IP mediation on trade marks

LaGalguita is a Spanish SME that sells its own line of cosmetics: make-up, skincare, hand creams and body creams. After its success in Spain, Portugal and Italy, the brand decided to target Latin America, starting with Argentina and Mexico. For that purpose, the SME filed for trade mark registration in both countries.

While LaGalguita was developing its business in Europe, a local Argentinian company also started evolving and it became quite successful through “La Galguita Shop”. La Galguita Shop started as a fashion brand. The two businesses coexisted peacefully, even after the arrival of the Spanish SME in Latin America. However, after its success and expansion to other Latin American countries, La Galguita Shop started selling its own hand creams and body lotions in stores.

Consequently, the Argentinian company received a cease and desist letter from the Spanish SME on the basis that, by selling cosmetics under the name “La Galguita Shop”, consumers could be confused regarding the origin of the goods and, therefore, wrongly connect the two businesses.