The federal court in Los Angeles recently accepted a blockbuster trademark infringement lawsuit. Coach, the world's leading luxury handbag brand, and its parent company Tapestry, have taken the Old Navy division of clothing retail giant Gap to court for illegally selling T-shirts with the "Coach" trademark. The move has attracted a lot of attention in both the fashion and legal circles.
Coach and its parent company made it clear in their lawsuit filings that Gap never received authorization to sell T-shirts with the "Coach" trademark, according to a detailed report by Reuters on Thursday. They stressed that this unauthorized sales had caused "irreparable harm" to the Coach brand. Because the "Coach" trademark is not only a simple brand identity, but also represents a "unique blend of fashion, craftsmanship, style and function", this brand value is reflected in the "luxury lifestyle items" it sells, and it is not just a simple T-shirt.
Coach expressed its strong dissatisfaction and condemnation of the infringement and asked the court to order the destruction of all unsold inventory of infringing T-shirts. At the same time, they seek damages for trademark infringement, passing off, and violations of California's unfair competition laws. The exact amount of compensation has not yet been disclosed, but it is expected to be a significant amount.
Gap Inc. has not immediately responded to requests for comment on the incident. However, this lawsuit has undoubtedly brought a considerable impact on Gap's reputation and market position.
It is worth mentioning that Tapestry and Coach have performed well recently. According to the latest financial report, Tapestry's revenue increased by 3% in the latest quarter, and the revenue of the Coach brand increased by 6%. This shows that despite the uncertainty and various challenges of the global economy, the Coach brand still maintains strong market competitiveness and brand influence.
In addition, Tapestry acquired Capri last year for $57 per share in cash, further expanding its fashion empire. The agreement enables the three brands – Coach, Kate Spade and Stuart Weitzman – to form a strong alliance with well-known brands such as Versace, Jimmy Choo and Michael Kors. This series of strategic initiatives has undoubtedly laid a solid foundation for the future growth of Tapestry and Coach.
Source: Finance
Editor: Sharon