Help! A competitor takes advantage of my packaging and labeling

As a manufacturing company, you may run into several legal hurdles during the production process. In our "legal advice on the assembly line" campaign series, we take a look at 5 common legal hurdles. We help you overcome them.

Your marketing and design department has been hard at work designing appealing packaging for your new product, with accompanying label. Your organization proudly introduces this new product, including packaging and label, to the market, resulting in successful sales. A few weeks later, however, you find that your competitor is marketing its product in almost the same packaging and labeling. What now? Niels van den Bogaard gives his advice in this article for the "legal advice on the conveyor belt" campaign series.

#production

Date: December 01, 2022

Modified February 14, 2024

Written by: Niels van den Bogaard

Reading time: +/- 2 minutes

Packaging and labeling copyright

In the Netherlands we know copyright, which is regulated by the Auteurswet ( a fun fact: the Auteurswet is a temporary intended law from the year 1912). From this follows an exclusive right for the creator of a work to publish and reproduce it. This copyright belongs to the creator of the work from the moment he created the work. The right arises automatically; no formalities are required to obtain copyright. Thus, you do not need to apply for or register a copyright anywhere, only sufficient originality is required.

Therefore, if your marketing and design department has been sufficiently creative, and you have stipulated in your employment contracts that rights of intellectual property (including copyright) belong to you as the employer, you thereby have a claim to this exclusive right.

Copyright infringement

However, having a copyright is only the first hurdle you have to overcome. Just as important is the question of whether your copyright has been infringed. The decisive factor in answering that question is whether the overall impression of, in this case, the packaging and label, matches. Here the copyrighted elements of your packaging and label are decisive. It is important to realize that a certain style is not subject to copyright protection; what really matters is the actually determined and completed overall impression.

Slavish imitation

Incidentally, in the Netherlands we also have the doctrine of Slavish Imitation. This means that although a product does not infringe copyright, it is so similar that its publication and distribution is unlawful vis-à-vis the copyright holder. This looks at the likelihood of confusion of the product among the relevant public. Is the average buyer of your product confused by the label and packaging, or do they think your competitor's product is yours? If so, you can take action. Our specialized attorneys can advise you what action is needed.

All in all, you can see plenty of leads in there. Your competitor has copied your packaging and label almost one-to-one. That just won't do.

Copyright enforcement

As reported, as the creator of a work, you have an exclusive right. This means that, in this sense, you have the exclusive right to disclose and reproduce the packaging and label. You can sue your competitor and demand that he cease and desist the sale and further distribution of the product, or at least of the product in that packaging and with that label. In addition, you can claim damages. The same applies with respect to the aforementioned Slavish Imitation. You can also take action on that account.

All's well that ends well

In response to your justified action, your competitor chooses eggs for his money and stops carrying the similar packaging and label. Your product in its appealing packaging and labeling is secured for the moment.


Stay Focused

But now what? Your competitor decides to adopt a name and logo similar to your company name and logo! How to proceed? That's for another article, but ask Niels van den Bogaard your question below. He will be happy to help you further.

Contact

More on this topic: