Ferrari Recently Achieved a Significant Trademark Victory for Heritage Brands | Carscoops

      Ferrari has successfully regained the rights to the Testarossa name following a nearly decade-long legal dispute, a ruling that also establishes a significant legal precedent for other heritage brands. The EU General Court confirmed that legacy brands can retain trademarks even if they are not in current production, facilitating the protection and monetization of heritage intellectual property in secondary markets and licensing.

      Ferrari's victory is a major legal triumph, not just for the company but for various legacy brands across different sectors. After years of legal maneuvering concerning the Testarossa, the name is now officially back with Ferrari in Maranello. This change came about when the EU General Court overturned prior rulings, potentially impacting industries beyond just automobiles.

      In 2017, Ferrari lost its intellectual property rights to the Testarossa name when a German toy company argued that the automaker hadn’t actively used the name for at least five years, as EU law mandates trademark holders to demonstrate actual use. The toy company claimed that because the Testarossa was out of production, the name could be claimed.

      However, Ferrari appealed the decision and continued to engage in legal proceedings. In 2023, the European Union Intellectual Property Office determined the name was available for use, but the situation changed when the EUGC recently ruled in Ferrari's favor. Courthouse News reports that the court recognized the Testarossa name as Ferrari's intellectual property, allowing the company to retain its rights.

      The court's shift in position was influenced by arguments showing that Ferrari has still been utilizing the intellectual property in several ways, such as providing certificates of authenticity for the Testarossa and selling parts, replicas, merchandise, and even the cars themselves at dealerships. This activity constituted as genuine use, according to the EUGC.

      This ruling not only benefits Ferrari but also offers advantages to numerous legacy brands outside the automotive sector. It illustrates how brands can preserve their intellectual property rights even after ceasing production of a product.

      As stated by Philip Carter of Ainvest, “This case highlights a vital reality for investors: the worth of luxury brands is not limited to items currently in production, but also includes their capacity to monetize their heritage through secondary markets, spare parts, and licensing.”

      Essentially, brands can now maintain their rights via secondary markets, which encompass replicas, parts sales, memorabilia, and certifications. Interestingly, this may enhance the value of brands that already utilize these revenue avenues. It's likely that shareholders worldwide are celebrating this news.