Q: Why is Louis Vuitton so concerned about the use of its products in a film suc
ID: 364480 • Letter: Q
Question
Q: Why is Louis Vuitton so concerned about the use of its products in a film such as the Hangover Part II?
. The Hangover Part II has been a hotbed of intel- lectual property issues. Last summer, Warner Brothers settled a lawsuit brought by the tattoo artist who did Mike Tyson’s facial tattoo that was then replicated on a character in the movie. Now, Louis Vuitton has filed suit in federal court for trademark infringement of its famous bags. The ne’er-do-well character played by Zach Galifianakis has coined a pop-culture phrase by warning his fellow imbibers when they touch his Louis Vuitton bag, “Careful, that is a Louis Vuitton.” The lawsuit seeks to have the trademark bag excised from the film as well as a share of the movie’s profits. The company seems most irritated because it alleges that the bag used in the movie is a knock-off. Louis Vuitton is very aggressive in enforcing its trademark rights and has brought suit against artists who have used the signature handbags and luggage in their paintings. What is the issue in the use of trademarked products in artistic works? Why is Louis Vuitton so concerned about the use of its products in a film such as The Hangover Part II? 5
Explanation / Answer
Answer: Yes from the situation described here it appears that LVMH is changing its strategic positioning to a broad differentiator. In broad differentiation the companies or the brands attempt to create a broad appeal of the brand across the industry or the market rather than only to a selected few. By opening a number of shops and by allowing use of Louis Vuitton logo widely it is clear that LVMH is changing its strategic positioning from focused differentiator to a broad differentiator. When a shift is made from the focused differentiation to broad differentiation the brand loses its previous appeal but it is not so that entire appeal is lost. Yes in this case there are chances that Louis Vuitton may get stuck in the middle as because of the presence of the counterfeits, the broad differentiation strategy may make the brand a common one as the logo will be present everywhere.
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