It’s just like a never-ending movie where trademark infringement often arises between a giant brand and a small business. At this time, a luxury brand, Louis Vuitton battled against a South Korean fried chicken restaurant.
Louis Vuitton and Louis Vuiton Dak tried to convince the court about their brand identity. The court considered that the restaurant’s name, Louis Vuiton Dak, was too similar to the luxury brand’s name.
Based on the case, it can be seen that having a trademark is a must. It can be a safeguard for your brand from any kind of infringement. Your brand will get stronger legal protection. If someone steals or tries to copy your intellectual property, you can take legal action.
Louis Vuitton vs Louis Vuiton Dak
Louis Vuitton claimed infringement against Louis Vuiton Dak for using a logo, name, and packaging techniques that were nearly identical.
As is well known, Louis Vuitton is a global brand with over 460 stores across 50 countries. The brand promotes its products internationally under the ‘Louis Vuitton’ trademark. Since 1890, this luxury brand has also used the initials ‘LV’ as a trademark.
On the other hand, Louis Vuiton Dak is a fried chicken restaurant in South Korea owned by Kim. According to Kim, the name ‘Dak’ comes from ‘tong dak’, which means ‘whole chicken’ in Korea.
However, the restaurant’s logo closely resembled the iconic monogram of the French luxury brand, leading to accusations of trademark infringement against Louis Vuiton Dak.
The French luxury brand believed that the similarities with the Louis Vuiton Dak could easily confuse customers. That’s why Louis Vuitton sent a warning letter to a Korean fried chicken restaurant and asked them to stop using a similar logo and name.
But why did Kim, as a fried chicken owner, choose a name and logo similar to this luxury handbag brand? Simply, it was easy to get noticed by consumers.
South Korea is also famous for its creative products, including its foods and beverages. To stand out in the competitive arena, business owners thought that benefiting a famous brand’s identity would make it easier to attract the market.
As Kim did, the strategy of using similarities with LV’s identity would make it easier for Louis Vuiton Dak to gain attention from consumers. However, this strategy is indicated as a parasitic act that can lead to legal consequences like trademark infringement.
In 2016, Louis Vuitton filed a lawsuit against the Korean fast-food restaurant in Seoul Central District Court. To decide the case, the court looked at how long the trademark had to be used and whether the infringement was intentional.
The Korean restaurant was ordered to change its full name and pay around $12,750 per day for 29 days while the new name was displayed.
The restaurant was later fined an additional 14.5 million for not complying, as it quickly changed its name to ‘chaLouisvui Tondak’ right after the initial ruling.
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Key Lessons from the Case
So, what is the point of the lesson from the trademark infringement case of Louis Vuiton Dak? Even though the businesses are in different industries, you need to act in good faith when creating a trademark. Using a well-known trademark like Louis Vuitton’s for a brand name is considered unethical and is seen as having bad intentions.
Every bad faith will not be accepted anywhere, including in Korean and Indonesian trademark laws or other intellectual property areas. Like what the court did in the decision, they did not consider Kim’s use of the LV mark in a proper way or with good intentions.
Instead, Kim knowingly used a similar logo with a famous LV brand without permission to attract more customers. He was aware of the existing brand and used its identity to benefit his own business.
Any act of trademark infringement will certainly harm your business both financially and in terms of reputation. In Indonesia, Louis Vuiton Dak’s actions would break Article 21, Paragraph 3 of Law 20/2016. Their trademark application also would be turned down.
Looking at Louis Vuitton’s actions, it’s clear that having a strong trademark is crucial for preventing future infringements. As a luxury and well-known brand, Louis Vuitton understands the importance of protecting its identity to avoid unauthorized use and maintain its reputation.
So that’s why, registering your trademarks is a crucial step for every business sector. You can significantly reduce the risk of customer confusion with other similar products or services. You can get exclusive rights over the brand assets like name, logo, and other elements. It will ensure that no one can copy your identity legally.
Trademarks can be a legal protection that helps you to prevent competitors from taking benefit from your brand reputation. It will ultimately protect your market share and make sure you have clarity in the marketplace.
Moreover, a strong trademark serves as a valuable asset that can increase the brand’s value over time. It provides legal grounds to challenge any infringement, which could save the business from potential financial loss and reputational damage.
A strong trademark can be a free marketing campaign like Louis Vuitton in the eye of the global public. Your unique mark is going to be memorable in the perception of customers. So that’s why you have to register your brand identity to strengthen your reputation and prevent trademark infringement.
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You can explore our Insights page for valuable information on intellectual property laws. Do you want to know more about best practices for legal protection? Don’t hesitate to Contact us and our team of experts will support you and accompany you to get the protection.
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