Google has been having a rough time in Europe when it comes to the Gmail brand. Back in 2005, Google had to rename Gmail to Google Mail in the United Kingdom after a trademark dispute with Independent International Investment Research. Then, in June 2007, Daniel Giersch, CEO of P1 Privat in Germany, brought a case against Google that he ultimately won -- the ruling prevented Google from using the Gmail trademark in Germany too. In October, Google was forced to pay a 10,000 Euro fine by Daniel Giersch after continuing to use "m.gmail.com".
This time, Google tried getting European Union-wide trademark protection, but failed once again as outlined in the official document[pdf] published on the EU website. Greg Sterling expects Google will continue to appeal until they have no more legal recourse. I agree, this is probably what they will do, but I will add that their efforts will likely continue to be fruitless.
The next step for Google will be an appeal to the second highest European Union court, the European Court of First Instance in Luxembourg.