The controversy surrounding the crocodile emblem:
Kickin' Up a Stink in Mühlacker
Puff out a cloud of smoke, and voila! A lumpy crocodile with bulging eyes, a collection of broccoli heads on its back, all on a blue or pale green backdrop. This peculiar sight would've never crossed Felix Huynh's mind in the quaint town of Mühlacker, until the big French crocodile snared him in its legal grasp. The company Lacoste, notorious for its green crocodile logo, served the 36-year-old brainchild of Broccodile, Huynh, with a cease and desist order. Whether the design was an exact copy or an abstract art piece, according to Huynh, was a different story. "I thought it was a joke," he said.
Legal Dilemma
Initially, Huynh was informed to fork out over 5,000 euros, the total worth of the dispute being around half a million. He was also told to shelve the Broccodile trademark, under which he planned to vend T-shirts or cannabis consumption goods online. Lawyers advised him to comply, but Huynh stood firm, refusing to back down. "I can't set that example for my employees," he stated. Deadlines set by Lacoste's lawyers were allowed to lapse without response, leaving Huynh anticipating a hailstorm of litigation. Lacoste, uncharacteristically, refused to comment.
Much like the small entrepreneur who often finds himself toe-to-toe with corporate giants, Huynh's plight is typical.Big corporations forking out cease and desist orders to small firms in cases of actual or alleged trademark infringement occur regularly[2].Brand owners are a zealous lot, as Jens Klaus Fusbahn, an industrial property rights specialist, explains. They must vigilantly safeguard their brands to prevent them from being diluted. "In some instances, the target might be overshot," Fusbahn says. Legal battles undeniably come with financial costs that strain small companies[3]. However, smaller entities are often ill-prepared to assess their legal situation, often blundering into these battles unwittingly.
For instance, Lacoste won a case against a Polish company boasting a cayman logo in 2015. Despite the cayman's tail curving downwards while the Lacoste crocodile's curves upwards, the court deemed the risk of confusion excessive[4].
While appreciating trademark owners' concerns, Fusbahn acknowledges that well-known trademarks hold value beyond merely protecting goods and services.The allure of these trademarks lies in their wider recognition and fame. Though the attacked logo may bear little likeness to that of the issuer of the cease and desist order, the possibility of confusion can still be considerable. Bulling concurs. These renowned trademarks represent significant monetary value for corporations. "If the trademark becomes diluted, it will lose value swiftly."
Huynh in Limbo
At the German Patent and Trademark Office (DPMA), conflicts between owners of older trademarks and new trademark registrants have reduced over the years[5].This decline is attributed to improved research capabilities and early resolution of conflicts by trademark owners. Last year, only around 2,200 out of nearly 50,000 trademarks registered faced objections.
For now, Broccodile continues its slumber at the DPMA,listed as "Ongoing opposition proceedings." Click on the website, and you'll be greeted with "We're coming soon.""Hopefully, this crocodile grows quickly," Huynh sighs. But until then, he can only wait and see.
- Huynh's small-business, Broccodile, faces a financial challenge as Lacoste's cease and desist order demands over 5,000 euros and the abandonment of the Broccodile trademark, a cost that strain small companies.
- The legal dilemma of an entrepreneur like Huynh, where a big corporation disputes a small firm's trademark, highlights the need for small entities to assess their legal situation accurately to avoid unwittingly blundering into these battles, as they often lack the resources to finance lengthy legal battles.
