counterfeit

Decorative pattern or trademark? The Paris Judicial Court clarifies the criteria for infringement in the fashion industry

Introduction

In the fashion industry, a motif may perform several functions. It may decorate a garment, but it may also indicate its commercial origin. The legal characterisation depends less on the label chosen by the seller than on how consumers will actually perceive the sign on the product.

In a judgment of 19 February 2026, the Paris Judicial Court applied this approach to T-shirts reproducing a stylised lion’s head close to the central figurative element of the semi-figurative Zelys Paris trademark. The decision provides useful guidance on trademark use, the comparison of a composite mark, the effect of a second trademark appearing on a label and, above all, the importance of evidence when seeking effective remedies (Paris Judicial Court, 3rd Chamber, 1st Section, February 19, 2026, Case No. 22/13133).

Facts: the reproduction of a stylised lion’s head on T-shirts

Two individuals jointly owned French semi-figurative trademark No. 4 520 372, filed on 30 January 2019 for goods including those in Classes 14, 18 and 25. The mark combined the words “Zelys Paris” with a stylised lion’s head surrounded by peripheral graphic elements.

The owners had granted non-exclusive licences to two companies active in the purchase and sale of clothing. After identifying T-shirts reproducing the lion motif, the licensees obtained authorisation to carry out an infringement seizure at the seller’s premises and subsequently brought trademark infringement proceedings. The licensees also relied on unfair competition and free-riding.

Two T-shirt references were at issue. Both reproduced the stylised lion’s head, while some models also displayed the word “Zelys” in the background. The colours, the words surrounding the design and certain peripheral elements nevertheless differed from the registered mark.

The seller mainly argued that the lion’s head was merely an ornamental element commonly used on garments and was therefore not used as a trademark. It further relied on the “Belman” label attached to the products, which, in its view, identified their actual commercial origin and excluded any likelihood of confusion.

Decision: the motif was used as a trademark and created a likelihood of confusion

1. The position and visibility of the motif established trademark use

The Court first examined the function actually performed by the contested signs. It observed that they appeared very prominently on the chest of the T-shirts, a position where many trademarks are commonly displayed. The average consumer could therefore perceive the motif as an indication of the commercial origin of the goods.

The allegedly decorative nature of the design was not sufficient to exclude infringement. The judgment does not establish that every motif placed on the chest automatically constitutes a trademark. Rather, it shows that position, size, visibility and the overall context of presentation must be assessed together.

2. The reproduction was not identical, but the imitation infringed the mark

The Court first rejected identical reproduction. The T-shirts did not reproduce every element of the registered mark, in particular the complete wording “Zelys Paris”, and some differences could not be regarded as insignificant.

It nevertheless found infringement by imitation. Visually, the stylised lion’s head was reproduced in its entirety. It was the central and most important element of the mark, while the differences mainly concerned colours, wording and peripheral ornamentation. The visual and conceptual similarity was considered high, despite low phonetic similarity.

According to the Court, consumers who do not necessarily see the signs side by side could interpret the differences as mere variations of the logo. They could therefore believe that the T-shirts originated from Zelys Paris or from an economically linked undertaking.

3. A label bearing another trademark did not remove the likelihood of confusion

The word “Belman” appearing on a label attached to the product did not alter the assessment. That indication was significantly less visible than the motif displayed on the chest and was therefore insufficient to prevent consumers from attributing an origin-identifying function to the stylised lion.

This finding is particularly relevant in fashion, where several signs may coexist on the same item: a manufacturer’s mark, a retailer’s mark, a collection name, a prominent graphic or a collaboration name. Adding another sign does not necessarily remove the risk created by the dominant reproduction of an earlier trademark.

4. Remedies were closely tied to the evidence actually produced

The defendant was held liable for trademark infringement. It was ordered to pay EUR 3,000 to each joint owner and to cease selling garments reproducing the stylised lion’s head, subject to a penalty of EUR 300 for each infringing item identified during a six-month period.

The damages nevertheless remained limited. The profits established by the evidence amounted to only EUR 170, and no evidence showed the existence of additional stock. The Court therefore refused to order destruction or confiscation and rejected publication of the judgment as disproportionate in light of the limited infringing volume.

ZS Diffusion was awarded EUR 170 for unfair competition after proving that it had marketed goods under the mark before the infringing acts. By contrast, the other licensee’s claims were dismissed because it failed to establish its own use of the trademark and the confusion affecting its business. The free-riding claims were also rejected because the alleged investments and reputation had not been sufficiently demonstrated.

Significance: practical lessons for the fashion industry

The decorative nature of a motif must be assessed in context

The decision confirms that there is no automatic divide between decoration and distinctiveness. The same graphic may be perceived as a mere ornament in one presentation and as a trademark in another. Its size, repetition, position, visual autonomy and sector practices may all influence that perception.

Businesses should therefore not assume that a graphic may be freely reproduced merely because it is used aesthetically on clothing. Clearance should cover existing figurative trademarks and the precise way in which the sign will be presented to the public.

A composite trademark may be enforced through its dominant figurative element

A mark combining words and a design must always be compared globally with the contested sign. The decision nevertheless demonstrates that the complete reproduction of its central figurative element may carry substantial weight even where the verbal elements are not copied.

Owners should identify visual components intended to be used independently and, where commercially justified, consider filing them as separate figurative trademarks. This may facilitate enforcement of an emblem regardless of later changes to the wording or graphic charter.

Evidence directly determines damages and available remedies

The most operational aspect of the judgment is the distinction between establishing infringement and quantifying its consequences. Even where infringement is recognised, the owner must document sales volumes, remaining stock, margins, the duration of marketing, harm to the mark and relevant expenditure in order to obtain substantial compensation.

Screenshots, invoices, purchase orders, bailiff reports, sales data, inventories and information obtained through an infringement seizure should be preserved and cross-referenced. Without such evidence, the court may limit damages and refuse measures such as destruction, confiscation or publication of the judgment.

Licensees must establish their own use and their own loss

A finding of infringement in favour of the owner does not automatically compensate every licensee. Each licensee must be able to establish its role in exploiting the trademark, the goods it markets, the investments it bears and its own loss.

