Trademarks. Update. Co-Existing marks. Geographical. This is an outrage!

Without seeing your mark and the other mark there is no way to answer your questions. Do yourself a favor - if your trademark is important to you, then hire a trademark attorney.

Notice: The below is for educational and informational purposes only, is not a reflection on or a representation of any views or opinions held by my employer, and should not be construed as legal advice. Nothing herein is meant to create an attorney-client relationship.

The USPTO most likely gave you correct information. There are certain international agreements (e.g. Madrid Protocol) to which the U.S. is a signatory which allow foreign applicants to obtain U.S. trademark registrations without a use requirement. However, after registration, the registrant needs to file periodic affidavits of use in order to maintain the registered extension of protection in the U.S.

Given the information in your e-mail, it appears that you have been issued an Office Action refusing your trademark application based on the existing registration owned by the German company. There are numerous possible strategies for responding, including filing a well thought out response to Office Action, contacting the prior owner for consent, filing a possible proceeding to invalidate or cancel the registration, etc. Deciding on your next steps should be made with advice from competent trademark counsel.