Monday, September 10, 2018

Trademark Wars! Burberry v. Target!

Iconic British brand Burberry, makers of very plaid overcoat linings, scarves, clothing, watches, perfume, and accessories is suing iconic American discount retailer Target for violating its trademark plaid pattern on scarves and other items. The British luxury behemoth accuses Target of blatantly reproducing Burberry’s checkered design over the course of years, and notes that despite cease and desist letters, Target persists in selling the offending items. Burberry seeks $2 million in damages for each instance of trademark infringement, plus costs and attorneys’ fees. Ouch. I wonder if Target is selling any Burberry-plaid bandages for those giant-sized damages?

Burberry’s May 8, 2018 complaint filed in Federal DIstrict court also alleges that Target’s use is “blurring by tarnishment” because Target’s products are inferior in quality to those of Burberry (duh; Burberry’s scarves are many times more expensive than Target’s) thus diminishing Burberry’s reputation for producing expensive, quality goods. Target’s use of the plaid pattern diminishes in the mind of the consumer the association between Burberry and the distinctive plaid pattern. This lessens the value of Burberry’s iconic plaid, because it’s no longer exclusively associated with Burberry’s high-end products.

Burberry is right to aggressively enforce their trademarks, because once their trademark loses its distinctiveness and its unique association with Burberry as the source of the goods, it’s no longer capable of serving as a trademark. Brands spend millions of dollars every year promoting their goods, and millions more policing their valuable brands against copies and inferior knockoffs and counterfeit goods. These counterfeits cost companies billions of dollars a year in lost sales, and reduce the cachet of expensive brands by the existence of shoddy, poor-quality goods bearing their logos or trademarks. No high-end consumer places as much value on a luxury item that is so knocked-off that just anyone can afford it; this is part of the cachet of exclusive brands, snobby though it may be. Once “everyone is doing it” it’s no longer “special,” and part of the allure of high-end brands is their special character.

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