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Rodaindustria Ibérica found guilty of trademark law violation

SPAIN – Due to trademark violations, the Court of Appeal in Madrid has ruled that Rodaindustria Ibérica S.A. must pay damage fines of € 7.6 million to Schaeffler Iberia. The judgement is the result of counterfeit and manipulated FAG rolling bearings, as well as rolling bearings procured from non-EU countries, being sold in Spain.

In addition to confirming the trademark law violation that was recognized by the court of first instance, the Court of Appeal also increased the fine from € 4,543.05 to € 7.6 million due to the severe damage to Schaeffler’s reputation, the manner in which the offense took place, and the loss of profit. This is another significant step in the fight against brand and product piracy for Schaeffler Iberia and for the company as a whole.

The violation of trademark law was fundamentally recognized, and Rodaindustria Ibérica S.A. was banned from selling FAG rolling bearings. The distributor also had to ensure that the products it had already sold were withdrawn from the market. Cuatrecasas, Gonçalves Pereira – the legal firm that represented Schaeffler Iberia – then recommended that an appeal be launched on points of law.

Former partners
Rodaindustria Ibérica S.A. and Schaeffler Iberia worked together as partners for many years. The distributor was even certified as a sales partner. Schaeffler ended the partnership and terminated its contract with Rodaindustria Ibérica S.A. in 2001, immediately after information about the company’s dubious business transactions came to light. However, the distributor continued to sell FAG rolling bearings in Spain – selling them below the market price or procuring them from dubious sources. This meant that manipulated and counterfeited products were finding their way onto the market and doing significant damage to the FAG brand’s reputation