Trademarks

Molly Tea and the 1.5-million-dollar mistake of being "inspired by" Louis Vuitton

Molly Tea and the 1.5-million-dollar mistake of being "inspired by" Louis Vuitton

· Trademarks

A tea chain launched a brand built around a four-petal flower motif. The resemblance to a very famous monogram was close enough that it cost the company 1.5 million dollars.

"Inspired by" is not a legal category

Infringement does not require copying. It requires a likelihood of confusion, or in the case of famous marks, dilution: taking unfair advantage of, or damaging, the distinctive character of a well-known sign. A different product category does not save you when the earlier mark is famous.

Article 173 of the Federal Law for the Protection of Industrial Property blocks the registration of signs that are confusingly similar to earlier marks, and gives broader protection to marks that are notorious or famous, precisely so that they cannot be exploited across unrelated categories.

Why the amount was so large

Because damages in these cases are usually calculated on the infringer revenue, not on the rights holder loss. A successful launch makes the claim bigger.

What to do before you launch a visual identity

Have the design cleared, not just the name. Search for figurative marks in your classes and in the classes of famous brands your motif resembles. Redrawing a logo before launch costs a few thousand pesos. Rebranding after a claim costs everything you spent building recognition, plus damages.

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