Friday, February 4, 2011

Annual spend of £1 million keeps copyists at bay

Superdry Lumberjack
In "SuperGroup fights nearly 100 legal actions to protect brand" the Telegraph reports on the litigation strategy of the owners of the SUPERDRY brand to maintain the integrity of their brands and designs.  Design right litigation is, it seems, at the core of their strategy:
The company, which owns the Superdry brand, has nearly 100 legal actions under way alleging copyright or design rights infringements. It received a judgment in the High Court on Friday in respect of its Superdry Lumberjack range of hooded shirts, which retail at £54.99. The Cheltenham-based company took action against Rhodi, a Preston, Lancashire-based fashion group that makes the VOI range of jeans and other clothing. 
Simon Bennett, partner at solicitors Fox Williams, who acted for SuperGroup, said the VOI shirts at the centre of the case had retailed for £22. He said SuperGroup complained on the basis that VOI's shirts breached Superdry's design rights. Proceedings were begun in the High Court and a judgment against Rhodi was obtained after the group did not file a defence. Rhodi was ordered to pay SuperGroup £45,000, to cease and desist from selling the shirts in question and to surrender stock subject to the order. ...
VOI's shirt
Supergroup spends £1m a year on lawyers' fees tackling the counterfeiters, trying to stop copycat brands such as Superfly or Silverdry popping up. 
VOI, founded in 1988, opened its first stand-alone store in Preston last year after claiming successful sales of its clothing in stores including Bank, Scotts and footasylum.. Rhodi could not be reached for comment. 
Since SuperGroup's shares listed in London in March 2010 at 500p, they have increased by more than 200pc, closing at £15.57 on Friday. The company is now worth about £1.2bn. ..."
Against the value of the company, an annual spend of £1 million may not sound large -- but the lawyers' fees are only part of the cost. The demands on the company's time and the emotional resources of its staff should not be overlooked.

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