On September 1, 2023, the Commercial Court No. 1 of Alicante issued a judgment in favor of MAKEBLOCK Co Ltd in the case of trademark infringement and unfair competition against DISTINTIVA S COOP and its joint administrator, Diego.

MAKEBLOCK Co Ltd, a leading educational robotics company based in Shenzhen, China, globally recognized for its STEAM educational solutions, sued DISTINTIVA S COOP, a Spanish cooperative that was an authorized distributor of MAKEBLOCK products in Spain between 2014 and 2017. The lawsuit claimed that after the distribution contract ended in 2017, DISTINTIVA continued to use the MAKEBLOCK trademark and its content without authorization.

DISTINTIVA presented itself in the market as MAKEBLOCK, causing significant consumer confusion by registering several web domains and social media profiles using the brand, and entering into several commercial agreements as if it were MAKEBLOCK itself. Additionally, DISTINTIVA modified product packaging and added third-party advertising, creating a false impression of certification by MAKEBLOCK.

The court ruled that DISTINTIVA infringed MAKEBLOCK’s industrial property rights by continuing to use the trademark and its content after the distribution contract ended. The court highlighted the following conclusions:

  1. Consent to use the trademark can be withdrawn at any time. Without such consent, the right to use the trademark is lost.
  2. As a result of the withdrawal of consent to use the trademark following the termination of the distribution contract, DISTINTIVA acted unfairly by registering as Makeblock Spain and using domains and social media profiles associated with the brand without authorization.

Consequently, the judgment dictates that:

  1. DISTINTIVA must immediately cease using the domain names and social media profiles that include the MAKEBLOCK trademark. As evidenced, MAKEBLOCK did not accept at any time the registration or use of the domains and social networks by DISTINTIVA. Furthermore, the judgment orders the transfer of the domains and social networks to MAKEBLOCK.
  2. DISTINTIVA must remove and destroy all promotional and commercial materials containing the name Makeblock Spain.
  3. DISTINTIVA must compensate for the damages caused, indemnifying MAKEBLOCK for the illicitly obtained profits and moral damages, in addition to covering the investigation costs incurred by MAKEBLOCK.

The judgment concluded that an act of unfair competition had been committed, in its deceptive aspect by providing information intended to alter the recipients’ behavior. This behavior also constituted a violation of intellectual and industrial property rights, which are fundamental to safeguarding the integrity and reputation of brands in the market. In summary, the court concluded that DISTINTIVA infringed MAKEBLOCK’s rights by continuing to use the trademark without authorization and by using domains and social media profiles that generated the impression of an association with MAKEBLOCK.

Commercial Court No. 1 of Alicante, Case No. 431/2018, Judgment No. 37/2023