The Trademark Office of Peru (INDECOPI, as per its acronym in Spanish) ruled against the EQUIVALENZA business model, imposing sanctions on Peruvian franchisees for infringement of trademark rights owned by the renowned Spanish fragrance company PUIG and for unfair competition practices — i.e. taking unfair advantage of a third party's reputation. The INDECOPI ordered that "Equivalenza" products, which used PUIG's trademarks, be no longer offered and advertised, and also imposed fines on said companies.
In recent decisions, the INDECOPI upheld the claims of PUIG against company Equivalenza 3 and other franchisees that operate the EQUIVALENZA retail network in Peru.
EQUIVALENZA used PUIG's trademarks in advertising materials and the so-called "comparison charts" (brochures where the reference numbers of the fragrances offered supposedly corresponded to original fragrances).
The decisions issued by the INDECOPI impose sanctions on the defendants on the grounds of infringement of the well-known trademark CAROLINA HERRERA, as well as unfair competition consisting in taking unfair advantage of a third party's reputation, and ban the defendants from using Paco Rabanne's, Jean-Paul Gaultier's and Carolina Herrera's trademarks in comparison tables.
Consequently, Equivalenza 3 and the defendant franchisees will have to stop and further refrain from using PUIG's trademarks in their offering and advertising activities, and pay the fines imposed.
The decisions of INDECOPI call into question the "smells-alike" business model in Peru, and set a unique precedent for other countries in the region and worldwide.