Licence agreements should therefore organise the preservation of evidence of use, the reporting of sales figures, cooperation in infringement seizure proceedings and the allocation of enforcement and damages claims.

Digital monitoring remains essential

This decision highlights the critical importance of digital monitoring in protecting a trademark. Imitations of graphic motifs circulate rapidly on e-commerce websites, marketplaces and social media. Visual recognition tools may help detect variations close to a protected logo or graphic. They should nevertheless be combined with human legal review, as visual resemblance alone does not automatically establish trademark infringement.

  • Register recurring figurative elements that genuinely identify the commercial origin of the brand.
  • Preserve dated evidence showing how the motif is used on products and in advertising.
  • Monitor new trademark filings, marketplaces, social media and retail websites.
  • Immediately document volumes, prices, stock and sales channels when an infringement is identified.
  • Include in licence agreements clear duties to provide evidence of use and cooperate in enforcement.

Conclusion

The judgment of February19, 2026 does not turn every motif appearing on a garment into a trademark. It does, however, confirm that the legal characterisation depends on consumer perception and the specific marketing context. A highly visible design placed where consumers commonly expect to see a source identifier may perform a trademark function and infringe an earlier right.

The decision also reminds owners and licensees not to overlook evidence. Protecting a motif, monitoring its reproduction and obtaining effective remedies are three separate steps, each of which depends on accurate documentation of use, the scale of the infringement and the resulting loss.

Dreyfus & Associés assists its clients in managing complex intellectual property cases, offering personalized advice and comprehensive operational support for the complete protection of intellectual property.

Dreyfus & Associés works in partnership with a global network of attorneys specializing in Intellectual Property.

Q&A

How can you determine whether a graphic element should be protected through a separate trademark filing?

The answer depends on how the element is used over time. A separate filing may be appropriate where the design appears independently on products, packaging, stores or digital media, without always being accompanied by the brand name. Its stability, visibility to the public and ability to become an identifiable commercial reference should also be taken into account.

What evidence should be retained to enforce a figurative sign effectively?

The most useful evidence is that which shows how the public was actually exposed to the sign. Relevant materials may include catalogues, photographs of products and stores, packaging, advertising campaigns, social media posts, dated product pages, sales figures and documents relating to the creation of the design. These materials help establish use, visibility and commercial value.

Can the colour of a garment constitute a trademark in its own right?

Yes, subject to strict conditions. A colour may be registered as a trademark if it has acquired distinctiveness through use and enables consumers to identify the commercial origin of the product. The CJEU confirmed this principle in the Libertel judgment (C-104/01, 2003). The best-known example in the fashion industry is the Louboutin red sole, which the CJEU recognised as a valid trademark in 2018 (C-163/16) for the soles of high-heeled shoes.

Can an independent designer bring infringement proceedings without having registered a trademark?

A designer who does not own a registered trademark cannot bring an action on the basis of trademark law. However, they may rely on copyright protection, which arises automatically upon the creation of an original work, without any prior registration requirement. They may also bring an action for unfair competition or parasitism where a competitor unfairly benefits from their efforts or investment. These remedies are complementary and are often relied upon together in practice.

What time limits apply to trademark infringement actions in France?

A trademark infringement action must be brought within five years from the date on which the right holder became aware of the infringing acts, pursuant to Article L. 716-5 of the French Intellectual Property Code. This is a “rolling” limitation period, meaning that it runs separately from each distinct act of infringement. It is therefore essential to act promptly once an infringement is discovered, otherwise the claim may be held inadmissible.

This publication is intended to provide general guidance and highlight certain issues. It is not intended to apply to specific situations or to constitute legal advice.

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How can infringement seizures and trade-secret protection be reconciled without exposing a company’s confidential information?

Introduction

An infringement seizure, provided for in particular by Article L. 716-4-7 of the French Intellectual Property Code in trademark matters, is one of the most effective tools for gathering evidence of infringement quickly.

It is a judicial measure ordered by a judge and carried out without prior notice by a court-appointed enforcement officer. Within the limits set by the order, the officer may enter the premises of the targeted company, record the facts, describe or seize the disputed products, and collect certain commercial, technical or digital documents.

This measure may, however, provide access to information that goes beyond the scope of the dispute. An invoice may reveal prices negotiated with a supplier, purchasing arrangements or margin structures. A stock file may disclose available volumes, sales forecasts or forthcoming collections.

The challenge is therefore to preserve the effectiveness of the infringement seizure without allowing unjustified access to the targeted company’s strategic information. Trade-secret protection cannot be used to prevent the collection of necessary evidence, but it may justify targeted and proportionate safeguards.

What are the practical benefits of an infringement seizure?

For the rights holder, the value of an infringement seizure is very practical. It may identify the source of the goods, reconstruct manufacturing and distribution channels, assess the quantities placed on the market and quantify the loss suffered.

A well-prepared seizure can therefore turn a mere suspicion into a sufficiently documented case to seek an end to the infringing acts, obtain damages or enter negotiations from a position of strength.

The measure does not, however, create a general right of access to a competitor’s premises, documents or IT systems. The application must identify the material sought and explain its connection with the alleged infringement. Digital investigations must also be limited, for example by defined time periods, folders or keywords.

Where documents contain personal data or information unrelated to the dispute, only the data strictly necessary to establish the evidence should be collected or disclosed.

Which information may qualify as a trade secret?

Not all confidential information automatically benefits from trade-secret protection. Article L. 151-1 of the French Commercial Code sets out three cumulative conditions. The information must:

1. not be generally known or readily accessible to professionals in the sector;

2. have actual or potential commercial value because it is secret;

3. be subject to reasonable measures designed to preserve its confidentiality.

Confidentiality is not presumed

A company seeking protection for a document must show in practical terms how each item of information meets these conditions. It is not enough to label an entire file “confidential” or simply state that the documents are not public.

The company should identify the precise nature of the information, its economic or competitive value, the persons who can access it, the foreseeable consequences of disclosure and the measures implemented to protect it.

These measures may include confidentiality clauses, access restrictions, a document-classification policy, passwords, server segmentation or limits on downloading rights. Without such safeguards, a trade-secret claim may be rejected even where the information objectively has commercial value.

When sensitive documents are seized, their immediate disclosure may expose trade secrets. Provisional sequestration preserves their confidentiality while the judge decides how they should be disclosed.

How does provisional sequestration protect seized documents?

Provisional sequestration keeps sensitive documents temporarily in the custody of the court-appointed enforcement officer, without immediately disclosing them to the applicant. It does not remove the evidence: it gives the judge time to organise the disclosure of the documents to the party that requested the infringement seizure.

The judge may limit disclosure to selected information, require a redacted version or a summary, restrict access to a small number of people or examine the document alone. The French Supreme Court confirmed that the relevant statutory mechanism is provisional sequestration, rather than an improvised process of placing documents under seal (French Supreme Court, Commercial Chamber, February 1, 2023, No. 21-22.225).

For each document, the party asserting secrecy must prepare a complete version, a non-confidential version or a summary, together with a note explaining precisely why the information is secret. Action must be taken immediately: the regulatory framework provides a one-month period to request amendment or revocation of the order, failing which the sequestration may be lifted.

Sogema v. Crocs: what is the practical takeaway?

In 2024, Belgian customs blocked 4,932 pairs of shoes imported by Sogema because they were suspected of reproducing the protected shape of Crocs footwear. An infringement seizure then made it possible to collect several documents, including collection plans, product references, purchase prices, stock information and invoices.

Sogema sought to prevent disclosure of most of those documents, which it regarded as confidential. The Paris Judicial Court nevertheless required each document to be examined separately. For each one, Sogema had to provide a complete version, a version concealing the sensitive information or a summary, and explain precisely why the information should remain confidential (Paris Judicial Court, March 20, 2025, Case No. 24/09326).

Key point: it is not enough to claim that an entire file is confidential. The company must clearly identify the sensitive information and justify its protection document by document.

What action plan should be adopted?

For the company requesting the infringement seizure

The rights-holding company should prepare a precise application to obtain the useful evidence without going beyond what is necessary for the case.

  • Identify the products, documents and time periods to be examined.
  • Explain how each category of evidence may establish the infringement.
  • Limit IT searches, in particular by keywords, dates or folders.
  • Provide in the application for the possibility of placing sensitive documents discovered during the operation under provisional sequestration.
  • After the seizure, commence court proceedings within the applicable period in order to preserve the effects of the measure.

For the company targeted by the infringement seizure

The targeted company should cooperate with the operation while protecting its confidential information.

  • Check that the court-appointed enforcement officer strictly complies with the limits set by the order.
  • Immediately identify documents containing sensitive information.
  • Where possible, request that they be placed under provisional sequestration.
  • Prepare versions concealing confidential information and explain why that information should be protected.
  • Rapidly involve the legal, IT and finance teams, together with senior management, to ensure a coordinated response.

KEY TAKEAWAY
The strongest protection is prepared before a dispute arises. Mapping sensitive information, documenting access rights, using confidentiality clauses and establishing a response protocol all reduce the risk of disclosure.

Conclusion: anticipate to protect both the evidence and the company’s value

Infringement seizures and trade-secret protection are not incompatible. The balance depends on a precise court order, a properly organised sequestration process and an individual assessment of the confidentiality of each item.

We assist both rights holders and targeted companies with the preparation, execution and judicial follow-up of infringement seizures involving sensitive commercial, technical or digital documents.

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Dreyfus & Associés assists its clients in managing complex intellectual property cases, offering personalized advice and comprehensive operational support for the complete protection of intellectual property.

Dreyfus & Associés works in partnership with a global network of attorneys specializing in Intellectual Property.

Q&A

How should a company prepare for a potential infringement seizure?

The company should identify sensitive information in advance, restrict access to strategic documents and establish an internal response protocol enabling the legal, IT, finance and senior management teams to act quickly.

Which mistakes can weaken a request for trade secret protection?

An overly broad request, the absence of evidence showing that confidentiality measures were in place, or the inability to explain the commercial value of the information may lead the court to reject the protection sought.

Who may access documents placed under provisional sequestration?

Access depends on the court’s decision. It may be restricted to the enforcement officer, an independent expert, the parties’ lawyers or a limited number of individuals subject to confidentiality obligations.

How should a company respond when the seizure involves a large volume of digital data?

The company should ensure that the searches remain within the limits of the court order and, where necessary, request that the data be filtered by keywords, time periods or specific folders to avoid collecting information unrelated to the dispute.

Can information disclosed during the seizure be used for other purposes?

The documents collected should remain connected to the subject matter of the proceedings and the evidential needs of the case. If the information is used improperly or for purposes unrelated to the dispute, the affected company may ask the court to restrict its disclosure or use.

This publication is intended for general public guidance and to highlight issues. It is not intended to apply to specific circumstances or to constitute legal advice.

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What are the limits of Artificial Intelligence in detecting online counterfeiting?

Online counterfeiting is a persistent threat to brands and businesses worldwide. In response to this issue, technologies based on artificial intelligence (AI) have emerged as an innovative and effective solution, allowing for faster and more accurate detection of counterfeit products. However, while the capabilities of AI are undeniable, these technologies are not without limitations. It is crucial to understand these constraints in order to better harness their potential while anticipating their shortcomings.

Artificial intelligence: an innovative solution for online counterfeit detection

More efficient tools for identifying counterfeits

AI has radically transformed the way businesses can monitor their intellectual property rights. Through machine learning algorithms, AI enables the analysis of vast amounts of data from various online platforms, searching for counterfeit products. These tools can be programmed to search for similarities in logos, trademarks, product names, or even descriptions, in a more efficient manner than manual methods.

Improving responsiveness and accuracy in identifying violations

AI, thanks to its ability to analyze data in real-time, offers increased responsiveness for quickly identifying violations. Thousands of web pages, social networks, marketplaces, and even mobile applications are scanned in record time. These systems can identify counterfeit products almost instantly, allowing businesses to act quickly to have them removed.

AI has also demonstrated its ability to detect subtle counterfeits, often invisible to the human eye. It can identify slight variations in visual presentation or typographical errors with great precision, thus enhancing the effectiveness of protection systems.

