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Another Lawsuit Over The Value Of The Trump Name

Filed under: Real Estate Developments

donald trumpOnce again the use of the Donald Trump name has gotten a developer in trouble. Earlier this year angry investors sued Donald Trump and Los Angeles developer Irongate Wilshire over the failure of the Trump Ocean Resort Baja Mexico. Now some of the buyers at the new Trump International Hotel & Tower Waikiki Beach Walk have filed a lawsuit looking to get out of their sales contracts. Once again they said that Irongate misrepresented Donald Trump's role in one of their projects. The sellers claim that Irongate said in 2006 that Donald Trump was a co-developer of the 38-story project but that the developer had only licensed the Trump name. The lawsuit alleges that Irongate concealed the terms of the license. The popular project set records in 2006 when sales opened and the units sold out in a single day with units selling for millions of dollars.

The lawsuit says that the buyers were only told right before final deposits were due that the project was Trump in name only. This led to concerns about the worth of the real estate if Trump pulls his name from the project. The AP reports that the lawsuit will be amended to add more buyers. The Trump name was also involved in a similar lawsuit in Florida. Trump is not named in these lawsuits but certainly they must bolster his belief in the value of his name and brand.

Cartier's Short-Lived Apple Lawsuit

Filed under: Gadgets, Timepieces / Watches

Proving once again that luxury brands have no sense of humor, Cartier sued Apple over an iPhone app that displayed obvious fake watches including a version that looked like Cartier's popular Tank design. The "Fake Watch" and "Fake Watch Gold Edition" apps allowed users to show the time on " look-alike famous wristwatches" on Apple's iPhone and iPod Touch. The obvious fakes used names like "Relax" for Rolex and "Carpark" for Cartier. "Fake Watch" was a free download and "Fake Watch Gold Edition" sold for 99 cents in Apple's iTunes store. No word on if Cartier sued the maker of the app, Digitopolis Game Studio.

But almost as soon as the fracas began, it was over. The Wall Street Journal reports that Cartier is withdrawing the suit that it filed earlier in the same day after the apps were removed from iTunes.

Is eBay Winning the War Against Counterfeits?

ebayEBay, the world's largest Internet auctioneer, is jubilant after winning one of their many lawsuits regarding counterfeit products. A French court found that eBay was not liable for counterfeit L'Oreal perfumes sold on its website. The Parisian court ruled that eBay had met its obligantion to prevent sales of fake goods. The victory is a bit of a surprise considering earlier losses in France to Hermes and LVMH in similar cases however eBay did recently win against watchmaker Rolex.

After the ruling eBay issued a press release saying in part that " We are delighted that eBay's meaningful efforts to fight counterfeits online have been recognized by the court, as has our status as an internet-hosting provider. Today, 99% of all items listed on eBay have no suspicion of counterfeits." That''s a pretty bold claim. The auction site does have a team of around 2,000 people in place to fight counterfeit products on the site but it seems a bit soon to declare a total victory in the war against counterfeits.

G Is For? Gucci Sues Guess

Filed under: Handbags

guess clutch
Guess has created handbags that ape the looks of designer bags for far less money for years but Gucci has had enough. Bloomberg reports that Gucci Group's U.S. unit is suing Guess? Inc. for trademark infringement. The companies both make ample use of the "g" logo and both do interlocking G pattens and embossed leather (or in Guess's case, vinyl).


Gucci's lawsuit claims that the knockoffs are no homage but are instead "part of a sophisticated and elaborate scheme to target Gucci, to create products that are similar in appearance to the most popular and best-known Gucci products." Gucci is seeking damages as well as a court order banning Guess from using the disputed designs and calling for surrender of all the existing bags in question.

Copying has become commonplace in the fashion world especially when a lower-priced line imitates a more expensive brand. It becomes a question of just how similar the designs are and whether or not the lookalike handbags and wallets are damaging the Gucci brand.

Trump Takes On Developers In Baja Building Gone Bust

Filed under: Real Estate Developments

Last month angry investors sued Donald Trump and Los Angeles developer Irongate Wilshire over the failure of the Trump Ocean Resort Baja Mexico. Now Trump is fighting back with a lawsuit of his own. His lawsuit accuses Irongate Wilshire's principals of not following through on the plans for the five-star resort which bore his name.

