Appeals Court Denies Macy's Injunction Against J.C. Penney

Photo: David Handschuh/Bloomberg

Macy's request for a preliminary injunction against J.C. Penney has been denied by the  Appellate Court, giving JCP the right to continuing selling items designed by Martha Stewart Living Omnimedia ("MSLO").  These items will be sold under the "JCP Everyday" label and cannot bear or be marketed under Martha Stewart's name.  Macy's requested the preliminary injunction in order to stop JCP from selling these products while the two companies litigate the claim in New York State Supreme Court before Judge Oing.  The New York State Supreme Court's Appellate Division decision upholds Judge Oing's April 12th ruling in favor of JCP which will allow the company to avoid a estimated $100 million loss.  

Bangladesh Factory Collaspe Kills Hundreds; Owner Arrested

A.M. Ahad/Associated Press

Last Wednesday, Rana Plaza, an eight story building housing several factories collapsed in what is one of the deadliest in recent history for Bangladesh's garment industry.  At least 362 people have died from the collapse and still counting.  The building was built without a permit and the day before the collapse, an inspection team discovered large cracks within the structure.  First floor shops closed immediately but the owners of garment businesses on the higher floors still ordered workers to report for work the next day.  

Former Victoria's Secret Model, Kylie Bisutti, Causes Controversy

Photo: Wire Image

Although I'm not personally a big fan of the NY Post for its sensationalist news reporting, I admit I loved reading the article they wrote on Kylie Bisutti, a former Victoria's Secret model. The article contains an excerpt of her book, I'm No Angel: From Victoria's Secret Model to Role Model and an interview with Bisutti that goes into the horrors of the modeling industry and her struggle between what the modeling world wanted of her and what God wanted of her as a Christian.  

Petition Started to Stop Galliano From Teaching at Parsons

John Galliano who is currently "unemployed" and still in the midst of a lawsuit with his former employers Galliano and Dior (the companies) stemming from anti-Semitic remarks made in a Paris cafe last year was recently taken on by Parson, a top design school, to teach a three day workshop called, "Show Me Emotion". 

Parsons said the workshop "will be a dynamic and intimate opportunity for our students to learn from an immensely talented designer" and then goes on to address his past behavior saying, "We believe that over the past two years Galliano has demonstrated a serious intent to make amends for his past actions."

Attention Pregnant Ladies: Zara Adds Maternity Line!!

Zara.com, the website I spend all my down time at work scrolling and obsessing through, has quietly launched a maternity collection online under the Women's section "Mum".  It features skinny jeans with elastic waist and over-sized tops for a very relaxed but trendy and comfortable look.  Not all of the pictures feature the baby bump and were probably just taken from other sections but are still very wearable for pregnant women.  I have no doubt that these will be popular.  My only hope is that Zara will continue to expand and add looks to the maternity section since there aren't many fashionable yet affordable clothing for pregnant women who still want to be stylish while sporting a baby bump. After all, we can't all afford dress like Kate Middleton and Kim Kardashian! 

We All Have to Pay Online Sales Taxes (& What Ebay Thinks About That)

Remember the good ol' days when you could buy something from Amazon and have it shipped to you faster than you'd have time to make it to a store to purchase it yourself and with no sales tax (AKA the "Amazon loophole)? Well, you can still have it shipped to you faster than you'd have time to make it to a store but now you'll just have to pay sales tax. Those days are a distant memory for Amazon as they now have agreed to charge sales tax and soon many online retailers will be forced to do the same.  

Ralph Lauren Settles Foreign Bribery Case After Self-Reporting Violation

Ralph Lauren Corp. settled charges from the Securities Exchange Commission ("SEC") and U.S. Department of Justice that it had paid bribes to foreign customs officials in Argentina in violation of the Foreign Corrupt Practices Act ("FCPA").  The 1977 FCPA prohibits U.S. companies and companies listed on U.S. stock exchanges from bribing foreign officials. The settlement amount of $1.6 million will end investigations over the bribery which is said to have spanned four years from 2005 to 2009 made by a RL subsidiary to custom officials in order to obtain entry of RL's products into the country without necessary paperwork, to avoid inspections of prohibited products and inspections by customs officials.

