LOGOS AND NO-GOS THE RIHANNA VS. TOPSHOP T-SHIRT FACE-OFF LEGAL ANALYSIS Rihanna may well be feeling like “The Only Girl (In the World)” having won her High Court claim against Topshop for passing off. The claim related to a T-shirt which Topshop had been selling that featured Rihanna’s image. Essentially, the claim focused on whether customers would be led to purchase the T-shirt on the basis they thought it had been authorised, or endorsed, by Rihanna. Merchandising v endorsement BACKGROUND In March 2012 Topshop began selling a T-shirt with an image of Rihanna on it. The image was supplied to Topshop by an independent photographer who had taken the photograph at the video shoot for her single “We Found Love”. Accordingly, there was no issue of copyright infringement and, likewise, no issue of breach of confidence. Rihanna, however, had not consented to the use of her image. Around 12,000 units were sold in the three months that it was available to buy. Rihanna could not rely on so-called “image rights” in England, as she might have done were the claim in the United States. It is established law that there is no such thing as a free standing general right by a person to control reproduction of their image (Douglas v Hello [2007] UKHL 21). The case therefore concerned the tort of passing off, for which Rihanna needed to prove three things: 1. she had goodwill and reputation in her image amongst relevant members of the public; 2. there was an actionable misrepresentation (i.e. members of the relevant public were deceived into purchasing the T-shirt under the mistaken belief that she had endorsed the product); and 3. there had been damage to her goodwill. The case largely turned on the second element – whether Topshop had made a false claim or suggestion of endorsement, which was liable to deceive customers. Birss J made the point that, in the past, merchandising and endorsement have proved difficult subject matters in passing off cases. The key case in relation to false endorsement is Irvine v Talksport [2002] FSR 60 in which Laddie J concluded that Eddie Irvine had “a property right in his goodwill which he could protect from unlicenced appropriation consisting of a false claim or suggestion of endorsement of a third party’s goods or business”. The difference between merchandising and endorsement is that it is not a necessary feature of merchandising that members of the public would think that the products are endorsed by the characters featured, as opposed to merely officially licensed by the rights holder. However, the Judge explained that there is in fact no difference in law between an endorsement case and a merchandising case. The legal principles are the same and relate to protection of goodwill. If the claimant has goodwill to protect and then merchandise is sold in circumstances where the purchaser believes that the merchandise has been endorsed, that is an actionable misrepresentation. Up until the early 1990s, merchandising rights were not found to exist before the English Courts. This changed in 1991 following Mirage Studios v Counterfeat Clothing (The Teenage Mutant Ninja Turtles case) in which it was accepted that the claimant had proved that the public did expect goods bearing the image of a famous cartoon character to be licensed. However, the facts must always be made out and this will turn on the nature of the relevant market and on the perceptions of the relevant customers, as was proved in the current case. The nature of the market and the perceptions of the relevant customers When looking at this question the Judge clearly appreciated that there were two very distinct reasons why people might have wanted to buy the T-shirt in question: 1. The first group simply bought the T-shirt because they wanted an image of the pop star. In this case no misrepresentation has taken place, as the customers have not been deceived. 2. The second group buys the merchandise on the basis that it is official merchandise that has been endorsed. This therefore amounts to a misrepresentation about trade origin. The stature of the retailer Proof of damage The stature of Topshop as a major reputable high street retailer was also important in the case. The Judge pointed out that members of the public would not be surprised if Topshop did have relations with celebrities, which led to them having certain authorised products on sale in their shop. Topshop “was no market stall” and has in the past had high profile collaboration with a number of celebrities and has also, historically, made a great deal of effort to publicise its connections with famous stylish people. In fact, in the past, Rihanna had publically shopped in Topshop and the Judge identified that a number of purchasers of the T-shirt would have been aware of this, which may have increased the likelihood for deception. The final part of the passing off test is proof of damage, which is generally simple to make out in a case where the claimant has goodwill and a misrepresentation has been established. Where a number of purchasers have been deceived into buying a T-shirt because of a false belief it had been authorised, this will clearly be damaging to the claimant’s goodwill. Additionally, the sale of the unauthorised T-shirt represents sales lost to her merchandising business, as well as a loss of control over her reputation in the fashion industry. The nature of the product The nature of the T-shirt itself was also important in the case. The image featured on the T-shirt came from a video shoot for Rihanna’s “We Found Love” video and the Judge explained that many of Rihanna’s fans would have recognised this. Those fans may well have believed that the T-shirt was a part of the marketing campaign for that project. Goodwill Turning to the nature of Rihanna’s goodwill, the Judge explained that Rihanna clearly had goodwill as a music artist. However, she also had goodwill in the world of fashion, as a style leader. The Judge found on evidence that Rihanna was regarded as a style icon by many people, predominantly young females aged between 13 and 30. These people are interested in Rihanna’s views about style and fashion and if Rihanna wears or approves of an item of clothing, that is an endorsement of that item in the minds of those people. Topshop argued that there was nothing on the T-shirt itself that represented it as an item of official Rihanna merchandise and in particular, it did not feature Rihanna’s well known “R slash” logo, or indeed the word Rihanna itself, which is a registered trade mark. Topshop also identified a number of other retailers selling similar T-shirts featuring her image and argued that the customers who purchase these garments appreciate that they are not official merchandise, or endorsed; they simply like the product and the image. CONCLUSION Whilst, as with all passing off cases, this case turns on its facts, it provides some cautionary notes for businesses that use, without permission, the goodwill of celebrities for commercial gain, in a manner that may suggest an association, or endorsement, from the celebrity in question. CONTACT DETAILS If you would like further information or specific advice please contact: GEOFF STEWARD DD: +44 (0)20 7849 2341 [email protected] OLIVER SMEETH DD: +44 (0)20 7849 2976 [email protected] AUGUST 2013 MACFARLANES LLP 20 CURSITOR STREET LONDON EC4A 1LT T: +44 (0)20 7831 9222 F: +44 (0)20 7831 9607 DX 138 Chancery Lane www.macfarlanes.com This note is intended to provide general information about some recent and anticipated developments which may be of interest. It is not intended to be comprehensive nor to provide any specific legal advice and should not be acted or relied upon as doing so. Professional advice appropriate to the specific situation should always be obtained. Macfarlanes LLP is a limited liability partnership registered in England with number OC334406. Its registered office and principal place of business are at 20 Cursitor Street, London EC4A 1LT. 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