In this rapidly evolving world, the evolution of Intellectual Property Rights in the fashion industry has been nothing short of extraordinary. Establishing a brand, particularly a globally renowned luxury brand like Louis Vuitton, necessitates a substantial investment of financial resources, unwavering passion, and unyielding zeal to achieve exceptional status. Louis Vuitton, as a brand, has cultivated a powerful brand identity and a timeless legacy as the epitome of luxury. With a portfolio encompassing over 18,000 Intellectual Property Rights and a proven track record of successfully thwarting infringement attempts, Louis Vuitton has undeniably made significant strides. One such recent stride is with a Platform called Haute24, that as per its website, is a Californian entity operating Indian stores, giving customers the opportunity to wear the latest European & American Fashion, which is not available in India yet, or not at all. Dedicated to delivering “the most exclusive fashion products to people’s homes in India”, the website appears to offer a diverse range of luxury goods, encompassing both new and “preloved luxury” items, a term referring to previously owned and used goods. It basically buys products from original brand retailers in bulk and then sells them at discounted prices and is involved in what is referred to as the “grey market”. This is the sale of products that are sold legally, but without the brand’s permission.
In the instant case, The Delhi High Court issued an injunction on August 21, 2024, barring Haute 24 from utilizing copyrighted photographs, images, and promotional materials associated with Louis Vuitton products on its website. Louis Vuitton, the plaintiff in this case, initiated legal proceedings against Haute24, alleging copyright infringement. The luxury brand sought an injunction and damages, claiming that Haute24 was selling Louis Vuitton products using unauthorized photographs and images that Louis Vuitton owned. Louis Vuitton argued that these images were specifically commissioned for advertising and marketing purposes and were being used without permission. Additionally, they expressed concerns about the authenticity of the products sold on Haute24’s website. Haute24 defended their actions by stating that they were involved in selling genuine Louis Vuitton products, as well as certified “pre-owned” items. The Court clarified that the authenticity of the products was not the primary focus of the case, but rather the unauthorized use of photographs and images by Haute24.
The Court issued a permanent injunction, preventing Haute24 from using Louis Vuitton’s photos and promotional material. Moreover, the Court ordered Haute24 to prominently display that the goods they sold were certified pre-owned products. Furthermore, the Court ruled that Haute24 could not deal with any new Louis Vuitton products without written permission. Additionally, the Court imposed costs of INR 500,000 (~USD 5950) on Haute 24 to be paid directly to Louis Vuitton in France.
The Court has recognized the artistic value of commissioned promotional photos within the meaning of section 2(c) of the Copyrights Act, 1957. It mentioned how the advertising industry has evolved beyond simple promotional materials, embracing a variety of creative media forms, including music, artwork, photography, and design. These elements contribute significantly to the development of advertising campaigns. The court relied on Bright Lifecare Pvt. Ltd. vs Vini Cosmetics Pvt. Ltd. & Anr., the Delhi High Court ruled that advertisements can be protected by copyright law if they are unique enough to prevent public confusion.
Luxury brands like Louis Vuitton invest substantial resources in creating high-quality marketing materials that align with their brand’s prestige and exclusivity. Unauthorized use of these materials not only infringes copyright law but also undermines the brand’s image. While global brands often attract immense interest, their high prices can be prohibitive for many consumers. This leads to a demand for counterfeit products that mimic genuine brands but are inherently fake. Louis Vuitton is known for its aggressive stance against counterfeiting, having initiated over 38,000 anti-counterfeiting procedures worldwide. These efforts have disrupted criminal networks and improved the conditions of workers involved in illegal activities. An interesting aspect of Louis Vuitton as a brand, is the strategies it uses to manage its IP assets. Louis Vuitton has implemented several strategies to combat counterfeiting. These include the “Zero Tolerance Policy,” which aggressively targets those infringing on their rights, and the “Shield Strategy,” which involves registering all possible intellectual property creations. Often at times, the employees or the middlemen working with a brand are involved in illegal activities to earn money. There exist various websites which sell counterfeited products at cheap prices. To tackle this, the ‘Contributory Culpability Theory’ is used. The application of this strategy targeted middlemen who adopted counterfeiting techniques and thereby removed specific counterfeiting hotspots. Lastly, Louis Vuitton uses a ‘Disclaimer’ on their website to ensure customers of its authenticity.
Authors: Muskkaan Verma & Himani Kumar