Automating legal actions

It is also possible to envisage, to a certain extent, the automation of legal processes. Once a counterfeit has been detected, AI can generate cease and desist letters, removal requests, and even initiate procedures with the concerned platforms. This significantly cuts the time and costs involved in these procedures, enabling businesses to protect their rights more effectively.

The challenges and limitations of artificial intelligence in the fight against counterfeiting

A lack of contextual understanding

Although powerful, AI remains limited when it comes to understanding the context of a situation. AI can detect visual similarity in a product but cannot determine whether it is truly counterfeit or an authentic product sold outside official distribution channels, such as in the parallel market, where products are sold without the manufacturer’s approval. The lack of a real understanding of the market and business practices complicates the accurate analysis of data.

The complexity of counterfeit products

Counterfeit products are becoming increasingly difficult to identify, as counterfeiters employ advanced techniques to replicate genuine items. In the fashion sector, certain counterfeits are manufactured with materials that closely resemble those used in original pieces, further complicating detection efforts. Moreover, fraudulent websites and online marketplaces continually adjust their content to evade search-engine scrutiny, thereby making the task more complex for AI systems that rely chiefly on visual comparisons.

Ethical and legal challenges

Using AI to detect counterfeiting raises ethical and legal questions, particularly regarding data privacy. Indeed, these systems require the collection of massive amounts of information, which can conflict with regulations such as GDPR. Moreover, algorithmic biases can distort results, favoring certain brands.

challenges of AI in counterfeit detection

These challenges require human oversight and increased transparency to ensure fairness and respect for users’ rights. It is also important to note that legal responsibility for AI actions is difficult to establish, particularly in the case of false detection.

The future of artificial intelligence: continuous improvement of detection systems

Technological evolution

AI technologies continue to evolve rapidly, particularly with deep learning, a technique that enables AI to simulate human cognitive processes to recognize complex patterns and improve counterfeit detection. This method, combined with image recognition, reduces errors even for slightly modified products. The integration of semantic analysis, which involves analyzing the meaning of words and phrases, and natural language processing, allows AI to better analyze textual content related to products. This enables it to detect inconsistencies in online descriptions, thus refining counterfeit detection.

The importance of collaboration between AI and humans

Despite the progress of AI, human expertise remains indispensable. These systems are particularly effective at processing large volumes of data and identifying visual patterns, but they often struggle to grasp the context, which is crucial for distinguishing a counterfeit from a legitimate reproduction or a product sold in the parallel market. Human experts, with their understanding of legal and commercial context, provide essential value in evaluating AI-generated results and ensuring more precise and ethical decisions.

Conclusion

We now believe that artificial intelligence offers very promising solutions for detecting online counterfeiting, and we use it on a daily basis. However, while it allows for the rapid and accurate detection of a large number of counterfeit products, it is subject to certain technological and ethical limitations. To overcome these obstacles, it is crucial to continuously improve AI technologies while integrating human expertise into their use.

Dreyfus Law firm assists its clients in managing complex intellectual property cases, offering personalized advice and comprehensive operational support for the complete protection of intellectual property.

Dreyfus Law firm is partnered with a global network of lawyers specializing in intellectual property.

Nathalie Dreyfus with the assistance of the entire Dreyfus team.

FAQ

  1. What are the limitations of AI in detecting counterfeiting?
    AI lacks contextual understanding, which can lead to confusion between authentic products and legal or parallel copies. It can also generate false positives or false negatives.
  1. What are the ethical challenges associated with using AI for counterfeit detection?
    Challenges include data privacy (GDPR), legal responsibility for AI actions, and the risk of algorithmic biases in decision-making.
  1. Can AI systems replace human experts in detecting counterfeits?
    No, AI is effective for analysis, but human experts are necessary to interpret results and make contextual decisions.
  1. Can AI improve responsiveness to online counterfeiting?
    Yes, AI can quickly detect counterfeits and react in real-time, speeding up the process of brand protection.
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Influencers: be careful not to promote counterfeit products!

influencersThe Internet has changed the way we do business. From now on, advertising agencies are no longer the only ones to promote their client’s products; influencers have become the privileged interlocutors of brands wishing to make their products successful. If this approach does not seem abnormal, legal actions are flourishing against these people, for trademark infringement.

In a recent case, “Petunia Products, Inc. V. Rodan & Fields, et al.”, the plaintiff Petunia Products (“Petunia”) filed a complaint against Rodan & Fields for infringement of its trademark “BROW BOOST”. The latter had hired the influencer Molly Sims in order to promote its “Brow Defining Boost” product. On August 6, 2021, Federal Judge Cormac J. Carney dismissed the influencer’s motion to dismiss the complaint of alleged trademark infringement, in particular, because the plaintiff had succeeded in demonstrating that the promotion of the contested product could mislead consumers and create a likelihood of confusion between the prior trademark and the defendant’s product.

In particular, the judge argued that the Federal Trade Commission (FTC) declared that influencers and celebrities could be held liable for false or, at the very least, misleading advertising. Judge Carney drew a parallel with the case at stake and considered that every statement made by an influencer could amount to liability. Besides, and this is the main point of the first decision in this case, the judge took into consideration the risk of confusion, keystone of any claim for trademark infringement. In this case, this risk was genuine since the products were in direct competition with each other, from two competing companies operating on the same market, with a very similar name.

However, this decision must be balanced insofar as Judge Carney only ruled on the motion to dismiss filed by the influencer.

 

Concept and role of the influencer

It is necessary to understand the legal definition of “influencer”. In the opinion in Maximian Schrems v. Facebook Ireland Limited, Advocate General Bobek defines influencers as “everyday, ordinary internet users who accumulate a relatively large following on blogs and social media (…)”.

The French Authority of professional regulation of advertisement (ARPP) defines an influencer as “an individual expressing a point of view or giving advice in a specific field (…)”. It adds: “an influencer can act in a purely editorial framework or collaboration with a brand for the publication of content (product placement, (…), distribution of advertising content, etc.)” (free translation).

