Famous Intellectual Property Disputes

5 Famous Intellectual Property Disputes and What We Can Learn from Them

Intellectual property (IP) serves as the backbone of innovation, creativity, and competition across industries. It protects ideas, innovations, and creations, giving individuals and businesses the right to benefit from their hard work. Yet, as history has shown, intellectual property disputes can arise when those rights are challenged. Some of these cases have captured global attention due to their complexity, stakes, and implications.

Emerson Thomson Bennett will explore some of the most famous intellectual property disputes in recent history and examine the valuable lessons they offer to businesses and creators striving to protect their work.

1. Apple vs. Samsung (2011): The Battle Over Smartphone Design

The Dispute

The legal battle between Apple and Samsung is one of the most well-known intellectual property disputes of the modern era, triggered by the rise of the smartphone industry. 

Apple alleged that Samsung had copied the design and functionality of its iPhone. They specifically accused the company of infringing on Apple’s patents related to the iPhone’s sleek design, icon grid layout, and touch interface. Samsung countered with its accusations, arguing that Apple had also violated several of its own patents.

The Outcome

The case spanned multiple countries and years, resulting in mixed verdicts depending on jurisdiction. The most significant ruling came in 2012 when a U.S. jury awarded Apple over $1 billion in damages for Samsung’s infringement of its patents. This figure was later reduced through appeals, but the case was ultimately settled in 2018 for an undisclosed amount.

The Lessons

• The Value of Design Patents: This case underscored the importance of protecting product design through intellectual property laws. Even aesthetic aspects of a product can carry significant value.
• The Need for Clear, Comprehensive Protection: Companies should ensure their IP protections are current, enforceable, and capable of standing up to challenges in court.
• International Implications: IP disputes in a globalized economy often span multiple jurisdictions, highlighting the importance of understanding international intellectual property laws.

2. The McDonald’s “Big Mac” Trademark Dispute (2019)

The Dispute

Few trademarks are as iconic as the McDonald’s “Big Mac,” but the company found its rights to the name challenged by an Irish fast-food chain, Supermac’s. Supermac’s argued that McDonald’s was trademarking the “Big Mac” name across Europe without sufficiently using the mark. Supermac’s claimed it was being unfairly blocked from expanding due to McDonald’s overly broad intellectual property claims.

The Outcome

The European Union Intellectual Property Office (EUIPO) sided with Supermac’s in 2019, ruling to cancel McDonald’s “Big Mac” trademark in Europe. This decision not only allowed Supermac’s to expand but also questioned McDonald’s strategy of aggressively trademarking phrases without consistent usage.

The Lessons

• Use It or Lose It: Trademark laws often require evidence of consistent use in commerce. Businesses should ensure their trademarks are actively used and not just registered defensively.
• Avoid Overreaching: This case demonstrates the risks of being overly aggressive with trademark enforcement. Businesses need to strike a balance between protecting their brand and avoiding unnecessary litigation that could damage their reputation.
• Regional Differences Matter: Trademark laws vary widely across jurisdictions. Companies with global aspirations must remain compliant with local legal standards.

3. Mattel vs. MGA Entertainment (2004-2010): Battle of the Dolls

The Dispute

This high-stakes legal battle revolved around the creation of the Bratz doll line, owned by MGA Entertainment. Mattel, the maker of Barbie, claimed that the concept for Bratz was developed by Carter Bryant, a former Mattel employee, during his time with the company. Under Mattel’s employee agreement, they asserted, that Bryant’s creations belonged to them.

MGA counterclaimed, arguing that Mattel was attempting to stifle competition in the fashion doll market by improperly claiming ownership of Bratz.

The Outcome

After years of litigation, the case became one of the most expensive in history, with Mattel being awarded $100 million initially. However, this ruling was overturned on appeal. MGA eventually retained its rights to the Bratz brand.

The Lessons

• Employee Agreements Are Critical: This case shows how important it is for businesses to draft clear contracts regarding intellectual property ownership. Both employers and employees should understand who retains rights to creations made during and after employment.
• Litigation Can Be Costly: Protracted legal battles can drain significant resources, and even a victory might not justify the financial and reputational costs.
• Innovation Can Thrive Amidst Competition: Rather than trying to eliminate competition through litigation, businesses might benefit from focusing on creating unique, competitive products.

4. Warner Bros. vs. 20th Century Fox (2008-2009): The “Watchmen” Rights Struggle

The Dispute

The conflict over the film adaptation of Watchmen, a critically acclaimed graphic novel, pitted Warner Bros. against 20th Century Fox in a fight over distribution rights. Fox claimed it still held distribution rights to the story, even though it had not actively developed the project for years. Warner Bros., which had invested heavily in the production, argued that Fox did not have the legal standing to block the release.

The Outcome

The case was settled before trial, with Warner Bros. paying Fox a significant sum to resolve the dispute and move forward with the movie’s release.

The Lessons

• Clear Contract Transfers Are Essential: Rights to intellectual property must be clearly defined and documented, particularly during transfers or lapses in usage.
• Dormant IP Has Value: This case highlights that even unused rights hold potential value. Ownership of old projects, patents, or trademarks can resurface unexpectedly.
• Collaborate When Possible: Protracted IP disputes can delay projects and increase costs. When appropriate, negotiation and settlement can save time and preserve relationships.

5. Taylor Swift vs. Evermore Park (2021): Copyright Clash Over Song Titles

The Dispute

Taylor Swift faced copyright allegations from Evermore, a fantasy-themed amusement park, over the use of “Evermore” for her album title. The park claimed that Swift’s album infringed on its trademarked name and caused confusion among visitors. Swift countersued, stating the park had used her music in its attractions without proper licensing.

The Outcome

After heated exchanges, both parties dropped their lawsuits in an amicable resolution.

The Lessons

• Cross-Industry IP Overlaps are Complex: This case demonstrates the challenges when trademarks and copyrights intersect across different industries, such as music and themed entertainment.
• Proactive IP Research Mitigates Risk: Before launching a brand, individuals and companies should research existing trademarks to avoid potential conflicts.
• Swift Resolutions Reduce Negative Publicity: Legal disputes can harm public perception. Swift and Evermore showed that resolving disputes quickly can prevent unnecessary damage to reputation.

Contact the Attorneys at Emerson Thomson Bennett For Help

Each of these disputes underscores the intricate nature of intellectual property law and its importance in today’s marketplace. For businesses and creators, these cases serve as reminders to stay proactive in managing intellectual property, whether through filing patents, maintaining trademarks, or drafting strong contracts. At the same time, they highlight the value of strategic decision-making when conflicts arise.

Make sure you don’t make history with a legal battle of your own with help from the intellectual property attorneys at Emerson Thomson Bennett. Contact us today to learn more.