Advertising with "Hollywood" lettering – permissible?

Hollywood is the centre of the U.S. film industry. Above the city of Los Angeles, in the Hollywood Hills, is the world-famous lettering "HOLLYWOOD". May this lettering be used in advertising, or does competition law place limits on it?

A German company operates a "Hollywood agency" which, among other things, recruits actors, extras, models, singers and musicians worldwide.

To promote its company, it made use of the 'Hollywood sign'.

The Hollywood Chamber of Commerce, which promotes the commercial, cultural and municipal interests of Hollywood, a district of Los Angeles, and which is responsible for the restoration and licensing of the famous 'Hollywood sign', considers this to be anti-competitive and issued a warning notice to the advertising company.

Finally, a lawsuit was brought against the 'Hollywood Agency' and its managing director for payment of warning costs and damages.

The court's decision on the Hollywood lettering

The action was successful. The Regional Court (LG) Munich I affirmed by judgment of 19.05.2016 – Az. 17 HK O 1061/15 an act of infringement contrary to competition law.

The court justified its decision on the grounds that advertising using the "Hollywood mark" misled the relevant public about the agency's business origin and exploited the reputation of the designation Hollywood. The relevant circles of trade would assume that the agency was entitled to use this mark or that it was an agency operated by the proprietor of the mark, and they would unjustifiably transfer the reputation of the designation Hollywood to the agency's services and offerings.

In addition to the company itself, its managing director was also convicted. The managing director caused the act himself and is therefore personally liable.

Conclusion

A performance result such as the "Hollywood lettering" is protected under competition law. Enterprises should therefore not use such performance results without authorization.