Fashion Law Journal
Legal concerns inevitably arise in each firm at some point, and fashion, despite its dazzling veneer, is no different.
Because the financial destiny of a business like J. Crew, Puma, or Chanel might rely on something as ephemeral as a stripe or the “goodwill” of a name, players in an industry worth well over a trillion dollars maybe even more litigious than one might imagine.
Although buying patterns and industry intrigues are changing dramatically in retail and fashion, this hasn’t stopped firms from filing lawsuits that might have far-reaching implications for anything from trademarks to financial loans.
Some Biggest Lawsuits Cases in the Fashion Industry are as follows:
- Case:Forever 21 Gucci
Conflict: Stripes
Forever 21 urged a federal judge to also determine that it is not infringing on any of Gucci’s many stripe trademarks, but also to invalidate the marks completely, as it was tired of waiting to be served with yet another case. Unsurprisingly, Gucci was not pleased with the case, claiming that its grosgrain stripes, or “webbing,” are “essential to the company image” and that Forever 21’s activities were “reprehensible exploitation” and a clear infringement of its rights.
Should the court rule in favor of Forever 21, it would jeopardize protected design components worldwide, particularly for Adidas, which is a staunch defender of its own branded stripe designs. If Gucci prevails, the company’s stripe trademarks will enjoy even more backing.
- Case:Puma vs. Forever 21
Conflict: Rihanna’s footwear designs
Puma says that Forever 21 is selling blatant duplicates of various shoe styles and the athletic wear brand is still trying to get the claimed copies taken off the market, even though a federal judge has twice denied the request. Except for one covering design, Puma’s action against the chain has been unsuccessful, and the same court has dismissed all of its infringement claims. Forever 21 claims that the Rihanna designs in question aren’t unique enough.
There aren’t many broad judgments on design infringement in the fashion industry. If a judge finds Forever 21 copied Puma’s concepts, it might at the very least discourage the fast-fashion shop from copying others’ designs and signal to others that courts are treating design lawsuits seriously.
- Case:Adidas vs. Skechers
Conflict: Stan Smiths and stripes
Adidas dislikes a “Skecherized” copy of its famous white Stan Johnson sneaker, as well as the similarities between its Ultra Boost and Skechers’ Half Volley shoe. Skechers has effectively acknowledged copying based on directions from the company’s CEO but has instead decided to contend that its copying was legal, according to a judge.
If the court rules against Skechers, the days of designers and business executives (as in this case) creating their version of a successful product may be numbered. Otherwise, it’ll be business as usual.
- Case:Lenders vs. J. Crew
Conflict: Last-ditch loan
After being sued for leveraging its valuable intellectual property to support a new loan, Crew reached an agreement with the majority of its term-loan lenders, but a few dissident financial institutions are still asking a New York judge to prevent the move, that would virtually ruin the ailing store.
If a judge rules that J. Crew’s financial maneuvering violated the terms of its $1.5 billion term loan, the company will be placed in default and will require an emergency financial lifeline to avoid bankruptcy. If indeed the new loan, which was accepted by the vast majority of its lenders, is approved, it could inspire other businesses to think of new ways to fund themselves.
Conflict: Counterfeits
Chanel, the arbiter of luxury, and Adidas have filed separate lawsuits demanding $249 million in penalties from hundreds of online sites and Amazon shop operators for selling products with phony logos and copyrights.
