FM324 Section 75A
17 November 2011
Case Study Assignment: Calvin Klein vs. Warnaco Group Inc.
On May 30, 2000 The Calvin Klein family filed a lawsuit against Warnaco Group Inc for eighteen counts of trademark infringement, trademark dilution and intentional misrepresentation. Nearly a month later Warnaco answered with a counter suit, denying the major allegations and justifying the dilution to falling within the scope of the two parities licensing agreement. The case study brings forth information regarding fashion retailing, distribution practices and even the licensing practices expected within the marketplace, however as a reader one should keep in mind that during the millennium “licensing was a staple in the fashion business.” (pg.8) Many companies looked to licensing to help brand extension and most, in fact, built a steady revenue from licensing out their brands. These brands include brands like Ralph Lauren, Nine West and Liz Clairborne, but also venture into the luxury market targeting brands such as Gucci and Fendi as well. It is safe to say that licensing, in the millennium, was a prominent and successful trend within the fashion industry. It was this trending success that emerged licensing groups, such as the Warnaco Group.
Warnaco’s history, stated within the case study on pages 15-18, is an impressive one, but it also the first time one has the ability to see what growth Warnaco brought to the Calvin Klein family. “Wachner’s most notable business success involved the cK Calvin Klein underwear line... Wachner grew sales from 55 million dollars to about 350 million dollars” in a only five years. Gabriella Forte, the president of CKI even credited Wachner with building the line in its entirety. On page 16, Forte elaborates on how Wachner accomplished such a task stating “by expanding markets, increasing the flow of products in stores and making sure the infrastructure dealt with the expansion of the...