Louis Vuitton has succeeded in a claim in China against an unaffiliated company which sells ‘upcycled’ handbags made from deconstructed, second-hand Louis Vuitton handbags.
The claim was filed following the defendant’s sale and promotion of handbags which are made from deconstructed luxury handbags across multiple online platforms. The ‘upcycled’ Louis Vuitton bags in question prominently featured the iconic ‘LV’ overlapping letters and ‘Toile’ floral motif which are protected by the luxury brand’s trade marks. They argued that the defendant’s actions were an infringement of the Louis Vuitton trade marks and took advantage of its reputation.
The defendants claimed that there was no infringement as the Louis Vuitton marks were used decoratively, not as an indicator of their origin. The People’s Intermediate Court of Hangzhou disagreed and stated that the prominence of the Louis Vuitton marks on the bags in question was clear trade mark use and therefore was an infringement given that there was no authorisation from the luxury brand for them to do so. The court said that whilst the idea of ‘upcycling’ aligns with sustainability goals, it cannot excuse trade mark infringement. It was also noted that the defendant’s use of the term “recycled second hand luxury bags” in marketing to promote the goods took unfair advantage of Louis Vuitton’s reputation and therefore exceeded fair use of the marks.
The court ordered the defendants to pay 1.05 million yuan (approximately £110,000) in damages to Louis Vuitton as well as an order to cease sale of the infringing bags, destroy all stock and publish a corrective statement.
Louis Vuitton has filed similar lawsuits previously in Korea and the USA, along with an increasing number of other luxury brands taking against different kinds of upcycling such as customisation and refurbishment of luxury goods. It will be interesting to see how courts continue to strike the balance between sustainability with the protection of intellectual property rights in this regard.
If you have any questions on the above, or if you need any advice or support in respect of your own Intellectual Property, please do not hesitate to contact the team at McDaniels Law on 0191 281 4000 or legal@mcdanielslaw.com.
