Five Things You Need to Know about Chanel’s “No. 5” Branding Dilemma
Learn about the tricky issue of trademark protection through Chanel's bid to protect its No.5 trademark.
Trademarking is always an area of controversy between businesses. It comes as no surprise then that business titans such as Chanel wish to protect their trademark and business image by strictly monitoring the market for potential conflicts with their trademark.
In their latest assault, Chanel has gone after a small chocolate business in Adelaide called Chocolate @ No.5
Here are five things you need to know about the dilemma:
- Alison Peck, owner of Chocolate @ No. 5, was sent a letter by Chanel’s lawyers demanding her to change her business’s branding as Chanel claimed a trademark infringement on its No.5 perfume.
- Chanel’s lawyer’s demanded Alison to withdraw the registration of her business and abandon her logo. They also initially prohibited her from using the digit or the word ‘five.’
- Alison followed the first two requirements and went through the expensive process of trademark registration to meet Chanel’s first two demands. Alison, being a small business owner, had to follow Chanel’s orders or face an expensive lawsuit.
- However, putting a stop to the giant’s numerous demands, Alison negotiated with Chanel to retain the digit “5” as her business is named after its address – 5 Main Street Hahndorf, a village in the Adelaide Hills. Also, her business makes chocolate, not perfume and while both smell delicious, they are two completely different products.
- Alison retains the right to use the “5” as long as her business retains the same address.
This latest dispute is an example of how a Trademark can be used to protect your brand’s mark. To learn more about how you can gain the same protection for your company’s brand, read our guide.
Let us know your thoughts on this David and Goliath trademark battle by tagging us #lawpath or @lawpath.
Ananya is currently working in our content team as a Paralegal, aiming to provide free legal guides to facilitate public access to legal resources. Pursuing her interest in the regulation of emerging media, her work centres on the legal and business concerns engendered by the application of traditional legal principles to social media.