‘Monster’ Internet Reputation Wins Case Against Copycat
By Anna Johnson on November 24th, 2008A decision by the Australian Full Federal Court has major implications for local companies that attempt to copy an overseas brand in the local market. It’s also good news for Internet marketers that sell into the Australian market… and may even spur courts in other jurisdictions to take a similar view…
Basically, Hansen – the U.S. maker of the Monster Energy drink – brought an action against Bickfords, a local, Australian company that had copied the Monster Energy name and concept.
Since Bickfords had lawfully registered a trade mark for Monster Energy in Australia, and Hansen hadn’t sold its drink in the Australia market, Hansen didn’t sue for trade mark infringement but instead brought an action against Bickfords for passing off and misleading and deceptive conduct under the Australian Trade Practices Act.
The court decided that although it hadn’t sold in the Australian market, Hansen had nevertheless established a brand reputation by virtue of ‘non-jurisdictionally confined’ marketing techniques, including the Internet, viral campaigns and websites.
Good decision.
It confirms legally what we’ve all known for years as Internet marketers: that brand reputation can quickly travel across jurisdictional boundaries. What’s more, the court’s decision affirms that it’s not so easy to copy a successful overseas product and then argue that its reputation has not yet reached the local market. Not if that overseas product has a strong Internet presence.
Let’s see if courts elsewhere follow suit…
