You would think that Danish company LEGO, after a half century as the iconoclastic interlocking (toy) brick, which has gained a cult following, a global viral phenom no less, would be safe in the knowledge that it owns the trademark to its own products.
Alas, European judges stripped the Lego brick of its trademark status in the wake of the appeal of Canadian rival, Mega Brands, to the EU trademark office.
Despite their presence in the global marketplace, it was ruled that, according to the Office of Harmonisation for the Internal Market (OHIM), "Lego’s two rows of studs on top of its bricks performed a 'utilitarian function' and were not "for identification purposes in the trademark sense."
It also considered the basic brick design amounted to a monopoly on what was considered a functional shape.
Competitors can continue selling their block in the EU while Lego says they will appeal the ruling.
No matter, YouTubers keep those incredible Lego (or Mega Block) videos coming, and we love them!
Major Trademark Losses
LEGO Replaced By 'Mega Brands'
Trend Themes
1. Trademark Stripping - Companies should be aware of potential trademark stripping that could result in loss of IP protection.
2. Functional Design Patenting - Companies could consider patenting functional design as a way to protect against similar rulings.
3. Competition Displacement - Trademark losses like this one present opportunities for companies to displace industry leaders with innovative offerings.
Industry Implications
1. Toy Manufacturing - Trademark loss in the toy industry could lead to disruptive innovations and new entrants in the market.
2. Intellectual Property Law - Trademark stripping cases highlight the importance of intellectual property law in protecting businesses.
3. Content Creation - Trademark losses in the toy industry may inspire content creators to explore and document new product offerings.