American Eagle Outfitters, Inc. Wins Preliminary Injunction Against Payless ShoeSource
Payless Must Include Disclaimer When Using AMERICAN EAGLE Footwear Mark to Eliminate Customer Confusion
PITTSBURGH – American Eagle Outfitters, Inc. (NYSE:AEO) today announced that it has won a preliminary injunction against Payless ShoeSource, Inc. in a trademark infringement and unfair competition lawsuit arising out of Payless' use of the AMERICAN EAGLE mark for footwear and bags. The ruling requires Payless to adopt a clear disclaimer stating that AMERICAN EAGLE by Payless is not affiliated with AMERICAN EAGLE OUTFITTERS.
[AMERICAN EAGLE OUTFITTERS shoes and bags are available only at AMERICAN EAGLE OUTFITTERS stores and on its websitewww.ae.com.]
"We're pleased with the court's decision to issue a preliminary injunction against Payless," said Neil Bulman, vice president and general counsel, American Eagle Outfitters, Inc. "Our ultimate goal is to stop Payless from misleading and confusing consumers and to protect the integrity of our brand."
Since 1977, American Eagle Outfitters has developed a well-known and successful brand by selling high-quality apparel, footwear and accessories under a family of marks including AMERICAN EAGLE OUTFITTERS®, AMERICAN EAGLE®, AEO® and AE®, at more than 900 American Eagle Outfitters retail stores and through its website,www.ae.com. AEO contends that Payless, a discount shoe chain, is deceiving consumers by portraying itself as the owner of "the youth fashion brand American Eagle®" and indicating that it is selling genuine AMERICAN EAGLE OUTFITTERS merchandise when in fact it is not.
Additionally, Payless is marketing AMERICAN EAGLE shoes and accessories with advertising and promotional materials that copy the look and feel of AEO's distinctive marketing style and falsely claiming to be the exclusive source of AMERICAN EAGLE and AE "women's," "men's" and "accessories," which continues to cause consumer confusion as to the relationship between Payless and AEO.
The April 2007 suit was filed in United States District Court Eastern District of New York.
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