The influencer, therefore, has the power to direct the choices of the people following him/her, which is all the easier as the social networks on which they act are increasingly simple of use and accessible to the greatest number. Because of this ease of use, two American influencers, Kelly Fitzpatrick and Sabrina Kelly-Krejci promoted counterfeit products on Instagram and TikTok for sale on the Amazon platform. Amazon, therefore, filed a lawsuit on November 12, 2020 against the two women for fraudulent promotion of counterfeit products.

 

What is the influencer’s responsibility?

First of all, and Judge Conrey noted this in his decision, the influencer must state on the publication that the promotion of the brand results from a collaboration with the latter.

In France, this is also a recommendation of the French Professional Advertising Regulation Authority but most of all a legal obligation, which the French law for confidence in the digital economy (LCEN) of 2004 had already formulated. If the influencer can escape the net and not be found guilty of trademark infringement within the framework of a collaboration (that would be different if he/she promotes an infringing product directly), he/she could, be found liable of parasitism, unfair competition or misleading commercial practice, all three of which are heavily sanctioned under Article 1240 of the French Civil Code.

However, it is noteworthy that the influencer bears the weight of his/her responsibility concerning the information he/she publishes! Therefore, if a plaintiff can prove that the influencer in question was fully aware that the product he/she was promoting infringes on a third party’s rights, then it is likely that a judge would find the influencer and the company that contacted said influencer guilty of trademark infringement, either jointly or individually. Again, the judge will also consider the extent to which the product advertised by the influencer could confuse the public mind.

 

Hence, being an influencer is not without risks, and the partnership agreement concluded with a company must be carefully examined beforehand. Analysing the environment is essential as well as the product to be promoted must not infringe upon the prior rights of a trademark, even more so a competitor.

Dreyfus is at your disposal to assist you in securing these projects.

 

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How does the new Civil Code of the People’s Republic of China facilitate the protection of IP rights?

The Third Session of the 13th National People’s Congress (NPC) voted and passed the Civil Code of the People’s Republic of China on May 28, 2020. This law came into force on January 1, 2021.

The fundamental objective of this Civil Code is to facilitate the protection of people’s extensive civil rights and provide sufficient remedies for right holders whenever their IP rights are infringed upon especially when it comes to counterfeiting.

Apart from serving as a policy instrument for stimulating innovation, intellectual property (IP) rights have always been considered a significant category of private rights. The intellectual property regime, thus, is deeply rooted in and closely related to the civil law system.

While referred to by the Chinese press as the Encyclopedia of Social Life, the new Civil Law includes many provisions related to intellectual property (IP).  At first read, the most striking IP provision is for punitive damages for intentional infringement, which will be potentially most valuable in patent infringement cases and especially in cases related to counterfeiting.

Article 1185 (out of 1260 articles) states, with reference to IP, “if the circumstances are serious, the infringed person shall have the right to request corresponding punitive damages”. This actually aligns with the newly amended trademark law that provides for increased punitive damages.

Article 63 of the trademark law, as amended in November 2019, increased punitive damages from three times to five times the amount of assessed damages when infringement is “committed in bad faith and the circumstance is serious.”

The United States has called China the “world’s principal IP infringer”. In a 2017 report, the US bipartisan Commission on the Theft of American Intellectual Property estimated that counterfeit goods, pirated software and the theft of trade secrets cost the US economy between US$225 billion and US$600 billion annually, not including the full cost of patent infringement.

China, meanwhile, has signaled that IP protection is a priority in its 14th five-year plan for 2021 to 2025, as part of its strategy to move towards self-reliance in critical technology.

Government economic planners detailed how they intended to strengthen the protection of IP and raise high-value patent ownership over the next five years, and Beijing is this year set to reveal its strategic plan to make China a global IP power by 2035.

In both the Chinese Patent Law and the Copyright Law, which will come into effect on June 1 2021, the applicable elements of punitive damages are intentional infringement” and “aggravated circumstances according to the China Civil Code.

Therefore, punitive damages will be more actively applied by the Chinese courts when handling IP cases in the future.

The introduction of punitive damages into IP infringement disputes will help improve the protection of intellectual property rights, promote technology progress and innovation, and build a healthier market for investment. 

The implementation of the Civil Law in China is not just a declaration to strengthen the protection of civil rights. It opens a new era by protecting IP rights.

 

The new Civil Code is demonstrating China’s resolute attitude toward malicious IP infringement, concrete articles and complementary civil principles could enhance the protection of IP rights in China.

 

In order to provide our clients with a unique expertise, necessary for the exploitation of intangible assets, we keep you informed about intellectual property and digital economy issues with our articles written by the Dreyfus legal team.

 

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Filing a trademark on behalf of a company in the process of creation: who may bring a trademark infringement action?

Dépôt d’une marque pour le compte d’une société en cours de formation : qui peut agir en contrefaçon de la marque ?It is common for trademarks to be filed by individuals acting on behalf of a company in the process of creation.

The founder of the company is then the regular owner of the trademark until the company in question takes over the filing. Therefore, the founder may initiate proceedings, in the meantime, in case of trademark infringement.

 

But what happens if the company that was supposed to be created and, therefore, become the owner of the trademark, is never formed?

The French Supreme Court expressed its view in a decision dated October 14, 2020. Ms. T, who had registered the trademark “Dousè Péyi” in the name of the company in the process of being created Dousè Péyi, filed a lawsuit against the company Sérénade des saveurs (Cass. Comm. 14 Oct. 2020, No. 18-23-965 T.c/ Sté Sérénade des saveurs).

The dispute concerned the filing of the trademark “Doucè Péyi”, almost identical to the earlier trademark.

Following this application, Ms. T sued Sérénade des saveurs for trademark infringement and unfair competition. The applicant raised a motion to dismiss the action, based on the lack of interest of the founder of the company to act in defence of a trademark registered on behalf of a company which was not yet created (see Article 31 of the French Code of Civil Procedure).

The company Sérénade des Saveurs claimed that Ms. T did not personally own the trademark. According to the defendant, since the company had never been created, Mrs. T should have recorded the change of ownership of the trademark at the INPI.

