Burberry Loses Right to Trademark Plaid Design in China
Cheap imitations of luxury Burberry products could surge in China after the country's national trademark office rejected the company's copyright claims on its tan, black and red tartan iconic symbols. China has a company which similarly makes products bearing the same design.
Earlier in November, China's Trademark Office canceled Burberry's trademark because it had expired and was no longer valid, noting that the bag company had not even used the design for over three years.
China's Trademark Office said its Nov 13 decision was based on an application received in Feb 2012, which challenged Burberry's trademark to the pattern. It didn't specify who filed the application.
"A decision like this will not move the needle [on sales], because when you travel around Asia you find so many fake products already and forgers don't care about trademark rulings," Mario Ortelli, an analyst from Bernstein Research, told WSJ.
Burberry vowed to appeal the ruling.
"As a global luxury brand, Burberry considers the protection of its trademarks vital to the health of its business and brand," Burberry said in a statement on Wednesday.
"Burberry protects both its brand and its customers by defending its intellectual property rights," the company said, stressing the Burberry Check is a registered trademark of Burberry Ltd., along with the name 'Burberry' and the 'Burberry Knight' logo.
"Ahead of a decision on this appeal, the cancellation decision does not take effect, and there is no change to Burberry's use or enforcement of its trademark across leather or any other products. We are confident that our appeal will be successful."
"The Burberry Check remains a registered trademark exclusively owned by Burberry and no other parties can use the mark without Burberry's proper authorization. Burberry always takes the strongest possible action against those who use its trademarks unlawfully."
In May, Burberry said its China sales grew by 20 per cent in the year ended March 31.