

Arco contested the action and contended that it should be dismissed. On May
16, 2016, Arco filed a counterclaim within the same civil matter, for annulment
of Brave's exclusive right that was registered in bad faith, in respect of the
trademark "VESKIMÖLDRE".

On March 27, 2017, the Harju County Court satisfied the action with its decision
and dismissed the counterclaim. On April 26, 2017, Arco filed an appeal against
the decision, in which it challenged the decision in full.

On October 09, 2017 The Tallinn Circuit Court annulled the judgment of the
County Court in the part, in which the County Court satisfied the action and
ordered the defendant to pay the expenses of the proceedings. In the annulled
part, the circuit court made a new decision, where it dismissed Brave's action
and ordered the parties to bear their own procedure expenses. In other respects,
the circuit court upheld the County Court's judgment.

On June 13, 2018, the Supreme Court in turn annulled the judgment of the Circuit
Court of October 09, 2017 and sent the matter again to the same Circuit Court to
review its decision.

On January 29, 2019, the Tallinn Circuit Court annulled the original decision of
the County Court of March 27, 2017, dismissed Brave's action and satisfied
Arco's counterclaim. The circuit court declared Brave's exclusive right to the
sign "VESKIMÖLDRE", registered as a trademark, invalid. The measures for
securing the action were revoked. Brave was ordered to pay the procedure
expenses.

On December 18, 2019, the Supreme Court again annulled the judgment of the
Circuit Court of January 29, 2019 and sent the matter to the same Circuit Court
to review its decision.

On June 30, 2020, the Tallinn Circuit Court annulled the original decision of
the County Court of March 27, 2017, dismissed Brave's action and satisfied
Arco's counterclaim. The circuit court declared Brave's exclusive right to the
sign "VESKIMÖLDRE", registered as a trademark, invalid. The measures for
securing the action were revoked. Brave was ordered to pay the procedure
expenses of all the proceedings.

On June 30, 2020, Brave filed an appeal in cassation against the decision of the
Tallinn Circuit Court and asked the Supreme Court to annul it once again.

By a court ruling of January 18, 2021, the Supreme Court did not accept the
appeal in cassation of Brave Capital OÜ. As a result, the judicial decision of
the circuit court fully entered into force on June 30, 2020 and Arco won the
civil matter in full.

The final amount of the procedure expenses awarded against Brave to be paid to
Arco will be determined by the Harju County Court.

Arco's representatives in the civil matter were sworn advocate Rauno Kinkar (Law
Office LEXTAL) and Patent Attorney Indrek Eelmets (Patent Office Käosaar).


Miko-Ove Niinemäe
CEO
Arco Vara AS
Tel: +372 614 4630
[email protected] (mailto:[email protected])