Gucci and Guess settle 9-year long legal battle over logo
Image permission: Photography: Eva Al Desnudo @Fashion, Law & Business
Gucci and Guess' nine-year legal battle over the letter G has finally come to an end.
The two warring fashion brands announced that they have now signed a joint agreement that will bring an end to all pending litigations in all countries around the globe.
The terms of the agreement were not disclosed, but in a joint statement, Gucci and Guess have said: "The agreement is an important step for both companies in recognising the significance of protecting their respective intellectual property portfolios and design creativity."
The companies fight for ownership of designs and logo's featuring two interlocking letter Gs started in 2009 in the U.S. District Court for the Southern District of New York, where Gucci sued Guess for counterfeiting and trademark infringement accusing Guess of trying to “Gucci-ize” and “Gucci-fy” its product line by selling products, namely wallets, belts, shoes and other items whose designs copied or mimicked its own. Gucci argued that this had resulted in a loss of profit.
In the original lawsuit, at issue was whether Guess infringed on Gucci’s rights by using a variety of design elements, including a block letter “G,” a combination of green-and-red stripes and diamond-logoed motifs. In 2012, Gucci awarded $4.7 million in damages from Guess over trademark infringement. A victory for the brand, but still a long way from the $221 million (£140 million) the fashion house was hoping to win.
Guess left Gucci right
In 2012, Gucci awarded $4.7 million in damages from Guess over trademark infringement. A victory for the brand, but still a long way from the $221 million (£140 million) the fashion house was hoping to win..
The U.S District Court made a finding of infringement in favour of the fashion brand Gucci in respect of four (out of five of their) trademark infringement claims: (i) Gucci’s green-red-green stripe mark; (ii) a script logo (the repeating GG pattern); (iii) a stylized “Square G”; and (iv) a group of four interlocking “G”s known as a “Quattro G.”
Notably, Judge Scheindlin, however, denied Gucci’s claim of counterfeiting, noting that “courts have uniformly restricted trademark counterfeiting claims to those situations where entire products have been copied stitch-for-stitch.” Confirming that Guess had diluted the Gucci brands' trademarked logo rather than counterfeited it. Such a finding can also be related to the marginal payout in damages that the brand received. Gucci's entitlement to damages was therefore with regard to an account of profits - the profits gained in sales as opposed to also including damages in the form harm to brand value.
Since then, the dispute has escalated with Gucci filing several more lawsuits. Judges in Milan and Paris ruled in favour of Guess, but Gucci won favour in Australia and China.