American Eagle sues Walmart over ‘knockoff’ jeans claim
American Eagle Outfitters has sued Walmart in federal court in Pittsburgh, saying the “big-box behemoth” is selling cheap knockoff women’s jeans with rear stitching similar to those of AEO jeans in violation of trademark law.
The case, filed Wednesday, is asking for an order to force Walmart to stop selling the jeans, destroy the ones it has and pay American Eagle for money it made from the alleged knockoffs.
In the suit, the South Side teen clothing retailer says its jeans have distinctive stitching on the back pockets that is vital to its branding. The complaint says Walmart’s version is hurting its reputation.
American Eagle said it has spent “many millions” on advertising its design mark and uses it on its website and social media sites.
“As a result, the AEO design mark has long been a strong, well-known trademark, instantly identifiable in stores and on the street as indicating genuine AEO jeans,” the suit says.
The company said its line is now threatened by “big-box behemoth” Walmart, which has more than 5,000 stores compared to
American Eagle’s 950.
According to the complaint, the design similarities are causing confusion among customers because Walmart’s design “falsely suggests” that its jeans are from American Eagle or approved by the teen retailer.
“Confusion is not merely likely; it is happening in real time,” the suit says. “Actual confusion has surfaced on social media, with influencers posting Walmart’s infringing pocket design and their followers noting its similarity to the AEO design mark or confusing the two brands outright.
“These public expressions of actual confusion are likely just the tip of the iceberg. Yet despite being placed on express notice of AEO’s trademark rights and objections, Walmart continues to market, promote, advertise, and sell the infringing products.”
Walmart plans to fight the lawsuit.
“We take the intellectual property right of others seriously,” Walmart said in a statement. “Walmart did not create the design and plans to defend the company.”
The case has been assigned to U.S. District Judge Robert Colville.