Update: Israeli Supreme Court Upholds Record-Breaking Trademark Infringement Award

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A ground breaking Trademark Infringement Award in Israel. In a significant development for intellectual property rights in Israel, the Supreme Court has denied the appeal filed by Rami Levi Shikma Marketing 2006 Ltd. and Yafiz Fashion Ltd. 

In this decision, the Supreme Court is affirming one of the largest trademark infringement awards ever granted in the country (following the withdrwal of the appeal by the defandnats).

Brief Recap: The District Court’s Landmark Ruling

As previously reported, the Tel Aviv District Court delivered a trailblazing Trademark Infringement Award in April 2023, ordering Rami Levi and Yafiz Fashion to pay over 3 million₪ (including 2,413,836₪ plus interest and expenses) to Lifestyle Equities C.V. and Lifestyle Licensing B.V., the owners of the Beverly Hills Polo Club (BHPC) brand, for unauthorized sales of branded products.

The plaintiffs were representing by Yossi Sivan Law Firm.

This judgment was notable for several reasons:

  • Record Compensation: The Trademark Infringement Award is among the highest ever seen in Israel for a trademark infringement case, calculated based on the defendants’ actual gross profit instead of estimated damages or reasonable royalties.

  • Third-Party Liability: For the first time, a commercial distributor was held responsible even when it did not directly manufacture the infringing goods, establishing that retailers cannot shield themselves from liability by relying solely on their suppliers.

  • Enforcement of Licensing Restrictions: The court enforced restrictions limiting distribution to specific retail channels, confirming that licensees and third parties must respect such restrictions when notified.

Supreme Court Denies Appeal: Major Milestone for Brand Owners

Following the District Court’s decision, Rami Levi and Yafiz filed an appeal to the Israeli Supreme Court. The Supreme Court has now rejected their appeal, cementing the lower court’s judgment and its legal precedents.

This outcome is a phenomenal achievement for brand owners in Israel. The Supreme Court’s decision unequivocally reinforces trademark protections and demonstrates the judiciary’s willingness to uphold substantial remedies, including disgorgement of unlawful profits, in favor of rights holders.

It sends a clear message: brand owners can successfully pursue meaningful enforcement, and commercial distributors must take intellectual property compliance seriously.

This decision stands as a milestone for the protection of international brands in Israel’s market and sets an important precedent for future trademark enforcement actions.

Dislcaimer: Please be aware that the information provided in this article is intended for general informational purposes only and should not be considered legal advice. For specific legal matters, it is recommended to consult with a licensed attorney.