WWD Digital Daily

Lucky Brand to Duel Marcel Fashions Before Supreme Court

- BY SINDHU SUNDAR

When rival apparel companies spar intensely over trademark infringeme­nt, their dispute can play out in courts over years, and through multiple lawsuits.

What happens when one side argues the infringeme­nt went on despite a previous dispute between them, or the other brings up a defense it could arguably have litigated in their earlier suit? As its term wound to a close, the Supreme Court agreed on Friday to consider those arguments in Lucky Brand Dungarees Inc. v. Marcel Fashion Group Inc., a case between two brands that have butted heads for nearly two decades over Marcel's “Get Lucky” trademark and Lucky's own trademarks.

“It is an opportunit­y to settle the issues and move on,” said Olivera Medenica, partner at Dunnington Bartholow & Miller LLP, who represents Marcel Fashions in the case.

An attorney for Lucky Brand could not immediatel­y be reached for comment Monday.

One basic question before the Supreme Court court in this case is a somewhat technical one: Can a party battling an old adversary anew make defenses it arguably may not have fully litigated in an earlier dispute between them?

But it can be an important question, especially in the domain of intellectu­al property, where trademark rights can be continuall­y argued and asserted in different ways.

In general, courts are not inclined to keep adjudicati­ng disputes between the same parties over the same issues. But in the trademark context, parties may argue that they're raising new arguments or defenses because the infringeme­nt in question is a chronic problem despite their previous legal disputes, or because the trademarks in question have evolved.

“Trademark rights can grow or shrink over time, as can the likelihood of confusion between two marks,” Lucky argued in its February petition before the Supreme Court that asked it to hear the case.

In this case, the dispute began in 2001, when Marcel sued Lucky to assert its

“Get Lucky” trademark. The two firms resolved the dispute about two years later in a $650,000 settlement in which Lucky agreed not to use the “Get Lucky” trademark but retained the right to assert the “Lucky Brand” trademark, according to Lucky's petition.

Then they battled again in 2005, when Lucky sued Marcel in New York federal court over its “Lucky Brand” trademarks, including those Lucky registered after the 2003 settlement. That dispute eventually went to trial, and led to a jury verdict in 2010 that Lucky had infringed upon Marcel's “Get Lucky” trademark after their settlement in 2003.

Again, it didn't end there. Marcel sued Lucky in 2011, arguing that Lucky Brand was still using phrases that violated Marcel's “Get Lucky” trademark.

A New York federal court had then agreed with Lucky that the 2010 case and its verdict had resolved the dispute, and that Marcel couldn't now sue again over the same claims, but the Second Circuit appeals court disagreed, which allowed Marcel to proceed. The dispute took a few more turns after that, and is now before the Supreme Court, which will hear oral arguments in the case in its next term this fall.

For its part, Marcel had argued that the Supreme Court shouldn't take up this case, claiming it wasn't quite the right case to decide this question about what parties can and cannot argue in new suits between old adversarie­s. Marcel argued that its 2011 suit against Lucky wasn't a matter of opening a new claim over old issues, but simply about enforcing the outcome of their case in 2010.

The high court will consider the long-running trademark infringeme­nt dispute between the apparel companies.

 ??  ?? Lucky Brand bedding at Macy’s.
Lucky Brand bedding at Macy’s.

Newspapers in English

Newspapers from United States