Manolo Blahnik: A Cautionary Tale

Manolo Blahnik has emerged victorious following a many years-prolonged wrestle to secure its trademark rights in China. The origin of the dispute was the successful 1999 registration by a gentleman identified as Fang Yuzhou of the subsequent mark:

Back again in the working day, China strictly adhered to the 1st-to-file principle when it arrived to emblems, that means that whoever won the race to the registrar obtained the trademark, devoid of regard to prior use of identical. In the intervening decades, even so, China has moved in a a lot more equitable way, specially in instances where by the initial filer is performing in negative faith.

Kudos to Manolo Blahnik for its persistence. Soon after all, it is possibly in substantial portion since of the endeavours of wronged brands like them that China’s legal shift happened in the very first place. And it normally takes brands like Manolo Blahnik to set up these fights. For lesser brand names, actuality has frequently dictated that they gave in to the extortion of trademark squatters, or changed their names, or merely hoped that the worst-case scenarios (these kinds of as owning their exports seized by China Customs) never materialized.

Of study course, for a Manolo Blahnik, there is far more at stake and considerably less room for maneuver than for a run-of-the-mill brand. Adopting a unique name for the Chinese industry is problematic from a branding standpoint. Attempting to wing it is not a sensible possibility for a model looking to market in China, as opposed to just exporting out item. As for spending the ransom, just envision the market worth of a trademark like Manolo Blahnik.

A handful of a long time ago, I assisted a famed (nevertheless not Manolo-well known) European manufacturer invest in a trademark from a squatter (for the report, I was not advising them during all those years when they had been deciding not to sign-up their mark in China!). The price tag tag was $200,000, and these squatters assumed that they have been providing the trademark to a counterfeiter, not to the precise brand. And again, that was for a brand name not virtually as prominent as Manolo Blahnik. That’s a good deal of funds to pay back just since some dudes in China’s Rust Belt registered your trademark initially.

Manolo Blahnik’s gain opens the door in earnest to the Chinese industry for the brand name. This is a significant accomplishment, which may perhaps perfectly establish to have been really worth the extended slog. But you know what is better than prevailing in a 22-yr authorized dispute? Simple, not becoming embroiled in that dispute in the very first position.

Your manufacturer can prevent finding into a predicament like Manolo Blahnik’s by registering its emblems ahead of it starts executing enterprise in China. And we signify way ahead of, as when you start wondering about it. And “doing business in China” incorporates producing merchandise in China for export. In some situations, it may possibly even make feeling for brands producing product or service in other countries to sign up their trademark in China: You could not be building product in China, but counterfeiters of your solution could.

The classes of the Manolo Blahnik’s China trademark saga transcend China. Trademark squatting is has quickly grow to be a dilemma in Southeast Asia as nicely, this means manufacturers have to be forward-considering when it will come to markets these kinds of as Vietnam and Indonesia. Manolo Blahnik was iced out of the Chinese marketplace for a long time simply because some dude in China registered their trademark 1st. Do not get shut out of promising markets your self.