The first judges declared Ms. T’s action for infringement inadmissible for lack of interest in acting. The Court of Appeal confirmed this decision and stated that Ms. T “cannot claim ownership of this trademark in a personal capacity without having [recorded the change of ownership] on the National Trademark Register before initiating any action reserved to the owner of the trademark”. Otherwise, the change is unenforceable and any action in defence of the mark is therefore inadmissible.

Ms. T appealed to the Supreme Court and, rightly so, since the Commercial Chamber of the Court of Cassation ruled that the Court of Appeal had violated Article L210-6, paragraph 2, of the French Commercial Code, which establishes a system of taking over acts performed on behalf of a company in the process of creation: “every person who acted on behalf of a company in the process of creation before it acquired legal personality shall be held jointly and indefinitely liable for the acts thus performed, unless the company, after having been duly formed and registered, takes over the commitments entered into. Such commitments are then deemed to have been entered into from the outset by the company”.

The Supreme Court overturned the appeal decision and affirmed that in the absence of legal personality, the founder of the company, who registered the trademark, is the owner of the trademark and therefore Ms. T could rightly file a trademark infringement suit.

This solution guarantees the legal security of project leaders. The creation of a company can, in fact, take time. During this time, several acts must be accomplished and the law acknowledges their retroactive effect.

 

Filing a trademark in the name of a company in the process of creation is an interesting practice to enhance the value of the trademark assets and protect them against third parties that may file a similar or identical trademark while the company is not yet formed.

However, case law in this area is not consistent and requires to be attentive to details when filing a trademark.

In order for the company to automatically become the owner of the trademark at the time of its registration, a statement of the acts performed on behalf of the company while it being created should be made, which will be annexed to the articles of association, and should mention the filing of the trademark, indicating that the company takes over the legal act of filing on its behalf.

Dreyfus can assist you with the management of your trademarks portfolios in all countries around the world. Please feel free to contact us.

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The impact of counterfeiting on consumers and businesses

 Published in June 2020, EUIPO’s “2020 Status on IPR Infringement” report shows that e-commerce has fostered the phenomenon of counterfeiting. The majority of counterfeit products come from Asia. These products are reconditionned in smaller boxes in countries such as Albania, Ukraine or Morocco.

The Covid-19 pandemic has not diminished this trend. On the contrary, the online shopping has increased the trend as stated in the “2020 Consumer Buying Behavior Report” of the company Intelligence Node tracing consumer’s behaviour.

Due to the forced closure of stores, consumers increased their online purchases. Thus, the counterfeiting phenomenon expanded, as well. According to this report, most consumers are attracted by a cheaper price, but they are completely unaware that they are buying a counterfeit product.

The report shows that:

– More than 50% of internet buyers search Google, Amazon and other marketplaces before buying. They look for the product description, features, price and possible discounts.

This is what can lead them to choose websites promoting counterfeit products, since:

– 70% of buyers opt for counterfeiting for price reasons.

– 82% of the buyers had indicated that they would continue to buy online even when the stores reopen.

In addition, a survey published by the French consumer association UFC- Que Choisir, on October 22nd, 2020, showed that online frauds, on an online purchase, are not always reimbursed by banks. Only one out of three frauds per year was reimbursed last year. The bank generally blamed the consumer for negligence.

The new DSP2 Directive (European Payment Services Directive 2nd version) requires that the transaction must be confirmed by the bank through a “strong authentication” system, when making an online purchase. The French authorities have given a deadline for the first quarter of 2021 for all the banks to be compliant.

In light of these elements, companies must actively protect their intellectual property rights, including property on the Internet, to avoid the drop in sales and the loss of customers.  Indeed, it is known that consumers who are victims of a scam will tend to turn away from the company whose products or services have been counterfeited.

An effective defence of the brand on the Internet is carried out through a strategy that includes prior searches and surveillance. The prior search provides a snapshot of the current situation of the trademark on the Internet (existing infringements, potential prior art in certain countries, etc.). The surveillance allows the detection of all domain name registrations reproducing or imitating the trademark, from the moment the surveillance is set up. It keeps in check any potential infringement as soon as it is detected.

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How to protect plant varieties on an international level ?

Plant varieties offer many advantages to plant breeders, including a return on investment to cover research costs. Indeed, long years of work are generally required to develop new plant varieties (between 10 and 15 years for a large number of plant species).
Many breeders also wish to export internationally, but protecting plant varieties abroad is often complex.

European but also international legislations are harmonized by the application of the UPOV Convention (International Union for the Protection of New Varieties of Plants) which has 76 members.
Under this Convention, the breeder’s right is granted when the variety meets several conditions: novelty, distinctiveness, uniformity and stability. Finally, the variety must be designated by an appropriate denomination.

 

Protection in the European Union :

Filing of the application :

Since 1995 there has been a unitary Community title: the Community plant variety certificate. This title produces the same effects as a national title in each Member State.
However, this certificate cannot be cumulated with national plant variety certificate. Before applying, the breeder will therefore have to make a choice to protect his new variety.
The application for protection must be filed with the Community Plant Variety Office (CPVO). The French breeder can file his application directly with the CPVO but also with the INOV (National Plant Variety Office) which will forward the application to the CPVO.
In addition, there are certain requirements regarding the content of the application. For example, the following must be included:
– The names of the breeder and the representative of the procedure if any,
– Information concerning the botanical taxon (group of organisms),
– The provisional designation given to the variety,
– Information on the previous marketing of the variety,
– Information on previous applications for the variety,
– The deadlines relating to the priority,
– Proof of payment.

It is also necessary to complete a technical questionnaire and a form for the appointment of a procedural representative (if the applicant is not a within the European Union).

The criterion of novelty :
In order to meet the criterion of novelty, the varieties must not have been marketed for more than one year within the European Union and for more than 4 to 6 years (depending on the variety) outside the European Union. Beyond this period (known as the “grace period”), the variety will no longer be considered as new.

Protection during the Brexit :
The French holder of a Community plant variety right will not cease to be protected in the United Kingdom because of the Brexit. Indeed, the United Kingdom has announced the automatic creation of British plant variety titles which will be equivalent for all Community titles registered before the date of Brexit.

