Earlier this month, a number of international news outlets reported about Canadian clothing manufacturer Canada Goose who filed a trademark and trade dress lawsuit in Canadian Federal Court against Sears’ Canadian subsidiary (Sears Canada). The suit alleges that Sears Canada was selling knock-off versions of Canada Goose’s well-known parkas. In a statement of defense to Canada Goose’s lawsuit, Sears Canada claimed that Canada Goose’s lawsuit claims were not only unfounded, but that they were intended to bully retailers and control pricing. As reported in The Globe and Mail, the statement stated “the real purpose of Canada Goose’s campaign of intimidation is to attempt to prevent or lessen sales in the marketplace of less expensive winter jackets” and “to preserve its temporary ability to sell its garments at a huge markup to the public.”
Although Sears Canada’s comments are by no means unique for a defendant in such a trademark lawsuit, the reporting of the comments in several news outlets has significant public relations (PR) implications. By claiming that Canada Goose is using trademark laws to bully retailers and control prices, Sears’ comments inevitably impact the ways retailers and the general public perceive Canada Goose and its parka jackets. Negative public perceptions about a business’ IP enforcement actions can tarnish a business’ brand and hinder its domestic and foreign market opportunities—just like the counterfeit goods that it tries to protect itself against.
As I read multiple stories about Sears’ comments, I could not help but to think that Canada Goose did not effectively counter Sears’ accusations in the public forum. Many major international clothing manufacturers such as Gucci and Burberry pursue similarly proactive cross-border trademark enforcement strategies as Canada Goose. Yet, few of the reporting news outlets carried the comments of Canada Goose’s spokespersons who gave justifications for the lawsuit against Sears Canada. In fairness, claims of bullying are likely more sensational than justifications for brand protection. However, emerging global companies like Canada Goose must ensure that they effectively communicate to the public the justifications behind their IP enforcement actions. As growing businesses set their sights on international expansion, PR becomes nearly as valuable as trademark protection to ensure that they can take advantage of domestic and foreign market opportunities.
What’s The Takeaway? Businesses who seek legal protections for their brands need to consider the PR implications of their enforcement actions. This is even more important in an international context. As many countries and cultures have negative perceptions towards litigation, businesses need their legal counsel and public relations professionals to collaborate to ensure that the public is educated about their global IP enforcement activities. Doing so can help to prevent the unintended PR consequences that global IP enforcement can bring.
What PR issues does your business face in international IP enforcement?