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Fendi No longer Bluffing

25 October 2010 No Comment

Fendi has been awarded triple damages against Burlington Coat Factory for breach of a 23 year old injunction prohibiting Burlington from selling counterfeit Fendi goods. This ruling puts retailers on notice that they need to take an active role in investigating the source of their goods. They can no longer avoid liability for selling counterfeits by failing to verify the origin and authenticity of the goods received from vendors or they may face a claim of willful blindness. 

The court found a 1987 injunction should have put Burlington on notice, however it did not “implement any mechanisms to ensure compliance with the order”. Even more alarming was Burlington’s continued sale of the goods after receiving Fendi’s cease and desist letter in 2004 (Burlington only removed the Fendi goods after Fendi initiated the action in 2006). Burlington’s response for their inaction; they believed the “letter was a bluff in an attempt to scare Burlington into taking Fendi merchandise off its shelves.”

Here is a little bluebook action for ya: Fendi Adele S.R.L. v. Burlington Coat Factory Warehouse Corp., 689 F. Supp. 2d 585 (S.D.N.Y. 2010).

Click here to read decision
Guest Writer: Danielle Phillips

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