Extent of protection :
The extent of protection in the European Union is similar to that of the French legislation. Thus, the following will be subject to the holder’s authorization: production and reproduction, packaging for the purpose of propagation, offering for sale, sale or other marketing, export from the European Union, import into the European Union and storage for any of the above purposes.
The protection is also applicable to harvested products obtained without the consent of the breeder unless the breeder has had a reasonable opportunity to exercise his right and finally, it also applies to essentially derived varieties.

Protection during the provisional period:
During the provisional period (period between the filing of the application and the grant of the right) the breeder can assert his exclusive rights against all acts that would have required his authorization after the grant of the right.
However, the breeder will only be entitled to an “equitable remuneration”.

Counterfeit Prevention :

Finally, regarding customs surveillance to protect against counterfeiting, plant variety rights are included in the intellectual property rights subject to European Regulation 608/2013 of June 12, 2013 on the control by customs authorities of the enforcement of intellectual property rights.

International protection :
At the international level, legislation is largely unified by the UPOV Convention.
However, the Convention does allow national legislators to take into account national circumstances. The breeder must therefore inform himself in advance of any national specificities in order to ensure the protection of his titles in the best conditions.
Beware, that some countries are not members of UPOV !

The filing of the application :
During the filing of the application, the breeder has two possibilities:
– The filing of his application in each of the national offices;
– The filing of his application using the multilateral priority filing system UPOV PRISMA. This online system allows the breeder to file, through a single system, all his applications with the participating plant variety protection offices. However, one must be careful because some countries are not part of this UPOV PRISMA system such as South Korea, Japan or China (only for lettuce).
The breeder will also have to take into account the delays of the examination procedure which are on average 1 to 2 years. However, these periods can be much longer in some countries (sometimes more than 5 years for Japan or Russia for some fruit trees).

Protection during the provisional period :
During this provisional period, the breeder will also be protected, as in the case of the Community title, against acts requiring his authorization and will have the right to claim an equitable remuneration.

The criterion of novelty :
In the UPOV Convention, the grace period for the criterion of novelty, as for Community titles, will be one year within the country in which protection is sought, and 4 to 6 years outside that country. However, it is important to check the grace period in each of the countries concerned.

The extent of the protection :

Finally, the extent of the protection of plant variety titles is the same as that of the Community title in UPOV member countries due to the application of the Convention; provided that certain national particularities are taken into account.

If the UPOV Convention has allowed since 1961 to harmonize and establish a legislation protecting plant varieties in many countries, the breeder, wishing to develop internationally, will have to remain attentive to national legislations and their specificities.

 

To read more about Conflict between trademark and plant variety

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World Anti-Counterfeiting Day: issues and challenges

In honor of the 22nd World Anti-Counterfeiting Day, Dreyfus Law Firm attended a Webinar organized by INDICAM(Istituto di Centromarca per la lotta alla contraffazione) involving directors of various anti-counterfeiting organizations: GACG, EUIPO, UNIFAB, INDICAM, ANDEMAand ACG.

Anti-counterfeiting issues are always of paramount importance. In fact, approximately 5% of imports into the European Union are counterfeit products. The counterfeiting market is very lucrative for counterfeiters: it requires a very low investment for a very high profit. In addition, the risks associated with it are lower.

During the health crisis linked to the Covid19, the sale of counterfeit products increased significantly: masks, hydro-alcoholic gel, medical equipment; and all this to the detriment of the population’s health. This phenomenon was particularly observed on Marketplace platforms, which were forced to invest impressive means to suppress fraudulent advertisements.

Consequently, the question arises: if the platforms are capable of actively combating the sale of counterfeit medical products in times of crisis, why cannot the same be said of other acts of counterfeiting?  Cooperation with the platforms should therefore be initiated to this end. European associations are closely following the progress of the Digital Single Act, which should represent an additional opportunity in the protection of rights.

Moreover, during the health crisis, the fight against counterfeiting has mainly been focused on medical products and devices. As a result, many infringements went undetected. For example, only products arriving by air were checked during this period and not products imported via cargo ships. To make things worse, in Belgium, for example, all the police officers whose mission was usually to combat counterfeiting were requisitioned in order to enforce anti-Covid-19 measures.

With the coronavirus, the fight against counterfeiting must therefore be stepped up. One of the challenges for the years to come is to provide consumers with the best possible information. Delphine Safarti-Sobreira, Director of UNIFAB (Union des Fabricants), said that awareness campaigns were already being launched through various media, including television broadcasts and YouTube. The next step will be to convince the government to introduce compulsory education in schools on this subject.

 

Three elements are essential in order to fight effectively against counterfeiting: an effective law, more information for consumers and an unwavering determination to continue the fight.

 

Dreyfus can assist you in the management of your trademarks portfolios in all countries of the world. Do not hesitate to contact us.

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UDRP Proceedings: what are the risks if a complaint is insufficiently founded?

Introduction

The UDRP procedure is an effective tool for obtaining the transfer or cancellation of a domain name registered and used in bad faith. However, it should not be used as a pressure tactic to recover a domain name that is legitimately held by a third party. Where a complaint is filed without a serious legal basis, or primarily with the aim of depriving the registrant of a domain name, the panel may find Reverse Domain Name Hijacking, meaning that the complainant has used the UDRP procedure in bad faith.

The case Advice Group S.p.A. v. Privacy Administrator, Anonymize, Inc. / Michele Dinoia, Macrosten LTD (WIPO Case No. D2019-2441) is an illustration of this risk.

The Advice group case: a warning against insufficiently grounded complaints

Advice Group is an Italian company founded in 2006 and specialized in marketing. It is based in Turin and also has offices in Rome and Bari, as well as subsidiaries in Bulgaria, Kosovo, Portugal, Colombia and Peru. After becoming aware of the registration of the domain name <advicegroup.com> by a third party, the company filed a UDRP complaint with the WIPO Arbitration and Mediation Center, seeking transfer of the domain name.

The disputed domain name had originally been registered in 2005 and was later acquired by Michele Dinoia, of Macrosten LTD, in September 2014. The domain name resolved to a parking page displaying commercial links and indicating that Internet users could contact the registrant if they were interested in acquiring the domain name.

