L’Oréal SA v. Bellure NV (2009)

“Imitation may flatter, but trading on another’s fame is unfair competition.”

Short Description :

This European Court of Justice decision clarified the boundaries of comparative advertising and trademark dilution. It held that merchants who imitate luxury products or use comparison lists referencing famous marks without authorization exploit those marks’ reputation and thereby commit infringement, even in the absence of consumer confusion.

Facts :

L’Oréal, a global cosmetics leader, produced high-end perfumes with distinctive packaging and strong brand identity. Bellure NV manufactured cheaper “smell-alike” perfumes that closely resembled L’Oréal fragrances and distributed leaflets comparing each of its scents to L’Oréal’s products. L’Oréal argued that Bellure’s practice damaged its brand prestige and misused the investment it had made in building its image of exclusivity.

Findings / Reasoning :

The ECJ reasoned that well-known trademarks possess a unique attractive power that extends beyond simple source identification. When another trader unfairly capitalizes on that reputation, the economic and symbolic value of the mark is diluted. Bellure’s comparative lists and look-alike packaging took an unfair advantage of L’Oréal’s goodwill. Therefore, even though buyers might recognize that Bellure’s perfumes were imitations, the conduct still amounted to infringement.

Suggestions / Observations :

The decision strengthened the protection of prestigious trademarks within the EU. It reminded businesses that honest comparison must not degenerate into imitation or reputation-riding. The case also influenced national courts to adopt a stricter view toward “copycat” marketing strategies.

Judgment & Date :

The European Court of Justice, in 2009, ruled in favor of L’Oréal and held Bellure NV liable for trademark infringement and unfair advantage under the EU Trademark Directive.