For Porsche, there is no substitute
Earlier this year, luxury high-performance automotive manufacturer Porsche was in the spotlight for bringing legal action in the US against Singer, a Californian-based classic Porsche restoration company, which was building and selling re-imagined replica Porsche cars.
Porsche is not the only brand that faces replica products. Iconic brands often have their goods replicated by enthusiasts. Oscar Wilde famously said: “imitation is the sincerest form of flattery”, but this does not always mean imitation results in a positive experience for the originator. Often it’s quite the opposite, diluting and damaging brand reputation.
Background to the lawsuit
Porsche took action against Singer, claiming that Singer was infringing its trade mark rights through its use of the Porsche marks on its cars.
The court paperwork indicated that Porsche and Singer had an agreement whereby Singer could refer to its “re-imagined Porsche’s” or “modified 911s” using Porsche’s trade marks, provided the parts or components were predominantly sourced from Porsche directly.
However, Singer’s ‘DLS’ ranges used third party engines but retained the Porsche shape and branding.
It seems that Porsche has now dropped the action in the US but why was this use now problematic for Porsche?
Issues with Replicas
While a trade mark’s purpose is to enable a customer to identify goods and services coming from one particular source, it also becomes a way of guaranteeing a certain quality. A customer will want to buy a certain product because of the quality and, there is a reason the brands become reputable and iconic; they have worked hard to establish and maintain this reputation.
In the current digital age, this reputation can easily be ruined, particularly with the ability of news stories and images to go viral. For example, if an image of one of Singer’s ‘DLS’ vehicles goes viral for an accident or safety issue, without context, an internet user may only see the Porsche branding. It may also be an opportunity for the media to create a ‘click-bait’ article, drawing readers by referencing the well-known, reputable brand.
For automotive companies, the safety of its products is paramount, and each new design will go through vigorous safety tests. Unless a third party has been authorised by the brand owner, brand owners will not have any control over the quality, build or safety of the replica products. By using a third party engine in its DLS ranges, Porsche now cannot guarantee the quality.
Conclusion
When larger companies take action against smaller companies, or even individuals who are replicating well-known products, quite often people may consider it to be ‘bullying’. However, it is unlikely to be led by greed and the considerations we have discussed are important to be aware of.
These considerations are equally relevant outside of the automotive industry. For example, there can be safety implications in industries such as electronic goods, food and drink goods, or cosmetics.
Therefore, if you have any concerns about any of the issues raised in this article, please reach out to author, Leah Calvert, or a member of our trade mark team.
