Finally, Spain Increases Compensation for Injury and Damages for Brand Copies or Falsifications

24 November 2008

Recent rulings from the Spanish Provincial Courts show a reasonable increase in amounts legitimate brand holders (injured parties) are to be paid by falsifiers.

This is a long-awaited approximation to the legislation, practices and case law of countries in the European context. This change and updating of case law is properly reflected in a recent Madrid Provincial Court ruling in favour of a well-known athletic shoe brand in which the defendants who “copied” the shoes were ordered to pay 1.8 million Euros.

Clearly, the justification resides in the economic damage to and adverse effects on the legitimate brand holder’s prestige, whose products, furthermore, have earned their prestige from diverse factors such as longevity, quality, publicity, a characteristic/personalized image, etc.

Another well-known brand in the accessory textile sector has obtained a similar ruling.

In any event, the principle conclusion is that, said compensation amounts are finally beginning to reasonably increase, based on legitimate criteria such as a technical report from an expert in brand name recognition and valuation quantifying the minimum guaranteed annual amount established in a license.

For further information, please contact Alex Ensesa Casulleras: