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Birkenstock Vs. The Law: Can Sandals Be Art?

Birkenstock sandals are an undisputed icon—embraced by counterculture movements, medical professionals, and fashionistas alike. But are they art? The German Federal Court of Justice doesn’t think so.

The Legal Battle Over Birkenstock’s Design

On February 20, Germany’s highest civil court ruled that Birkenstock’s signature sandals, while distinctive, do not qualify as art and are therefore not protected by copyright. The case, brought by the shoemaker against three competitors—including German retailer Tchibo—aimed to block the sale of similar wide-strapped, big-buckle sandals. Birkenstock claimed its designs were “copyright-protected works of applied art,” deserving of stronger intellectual property protection than ordinary consumer goods.

However, the court disagreed, concluding that functionality and craftsmanship outweighed artistic merit in this instance.

The Design Vs. Art Debate

Under German law, copyright protection extends 70 years after the creator’s death, while design protection lasts only 25 years from the product’s launch. With some of Birkenstock’s original designs dating back to the 1970s, many had already lost design protection. The company’s legal team sought to classify them as art, arguing their “iconic design” warranted extended copyright safeguards.

However, the court determined that products influenced by technical requirements and functional constraints do not meet the threshold for copyright protection. “For a work of applied art to be copyright-protected, it must reveal a distinct level of individuality beyond mere utility,” the ruling stated.

A Legacy Beyond The Courtroom

Birkenstock’s legal setback comes as the brand continues to expand its reach. Once a favorite among hippies and healthcare professionals, the brand experienced a pop culture renaissance following Margot Robbie’s pink Birkenstock cameo in the 2023 blockbuster Barbie.

Founded in 1774 and run by the Birkenstock family for six generations, the company transitioned to new ownership in 2021 when U.S. private equity firm L Catterton—backed by French billionaire Bernard Arnault’s luxury empire LVMH—acquired a majority stake. Birkenstock went public in 2023, cementing its status as both a heritage brand and a lucrative fashion player.

While Birkenstock’s sandals may not be art in the eyes of the law, their enduring cultural impact is undeniable. Whether they remain a symbol of comfort or a statement of style, their place in fashion history is already secured.

Cyprus Tax Authorities Target Undeclared Digital Earnings

Cyprus is intensifying its scrutiny on undeclared income from digital channels, as a new audit reveals widespread non-compliance among roughly 300 individuals and entities—including several foreign residents. The investigation, spearheaded by advanced social media monitoring, highlights income omissions from platforms like OnlyFans, which surged in prominence during the pandemic as creators monetized their content through paid subscriptions.

Advanced Monitoring Uncovers Significant Gaps

The Cyprus Tax Department’s sophisticated analytical tools uncovered numerous cases where both local and foreign earners failed to report revenue. Instances of income reaching up to €500,000 have been detected, underscoring a critical gap in fiscal reporting as digital transactions continue to grow.

Diverse Professional Sectors Under Scrutiny

The audit did not solely target digital creators; it also extended to diverse sectors including beauticians, taxi drivers, hairdressers, travel agents, and small business owners. Notably, over 50 taxi operators were found to have undeclared income surpassing €100,000—often processed via electronic payments—highlighting a broader trend of non-compliance across various service-driven industries.

EU Directives and Enhanced Transparency Measures

The enforcement framework has been bolstered by EU Directive 2011/16/EU (DAC7), which mandates that digital platforms, since July 2021, submit comprehensive user data—such as identities, tax residences, and annual incomes—directly to national tax authorities. This system, supplemented by the One Stop Shop (OSS) VAT mechanism, is instrumental in closing regulatory loopholes and ensuring cross-border financial transparency.

Expanding Focus to a Broad Range of Digital Platforms

Beyond OnlyFans, authorities are extending their audits to include income generated from YouTube, Twitch, Instagram, and other online marketplaces. By correlating bank records with online activity and spending patterns, regulators are keenly focused on individuals whose lifestyles do not match their reported incomes, ensuring equitable tax compliance across traditional and digital domains.

Implications for the Evolving Online Economy

While OnlyFans is primarily recognized for adult content, its platform also serves a wide range of professionals including musicians, fitness trainers, and artists. This comprehensive local investigation into digital earnings underscores the principle that all income—whether digital or traditional—must be declared under Cypriot law. With formal notices set to be dispatched, and the threat of backdated taxation, fines, and even criminal proceedings looming over persistent offenders, the tax department aims to safeguard fiscal integrity in an increasingly digital economic landscape.

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