Selling goods that resemble products from well-known brands often seems like a safe way for entrepreneurs to make money. This is especially true when it involves copyin
g the product’s design or packaging rather than using the logo itself. However, intellectual property practice shows a very different picture: large international companies are increasingly actively defending their rights in Ukrainian courts.
This is exactly what happened in the case involving the Danish company LEGO A/S, which filed a lawsuit in the Kyiv Commercial Court against a Ukrainian sole proprietor for selling copies of popular LEGO Technic series building sets. The company is demanding not only that the sale of the products be halted, but also that over 1.16 million UAH in compensation be awarded, that the counterfeit goods be destroyed, and that the use of the packaging design be prohibited.
This case serves as a cautionary tale for the entire Ukrainian business community, as it demonstrates how intellectual property protection works in Ukraine and the risks faced by entrepreneurs who sell replicas or counterfeit products.
What Is the Dispute About?
According to the case file, LEGO representatives discovered that a Ukrainian online store, podarok.in.ua, was selling construction sets that, in the company’s opinion, replicated the appearance of models from the LEGO Technic series. Among them were copies of such well-known sets as:
- Porsche GT3 RS;
- Bugatti Chiron;
- Porsche 911 RSR;
- Land Rover Defender;
- Lamborghini Siа
However, the claims did not pertain solely to the models themselves. LEGO alleges that the seller used packaging that copied the distinctive artistic design of the Technic series boxes. The packaging design itself is also subject to legal protection, as it contains elements of copyright, industrial design, and commercial product design. In its lawsuit, the company asks the court to:
- prohibit the sale of the disputed goods;
- prohibit the use of the LEGO Technic packaging design;
- seize and destroy all existing inventory;
- award damages in the amount of 1,164,800 UAH;
- impose an additional fine of 10% of the damages awarded, payable to the state budget.
Why This Case Goes Beyond Just the LEGO Trademark
Many business owners mistakenly believe that simply removing a well-known brand’s logo is enough to avoid any infringements. In reality, intellectual property rights cover a much broader scope.
In the case of LEGO, several different rights may be protected simultaneously: trademarks (the name LEGO, Technic, and other designations); copyright in the artistic design of the packaging; industrial designs that protect the appearance of individual product elements; three-dimensional trademarks (in some countries and jurisdictions); and trade dress, if the appearance of the packaging is specifically associated with a particular manufacturer.
That is why, even if a seller does not use the word “LEGO,” but the packaging design, color scheme, layout, photos of the models, or box design mislead the buyer regarding the product’s origin, this can serve as grounds for a lawsuit.
This practice is already taking shape in Ukraine. Previously, LEGO successfully defended its rights in disputes involving the copying of minifigures and the sale of counterfeit building sets through Ukrainian stores.
What Are the Consequences of Selling Counterfeit Products?
Many people view the sale of replicas as a minor infraction. In reality, the law provides for much more serious consequences.
The rights holder may demand:
- cessation of the sale of goods;
- removal of the products from circulation;
- destruction of the counterfeit goods;
- reimbursement of losses or payment of compensation;
- reimbursement of legal costs;
- publication of the court’s decision.
If the infringement is systematic in nature or has caused significant harm, administrative or even criminal liability may also apply, depending on the circumstances of the case.
In addition to financial losses, businesses also face reputational risks. For companies that work with international partners, marketplaces, or large retail chains, intellectual property infringement can serve as grounds for terminating contracts or blocking sales.
LEGO’s lawsuit against a Ukrainian entrepreneur demonstrates that intellectual property rights in Ukraine are being enforced more and more vigorously, and that international brands are prepared to defend their interests even in disputes with small retailers.
For businesses, this means they must be careful about how they use trademarks, packaging designs, and other intellectual property. Cutting corners on product verification or selling counterfeit goods can result in significant financial losses, product seizures, and lengthy legal proceedings.
If you are involved in the manufacture, import, or sale of goods and want to verify whether your products infringe on the intellectual property rights of others—or, conversely, need to protect your own brand—please contact our law firm. We will help you assess the risks, protect your rights, and provide reliable legal support for your business.
copyright / industrial design / intellectual property / trademark / utility model
