Defending Luxury: How Counterfeit LV Bags Threaten UAE’s Trade Reputation

Introduction

Intellectual property refers to products that are created out of the mind, which include new inventions, arts and designs, and symbols. Intellectual property is important for both a country’s economy and individuals because it leads to employment, competition in the market and economic growth (Chaudhry & Zimmerman, 2013, p. 8). Therefore, it is important for countries like UAE to come up with laws that protect intellectual property.

Louis Vuitton

These laws are important because they encourage new innovations through research and development and at the same time they protect consumers from counterfeit goods. UAE, therefore, came up with trademark law in 1992  to protect intellectual property that falls within its jurisdiction. However, the law has been violated several time by business people, as some entrepreneurs are trying to copy what others have produced. This work, therefore, focuses on the infringement of trademark law in the UAE, with specific focus on Louis Vuitton (LV) handbag products.

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Section One

Original Product

The original name for the product is Louis Vuitton Speedy and Speedy Bandoulier (LVSSB) handbag. This is the original and the most treasured bag manufactured by Louis Vuitton bags and designs in France. The bag is still handmade in France and the manufacturer estimates that it takes fifteen hours to make a single LVSSB bag. The bag comes with four sizes, LV speedy 25, LV speedy 30, LV speedy 35 and LV speedy 40. The price of the bag varies with the prices as shown in the table below.

LVSSB PRICE (US Dollars)
LV Speedy 25 950
LV Speedy 30 970
LV Speedy 35 990
LV Speedy 40 1,010

 

This bag is ideal for various types of travelling, which include short and long distance travelling. The bag has various sections for keeping books and a section for a cardigan, which also makes it suitable for tours and adventures. The two main colors of the original bag are dark brown and gray. I saw the bag when I visited the Dubai Mall and I was amazed by the difference in prices because the bags looked similar but their prices were different. Bellow is the picture of the original bag.

OnTheGo MM Bicolor Monogram Empreinte Leather - Women - Handbags | LOUIS VUITTON ®

 

Fake Product

Louis Vuitton products are always expensive because of their high quality. This has prompted various firms to come up with counterfeit LVSSB bags to reach a section of the market that cannot afford the original bag. There is no single manufacturer of fake LVSSB bag and it is hard to identify the manufacturers because of the legal consequences that they are likely to face.

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Louis Vuitton bags designs is protected by trademark law and any trader who violates this law is likely to face legal consequences. The sizes of the fake LVSSB bags are similar to the original bag, what differ are the prices and the quality. The fake bags also bear the same name. I saw the fake LVSSB bag when I visited the Burjuman shopping mall in Bur Dubai. The table below shows the prices of fake LVSSB bags.

Replica LVSSB bags Prices (USD)
LV Speedy 25 270
LV Speedy 30 290
LV Speedy 35 310
LV Speedy 40 370

 

Section Two

The fake LVSSB bag that is being sold in UAE violates both the international and the local trademark laws. Even though the product is manufactured by the foreign firm, France, the firm still enjoys protection in the UAE because UAE is a party to the World Trade Organization and therefore it must honor the Trade Related Aspects of Intellectual Property Rights (TRIPS). In addition, article 6 section 2 of the 2002 amendment of the trademark law of 1992 gives foreign companies the right to register with the trademark law and enjoy the same right equally as the UAE natives (Trademark Law of the UAE, 2002, p. 1).

Some of the aspect of the UAE trademark law are symbols and design. The fake LVSSB bag has violated this law because the manufacturers of the fake product are using the same design and symbol of the original manufacturers. For instance, the fake product bears the symbol LV, which is the symbol of the original manufacturer, Louis Vuitto (LV). In addition, the manufacturer of the fake bag is using the same design to manufacture the same product. The two bags, the original and the fake, look alike only  that the original manufacturer is using quality materials, which the fake manufacturers cannot acquire or may not achieve.

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The fake product also violates the trademark law by using the same name as that of the original manufacturer. The original name for the bag is Louis Vuitto Speedy & Speedy Bandoulier and the fake product also uses the same name in the market. This violates UAE Trademark Law because the original name of the product is registered and enjoys the protection of the trademark law.  This is a direct copy of a product that had been produced in the market and that enjoys the trademark laws. The fake product therefore violates the UAE Trademark Law, which protects both local and foreign products from copying by other manufacturers.

Section Three

The first step in protecting a company or an individual from copying is through the legal means. Louis Vuitto Designers should first seek help from the authority under the ministry of Trade and Commerce, which will follow up the case and weed out the counterfeit products in the market. As a foreign firm, it should also ensure that it is duly registered with the trademark authority to be sure that they are protected by the law. Legal protection is the best move in protecting a company’s product from counterfeit products in the market (Yoill, 2013, p. 26).

The LV Designers should also join International Anti-counterfeiting Coalition (IACC)  to enhance its international protection. IACC is an international body that promotes laws and regulations that ensures that the counterfeit products in the market unattractive and unprofitable in the market. This will discourage the counterfeit product holders from trading their products because they are unlikely to sell and make a profit in the market. This international body will help LV Designers to protect their products in the market.

Conclusion

Despite the existing laws against counterfeit products in the market, many counterfeit products still exist in the UAE market. The government of the UAE has been doing its best to protect the intellectual property of various individuals and companies, but it still suffers the consequences of free market policy. Until recently, UAE allowed the importation of counterfeit products in its market. However, the new amendment, 2002 amendment of 1992 trademark law is an effective one. LV Designers should also come up with the products that are hard to copy. It should also partner with the local and international bodies to enhance the protection of its products.

References

 

Chaudhry, P., & Zimmerman, A. (2013). The Global Growth of Counterfeit Trade. In Protecting Your Intellectual Property Rights (pp. 7-31). Springer New York.

Trademark Law of the UAE. ( 2002). Amendment of the UAE Trademark Law. retrieved from             http://www.utmps.com/getattachment/d9cd12ed-3363-4114-bcb7-fd2d510f24ba/UAE-   Trademark-Law-%281%29.aspx

Youill, B. (2013). How to Stop Counterfeiting at the Source. Managing Intell. Prop., 234, 26.