ADIDAS: Transform rather than destroy

At Marval, we promote alternative solutions to the conventional destruction of counterfeit goods. Instead of discarding them, we propose transforming these products to give them a new purpose, without compromising the integrity of the brand.

In cases involving infringement of the Trademark Law No. 22,362 (“Trademark Law”), there is a noticeable tendency among judges to order the donation of seized products to assign them a social purpose. However, such a solution entails prejudice to trademark owners, as the reputational damage arising from the circulation of counterfeit products persists even when such products are distributed free of charge.

Considering this “tension” we promote the transformation of the products as an alternative that preserves their social utility without affecting our clients’ intellectual property rights. Along the way, our client adidas and its outstanding efforts to protect its brand played a central role in actively supporting and promoting this innovative approach.

This initiative was the first product conversion proposal put forward by adidas together with Marval in criminal proceedings. In the context of a judicial request issued in a criminal case for infringement of Trademark Law, in which adidas was required to donate counterfeit goods (in this case, clothing) we put forward an innovative alternative consisting of donating the products after they had undergone a conversion process. Thanks to adidas' drive to find a responsible and sustainable solution, ensuring that lives are changed through sport, the products that were transformed were ultimately donated to a foundation, combining the protection of intellectual property rights with a positive social impact.

To implement this process, we sought the corresponding judicial authorization allowing the brand to transform the seized goods. The conversion involves structural modifications that eliminate any elements linking the products to counterfeiting, ensuring that they pose no risk to either the brand or consumers. Once completed, the resulting products are delivered in accordance with the instructions of the competent court.

Throughout the implementation of this initiative, we worked closely with the beneficiary foundation, considering its specific needs and adapting the transformation of the goods to ensure that the final products are genuinely useful and aligned with their social purpose.

This experience demonstrated that the transformation of seized goods is a viable and successful alternative, allowing compliance with applicable legal standards while simultaneously generating a positive impact on the community. Participation by adidas, which assumed full responsibility for the process -from product collection and treatment to final conversion- was decisive for its implementation.

Although this is a relatively recent practice, so far applied exclusively to clothing, courts in several jurisdictions across the country have already endorsed it, recognizing it as a useful, sustainable, and socially responsible alternative to product destruction.