post Thursday March 28, 2013
Renowned fashion designer, Tory Burch, owner of Tory Burch LLC, sued the company's wholesale manufacturer for trademark infringement. The suit argues that Bluebell Accessories Inc has sold similar designs, available in large quantities, through its site, www.bliebellwholesale.com.
While efforts to stop counterfit sales have had little success, the suit, filed in federal court, asks that all manufacture and sale of unauthorized product cease and the product be recalled and destoryed. Tory Burch LLC is also asking for payment of all profits and damages tripled as punishment for the wrongdoing.
According to court papers, the unauthorized reproductions available through the site may cause consumer confusion and could devalue the legitimate Tory Burch designs and products.
Discussion: How does the production of unauthorized pieces affect a business's short and long term profits? How does it impair the brand value? What steps can companies go through to ensure their production companies do not become inadvertent competition?
Source: Bloomberg
Image source: Free Digital Photos
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