When one yacht resembles another – intellectual property infringements 

The Italian shipbuilding group (with strong Chinese capital involvement) has been at the center of an international scandal for several months. Italian prosecutors are investigating allegations of industrial espionage after alleged wiretapping devices were found in the office of one of the Chinese directors of the group. 

This is one example of how brutal the competition for competitive edges is in the yacht industry, which is worth tens of billions of dollars. Intellectual property is also a tangible asset here. When a project can generate millions of euros in profit, the temptation to copy the competition’s solutions grows. 

In this publication, we will discuss the most common types of infringements and ways to protect against them. 

Design that costs 

Copying external designs is a major issue in the yacht industry. Modern yachts are often works of art. The hull design has not only functional but also aesthetic importance. However, the boundary between inspiration and plagiarism is often difficult to define. 

Design disputes typically concern distinctive elements – the hull line, the railing line, the shape of windows, the proportions of the superstructure, or the bow profile. Shipyards invest hundreds of thousands of euros in design work, only to watch as competitors quickly introduce “similar” models to the market. Motor yacht models in the 15-30 meter range are particularly vulnerable to copying – this is a segment where design plays a crucial role in sales success. Italian shipyards have been waging a more or less open war for years about whose design was “first”. 

Trademark wars 

The second most common type in infringement is unauthorized use of trademarks. In the yacht industry, branding is of enormous importance. Buying a yacht is often a prestige decision, where the manufacturer’s name is just as important as the quality of the product. Problems arise especially in Asian markets, where local manufacturers treat European trademarks “freely”. This concerns not only shipyard names but also specific yacht model designations and characteristic logos placed on the hull. 

Shipyards must also protect themselves from counterfeit spare parts. Equipment sold under premium brands may not necessarily be genuine. Importantly, this is not just a financial issue, but also a safety threat! 

Theft of know-how 

Another problem is the unlawful use of technical solutions and know-how. Modern yachts are technologically advanced floating units made from innovative composite materials, equipped with advanced navigation systems, or featuring cutting-edge multimedia solutions.  

Particularly vulnerable are: 

• innovative hull construction solutions,
• smart yacht management systems,
• propulsion system solutions,
• materials and composite production technologies. 

The problem is exacerbated by the fact that the industry is relatively small – specialists often “move” between competing shipyards, taking knowledge about production processes and technical solutions with them and introducing them to competitors. 

Legal and financial consequences 

Intellectual property violations in the yacht industry can cost a fortune. Courts can award high damages for losses caused by copying designs or counterfeiting brands. 

Affected shipyards may demand: 

• cease and desist from production and sales of infringing products,
• compensation for lost profits,
• compensation for damage to their reputation. 

In particularly egregious cases, when there is systematic copying of competitor’s product portfolio, damages can amount to millions of euros. 

How to protect yourself 

Effective protection of intellectual property in the yacht industry requires a comprehensive strategy. Actions that can be taken as part of this strategy include: 

Registration of protective rights – industrial designs, trademarks, and patents should be registered not only in Europe but also in Asian and American markets. The cost of global registration is a fraction of potential losses. 

Market monitoring – regularly tracking the activities of competitors and new products being introduced to the market allows for quick detection of potential infringements. The faster we react, the more effective the legal action will be. 

Securing know-how – confidentiality clauses in employee contracts, restricting access to sensitive information, and properly securing technical documentation are essential to protecting against know-how theft. 

Cooperation with customs authorities – registering trademarks with customs authorities facilitates the detection and seizure of counterfeit products at borders. 

The future of IP protection in yachting 

The yachting industry is currently experiencing innovations. Electric drives, smart management systems, next-generation composite materials – all of this will require even more effective protection of intellectual property. 

Shipyards that invest in a comprehensive IP protection strategy today will have a competitive advantage in the coming years. The costs of such a strategy are usually a fraction of the marketing budget, but the benefits can be crucial for survival in a competitive market. 

In a world where one successful design can bring enormous profits, intellectual property protection is no longer optional – it is a condition of success. 

If this topic is of interest to you, we invite you to read our other publications on intellectual property: 

• intellectual property protection 
• objections before the patent office – how to defend your yacht from plagiarism
• yacht keel and copyright – an unusual pair