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19 February 2009
Issue: 7357 / Categories: Legal News , Competition , Commercial
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End of the road for cheap replicas?

Europe could sound “death knell” on lookalike products

An advantage gained by a “consequential association” with a well-known mark can be sufficient to amount to trade mark infringement, according to an advocate general’s opinion in a case involving L’Oreal products.

In L’Oreal SA v Bellure NV, L’Oreal claimed a manufacturer of cheap perfumes had infringed its trade mark by selling replica perfumes intended to smell similar to those of the famous brand, in packaging intended to “give a wink of an eye” to the L’Oreal products. The defendant also used the names of L’Oreal perfumes in comparison price lists to indicate which famous perfume its cheaper versions were supposed to replicate.

Geoff Steward, partner at Macfarlanes LLP says: “Advocate General Mengozzi’s opinion on trade mark dilution in free-riding cases, if followed by the European Court of Justice, will sound the death knell on lookalike products. He has drawn a key distinction between the benefit a potential infringer receives from using a similar sign, and the harm a trade mark owner may suffer. Even without any economic harm to the trade mark owner, where the only purpose of the use of the lookalike is to exploit the reputation of the market leader in order to benefit and promote the sale of the lookalike that will confer an unfair advantage and amount to trade mark infringement.”

Where a trade mark has a reputation, its owner may challenge any sign which, without due cause, would take unfair advantage or would be detrimental to the distinctive character or repute of its mark. The key issue is what amounts to “unfair advantage” or “detriment”.

Advocate General Mengozzi suggests that a “consequential association” with a well-known mark can be enough to infringe trade mark laws.

Steward says the advocate general differs from the previous approach of the courts, by taking the view there does not need to be an effect on the economic behaviour of consumers in order to show “unfair advantage”.

Issue: 7357 / Categories: Legal News , Competition , Commercial
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MOVERS & SHAKERS

Arc Pensions Law—Matthew Swynnerton

Arc Pensions Law—Matthew Swynnerton

Chair of the Association of Pension Lawyers joins as partner

Ampa Group—Kamal Chauhan

Ampa Group—Kamal Chauhan

Group names Shakespeare Martineau partner head of Sheffield office

Blake Morgan—four promotions

Blake Morgan—four promotions

Four legal directors promoted to partner across UK offices

NEWS

The abolition of assured shorthold tenancies and section 21 evictions marks the beginning of a ‘brave new world’ for England’s rental sector, writes Daniel Bacon of Seddons GSC

Stephen Gold’s latest Civil Way column rounds up a flurry of procedural and regulatory changes reshaping housing, alternative dispute resolution (ADR) and personal injury litigation
Patients are being systematically failed by an NHS complaints regime that is opaque, poorly enforced and often stacked against them, argues Charles Davey of The Barrister Group
A wealthy Russian divorce battle has produced a sharp warning about trying to challenge foreign nuptial agreements in the wrong English court. Writing in NLJ this week, Vanessa Friend and Robert Jackson of Hodge Jones & Allen examine Timokhin v Timokhina, where the High Court enforced Russian judgments arising from a prenuptial agreement despite arguments based on the landmark Radmacher decision
An obscure Victorian tort may be heading for an unexpected revival after a significant Privy Council ruling that could reshape liability for dangerous escapes, according to Richard Buckley, barrister and emeritus professor of law at the University of Reading
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