China’s Trademark Office has cancelled the trademark protection for Burberry’s signature Haymarket check on leather goods, such as handbags, saying the design has not been used enough in China in the past three years to continue to be protected. China’s ruling means that, if upheld, it would be legal for rivals to copy the design. Burberry Group Plc has appealed the decision, saying the check is a registered trademark owned exclusively by the company and that no other parties can use it without their authorization. Burberry has been fighting similar battles for years.
The change will not take effect until the appeal has been heard. The trademark protection was supposed to last until 2020. Burberry says it is confident that it will prevail and the trademark will be protected.
The Asia Pacific region makes up 37 percent of Burberry’s 2013 revenue, but the economic slowdown and a recent anti-luxury campaign, as part of a crackdown on corruption, have hurt sales of high-end goods. If the decision is upheld, it may have a limited effect, since China is already awash in a wide array of imitation goods.
Burberry was founded in 1856 by Thomas Burberry, who opened a small outfitter’s shop in Basingstoke, England for local sportsmen. In 1888, he patented gabardine, a waterproof, tightly woven cotton that was popular with all segments of society.
In the early 1900s, Burberry outfitted adventurers and sportsmen. It eventually expanded into everyday outerwear for both men and women, becoming most famous for its distinctive trenchcoats. In the 1960s and 1970s, the company expanded from rainwear into umbrellas and cashmere scarves.
In the 1990s, Rose Mario Bravo became CEO and began laying the groundwork to turn Burberry into a luxury brand. She began by putting the company’s distinctive check pattern on a wide array of products until Christopher Bailey became creative director in 2001 and began cutting back on its use. Bailey has continuously updated the brand’s look and made Burberry a runway favorite.
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