by Ferrari Regains Rights to the Testarossa Name After 10-Year Legal Process
Italian automaker Ferrari has achieved an important legal victory that is significant not only for the company but also for other historic brands. After nearly a decade of litigation, the Testarossa name has officially returned to Maranello. The European Court’s decision overturned previous rulings, which could have implications far beyond the automotive industry.
In 2017, Ferrari lost the rights to the Testarossa trademark because a toy manufacturer proved the name had not been used for five years. Under EU law, trademark owners must demonstrate their active use.
Why the Court Changed Its Decision
The court took into account that Ferrari continued to use the Testarossa brand through certificates of authenticity, the sale of spare parts, replicas, merchandising, and the resale of cars through its dealerships. This was deemed sufficient to confirm the trademark rights.
For investors, this case underscores an important truth: the value of luxury brands is not limited to current production lines but extends to their ability to monetize their heritage through secondary markets, spare parts, and licensing
The Significance of the Decision for the Industry
This precedent opens up new opportunities for historic brands in various industries. They can now maintain their rights through secondary markets, including replicas, components, souvenir products, and certification. Such mechanisms can significantly increase the value of brands that already use similar revenue streams.
Interestingly, the court’s decision came just before an auction where one of the Testarossa models will be presented. This may affect its final price, as the official status of the brand is now legally confirmed.
