BMW’s Case Falls Apart

The Gauteng North High Court recently gave a judgment that will have significant implications for the motor vehicle industry. BMW had sued Grandmark, a company that is a major supplier of replacement parts, in other words vehicle parts that aren't manufactured by the vehicle manufacturers themselves but rather by independent companies, and that often cost a fraction of the price of the originals. BMW claimed that Grandmark was infringing various BMW trade mark registrations.

The court disagreed. That's because Grandmark's marketing materials used statements like these:  'Replacement part suitable for BMW E46', and 'These products are not manufactured by or under licence from the original vehicle manufacturer.'  Statements that, the judge said, made it quite clear that the goods that Grandmark was selling were not BMW parts, but parts suitable for BMW vehicles. Something that certain provisions of the Trade Marks Act allow for.  And, more importantly, something that