In a recent case between the Comité Interprofessionnel du Vin de Champagne and the US clothing company Ferminadaza LLC, the District Court of The Hague ruled that the protected designation of origin ‘Champagne’ can be used as a colour name on clothing labels. This blog provides an overview of the case.
The facts
The Comité Interprofessionnel du Vin de Champagne (CIVC) represents the interests of the 3,300 Champagne houses. Among other things, it monitors the use of the name Champagne. Since 1973, ‘Champagne’ has been registered as a Protected Designation of Origin (PDO) by the European Commission, which means that the term can only be used to describe sparkling wine originating in the Champagne region and produced in accordance with the rules laid down in the PDO registration. For instance, grapes used to produce Champagne must be harvested by hand, or at the very least, not harvested using a method that collects whole bunches of grapes simultaneously.
Ferminadaza LLC, a Cult Gaia LLC subsidiary, imports clothing into the European Union under the Cult Gaia brand. In May of last year, Dutch customs halted the import of a shipment of Cult Gaia garments due to the presence of labels bearing the word “champagne.” Ferminadaza subsequently proposed the removal of the word in question from the labels in question, and the CIVC agreed to release the dresses. However, Ferminadaza was reluctant to commit to not importing any further Cult Gaia dresses with the term ‘champagne’ on the label. As a result, the CIVC initiated legal proceedings.
The CIVC argued that Ferminadaza was taking unfair advantage of the reputation of the protected indication by using the term ‘champagne’ on its clothing labels, which was in violation of Article 26(1)(a) of the PDO Regulation.
Judgement
Ferminadaza argued that the use of the term ‘champagne’ to describe a particular colour had been a common practice in the fashion industry for over a century. In this context, historical newspaper articles dating from 1907 and 1932 were presented, describing ‘champagne’ as a pastel colour for evening gloves. The CIVC, however, asserted that there is no fixed colour designation for champagne, given the variety of shades available. Additionally, they noted the existence of fashion parties that utilise alternative names, such as beige, ecru, camel, or sand.
The Court disagreed with the CIVC.
The Court found that Ferminadaza had presented a convincing argument that the term ‘champagne’ was a commonly used name for a beige/cream-like colour. The Court then ruled that the term ‘champagne’ on clothing labels would be understood by the relevant public (consumers of clothing) as referring to the colour of the garment and not to French sparkling wine.
Given that the nature of the goods in question, namely clothing, has no connection to the sparkling wines protected by a PDO, it is unclear why consumers would perceive the indication ‘Champagne’ as a specific guarantee of quality. In conclusion, the Court finds that Ferminadaza does not benefit from the reputation associated with the indication ‘Champagne’ and that there is no exploitation of the indication.
An costly lesson
The case proved to be a costly lesson for the CIVC. As the unsuccessful litigant, the CIVC was obliged to remunerate Ferminadaza for their legal expenses, which had been previously agreed upon by both parties. In accordance with the aforementioned agreement, the legal costs were assessed at €10,866.
Nevertheless, it is justifiable for the CIVC to take action against the dilution of the champagne name and its association with its accumulated reputation. This is particularly relevant in the current consumer landscape, where there is an increasing demand for transparency regarding product origin and a preference for locally sourced, high-quality items.
However, one might question whether, as the Court also ruled, consumers in this case would actually think of a refined glass of Dom Perignon if they purchased a Cult Gaia dress.
Want to know more?
Would you like to know more about protecting regional products or European geographical indications such as PDO? Read our blog on the protection of the “Limburgse vlaai” or contact our IP, IT & Privacy team.
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