Details about Balenciaga's Lawsuit Against Ghesquière Emerges

System Magazine

Back in June it was rumored that Balenciaga was suing its ex-Creative Director, Nicolas Ghesquière over the candid interview Ghesquière gave in System magazine which detailed his dissatisfaction at Balenciaga.  Turns out that rumor is in fact true and Balenciaga lawyers confirmed that the comments made in the interview prompted the fashion house to sue.  The lawsuit also revealed that Ghesquière signed a contract before exiting Balenciaga, agreeing to not to make any comments that would damage the image of the label.

Louis Vuitton Will Not Appeal Fine Over Hermès Stake

Louis Vuitton has decided not to appeal the fine imposed from the AMF (France's equivalent of the Securities Exchange Commission in the U.S.).  The AMF fined LVMH a record €8 million a couple of months ago for failing to disclose a significant amount of Hermès' stock it accumulated by using complex derivatives to avoid detection in the public markets.  While the company initially stated it would appeal the decision, it has now changed coursed and decided to pay the fine and move on. 

LVMH said in a statement, that the decision was to avoid further costs and time dealing with an appeal and to "[ensure] the soundest possible management of its investment in Hermes."  The company also reiterated that it "never breached regulations regarding ownership thresholds or engaged in insider trading or market manipulation."Read the entire statement after the jump.

Michael Kors Sues Costco Over Misleading Ad

Michael Kors Holdings has filed a lawsuit against Costco Wholesale Corp. in New York federal court on July 11th.  The lawsuit stems from an advertisement seen above which MK says falsely advertises MK bags for sale. The ad shows handbags with MK's signature pattern and gold logo.  The problem is, Costco has never been an authorized retailer of the designer.  Further, that MK handbags were never available for sale and MK alleges Costco used MK's handbag images to lure customers into the store.  According to WWD, the ad was distributed via emailed on April 16th to promote a selection of designer handbags for Mother's Day.  

Hermès Sues Louis Vuitton in Commercial Court

Lately, it seems like the two premier luxury brands will never make peace as both have been filing lawsuits against each other.  Now add one more.  In its complaint filed with commercial court in Paris, Hermès accused LVMH of "most important fraud in the history of the French stock market."  Hermès wants the court to undo the transactions that allowed LVMH to secretly build up a large stake in its company. LVMH used a series of equity swaps to purchase shares without having to declare its stake over 5%.

Kate Spade Wins Trademark Dispute Against Saturdays Surf NYC

Photo: Glamour.com

Kate Spade's new diffusion line, Kate Spade Saturday which debuted in the Spring came across resistance and opposition from Saturdays Surf NYC who complained that the name was too similar to its own. Saturdays Surf said the names would cause confusion since the logo fonts are very similar and they are both in the business of selling apparel even though marketed towards different demographics, Saturdays Surf said they planned on starting a women's line at some point.

Kate Spade Saturday is a new global lifestyle brand created to evoke the spirit of Saturday seven days a week and has lower prices compared to Kate Spade New York but contains the same colorful and optimistic vibe. Whereas, Saturdays Surf is a retailer selling surf gear and ready-to-wear accessories for men in SoHo and West Village as well as in Tokyo.

Gucci Appeals Milan Court's Ruling in Guess' Favor

Photo: Gucci

"If at first you don't succeed, try try again."  This seems to be Gucci's motto as it decided to appeal Milan court's dismissal of its infringement claims against Guess this past May.  Gucci requested the decision be overturned and all evidence of "brand infringement and unfair and parasitic competition against Guess be admitted." 

Gucci issued a statement saying:

"The appeal is a necessary action to protect its extraordinary historic wealth of iconic distinctive signs, famous the world and, more generally, to protect the values of creativity and innovation of quality of Made in Italy products.  Gucci, in fact, considers this sentence as potentially dangerous for the protection of the inestimable wealth of intellectual property represented by Made in Italy products."

Louis Vuitton Files Criminal Lawsuit Against Hermès

Photo: Judy Wu

The tension between LVMH and Hermès is here to stay.  Just a few weeks before the French market regulator is expected to decide LVMH's fate for secretly amassing a large stake in Hermès, LVMH decides to file a criminal complaint against an Hermès manager for slander.  The manager's identity has not been disclosed but LVMH is claiming that the manager made implications that LVMH acted fraudulently.  The media has speculated that the lawsuit is against Hermès International's CEO, Patrick Thomas.  

After Four and a Half Years, Versace Wins Counterfeit Lawsuit [UPDATED]

Versace won a lawsuit against Griffith Suisse Luxury Group yesterday after four and a half years of litigation.  The lawsuit was filed over Griffith Suisse Luxury Group selling counterfeit Versace items on eBay from the Phillipines and Australia.  Versace CEO, Gian Giacomo Ferraris told WWD that he was pleased with the ruling and "counterfeit goods not only bring a dilution to the brand, but are connected to organized crime, child labor and harmful working conditions."

Further, in order to combat counterfeits, authentic Versace products now carry a Certilogo code, which allows customers to verify the authenticity of their purchase online. 

Rihanna Sues Topshop for Unauthorized Use of Her Image

UK fast fashion retail giant, Topshop is being sued by Rihanna for $5 million. Topshop is selling a tank top with her image on it (as seen above) and even though Rihanna's team has tried to work out a deal with Arcadia Group, Topshop's owner, in order for them to sell the shirts, negotiations fell apart. Topshop has continued to sell the shirts without her consent forcing Rihanna to hire global law firm Reed Smith L.P to file a claim in London.

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.

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.