Birkenstock, the German footwear brand backed by private equity firm L Catterton, lost a key legal battle as Germany’s highest civil court ruled that its sandals do not qualify as copyrighted works of art. 

The decision allows competitors, including retailer Tchibo, to continue selling similar models, posing a challenge to Birkenstock’s brand protection strategy.

L Catterton, a private equity firm backed by LVMH and billionaire Bernard Arnault, acquired a majority stake in Birkenstock in 2021 as part of its broader strategy to invest in premium consumer brands. Since then, Birkenstock has experienced a surge in demand, fueled by celebrity endorsements and high-profile collaborations. The brand’s pop culture appeal reached new heights in 2023 when Margot Robbie’s pink Birkenstocks appeared in the final scene of the hit movie Barbie.

The Federal Court of Justice dismissed Birkenstock’s lawsuit, stating that its designs, while distinctive, are functional products rather than artistic creations. Under German law, design protection lasts for only 25 years, while copyright protections extend for 70 years after the creator’s death. Birkenstock’s original designs from the 1970s have therefore lost their design protections, prompting the company to seek reclassification as art.

Despite the ruling, Birkenstock’s legal team, led by lawyer Konstantin Wegner, plans to pursue further litigation to strengthen the company’s ability to protect its designs from imitation.