Handbag maker wins $5 million intellectual property lawsuit

For many small businesses, it is important to establish and build a brand. This allows consumers to recognize a product—even one that is unfamiliar—as something they wish to buy.

"Brands convey a uniform quality, credibility and experience," wrote Forbes contributor Scott Goodson in a recent article. "Brands are valuable."

As such, businesses must go to great lengths to protect their brands from misuse. Sometimes, even legal action becomes necessary.

Coach, Inc., the makers of Coach handbags, recently benefited from a U.S. appeals court ruling against a flea market owner who had been selling counterfeit products masquerading under the Coach brand.

According to Reuters, the 6th U.S. Circuit Court of Appeals found that Frederick Goodfellow, owner of the Southwest Flea Market in Memphis, Tennessee, knew or should have known that vendors were selling fake Coach handbags at the flea market.

The ongoing court battle began in 2010, when Coach sent Goodfellow a letter informing him about the activity at the market. Shortly after, the news source reported that law enforcement officials raided the flea market and seized the fake goods. Later that year, the company sued Goodfellow in the U.S. District Court of Western Tennessee

A jury has awarded Coach $5 million in damages after finding that Goodfellow infringed upon the company's intellectual property.

The news source reported that this is the first time the 6th U.S. Circuit Court has ruled on whether a flea market owner is liable for the actions of his or her sellers. The case is a major victory for Coach, which has a history of aggressively protecting its intellectual property. Local business that want to be as vigilant should consult with a Phoenix small business attorney.

Categorised in: Intellectual Property Law

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