Would-be owners of the condos are asking the courts for the return of $32 million of down payments made in 2006 and 2007. Trump's suit is for $40 million in compensatory and punitive damages and that the lawsuit will help buyers get their money back. The LA Times reports that Trump felt "unfairly targeted" by the buyers' lawsuit because he was not a developer of the project, it was just using his name but that he doesn't like to see people lose money. The owners just want their money back whether it comes from Trump or anyone else.

LVMH Fights Google Over Keyword Buys


Another week, another Louis Vuitton lawsuit. This time Louis Vuitton is taking on Google in the European Court of Justice. When a person googles a brand name they can see paid search results which can belong to companies selling similar bags or replica bags and counterfeits. Parent company LVMH says that Google shouldn't be allowed to sell those brand name search words to other advertisers and that they should belong only to the brand that licenses them.

Google has already appealed the case after a French court ruled that it had violated trademark rights which is why it has been kicked up to the European Court of Justice in Luxembourg. Google lawyer Alexandra Neri has said that Google only makes money when a person clicks on the ad and that: "The decision to click or not to click belongs to who -- clearly to the Internet user."

Certain words are blocked from being chosen as keywords in France and according to Bloomberg, when Google's French unit receives proof of a registered trademark it then adds it to the blocked list. In the U.S., Google blocks advertisements that include protected trademarks but LVMH has said Google didn't act quickly enough and only makes a move when it is told there is an infraction (this sounds a lot like LVMH's complaints with eBay over the policing of their site).

This case will take a while, the advocate general on the case is expected to give a non-binding opinion by June 4 but the final ruling may not come until the end of the year.

Old Business Deal Plagues Sean Connery

Filed under: Celebrity Shopping, Wealth

sean conneryA business deal that is over 30 years old has come back to haunt Sean Connery. The Daily Telegraph reports that Connery, who now lives in the Bahamas, allegedly lent $4 million to a businessman to develop property in the Cote d'Azur back in 1972. Now the family of the developer is suing Connery because they say that the developer had offered as security a collection of assets including property and gems worth $10 million that could now be worth $50 million.

When Connery called in the loan, some of the assets were sold and the family says the assets were worth more than the original investment. The businessman, known only as Jean-René because the family does not want their last name disclosed, died in 2002. His family wants back all profits from the diamonds and property sold as well as any of the other items that were used as loan guarantees. A legal battle has begun in Switzerland with Connery summoned to appear before a court in Geneva next week. A spokesperson for Connery says that he knows nothing about this and that Connery has not received a summons. The length of time between the investment deal and the suit seems a bit suspicious.

UPDATE: The Scotsman reports the case has been thrown out.

Rolex Loses eBay Lawsuit

Filed under: Auctions

rolex counter
Once again in the lawsuit follies, eBay is the victor. Bloomberg reports that the world's largest online auctioneer won a German court ruling in a case brought by Rolex over sales of counterfeit watches on eBay. The decision showed that Rolex could not find any similar counterfeit goods were offered on eBay after the company after the company was alerted to the possibility of counterfeits. Ulrich Egger, the spokesman for the court said that eBay's filter program detects sales that wold violate trademark rights.

Next up for eBay, a suit in London against L'Oreal. So far, eBay's lawsuit results have been mixed. It won against Tiffany & Co. last year in New York but lost to LVMH and Hermes in France. Rolex first sued eBay in 2001 over counterfeits but the original ruling in Dusseldorf for eBay was overturned in part in 2007 by the Federal Court of Justice which said eBay couldn't be held liable for damages and had to monitor its site to prevent fakes from being sold. Judges determined eBay is doing enough to police its site.

UPDATE: Blogging Stocks reports that eBay shares are at a seven-year low, partially due to concerns over the sales of counterfeit items on the site. Although eBay is spending millions to monitor its sellers, the problem of fakes continues to be one that plagues the site and damages its reputation.

Cartier Sues QVC Over Joan Rivers Watches


Luxury jeweler Cartier is taking on home shopping giant QVC Inc. Cartier has sued QVC alleging that the company has promoted and sold watches that look a little too much like Cartier's Santos and Pasha Grille watches. Some of the watches are part of the Joan Rivers jewelry collection. The brand is also suing QVC's business partners JMAM and TWI Watches which produced the designs. Cartier has called for all infringing goods to be destroyed and is asking for all profits from past sales of the items in question.

