After a trademark infringement spat over counterfeit goods was resolved between the two in 1987 -- the court ordered an injunction against Burlington Coat Factory Warehouse Corp. from selling any Fendi-labeled products, the two were at it again in 2006.
Fendi North America Inc. filed suit in the U.S. District Court in Manhattan claiming that Burlington Coat Factory had violated the injunction by continuing to sell counterfeit bags bearing Fendi's logo.
Now the verdict is in and Judge Leonard Sand was all for Fendi, reports WWD. The court found Burlington Coat Factory in contempt of the injunction and ordered the retailer to pay up: as in $4.7 million up! The amount includes the profits the retailer earned plus interest and attorney's fees.
Fendi's CEO Michael Burke was plenty pleased with the outcome and spoke out on the responsibilities of retailers. Burke told the paper, "Retailers have a duty to society and their customers to do a certain amount of due diligence. Clearly [Burlington Coat] did not."
But the bad news may not be over for Burlington Coat Factory just yet. Judge Sands is still pending the magistrate court's recommendations for damages for infringement, which were not included in the $4.7 million penalty.
Trademark infringement seems to be the court date of choice these days. See who Marc Jacobs is suing.