How Ferrari protects its luxury image

AI version of a customised Ferrari

Luxury brands rely upon exclusivity and a sense of superiority.

Buyers of a luxury product invest not only in a product but also in the status and prestige associated with a particular brand. Obviously, image protection is of the utmost importance for luxury brands, prompting them to go to great lengths to defend their intellectual property rights. That is not all, however, as potential buyers must also comply with the brand’s rules of conduct. 

Take Ferrari. Reputation is crucial for the Italian sports car brand renowned for its speed, high performance and exclusivity. Therefore, buyers of the brand must adhere to its strict code of conduct. No ostentatious, vulgar or self-promotional is allowed. No exceptions are made – even, or maybe especially − for celebrities who are constantly in the spotlight, including pop icon Justin Bieber.

The Canadian singer had his Ferrari personalised by West Coast Customs, a company that is famous for the extravagant customization of vehicles, in the MTV tv series 'Pimp My Ride'. A clause in the purchase contract of Ferrari does allow buyers to personalise their car, but only at an approved automobile repair shop. West Coast Customs is not on the list. To make matters worse, Bieber tried to sell his 458 Italia at a charity auction, even though buyers are not allowed to sell their car for a year following purchase without Ferrari’s permission.

These actions led to Justin Bieber being blacklisted by Ferrari. He is far from alone, however, as the Ferrari black list also includes names as 50 Cent, Nicolas Cage and Kim Kardashian. Ferrari’s position is clear. Owning a Ferrari is more than a mere financial transaction, as it also involves lifestyle and brand representation. Ferrari's selective approach to ownership underlines its commitment to maintaining an exclusive image, reserving the privilege of owning a Ferrari to those who embody the brand's ideals of class and discretion.

This all goes to show that maintaining brand exclusivity involves more than trademark protection. To protect your brand from dilution or harm, it is important to enforce strict ownership rules.

Author: Erwin Haüer

Bio: Erwin is a trademark attorney and, as the managing partner, in charge of IT and Information Management. He works extensively with startups and scale-ups, while his clientele also includes numerous multinational corporations. Erwin possesses a sharp wit and a keen eye for remarkable trademark news and curious brand infringements.