The complainant’s burden of proof under the UDRP

The Respondent did not file a response. However, the absence of a response does not relieve the Complainant of its burden of proving the three cumulative elements required under the UDRP:

  • First, that the domain name is identical or confusingly similar to a trademark in which the Complainant has rights
  • Second, that the Respondent has no rights or legitimate interests in respect of the domain name
  • Third, that the domain name was registered and is being used in bad faith.

In this case, the panel accepted that the domain name was confusingly similar to the Complainant’s Italian figurative trademark “ ” No. 2015000025292. However, this was not sufficient to justify a transfer.

The panel chose not to make a definitive finding on the issue of rights or legitimate interests, given its conclusions on bad faith. Nevertheless, it made several observations that were favorable to the Respondent. In particular, the domain name was composed of dictionary terms, namely “advice” and “group”, and the Respondent had not actively used the domain name to target the Complainant. The domain name merely resolved to a standard parking page, with a message allowing interested users to contact the registrant regarding a possible purchase.

The panel also noted that there were many companies throughout the world using the name “Advice Group”. This weakened the Complainant’s argument that the Respondent must necessarily have had the Complainant in mind when acquiring the domain name.

Bad faith as the decisive issue

The issue of bad faith was decisive. The panel emphasized that, at the time the Respondent acquired the domain name in September 2014, the Complainant had not yet registered its trademark. The trademark was filed only in June 2015 and registered in December 2016. As a result, the domain name predated the Complainant’s trademark rights.

Nothing in the evidence suggested that the Respondent had targeted the Complainant when acquiring a domain name made up of common English words. The fact that Internet users could make an offer to acquire the domain name did not, in itself, prove that the Respondent had registered it with the specific intention of selling it to Advice Group at an excessive price.

The complaint was therefore rejected.

Reverse Domain Name Hijacking: when the complaint itself becomes abusive

More importantly, the panel found that the complaint constituted a case of Reverse Domain Name Hijacking. The Complainant had accused the Respondent of cybersquatting even though it had not provided evidence of targeting, and despite the fact that the domain name, composed of generic terms, predated the Complainant’s trademark registration. The panel considered that the Complainant should have known that it could not establish bad faith registration.

This decision remains highly relevant today. The updated WIPO practice, including the WIPO Overview 3.1, confirms the importance of a rigorous evidentiary analysis, particularly in relation to bad faith and abusive UDRP complaints. Panels continue to be attentive to cases where a trademark owner attempts to use the UDRP procedure to obtain a domain name that it could not acquire through ordinary commercial negotiation.

Practical lessons for trademark owners

The practical lesson is clear: where a domain name consists of generic, descriptive or common terms, proving bad faith is particularly difficult. It is not enough to show that the domain name is identical or similar to a trademark. The complainant must establish that the respondent specifically targeted its trademark, business, reputation or customers.

Conversely, certain elements may strengthen a UDRP complaint, such as trademark rights predating the domain name, reproduction of the complainant’s official website, use of the domain name for the same goods or services, fraudulent email activity, a direct offer to sell the domain name to the trademark owner, or a documented pattern of cybersquatting.

Before filing a UDRP complaint, trademark owners should therefore carefully verify the date of registration or acquisition of the domain name, the date on which their own trademark rights arose, the distinctive or generic nature of the sign, and the available evidence showing that the respondent actually targeted them.

Failing this, the complaint may not only be rejected, but may also result in a finding of Reverse Domain Name Hijacking, turning the procedure against the complainant itself.

Conclusion

The Advice Group decision serves as a useful reminder that the UDRP procedure is not intended to resolve all disputes involving a domain name. Its purpose is to address clear-cut cases of abusive registration and use, not to provide a shortcut to obtaining a domain name legitimately held by a third party.

For trademark owners, the key issue is therefore not merely whether the disputed domain name is identical or similar to their trademark, but whether there is sufficient evidence to show that the respondent specifically targeted their rights. This case thus demonstrates that filing a weak or opportunistic complaint can have consequences that go beyond the mere dismissal of the complaint.

Dreyfus law firm assists its clients in managing complex intellectual property cases, offering personalized advice and comprehensive operational support for the complete protection of intellectual property.

Dreyfus law firm works in partnership with a global network of attorneys specializing in Intellectual Property.

Nathalie Dreyfus with the support of the entire Dreyfus team.

Q&A

1.Can a trademark owner file a UDRP complaint if the domain name was registered before its trademark?

Yes, but the complaint will usually be more difficult to prove. Under the UDRP, the complainant must show that the domain name was registered and used in bad faith. If the domain name predates the trademark rights, it may be difficult to establish that the registrant targeted a trademark that did not yet exist. However, exceptions may arise where the complainant already had unregistered rights, strong reputation, or where the respondent clearly anticipated the complainant’s rights.

2.Is the UDRP the right procedure for every domain name dispute?

No. The UDRP is designed for clear cases of abusive domain name registration and use. It is not intended to resolve complex contractual disputes, business disagreements, former partnership issues, or conflicts involving competing legitimate rights. In such cases, court proceedings or negotiated solutions may be more appropriate.

3.Does a respondent have to actively use the domain name for bad faith to be found?

No. Passive ownership of a domain name may, under certain circumstances, constitute bad faith. However, passive ownership is evaluated with caution and does not automatically suffice to establish bad faith.

4.What type of evidence should be collected before filing a UDRP complaint?

A complainant should collect evidence of its trademark rights, reputation, chronology, screenshots of the website, WHOIS records, DNS records, MX records, redirections, phishing attempts, commercial links, offers for sale, prior correspondence, and any pattern of similar domain name registrations by the respondent. The stronger the factual record, the lower the risk of filing an insufficiently grounded complaint.

5.Can a domain name made of common words still infringe trademark rights?

Yes. A domain name made of common words may still infringe trademark rights if it is used to target a specific trademark owner. For example, bad faith may be found where the domain name reproduces the complainant’s branding, redirects to competing services, is used for phishing, or creates a misleading association with the complainant. The key issue is not only the wording of the domain name, but the respondent’s intent and use.

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