The pandemic economy saw a boom in the vintage watch market, with luxury brands such as Audemars Piguet, Rolex, and others experiencing a surge in demand. This skyrocketed Swiss watch exports to nearly 25 billion francs ($28.5 billion) in 2022, as detailed in this Fortune article.
Escalating demand for luxury watches led to intensified protection measures employed by watchmaking companies to secure their intellectual property rights. Measures included the issuance of certificates of authenticity and the maintaining of a close-knit network of authorized retailers. This focus on anti-counterfeit measures and general intellectual property monitoring bolsters the value of original designs in the marketplace.
An intriguing case within this spectrum was Rolex Watch v. BeckerTime. Rolex accused BeckerTime of selling vintage Rolex watches marked as “Genuine Rolex,” but made up of a combination of Rolex and non-Rolex components. The Fifth Circuit’s late January decision found BeckerTime guilty of trademark infringement.
The verdict sustains the importance of timely action by watch brands to curb alleged cases of trademark infringement. Had Rolex moved against BeckerTime earlier, it may have inflicted significant financial damage, above the restrictions established via the injunction that the Fifth Circuit upheld.
This case demonstrates the delicate balance between ensuring trademark rights and allowing resellers to profit from the secondary market. Future brand owners may be encouraged to act more promptly in enforcing their trademark rights. Further discussion on this topic can be found at the Fashion Law blog.
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