The Court of Appeal has rejected adidas’ attempt to overturn a 2024 High Court ruling that invalidated a number of its iconic “three stripe” position trade marks. Thom Browne, who had been sued by adidas for trade mark infringement in relation to the use of four stripes, had counterclaimed to invalidate adidas’ marks.
The core problem for adidas was that the trade marks were not precise enough: if they were retained, adidas would be granted too broad a monopoly on the placement of three stripes on garments.
Adidas’ marks covered three stripes applied to various garments. Images and written descriptions sought to identify the positions and proportions of the marks. So called “position trade marks” must satisfy the criteria for valid trade marks, including being clear and precise and consisting of a single sign.
The High Court had previously decided that, as a result, adidas’ marks for the three stripes along the arm of a jacket, down the leg of a tracksuit, and along the side of a vest, were invalid. It is worth noting that only certain of adidas’ position marks were found invalid. Its registrations for the three stripes as they appear on trainers, for example, were held to be and remain valid.
The Court of Appeal agreed with the High Court’s earlier decision, concluding that adidas’ trade marks did not identify a single and clearly defined sign and were uncertain.
To be valid, a trade mark must unmistakably define its own monopoly. This clarity, the Court said, is crucial so that competitors and consumers can understand where the boundaries of a trade mark’s protection lie. As adidas’ position marks left room for variation in the possible placement and proportions of the three stripes on the garments, they did not meet this requirement.
This decision highlights the importance of precision when applying to register trade marks, and, particularly, position marks which (as the name suggests) get their distinctive character in part from clearly defined positioning. The High Court had been correct to decide that a trade mark cannot grant a broad monopoly over ambiguous variations of the placement of a design, as that uncertainty gives the trade mark owner an unfair advantage of its competition.
Brand owners, in the fashion industry and otherwise, who rely on position marks should carefully review their portfolios to ensure that each registration clearly reflects the exact way in which the mark is used and is precise. When filing for new trade marks, brands should ensure that the representations and descriptions of the marks are highly specific about where and how the mark appears on a product. General or decorative motifs, such as three stripes, cannot be broadly protected unless their representation in the trade mark application is precise and unambiguous.