Skip to main content
News article | 16 March 2021 | Executive Agency for Small and Medium-sized Enterprises

The rise of fake luxury goods and misuse of the "Corona" trademark

Details

Publication date
Author
Executive Agency for Small and Medium-sized Enterprises

Good morning everyone. I hope you all had a good weekend. Spring is starting to show its colours. Time flies! Anyway, grab your warm beverage and get ready for this week’s news.

Aliexpress becomes one giant sifter for infringing goods

Internet has helped businesses expand their commercial opportunities, but it has also been used by counterfeiters as a platform to the entire world. E-commerce platforms have become an opportunity for them to offer their counterfeits online, and one of the most significant examples is Aliexpress.

Do you want a Folex? 19 euros. A Golce and Babana watch? 3 euros. A Luyvuiton bag? 9 euros.

The luxury sector estimates that losses due to counterfeits amount to millions, and is now asking the European Commission to make it mandatory for e-commerce platforms to be actively involved in the detection and prevention of counterfeits.

The European Cultural and Creative Industries Alliance, as a representative of the European luxury sector, considers that the new Digital Services Act promoted by the EU is not enough and is currently asking for more stringent measures to help in the fight of counterfeits. We believe that what they have in mind is a more proactive attitude from e-commerce platforms and initiatives, such as Project Zero from Amazon.

Constellation Brands accused of misuse of the Corona trademark

Grupo Modelo (Mexican brewery) filed for infringement against Constellation Brands for misuse of the Corona trademark on Hard Seltzer, action that is in violation of the agreement between the 2 companies. The “Corona Hard Seltzer” is an alcoholic beverage, water based and with added artificial flavours sold as a “low sugar, low calories” beverage.

When Anheuser-Busch InBev (AB InBev) acquired control over Grupo Modelo in 2013, they agreed that the US part of the business would be licensed to Constellation, including the use of the “Corona” trademark but only in relation to beers. Incapable of reaching an agreement, Grupo Modelo brought the dispute before the New York courts.

We will keep you updated!