What is Passing Off and Why does it Matter? – A Peloton Case Study

You’ve heard of Peloton right?

Founded in 2012 by John Foley, Peloton revolutionised the home exercise market by combining technology and engaging fitness content through high-quality stationary bikes and subscription-based virtual classes.

Peloton quickly gained popularity and went on to widen their product lineup to treadmills and accessories as well as diversifying their available workouts to include strength training, yoga and so on.

Peloton’s emphasis on community engagement created a strong, loyal customer base which boomed during the COVID-19 pandemic as the demand for home fitness solutions surged.

So, who has been infringing on Pelotons Trademark?

The Women’s Peloton

In 2021 Elke Bleyaert, wife of professional cyclist jasper Stuyven, started “The Women’s Peloton” aimed to empower female cyclists. The Women’s Peloton offer memberships in which they provide videos, webinars, lesson series and workouts. Sound familiar?

Passing off is when one business misrepresents its goods or services as those of another, causing confusion among customers. This misrepresentation can lead to the mistaken belief that the goods or services are associated with or endorsed by the original brand, resulting in potential damage to the brand’s reputation and financial loss.

Peloton VS The Women’s Peloton

Enforcing their trademark registered in Belgium Peloton sued The Women’s Peloton over the use of “Peloton” in their name, claiming trademark infringement.

After several years of court proceedings, Peloton (quite rightly) won the case, and The Women’s Peloton have been ordered by the courts to rebrand within three months or face a penalty of $540 for each day they continue to use the name.

Why did Peloton enforce their Trademark?

Loss of earnings

Whilst Peloton’s services aren’t actually available in Belgium at the time of this article, Peloton took the time to have their trademark registered in Belgium. Peloton is a global brand and can not afford for local companies to win clients based on their brands good will.

Client Confusion & Risk to Reputation

What’s more, they cannot control a third-party company and how they operate. Customers very likely would have mistakenly TWP for Peloton, creating massive risks from service issues, complaints and their general reputation.

Over the last 12 years, Peloton has been building their brand reputation and their name is a MAJOR part of this. Currently sitting at over $1 billion market valuation, the value of Peloton’s brand is clear to be seen from a financial perspective. From the consumers side, when someone hears the name, they immediately recall the brand.

However, if Peloton did not have a Trademark registered with the Intellectual Property Office, then it would have been more difficult to enforce their brands rights, relying on an opinion rather than fact!

This is a fantastic example of Passing Off and the part Trademarks play in preventing people from passing off.

It is a safe assumption that a lot of subscribers to The Women’s Peloton thought they were dealing with an off shoot of Peloton. When somebody uses somebody’s brand and goodwill without consent, they are effectively stealing it. This is why Franchisees PAY to use brands like Subway and Timpsons and even McDonalds, because the brand inspires trust, and customers can rely on certain standards.

The Trademark is simply the proof of ownership. By registering registered trademark, Peloton ensure that only authorised entities can use its name and logo, maintaining brand integrity and preventing unauthorised use that could harm the brand’s reputation.

However, as this case shows, simply having a trademark is not enough; you need the trademark to cover the right classifications and countries in which you operate, and you must enforce your mark if infringed upon.

Peloton has a history of defending its trademarks, reflecting in previous disputes. Back in December 2018. Peloton threatened legal action against YouTuber Shane Miller for using the term “Digital Peloton News” in his video series. Peloton claimed that the use of the work “Peloton” could cause confusion, as it is a trademarked term associated with their brand. However, after facing backlash from the cycling community, Peloton eventually backed down from the legal threat.

Peloton have also been on the receiving end of trademark disputes having had a lawsuit filed against them.

Peloton Cold Brew had filed the lawsuit to protect its trademark for coffee drinks, which it had secured in 2017 and Peloton didn’t officially oppose it until three years later. A settlement was reached allowing both companies to continue using the name “Peloton” in their respective industries.

Your Perfect Trademark Blueprint

Pre-Trademark Application
– Conduct thorough trademark searches to identify potential conflicts
– Register your trademarks in your key jurisdictions and all potential jurisdictions operational areas (dependent on budget)

Post-Trademark Application
– Regularly monitor the market for potential infringement or brands passing off.
– Have experts available to take action for you if you need to enforce your trademark rights.

How does this apply to your brand?

We recognise that not all businesses have the budget of the likes of Peloton which is the principles upon which The Trademark Helpline was formed.

Since 2008 we have applied all of our knowledge in Trademarks into technology to deliver the same trademark strategy that Peloton deploy for brands ranging from one-man bands to multinationals.

Here’s how we do it:

  1. Initial Research: Just like Peloton, registering a trademark for your brand name, logo, or any other unique identifies is the first step in securing your brand’s identity. But before you invest money in an application you should carry out a full brand audit to allow us to make informed decisions on your next steps.
  2. Trademark Application: You may not be currently selling any goods or services in a certain nation, but will that change in the future?
    If you have budgetary considerations, it’s important to identify the needs of today and the needs of tomorrow. Official fees to the Intellectual Property Offices vary greatly so it’s important to understand all of the cost implications so you can put together a roadmap which ensured you have protection required as you reach your business goals.
  3. Trademark Vigilance: As your brand and budget grow, your future Trademark requirements can often be forgotten.
    Just like Peloton have a trademark in Belgium but don’t YET sell their products and services there, one day they will, and they have made sure that can enter Belgian markets with no friction. Book regular slots in your diary to review your brand protection, we advise 6 monthly as a minimum.
  4. Active Monitoring: Having a trademark will not tell you if somebody sets up with a company name, domain name, social media account or starts using a similar Logo. Take the time once a month to scour the internet to see if anybody is ‘Passing Off’.
  5. Enforcing Your Rights: Defending or enforcing your trademark commonly includes, Takedowns of Social Media accounts, Online Ads (like Google) Online Shopping Accounts (like Amazon and Ebay) and Websites which may be infringing on your Trademark.
    Did you know, Trademarks give you the power to have these accounts taken down at source via Google, Facebook, Amazon etc.Where this isn’t possible you can send a cease and desist which more often than that will have a successful outcome.
  6. Automatic Renewal: Do not let you trademark expire! Make sure that you arrange renewal of your trademark well in advance of the 10 years expiry date to ensure no business interruption.

Does the above strategy sound realistic for you to implement yourself with your current business set up?

Peloton have access to some of the world’s best lawyers and this comes at a cost. Yet trademark services can be surprisingly affordable and don’t require a legal team, just trademark experts and that’s where we come in.

For the price of a peloton subscription, we can cover all areas of the above for you and your brand ensuring your brand remains fully protected for the long term at the fraction of the price of using a solicitor.

Is it worth paying for?

Look at this Peloton case and the number of other trademark infringements Peloton have dealt with. It’s clear that for trademarks to be enforced, somebody needs to be actively monitoring them and enforcing them.

From flagging infringements to, taking down online accounts or issuing cease-and-desist letters, our team of experts ensure that your brands reputation is protected, and most importantly that any threats are dealt with swiftly.

If you’ve done the hard part of building a unique brand and the reputation that comes with it, why let your hard work be undone by someone else?

Over a 15 minute FREE video consultation with one of our Manchester based trademark experts they will show you, how we can protect your brand just like Peloton.

Claim your FREE Demo  today, reach out to us on our socials or call 01618335400 to speak to one of our team.

We look forwards to hearing from you.

 

 

Need assistance with trademark registration, monitoring, representation, or other related services? Request a callback from our specialist here. Alternatively you can give us a call on 01618335400 Monday to Friday between 9am and 6pm, we’d love to hear from you.

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