It is quite common in the fashion and beauty industry to use the first name and surname of the owner as a company brand name. However, it is important for future brand owners to understand the consequences relating to trade mark law.
Recently, Estée Lauder Cosmetics acquired
Brand acquisition
We do not have the inside track on the acquisition agreement between
The first direct consequence for
Furthermore, he will no longer be able to control the quality of goods which will be sold by
The question also remains regarding
Licensing
Licencing is very popular in the world of brands and can be an excellent source of profits for the owner. However, giving a licence to many different companies can take away some of the owner's control, leading to a potential dilution of the brand. Brand dilution usually happens when a brand loses its value because of unauthorized overuse. However, the value may be also lost when a product no longer meets the expectations customers have of the brand. This is a particular risk when there is a difference in the quality promised by original brand and the product provided by the licencee. The licencee may also be tempted to use the brand name for unrelated products. These potential problems should be carefully considered before entering into a licensing agreement and it is important to take legal advice.
Taking the example of the Tom Ford mark, it is important for brand owners to consider the advantages and disadvantages of registering their name as a trade mark. Equally important is that the provisions of the acquisition or licensing contract are carefully reviewed not only by brand owners and brand managers but also by their legal team.
Originally published
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
Ms Diana Lipecka
Maucher Jenkins
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80538 Munich
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E-mail: johana.traill@maucherjenkins.com
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