Fendi lawsuit against Burlington settled

21/10/2010

Luxury goods brand Fendi has settled its damages claims following a lawsuit it brought against Burlington Coat Factory Warehouse Corporation for past sales of Fendi-branded goods.

Burlington, which owns 447 stores across the US, has agreed to pay Fendi $10.05 million for trademark counterfeiting actions.

Fendi originally sued Burlington for sales of counterfeit Fendi branded handbags in 1986. In May, 1987 it was agreed that Burlington would make a payment to Fendi and would not purchase or sell any merchandise bearing the Fendi trademark unless written permission had been received.

In 2004, Fendi sent a cease-and-desist letter to Burlington after it discovered that Burlington was selling Fendi-branded leathergoods that Fendi determined to be counterfeit. Burlington continued the challenged sales and, in January 2006, Fendi filed a new lawsuit against Burlington for violation of trademark and related federal and state laws, and for contempt of the 1987 injunction.

Michael Burke, chairman and CEO of Fendi, said: "The Fendi brand embodies the strength of our heritage and in keeping with our commitment to our brand, our trademarks, and our customers, Fendi takes all appropriate and necessary action to protect our customers against counterfeiting and infringement. We also expect retailers to acknowledge and uphold their responsibility to verify their sources and to sell only authentic goods.

“It's particularly reassuring that the district court made clear in its rulings in this case that the retailer is responsible for making sure that trademarked products sold to the public are authentic, and that the consequences when a retailer sells counterfeit goods are serious."