No Lotus in China, no UGGs given in Australia

Expanding a brand internationally comes with complex legal challenges. From global availability to cultural sensitivity and linguistic connotations, a solid legal foundation is crucial to protect your brand. Using notable cases like Lotus in China and UGG in Australia, as well as our own experience with brands like Belfius, this article delves into the legal side of creating a global brand name.

The legal battle of Lotus illustrates the importance of owning worldwide rights to your brand. The iconic British car manufacturer struggled for years to use its name and logo in China. The name “Lianhua” (“Lotus” in Chinese) had been assigned to another party, and it took Lotus 20 years of legal proceedings to reclaim the rights.

This case underscores three critical points:

• Ensuring your brand name and logo are registered in all relevant regions is essential. Delayed action can result in third parties claiming rights to your brand, leading to lengthy and costly disputes.
• A thorough understanding of cultural and linguistic implications can help maintain global consistency and resonance for your brand.
• Acting proactively to protect your intellectual property ensures smoother entry into key markets.

In Australia, “ugg” refers to a generic type of sheepskin boot. However, in countries like the US, UGG is a registered trademark owned by Deckers Outdoor Corporation. This difference led to a legal dispute when an Australian company sought to declare “ugg” a generic term globally. The US court ruled in favor of Deckers, showcasing how regional interpretations can differ significantly.

Key takeaways from the UGG case include:

• What is considered a generic term in one country can be a protected trademark in another. Brands must investigate these distinctions early to avoid conflicts.
• The doctrine of foreign equivalents plays a crucial role in trademark law. It determines how foreign words are translated and treated legally in target markets.
• Leveraging regional trademarks, such as geographic indications (e.g., “Champagne” or “Parmesan cheese”), can safeguard unique products and establish strong associations with origin.

For the rebranding of Belfius, ensuring global availability was paramount. As a publicly listed company with European ambitions, the name needed to avoid negative or unintended connotations in foreign languages while being legally secure worldwide.

Remarkable’s approach involved:

• Conducting linguistic and cultural screenings to identify potential risks in over 20 languages.
• Undertaking comprehensive legal checks to guarantee global trademark registration and prevent conflicts with existing brands.
• Developing a name aligned with international growth objectives and strategic flexibility.

Whether planning a global rebrand or launching a new brand name, overlooking legal considerations can result in severe consequences:

• Cost: Legal disputes can drain resources and damage your financial stability.
• Time: Prolonged conflicts, like Lotus’s 20-year battle, delay market entry and erode competitive advantage.
• Reputation: Losing rights to a brand name or facing negative associations undermines trust and market position.

To safeguard your brand, we recommend:

1. Investing in legal consultation from the outset of the creative process.
2. Securing international trademark registrations in all relevant markets.
3. Conducting linguistic research to identify any unintended connotations in global languages.
4. Continuously monitoring trademark registries and addressing potential conflicts early.

A strong brand name is not just a creative asset; it is a legal foundation for long-term success. Cases like Lotus and UGG highlight the complexities of global branding and the importance of robust legal strategies. Remarkable’s expertise ensures that your brand is protected and ready to thrive internationally.

Want to know how we can strengthen your brand? Contact us for a legal and strategic consultation.