When you think of intellectual property disputes, cuddly toys probably aren’t the first thing that comes to mind. Yet one of the UK’s best-loved toy brands, Jellycat, has found itself at the centre of a significant legal battle that highlights just how valuable brand protection can be.

The company has launched High Court proceedings against retailers including Next and Hamleys, alleging that certain products closely resemble its own popular designs. While the case is still ongoing and the allegations remain to be determined by the court, it serves as a timely reminder that intellectual property (IP) rights can be among a business’s most valuable commercial assets.

What’s the dispute about?

Jellycat is best known for its distinctive range of plush toys, particularly its hugely successful Amuseables collection – everyday objects and food items brought to life with smiling faces, soft textures and recognisable styling.

The company claims that products sold by Next and Hamleys are so similar to its own that consumers could mistakenly believe they are genuine Jellycat products or somehow connected to the brand. Jellycat is seeking injunctions to prevent further sales of the products in question, along with substantial damages.

Next has denied the allegations, arguing that its products are different in both purpose and appearance and that there is no realistic risk of consumer confusion. At the time of writing, the claims have not yet been decided by the court.

Successful brands invest significant time, creativity and money into developing products that customers instantly recognise. When competitors launch products that are alleged to imitate those designs or trade on that reputation, businesses may suffer lost sales, damage to their reputation and dilution of their brand identity.

The law provides several ways for businesses to protect themselves, depending on the circumstances.

The intellectual property rights that could come into play

· Trade marks

A registered trade mark protects the signs that distinguish your business from others. This could include your business name, logo, slogan or, in some cases, distinctive product branding.

Trade mark infringement may arise where another business uses a sign that is identical or confusingly similar to a registered trade mark in relation to similar goods or services.

· Registered designs

Registered design rights protect the appearance of a product, including its shape, configuration, pattern or ornamentation.

Where the visual appearance of a product is central to its commercial appeal, registered designs can provide valuable protection against copying.

· Passing off

Even without a registered trade mark, businesses may be able to bring a claim for passing off.

To succeed, a business generally needs to show:

· it has built up goodwill and reputation in its products or brand;

· another party has made a misrepresentation that is likely to mislead customers into believing there is a connection between the two businesses; and

· that misrepresentation has caused, or is likely to cause, damage.

Passing off can be particularly important where a business has developed a distinctive product or brand identity that consumers associate exclusively with it.

Lessons for businesses

Whether you’re launching a new product, building a recognisable brand or expanding into new markets, intellectual property should form part of your commercial strategy from the outset.

Businesses should consider:

· registering key trade marks before launching a brand;

· protecting distinctive product designs where appropriate;

· monitoring the market for potential infringement;

· seeking legal advice promptly if another business appears to be copying your products or branding; and

· carrying out IP clearance checks before introducing new products to reduce the risk of disputes.

Taking proactive steps early is often far more cost-effective than dealing with litigation later.

Berry Smith’s Bottom Line

Your brand is more than just a logo – it’s one of your business’s most valuable commercial assets. The Jellycat proceedings demonstrate how seriously businesses take protecting the goodwill, reputation and distinctiveness they’ve worked hard to build.

Whether you’re looking to register a trade mark, protect a new product design, enforce your intellectual property rights or ensure your own products don’t infringe the rights of others,

obtaining legal advice at an early stage can help minimise risk and safeguard your business. Please do not hesitate to contact us at commercial@berrysmith.com or on 029 2034 5511.