Trademarks

Molly Tea and the 1.5-million-dollar mistake of being "inspired by" Louis Vuitton

Molly Tea and the 1.5-million-dollar mistake of being "inspired by" Louis Vuitton

· Trademarks

A tea chain launched a brand built around a four-petal flower motif. The resemblance to a very famous monogram was close enough that it cost the company 1.5 million dollars.

"Inspired by" is not a legal category

Infringement does not require copying. It requires a likelihood of confusion, or in the case of famous marks, dilution: taking unfair advantage of, or damaging, the distinctive character of a well-known sign. A different product category does not save you when the earlier mark is famous.

Article 173 of the Federal Law for the Protection of Industrial Property blocks the registration of signs that are confusingly similar to earlier marks, and gives broader protection to marks that are notorious or famous, precisely so that they cannot be exploited across unrelated categories.

Why the amount was so large

Because damages in these cases are usually calculated on the infringer revenue, not on the rights holder loss. A successful launch makes the claim bigger.

What to do before you launch a visual identity

Have the design cleared, not just the name. Search for figurative marks in your classes and in the classes of famous brands your motif resembles. Redrawing a logo before launch costs a few thousand pesos. Rebranding after a claim costs everything you spent building recognition, plus damages.

Where inspiration becomes infringement

The line is not about intention or about how much was changed. For trademarks the test is whether the public is likely to be confused, assessed visually, phonetically and conceptually, and a sign confusingly similar to a prior mark is refused under article 173 of the Mexican Industrial Property Law.

A well-known mark reaches further still. Where the Institute considers or has declared a mark notoriously known or famous, protection operates against any products or services, not only those it is registered for (article 173, fractions XVI and XVII). So borrowing from a famous house is risky even in a category it has never sold in.

Copyright is a separate claim running alongside. A pattern, an illustration or packaging artwork is protected from creation, registered or not (article 162 of the Mexican Federal Copyright Law), which means a redesign that clears the trademark question can still fail on the artwork.

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