Bark Busters

In March, a unit of global luxury-goods powerhouse LVMH Moët Hennessy Louis Vuitton sued a small Las Vegas maker of dog toys, claiming trademark infringement.
The reason? Louis Vuitton Malletier of Paris had a problem with the company, Haute Diggity Dog, putting the name "Chewy Vuiton" on stuffed toys and dog-bed pillows decorated with a pattern reminiscent of Louis Vuitton's logo.



A federal court in Virginia, where Louis Vuitton filed the case, didn't bite. "The fact that the real Vuitton name, marks and dress are strong and recognizable makes it unlikely that a parody -- particularly one involving a pet chew toy and bed -- will be confused with the real product," the judge, James C. Cacheris, wrote in a judgment early this month.
In legal circles, the Louis Vuitton-Haute Diggity Dog case has created a nervous buzz that's putting other luxury brand names on alert. The case was the first in the nation to test the revised U.S. Federal Trademark Dilution Act that went into effect in early October. The change in the statute favors companies trying to protect their trademarks, lowering the bar for proving damage. Instead of showing that a trademark has actually been "diluted" by unapproved use, the company would have to prove only a "likelihood" this has happened.

Ms. Reeder and Victoria Dauernheim, both 53, dreamed up the concept for Haute Diggity Dog in 2003 when they were working in the retail department of Las Vegas's Mandalay Bay resort and casino. Ms. Reeder, a product buyer, noticed the pet industry was beginning to take off. In the fall of 2004, the two dog owners launched their first line of stuffed dog toys, with logos spoofing luxury brands: "Jimmy Chew," "Dog Perignon," "Chewnel #5" and "Sniffany & Co." Ms. Reeder's teenage nephew helps come up with the quirky names. The products, at prices ranging from $10 to $249, are sold in pet stores, animal hospitals and veterinarian offices, as well as online.


When Haute Diggity Dog tried to register the name "Chewy Vuiton" with the U.S. Patent and Trademark office last year, Louis Vuitton filed an objection. Haute Diggity Dog was denied official ownership of the name, but continued selling the dog toys. That's when Louis Vuitton filed its trademark-infringement suit.
Still, Ms. Reeder says the LVMH suit took the company off-guard. After all, Marc Jacobs boutiques -- majority-owned by LVMH -- sold the company's "Bark Jacobs" toys in U.S. stores last holiday season.