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Renault wins

Renault wins

The logo of the French car manufacturer Renault is recognizable to almost anyone who has ever had anything to do with cars. The graphic symbol consists of a distinctive, simple diamond, or for some, simply a rhombus. Importantly, the brand has n using this trademark unchanged since 1925, and recently it was the subject of a dispute before a German court.

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Problematic reactivation

It all started in 2015 when the German-Chinese car manufacturer decided to revive the Borgward brand and introduce a new model, the BX3. There would be nothing controversial about this if it weren’t for the fact that the revived competitor was using a logo that also featured a diamond/rhombus shape with the inscription “Borgward.” It was this similar overall shape of the trademark that prompted Renault to take legal action to protect the brand’s graphic mark. As a result, the French manufacturer filed a lawsuit against Borgward in the Munich Regional Court, seeking an injunction to prevent the use of the disputed mark and compensation for infringement of the exclusive right to Renault’s graphic trademark. In response to the lawsuit, the defendant primarily argued that the Borgward brand has a very long history, which translates into its recognition among consumers, and that the rhombus shape has n used by the company since 1938.

Diamond only for one manufacturer

In the case, the court sided with the plaintiff and ruled that Renault has n using its trademark featuring a diamond for much longer than the German-Chinese company, and the logo itself is recognizable worldwide. Therefore, the long history of the Borgward company is irrelevant in this case as a justification for using such a mark. Furthermore, the court found that the differences between the trademarks of the two companies were too small to conclude that the disputed mark would not mislead potential consumers. As a result, due to the high similarity of the two marks, Borgward lost the case, and as a consequence, it must not only pay compensation to the French brand but also change its mark in order to continue operating on the market. The amount of compensation is not known, but if the German-Chinese company fails to comply with the court’s ruling, it will be required to pay a fine of 250,000 euros, and its CEO may face imprisonment of up to two years. In addition, according to the ruling of the Regional Court in Munich, Borgward must also provide a list containing information on where, when, and to what extent the disputed trademark was used. The defendant company does not plan to give up and announces that it will appeal the ruling.

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The differences between the trademarks of the two companies were too small to conclude that the disputed trademark would not mislead potential consumers.

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