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JA Apparel re-wins trade rights to Joseph Abboud brand

06 Jun '08
3 min read

We are also pleased that the Court agreed with our position that Mr. Abboud had breached his contractual non-compete obligations. While Mr. Abboud is free to compete in the consumer marketplace, he simply must do so without in any way using JA Apparel's valuable Joseph Abboud brand name.

Moving forward, this ruling enables us to focus on continuing our successful efforts to build the Joseph Abboud global lifestyle brand in markets around the world."

Ruling Prevents Mr. Abboud From Using His Name In Connection With New Line. JA Apparel sued Mr. Abboud in U.S. District Court in New York in September 2007, contending that Mr. Abboud's announced plans to use his name in marketing his planned new menswear line was a breach of contract and represented trademark infringement that would cause confusion in the marketplace.

Mr. Abboud is no longer affiliated with JA Apparel and he sold all rights to his name in 2000 for $65.5 million. However, Mr. Abboud and his lawyer asserted in media stories about their business plans that they had a right to use the name Joseph Abboud to advertise and promote the planned new line.

In addition, the Company alleged that Mr. Abboud violated the terms of a noncompete agreement that was in effect from 2005 to 2007 with intensive planning for his return to the industry, going so far as to orchestrate a scheme to take control of a shirt factory in Fall River, Mass. before the expiration of his noncompete by disguising his interest in the factory through a nominee owner.

A trial on these issues took place over a six-day period in February and March 2008. JA Apparel was represented at trial by the law firm of Kaye Scholer LLP, with partners Phillip A. Geraci and Thomas A. Smart serving as lead attorneys.

JA Apparel Corp

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