According to the Vogue Business Index: Summer 2022[1], this year Louis Vuitton has regained the top spot in the ranking and has positioned itself as one of the most successful industry leaders. Apart from being the luxury brand with the highest sales figures in the world, few brands can rival the French Maison’s combined levels of prestige and buzz in the eyes of consumers.
Nonetheless, a controversy regarding the company recently emerged in Peru. Even though a Peruvian citizen legally bought products in one of the luxury brand’s flagship stores, he ended up being indicted by the company and accused of buying counterfeit goods.
Louis Vuitton v. Walter Gutiérrez (Exp. Nº 879697-2021/DSD)
Walter Jacobo Gutiérrez, a Peruvian citizen, was accused of having illegally bought counterfeit goods depicting trademarks from a famous luxury brand, with the intention of selling them.
On November 2020, Walter arrived in Lima from New York and he was intervened by the airport authorities, who after checking his luggage, retained some items. Among the seized products, the authorities found: two pairs of sandals, three pairs of women’s sneakers, and two pairs of men’s shoes[2]; all showcasing various trademarks in regard to the “Louis Vuitton” brand.
Upon becoming aware of the facts, the Louis Vuitton company did not hesitate to take legal action against Mr. Gutiérrez, due to the fact that at first glance, the items appeared to be counterfeited goods meant for commercialization. As a consequence, the company presented a trademark infringement claim to the corresponding authority (INDECOPI)[3].
During the proceeding, Mr. Gutiérrez denied that the products were imitations and affirmed that thanks to his high income, he is able to constantly travel to the US, which allowed him access to products from prestigious international brands as well as being able to afford original Louis Vuitton products.
Likewise, he denied being a counterfeit seller in Peru, since he bought different kinds of items as gifts for his relatives. Also, Mr. Gutiérrez requested Louis Vuitton to check the serial number of the shoes in its database, so as to prove the authenticity of the products. Even though he did not keep the original payment slips, he defended himself arguing that not keeping them does not imply that he is an importer of counterfeit footwear.
On the other hand, the French Maison alleged that the Peruvian citizen had imported shoes that reproduced “similar signs to our notoriously trademarked brands, without any authorization”, according to the Resolution Nº 0595-2022/TPI-Indecopi[4]. In addition to it, they mentioned that the burden of proof relied on Mr. Gutiérrez, so he should be the one to present receipts to support his claims (Resolution Nº 0595-2022/TPI-Indecopi, p. 6).
In the first instance, INDECOPI ruled that since Mr. Gutiérrez did not present any evidence that proves he actually bought the goods in a Louis Vuitton-authorized store, he was declared guilty and was sanctioned with a fine amounting to US$ 4,700.00 approximately.
Mr. Gutiérrez filed an appeal
However, Mr. Gutiérrez alleged that the previous resolution tarnished his honor and reputation, so he filed an appeal. In the second instance, he presented evidence that showed that he actually bought the items at the Louis Vuitton flagship store located on the iconic 5th Avenue in New York.
Image: Resolution Nº 0595-2022/TPI-Indecopi, p.13.
As a result, the brand decided not to issue any pronouncement and a couple of days later, they presented a motion to withdraw the proceeding, which Mr. Gutiérrez agreed on.
Louis Vuitton presented a lawsuit against INDECOPI
Nevertheless, this legal controversy is not finished yet. The company questioned the second instance resolution issued by the specialized intellectual property chamber that favored the Peruvian citizen and presented a lawsuit against INDECOPI[5].
According to the legal defense of Louis Vuitton, INDECOPI violated the principle of legality, since, in the second instance, INDECOPI ruled on the merits of the case, despite the withdrawal of the company, which should conclude the proceeding in advance and prevent it from being resolved on the merits of the case.
While in its resolution, INDECOPI ruled on the case’s merits to justify the payment of costs (the expenses that arose during the administrative proceeding) and legal fees; the company affirms that attributing that payment in favor of Mr. Gutiérrez contravenes the legality principle.
On the other hand, according to La República[6], in one of the media appearances of Mr. Gutiérrez, he affirmed that the luxury brand has still not apologized to him and through the lawsuit, they are expecting to revert the mandate to compensate him for the legal fees and costs. Furthermore, as of today, 2 years later, Mr. Gutiérrez has not received the products that were confiscated at the Lima airport, despite the fact that it has been proven that the items are original and were purchased in an official store of the brand in the United States.
References:
[1] https://www.voguebusiness.com/companies/louis-vuitton-reclaims-top-spot-in-vogue-business-index
[2] https://laley.pe/art/13926/louis-vuitton-denuncio-peruano-error-confundir-calzados-imitaciones-productos-bamba
[3] In Peru, Indecopi is the national authority competent to deal with Intellectual Property, and, in order to properly implement such duties, Indecopi counts with three Directorates: the Directorate of Copyrights, the Directorate of Patents and New Technologies, and the Directorate of Distinctive Signs. (https://repositorio.indecopi.gob.pe/bitstream/handle/11724/5566/intellectual_property.pdf)
[4] https://es.scribd.com/document/589969866/Louis-Vuitton-confunde-sus-propios-calzados-con-imitaciones-y-denuncia-a-peruano-Resolucion-0595-2022TPI-Indecopi-Laley-pe
[5] https://www.scribd.com/document/606850573/Louis-Vuitton-demando-a-Indecopi-por-resolver-a-favor-de-peruano-al-que-sindicaron-falsamente-de-importar-productos-bamba-de-EE-UU
[6] https://larepublica.pe/datos-lr/respuestas/2022/11/12/louis-vuitton-quien-es-walter-jacobo-gutierrez-el-peruano-que-fue-denunciado-por-la-marca-de-lujo-y-le-gano-el-juicio-louis-vuitton-peru-evat/