Body Suit: Yummie Tummie Sues Spanx for Patent Infringement

On April 2nd, Times Three Clothier L.L.C., the maker of Yummie Tummie shapewear officially sued Spanx for patent infringement in the U.S. District Court for the Southern District in New York.  Yummie Tummie's complaint states that Spanx’s "Total Taming Tank," "Top This Tank" and "Top This Cami" are violating its patents and that Spanx, "intends to continue its willful and intentional infringement of Yummie Tummie’s design patents asserted herein." Yummie Tummie requests the Court to grant a sales injunction, unspecified damages, punitive damages and disgorgement of profits. 

J.C. Penney Permitted to Sell Martha Stewart Products, Macy's Appeals (Update!)

Last Friday, Judge Oing gave J.C. Penney the green light to temporary sell Martha Stewart designed products in order to avoid a estimated $100 million loss.  The products will be sold under the JCP Everyday label until the a final decision is rendered.  Had Judge Oing not allowed JCP to sell the products, JCP would be forced to find another way to dispose of the products and be faced with aisles of empty shelves in the home department.  However, JCP is still not allowed to sell Martha Stewart branded house ware products which it has not yet produced anyways.  

Martha Stewart Wins Round One Against Macy's

Martha Stewart's company, Martha Stewart Living Omnimedia won one claim against Macy's when Judge Oing ruled that MSLO did not violate the confidentiality provision of its licensing agreement.  Macy's claimed the agreement was breached when MSLO shared certain details of the contract with J.C. Penney.  The Judge stated that MSLO "had a legal obligation to provide the documents to JCPenney," because JCP was making a substantial investment in the company and both are public companies.  Further, MSLO did take measures to limit the disclosure of information to only those that were necessary.  

Macy's & J.C. Penney Trial Resumes as JCP CEO is Forced Out

The month-long court ordered mediation for Macy's, J.C. Penney ("JCP") and Martha Stewart Living Omnimedia ("MSLO") did not come to any resolution so yesterday, the parties headed back to court to resume the trial over rights to sell Martha Stewart branded items.  (Recap? read here).  

Macy's wasted no time letting Judge Oing know that it it believed JCP had violated the injunction as it caught them selling Martha Stewart branded products that Macy's claimed it had exclusive rights to including plastic champagne flutes and acrylic pitchers.  Macy's lawyers requested that the judge block these sales.  MSLO attorney stressed that since these were disposable items, they did not fall into the exclusive categories as Macy's claims.  Judge Oing granted JCP and MSLO some time to look into Macy's accusations and get back to him. 

Buyer Beware! It May Soon Be a Crime to Buy Fakes in NY!

Manhattan councilwoman Margaret Chin is pushing for a bill that will make it illegal for buyers to buy counterfeit merchandise. Chin had tried to pass the legislation back in 2011 but was stalled and is now trying to revive the legislation.  Her law would make it a misdemeanor to buy fakes fining buyers up to $1,000 for purchasing fakes and imprisonment for up to one year.

It is already a federal crime to sell counterfeit merchandise under U.S. trademark law known as the Lanham Act (15 U.S.C § 1051), which prohibits trademark infringment and dilution.  The Trademark Counterfeiting Act of 1984 ("TCA") (18 U.S.C.§ 2320) strengthened the laws against counterfeiting by making it a federal offense to violate the Lanham Act.  The TCA made it illegal for any person to intentionally or attempt to traffic goods or services and knowingly use a counterfeit trademark when trafficking those goods or services.  Trafficking include selling or transferring for money.  Violations of the TCA includes penalties of up to 5 years imprisonment and $250,000 in fines for an individual or $1 million in fines for an entity.  There are also civil remedies available to a trademark owner.

The Verdict: Dolce & Gabbana Tax Evasion Case

Dolce & Gabbana's tax evasion case has finally come to an end after almost 4 years of litigation. Italy's Tax Commission came down with a verdict on Saturday fining the Italian fashion house 343.4 million euros (or $440 million) plus interest for tax fraud.  While a lower court initially cleared the design duo of the evasion charges, Italy's highest court overturned that acquittal in November 2011 and ordered that the case be sent back to trial.  A quick recap can be found here.

After the verdict was rendered, Mr. Gabbana posted a rant on Twitter stating, "To be accused of something untrue is not a beautiful thing. But in the end who cares, we will all finish up six feet under." He further added, "I am interested in making clothes and that's all. They can do and say what they want."  Many fans voice their support in favor of Dolce & Gabbana which Mr. Gabbana has been generously retweeting.

The designers can still potentially avert the fine if they choose to appeal again.

Read More:
NYMag: Dolce & Gabbana Ordered to Cough Up $440 Million
The Telegraph: Stefano Gabbana’s Twitter tirade after tax evasion ruling on sale of D&G