By Kevin McCauley
Kekst is promoting Fendi’s legal victory over Burlington Coat Factory over the alleged sale of "knock-off" leather goods.
The settlement calls for Burlington to pay the Italian fashion house more than $10M.
Fendi, which is part of Kekst client LVMH Moët Hennessy Louis Vuitton, originally charged Burlington with selling fake handbags in 1986. A payment the next year followed with a consent order that Burlington would not purchase or sell any Fendi branded goods without written permission.
The new settlement keeps the consent order in place and gives Fendi "some hope for the future," according to a statement from its CEO Michael Burke.
He is buoyed by the court’s decision that makes it clear that retailers are "responsible for making sure that trademarked products sold to the public are authentic and that the consequences when a retailer sells counterfeit goods are serious."
Burke hopes when future counterfeit problems arise, "retailers will be responsive in addressing the problems promptly and that litigation will be unnecessary." Trademark counterfeiting is a "global challenge facing Fendi and every other brand owner," said Burke.
Kekst partners Jim Fingeroth and Victoria Weld represent Fendi.
Burlington Coat Factory lost $35.3M on $1.6B revenues for the six-month period ended July 31. It has 450-plus stores.
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