Watch counterfeiting – The Rolex lawyer’s pleading (Part 7)

It is 4.15pm when the hearing resumes. We have had a glimpse of the personality of Florian R., who stands accused of being an all-round forger. Yet he seems keen to cooperate, even though he regularly leads the Court from one lie to the next, something he later admits once the public prosecution (Parquet) confronts him with the evidence. It is not uncommon to hear him say, “Yes, but there I lied to you…”, which brings a smile to the whole Court and earns him a certain sympathy.

After waiting through the whole first part of the day’s hearing for a screwdriver to finally open the sealed exhibit and dismantle the famous pneumatic press that Florian R. claims hides €21,000 in €50 notes inside its base, the presiding judge is able to order the procedure. And it is none other than Florian R. himself who takes it on. This famous press turns out to be a manual, air-operated press used to test the water-resistance of watches, an item he kept at home, in his bedroom. The sum of €20,850 is discovered. As the whole set is being placed back under seal, the presiding judge asks Florian R.: “What would you like this exhibit to be called? A gift from the Genèverie, or a courtroom surprise?” “Gift is better,” replies Florian R.

This is proof that the atmosphere is far less tense than when Julien V. is present. One can even sense a form of glee from Florian R. at being able to speak from the stand. He enjoys this exercise and shows a real talent for performing in public.

It is finally time to give the floor to the civil parties for their pleadings. It is Maître Lachasinski, representing the two Rolex entities that are parties to the trial, who begins his long address. Selected extracts:

“As for the Genèverie, the counterfeiting is not disputed. But it should be understood that counterfeiting is not a minor offence. Four State agencies were mobilised to dismantle this network. The Rolex companies have been working on this case since May 2019. This is a heavy matter for everyone, including for the customers of these counterfeiters.

It started as small-scale counterfeiting, then it grew in scale. What’s more, they drew in a new breed of offenders. And behind it all, everything was organised. Each person was a cog in an ecosystem. It is regrettable that there are not more defendants before the Court, because there are co-perpetrators. Julien V. has a dark side. Florian R. is more personable. But these are two faces of counterfeiting. We are asking for an exemplary sanction, but not an arbitrary one.”

“A new Rolex factory is set to open in 2029, at a cost of one billion euros. A Rolex watch takes nine months to produce. It is made up of 500 components. It therefore takes time to build up Rolex’s watch production. This shows that Rolex does not engineer any scarcity.”

“Under the terms of Article L716-4-10 of the Intellectual Property Code (CPI), damages are normally calculated on the basis of lost margin, but we are requesting restitutionary relief. We are therefore asking for the counterfeiters to be stripped of any profits they may have made from this. This is to prevent the sale from remaining profitable. This is the most objective approach possible. And the Court’s decision will set an example and will act as a deterrent for future cases.”

“In terms of the profits made, it was found that we were dealing with counterfeiting on an industrial scale. Julien V. has “certified” resellers, a catalogue, and even a showroom. It is very well done, it is fine workmanship. One could even speak of mimicry of a genuine watchmaking Manufacture. In fact, one can genuinely speak of damage to the brand’s image. Give him six more months and he would have sponsored a cultural event!

‘Money isn’t the essential thing, what matters is customer satisfaction,’ Julien V. used to say in his communications. One could say we share the same values…”

“We are talking about 12,000 watches over the period. We believe we are falling short of the truth. The consensus is that 80% of the counterfeits are Rolex. For this reason we are seeking €5,380,000 from Julien V., on a confiscatory basis. This represents 80% of the €7 million he mentioned, that is €3 million plus €4 million in his wallet.”

“As for Mr Florian R., we have statements that keep shifting. Why sell doublettes for €1,500 when others sell them for €15,000? Then, if we take the Customs figures, assuming 1 to 5% of parcels are checked, we arrive at a calculation that brings us to €2 million.”

“Regarding the damage to its image, it should be noted that Rolex’s reputation is built on prestige and the passing on of values. It is not about bling. Rolex represents 120 years of marketing. And it is those 120 years of messaging that are being corrupted by the actions of these counterfeiters.”

“And then we must talk about the scourge of the internet. Because online, the buyer loses their bearings and their usual consumer instincts. In our case, we are talking about good-quality counterfeits, whose serial number is genuine when it comes to doublettes. Our forgers even went as far as fitting authentic movements into fake watches. And they wrapped it all up by remaking the boxes, the little booklets that go with them, and even delivering the whole lot with a fake invoice from a genuine retailer. And, again to better deceive the customer, they offered to provide a fake expert appraisal certificate from a Master Watchmaker. And when this fake watch, accompanied by all these documents, is sold for €12,000, the customer sees that price as a form of guarantee of authenticity. There is a deception carried out through the sale price.”

“Then, this man or woman who unknowingly bought this fake watch ends up in a Rolex boutique for a service or a repair. And at that moment they are told that their watch is a counterfeit. Can you imagine the shock? Because this touches on something deeply personal, and it marks the start of the counterfeiting victim’s ordeal. One could downplay it by saying it’s only a watch and nothing serious, but we do not make light of people’s feelings. And there we see disappointment, anger and shame follow one another. And this anger from this traumatic experience ends up being redirected at the messenger of this bad news: the Rolex watchmaker! We must not allow that! That is why Rolex SA and Rolex France are each seeking €2 million in damages, jointly and severally against each of the two defendants.”

The presiding judge asks Maître Lachasinski: “What is Rolex’s profit margin?” The lawyer replies: “That is precisely the method of calculation we chose not to use. We are not here to say ‘let’s take them for everything’, so we prefer to base our calculation on the confiscation of profits.”

In the next article we will hear the pleadings of the lawyer for Patek Philippe / Chanel / Audemars Piguet / Richard Mille / Omega, the lawyer for Hublot / Fred Paris, and Customs will present their submissions. To be continued on Passion Horlogère.

Frequently asked questions