Global IP

Appellation contrôlée

Image The European Court of Justice’s recent ruling on a seven-year fight between Google and LVMH could have significant effects on the use of trade marks in internet advertising. Legal Business examines the fallout from this landmark case. By Mark McAteer

LVMH owns over 60 luxury global brands, including TAG Heuer watches and Louis Vuitton. The latter label, known for its monogrammed luggage, has just topped Millward Brown Optimor’s 2010 BrandZ Top 100 ranking of the world’s most valuable luxury labels for the fifth straight year, and is worth $19.8bn. Naturally, LVMH doesn’t take kindly to knock-off handbags flogged on street corners.

Counterfeit goods sold on the streets are a serious headache, albeit often a manageable one. But aside from obvious counterfeiters, the group is zealous in defending the integrity of its brands. In 2007, it sued Sony BMG and MTV Online after a Britney Spears video featured fake Louis Vuitton upholstery on the dashboard of a pink Hummer. But since 2003, it has been fighting a more formidable foe: Californian internet giant Google.

Seven years on, and it’s still fighting a battle that began in the French courts. Following a recent ruling by the European Court of Justice (ECJ), the battle looks set to continue, with Herbert Smith advising Google and French boutique Marchais de Candé acting for LVMH. With the implications for the use of trade marks in online advertising extending far beyond cheap copies, IP departments that specialise in advising brand owners are in the middle of a perfect storm.

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