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Hilfiger Awarded $11M in Clothes Suit

May 14, 2003

KNOXVILLE, Tenn. (AP) _ A federal court has ordered Goody’s Family Clothing Inc. to pay $11 million in a lawsuit filed by fashion company Tommy Hilfiger for selling counterfeit T-shirts and jeans.

Hilfiger sued Goody’s, a bargain-priced clothing store, in August 2000 in U.S. District Court in Atlanta over the clothes that looked like the Hilfiger brand.

The court awarded Hilfiger’s Delaware-based licensing division $2.1 million for damages last week in the sale of the T-shirts and nearly $9 million for trademark infringement for using jean labels that imitated Hilfiger.

Hilfiger said Tuesday the award is the largest it has received in its multiyear effort to combat trademark counterfeiting and infringement.

Hilfiger said the $2.1 million award represents three times the profits Goody’s derived from the sale of the counterfeit T-shirts and the nearly $9 million award equals Goody’s profits on the jeans.

``We are very pleased with the court’s judgment, which recognizes the harm done to manufacturers, consumers and our authorized retailing partners by the sale of counterfeit and infringing merchandise,″ Hilfiger CEO Joel Horowitz said.

Robert M. Goodfriend, chairman and chief executive of Knoxville, Tenn.-based Goody’s, said the company is considering an appeal.

Goody’s operates 330 stores in 18 states, mainly in the Southeast.

Goody’s sued the two vendors it claimed supplied the Hilfiger-like clothing and won an award from the company that sold the T-shirt. Goody’s officials wouldn’t say how much the judgment was or identify the company.


On the Net:

Goody’s Family Clothing: http://www.goodys-online.com/store/

Tommy Hilfiger: http://www.tommy.com/

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