What's interesting to note is that behind the fanfare lies an extraordinary sequence of intellectual property defeats, strategic repositioning, and ultimately, an unlikely yet exciting partnership that converted legal susceptibility into a masterclass commercial opportunity. This comes as a case study, through the lens of trademark law, trade dress doctrine, and the strategic calculus that IP practitioners and brand managers must increasingly consider when conventional legal protection fails.

The Royal Oak, over five decades, became one of the most imitated designs in horology. Its octagonal silhouette is arguably as recognisable as any logo in the luxury goods space. Yet brand recognition, however profound, is not the same as legal protection.

The Trademark Defeats — Japan (2024) and the United States (2025)

The Japanese Proceedings

AP sought registration of a mark comprising the Royal Oak's distinctive face with the Japan Patent Office (hereinafter referred to as “the JPO”), including the tapisserie-patterned dial, the octagonal bezel, the eight hexagonal screws, the specific case geometry, and the lug configuration. The JPO refused the application, concluding that the shape lacked inherent distinctiveness and that AP had failed to establish acquired distinctiveness or secondary meaning in the Japanese market.

AP thereafter filed an appeal with the JPO Appeals Board, which only upheld the refusal granted in June of 2023, while presenting photographic evidence of various competing watches featuring similar octagonal bezels and screw arrangements, a definitive proof that these design elements were not exclusive to AP.

The matter was soon escalated by AP to Japan's IP High Court and the court dismissed the appeal comprehensively. The court's reasoning was instructive on two levels. First, the court held that the Royal Oak lacked inherent distinctiveness because its key features, the octagonal bezel, screws, and tapisserie dial, were all common functional or aesthetic watch design elements, with no single feature sufficiently novel to merit protection. Second, it found no acquired distinctiveness, as AP's substantial sales and advertising figures were not shown to be specifically attributable to the design configuration in question.

The United States Proceedings

The United States followed a near-identical legal trajectory. AP sought registration of the Royal Oak's three-dimensional design before the USPTO, but the application was refused on grounds of functionality and lack of acquired distinctiveness. In January 2025, the TTAB upheld the refusal, finding the design elements either functional or too common within the industry to serve as source identifiers. As a result, AP's ability to prevent third parties from producing Royal Oak-inspired designs remains significantly limited.

The Strategic Intelligence of the "Royal Pop"

At its core, the AP × Swatch Royal Pop collaboration represents a textbook application of what might be called controlled dilution as a defensive IP strategy. The logic can be reconstructed as follows:

First, the loss of trademark protection increases the risk of commoditisation by lower-end manufacturers producing Royal Oak-inspired designs.

Second, AP's collaboration with Swatch helps counter that risk by populating the accessible market with authorised products incorporating the Royal Oak's signature design language, thereby reinforcing the design's association with AP.

Third, the collaboration creates new protectable IP through the "ROYAL POP" branding, distinctive colourways, and novel product formats.

Finally, by introducing an authorised interpretation of the Royal Oak aesthetic, AP establishes a benchmark against which future imitations are likely to be judged.

Brand Dilution — The Counterargument and Its Limits

The argument that a watch brand whose entry-level products quickly reach six figures derives much of its pricing power from exclusivity. By attaching its design language to a $400 product, however loosely, AP risks corroding the aspirational distance that justifies its price points. The dilemma remains that if a person can own a watch that looks like a Royal Oak for a fraction of its price, why save for a $35,000 original?

This argument is however not without merit, but it underestimates two major dynamics. The first being that the Royal Pop explicitly remains a pocket watch, and not a wristwatch, a format that AP has positioned as a distinct, whimsical, and accessible expression, clearly differentiated from the Royal Oak's horological gravitas. The second, and more fundamental, is that this dilution argument was already moot before the Royal Pop launched. The loss of trade dress protection meant that third-party manufacturers could, and almost certainly would, produce wristwatch imitations far more directly damaging to AP's positioning than any authorised collaboration.

Conclusion: The Lessons for IP Strategy

The AP × Swatch Royal Pop is a case study in the evolving relationship between intellectual property law, brand strategy, and commercial creativity. It demonstrates, first, that IP protection is not static, even the most iconic designs can fail the distinctiveness standard if competitors have historically replicated their elements. It demonstrates, second, that IP adversity need not be purely defensive and that with foresight, a brand can convert a legal setback into the rationale for a commercial strategy that generates new protectable rights. And it demonstrates, third, that collaboration, even between brands separated by vast price differentials, can be a legitimate tool of IP management, not merely of marketing.

For IP practitioners advising luxury brands, the Royal Pop episode offers a clear message– the portfolio of rights that protects a famous design is never a single instrument. When one instrument fails, the strategic response should not be limited to appeal. Sometimes, the most sophisticated legal move is to license.

Authors:

Mrs. Ishikaa Seth (Associate) at Kochhar & Co

Mr Sahil Arora ( Principal Associate) at Kochhar & Co

Amit Kumar Panigrahi, Supervising Partner at Kochhar & Co

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