NEW YORK, June 5 /PRNewswire/ -- JA Apparel Corp., the maker of fine men's clothing and an array of other products, announced today that it has won a permanent injunction reaffirming its ownership of the name, trademarks, trade names, service marks, logos, insignias, designations and all of the trademark registrations applications and goodwill related to the valuable Joseph Abboud brand name.
The injunction, handed down by U.S. Magistrate Judge Theodore Katz, prohibits Mr. Joseph Abboud from infringing on JA Apparel Corp.'s ownership of the Joseph Abboud name and trademarks, which Mr. Abboud sold in 2000. In addition, Judge Katz ruled that Mr. Abboud violated his noncompete agreement with JA Apparel.
In his 91-page ruling, Judge Katz said: "the Court concludes that ... Abboud sold, conveyed, transferred, assigned, and delivered to JA Apparel all of his right, title and interest to the use of his personal name, in addition to the trademarks, trade names, and designations containing his name, for commercial purposes."
The judge said further that: "the Court concludes that Plaintiff JA Apparel is entitled to a permanent injunction prohibiting Abboud ... from using his name to market, advertise, promote, sell, offer to sell, or otherwise distribute any goods and services, including, but not limited to, his new "jaz" clothing line, to the consuming public."
Marty Staff, the President and Chief Executive Officer of JA Apparel Corp, said:
"We are pleased but not surprised that the Judge Katz of the Southern District has recognized our rightful ownership of the Joseph Abboud name and granted our request for a permanent injunction prohibiting Mr. Abboud from 'using his personal name to sell, market, or otherwise promote goods, products, or services to the consuming public.' 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.
About JA Apparel Corp.
The Joseph Abboud Brand embodies sophisticated American style for traditional menswear. Joseph Abboud Brand instills confidence through tailored collections and unique sportswear that are crafted from the world's finest fabrics and defined by superior fit, exceptional quality and remarkable luxurious style. Since its inception in 1987, the award winning designer Brand has grown into a worldwide wholesaler of an expanding number of products and brands for men's apparel and accessories, boy's apparel, and home furnishings. Joseph Abboud Brand names include Joseph Abboud, Joseph Abboud Jeans Inc., JOE Joseph Abboud, Joseph Abboud BOYS, and Joseph Abboud Home. Joseph Abboud branded products are available in superior department stores and specialty stores throughout the United States, Canada, Japan, and Taiwan, as well as other countries.
Source: JA Apparel Corp.
