
In 2018, the Italian brand Ermenegildo Zegna acquired 85% of the shares in Thom Browne’s company for a considerable sum of 500 million dollars. This influx of capital and foreign investment boosted the designer’s brand recognition. Thom Browne himself remained the creative director, while holding 15% of the shares. At the same time, the company sought to obtain trademark protection for its logo, which consists of three vertical stripes. These circumstances did not sit well with the German corporation Adidas, which argued that the competition was based on their logo and aimed to attract customers in this way.
The parties engaged in amicable negotiations, but due to the lack of results, Adidas filed a lawsuit against Thom Browne in 2021 for trademark infringement. The lawsuit raised the aforementioned arguments about deliberately misleading consumers by using stripes in its logo. As a result, the German company demanded $7.8 million in damages. The justification stated that the amount consisted of $800,000, which represented the equivalent of royalties and license fees, and the remaining part was the amount that the Thom Browne brand allegedly earned from the sale of products bearing the disputed trademark.
In its response, the defendant explicitly stated that its company does not compete with Adidas due to the different profile of the products offered. Primarily, it was compared that the compression tights offered by the defendant cost over $700, while Adidas leggings cost less than $100. Also, the products offered by both brands are aimed at different customers, and therefore the lawsuit is unfounded.
After hearing the case, the New York court, together with the jury, ruled on January 12, 2023, that Thom Browne did not infringe on Adidas’ trademark rights in any way, and therefore is not liable for the German company’s decline in sales.
The verdict did not please Adidas, which announced that it is considering appealing it. The near future will certainly show whether we will have another round in this dispute, or whether the German fashion house will drop the case and accept the American court’s verdict.
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