One of the biggest names in the fashion industry, Fendi, has apparently reached a settlement for $2.5 million after filing a counterfeit allegation case against Filene’s Basement. As per the case, Fendi had accused Filene’s Basement of selling counterfeit Fendi products. This allegation was brought up by Fendi North America and other Fendi unites in December 2006. As per the terms of settlement, not only Filene’s Basement has paid the $2.5 million, but has also agreed not to sell any Fendi products, without the express written authorization from the company.
The terms of the settlement also states that, Retail Ventures Inc. (RVI) will be required to hand over all Fendi products back to the company and will not be authorized to sell any Fendi branded products. This isn’t the first that Fendi went to the courts with counterfeiting allegations, as the company had recently won a similar case against Burlington Coat Factory Warehouse, where in Fendi the accused the defendant of willfully producing counterfeit Fendi products. The verdict in this case was awarded on the favor of Fendi and gave the company a compensation of $4.7 million.
According to Michael Burke (CEO, Fendi),
“Fendi takes very seriously the responsibility we have to protect our brand, our trademarks and our customers. Retailers must recognize and uphold their obligation to verify their sourcing and sell only authentic goods. The Filene’s/RVI settlement ensures that the burden of ascertaining authenticity rests squarely where it should–with the retailer. The resolution of this case was complicated, of course, by the Filene’s bankruptcy filing, but Fendi successfully persevered. We will continue to take action to protect our intellectual property around the world.”
Via Business Week & Market Watch