Inside Trademarks Trademark Analytics, Research & Strategy

Make Luxury Available to Everyone and Get Sued (Louis Vuitton v. Hyundai)

Louis Vuitton (LVMH) is suing Hyundai for a TV ad that first aired during the Super Bowl which, for a split second, shows a pattern similar to that found on Louis Vuitton handbags on a basketball (see image below).  The offending pattern appeared for less than one second on the ad as part of Hyundai's playful concept of  “luxury made available to everyone.”

Although some think the suit was spurred on due to use of Louis Vuitton's logo, when you freeze the frame at issue you can see that the pattern on the basketball is actually not LVMH’s logo. In its federal complaint, LVMH calls the pattern “a spurious replica of the Toile Monogram design used by Louis Vuitton on its handbags, trunks, purses, and other distinctive and successful accessories.”  LVMH demands that Hyundai cease showing the TV ad, and among other things, demands all profits Hyundai has made from the ad.

This may seem to be an overly aggressive approach to brand protection, however the brand premium that Louis Vuitton commands in the pricing of its luxury goods is what drives most of the company's profits.   Like others in the luxury goods market, Louis Vuitton's success and ability to turn a profit relies heavily on the trademarks securing this brand premium.  Naturally, given this perspective, one should expect LVMH to aggressively defend its brand in this situation.  A quick look at LVMH’s trademark enforcement and litigation history confirms this view.  LVMH has consistently taken action against those who use its logo, designs or trademarks without permission.  Here are some highlights of what Inside Trademarks™ research revealed about LVMH:

• Over the past 6 years, they have sued over 60 entities for trademark infringement in the US alone.  That's 10 federal suits per year - which means they budget a lot of money for trademark enforcement.
• Even sued landlords in China who owned property used by vendors selling counterfeit Louis Vuitton goods. 
• Sealed records of trademark infringement cases against NYC-based counterfeit vendors to maintain the secrecy of their anti-counterfeit operations.
• Sued Britney Spears for using a fake LVMH car dashboard in a music video.
• Prevented the rapper T.I. from releasing a music video, for his popular Swing Ya Rag song, featuring the Louis Vuitton logo on products shown in the video.
• Sued P. Diddy’s Bad Boy records over use of Louis Vuitton logos on a CD and lyrical references made by the group Danity Kane.
• Sent cease & desist letter to guitarist Dave Navarro of Jane's Addiction demanding that he no longer use the faux Louis Vuitton guitar straps he wore during performances.

Although we expect Louis Vuitton to take its "trademark" aggressive position in this case, there's a good chance Hyundai will seek to settle this out of court.  We'll keep you posted.