German footwear brand Birkenstock has lost its legal battle to have its iconic sandals classified as works of art, following a ruling by Germany's highest civil court on Thursday.

The Federal Court of Justice in Karlsruhe dismissed the company's lawsuit which sought to prevent competitors such as German retailer Tchibo from selling similar models of its cork-soled footwear.

"The claims are unfounded because they (the sandals) are not copyright-protected works of applied art," said presiding judge Thomas Koch in his ruling.

Under German law, the distinction between design and art is critical for intellectual property protection. Design items with practical functions receive protection for 25 years, while artworks are copyright-protected for 70 years after the creator's death.

Since shoemaker Karl Birkenstock created his initial designs in the 1970s, some sandals no longer enjoy design protection, prompting the company to seek art classification for stronger legal protections.

Konstantin Wegner, Birkenstock's lawyer, argued the sandals had an "iconic design" and announced further litigation after the decision. "We want to add arguments in these pending proceedings," said Wegner without elaborating.

The company defended its legal action despite the unfavourable ruling. "We want to ensure that copycats can no longer make money at the expense of our brand," said company spokesman Jochen Gutzy.

Founded in 1774, Birkenstock has evolved from orthopaedic footwear to a global fashion phenomenon. The sandals gained renewed attention when Australian actress Margot Robbie wore a pink pair in the final scene of the 2023 hit film "Barbie."

After six generations of family ownership, Birkenstock sold a majority stake to L Catterton, a US private equity firm backed by French billionaire Bernard Arnault and his luxury goods empire LVMH. The company subsequently went public on the New York Stock Exchange in 2023, with a valuation of about $8.6 billion (£7.08 billion).

The court's ruling marks the conclusion of a legal saga that began in May 2023, with Birkenstock vowing to continue its "fight against copycats with undiminished vigour" by exhausting "all legal means to defend itself against imitations."

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