Monday, May 6, 2013

Gucci vs. GUESS: Who Won and Who Lost More Than Just the Case

Left: Guess; Right: Gucci

On May 2nd, the Milan Court presiding over the trademark infringement case filed by Gucci against GUESS ruled in Guess' favor essentially agreeing with all of their arguments.  They ruled that GUESS' diamond pattern and floral motifs are common in fashion and further that the popular GUESS Quattro G logo pattern did not infringe on Gucci's interlocking Gs.

This is surprising because one would assume that Gucci had home court advantage in Italy as the birthplace of the brand but not only did the Milan Court reject Gucci's infringement claims, they added insult to injury by cancelling 7 of Gucci's trademark registrations.  The trademarks included 3 Italian trademarks and 4 trademarks for the EU.  The Court reinforced GUESS'  defense that it was never trying to dilute Gucci's brand or confuse consumers that GUESS was Gucci.

In 2012, a New York court ruled in Gucci's favor awarding the Italian luxury label $4.66 million in monetary damages and injunctions which was a fraction of the $221 million that Gucci requested.  Gucci filed similar suits in Paris and Nanjing against GUESS, which are presumably pending.

In light of the decision, Paul Marciano, CEO of GUESS stated, "GUESS intends to continue to vigorously defend its trademark rights . . . [t]he tactics of Gucci are nothing less than bullying. Because of their endless resources, Gucci has been forum shopping all over the world to try and stop GUESS from expanding its successful accessories business. It's fundamentally wrong and unconscionable. There are global trends that Gucci itself follows as anyone does in fashion; they are no different from GUESS in that regard."  Marciano adds, "In my opinion, the 3 year battle in New York and 4 years in Milan was a result of massive and unnecessary litigation that should have been easily resolved with a simple phone call, which Gucci never made."

Gucci is obviously not pleased with the decision and is planning to appeal, calling the decision, "unlawful and parasitic free-riding on Gucci’s trademark and, in general, its brand image."

Read More:
WWD (subscription red'q): Guess Wins Gucci Suit in Italy

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