Fashion Business Club

 

The European Court of Justice (ECJ) recently ruled that trade mark proprietors can use their rights to prevent sales by their licensees of luxury goods through discount outlets where such sales damage the “allure and prestige of the brand”.  

The case came about when Christian Dior’s luxury corset licensee in France began to sell corsets bearing the Christian Dior trade mark to Copad, a discount store, in clear breach of the “selective distribution” arrangement set out in the licence with Dior.

Dior Corset

Dior sued for trade mark infringement.  At first, the French court said, no: there was no infringement and Dior’s only recourse lay against its licensee for breach of the licence.  However, the ECJ has now ruled otherwise.  It said, amongst other things, that the quality of luxury goods is not just the result of their material characteristics, but also of the “allure and prestigious image which bestows on those goods an aura of luxury”.  This “aura of luxury” is essential in enabling consumers to distinguish the goods.  If, on the facts, sales of Dior corsetry to Copad damaged the “aura of luxury”, the ECJ said that Dior could sue for trade mark infringement. 

If you would like further information on selective distribution arrangements or any other aspect of this case please contact me by email on: Louisa.hetherington@rpc.co.uk or by telephone on 0203 060 6620.

Louisa Hetherington FBC Member & Senior Legal Advisor at Reynolds Porter Chamberlain