Cartier has often taken a hard line against any watches that bear any resemblance to Cartier pieces. It sued Amazon and Geneve Gold for selling knockoffs of the Tank Francaise, Tank Americaine and Panthere watches through Amazon.com and genevegold.com. Last year Cartier sued Donna Karan for marketing timepieces with the word "Tank," which Cartier says it has copyrighted It has also gone after sellers on eBay and other auction sites for selling counterfeits.

Electric Hendrix Vodka Pulled From Shelves In Lawsuit Victory

Filed under: Spirits, Celebrity Design

Dead celebrities can be big business but one celebrity-branded product is off the shelves. Electric Hendrix vodka, which launched in 2005 and was marketed by businessman Craig Dieffenbach and Hendrix's half-brother, Leon Hendrix has been the subject of a long legal struggle which has now ended. A federal judge in Seattle has ordered the makers of the vodka to pay $3.2 million in damages for trademark infringement. The permanent injunction was issued by U.S. District Court Judge Thomas Zilly on February 12 and the vodka company has just 10 days to comply with the order. Electric Hendrix is barred from using any trademarks or logos controlled by Experience Hendrix and Authentic Hendrix, two companies owned by the Hendrix estate. The judge had first ruled for the estate back in October but as the Seattle Times reports Dieffenbach filed an appeal with the 9th Circuit Court of Appeals and two sides entered a settlement agreement in December.

The Hendrix estate has been a subject of controversy since the guitarist's death in 1970. Because he died without a will the estate went to his father, Al Hendrix. Control of the estate went to Janie Hendrix, the adopted daughter of Al after his death in 2002. Leon Hendrix was reportedly cut out of his father's will and sued Janie in 2004 for a piece of the estate. His claim was denied.Branding a vodka with the image of someone who died during a drunken episode has always been somewhat of a strange move which the estate branded 'a sick joke' back in 2007. Janie Hendrix said in a press release that "this judgment recognizes our family's long-standing commitment to preserve the Jimi Hendrix legacy and artistic vision."

Some of the controversial bottles will likely find a home on eBay. So far this morning, there's just one listing for a mini bottle with a buy-it-now price of $22.95.

Prince Sued by Fragrance Company

Filed under: Celebrity Shopping, Cosmetics and Fragrance

Looks like another celebrity is having fragrance troubles. Prince is being sued by Revelations Perfume and Cosmetics, Inc., makers of 3121, the 2007 fragrance named after and inspired by his 2006 album. Revelations has sued Prince and Universal Music Publishing Group for $100,000, claiming he and his record company failed to help peddle the scent.

The suit was filed earlier this week in New York State Supreme Court. Revelations licensed Prince's name and likeness to create 3121 and another fragrance due out in 2009. According to court documents, Revelations put out more than $2.5 million for said privilege and promised to give Universal a 50 percent cut of the proceeds, and in return Prince was supposed to be available for marketing purposes.

"Since July 2007, despite repeated attempts by Revelations there have been virtually no communications from anyone who could commit to or coordinate any promotional efforts by Prince," the suit states.

Responding to the suit, which its legal team had not yet seen, Universal issued a statement calling the plaintiff's claims "completely without merit."

While nowhere near the amount of this suit, it's never a good time to (possibly) be out $100K. The jury's still out as to the results.

Charlize Theron Could Be Out $20 Million

Filed under: Timepieces / Watches, Celebrity Shopping

Looks like Charlize Theron will be heading to court against watchmaker Raymond Weil. The case, which we first reported on last year, has gone before a New York judge who ruled that the case has enough weight to proceed to a jury trial. Raymond Weil is suing for $20 million in damages saying that Theron violated her endorsement contract, which dictated that she only wear Weil watches, by wearing a Dior watch at a public appearance. She of course has also been the face of Dior's fragrance, J'Adore. Damages will be decided at trial but it seems likely that the opposing sides will settle before then. Charlize Theron has already gone on to a new watch, jewelry and accessories contract with Breil Milano.

UPDATE: Theron has settled the suit for an undisclosed amount.

Tiffany Loses Lawsuit Against eBay

Filed under: Auctions


Finally some good news for eBay. The company which just lost a big suit against LVMH in France is having better luck on this side of the Atlantic. The AP reports that a federal judge in Manhattan has ruled in favor of eBay over Tiffany & Co. in a trademark infringement lawsuit. In the suit Tiffany & Co. claimed that eBay's sale of counterfeit goods resulted in trademark dilution, false advertising and unfair competition. When the case opened last November, James Swire, a lawyer for Tiffany, said that a full 75% of 325 items that Tiffany has bought on eBay through a buying program the company started in 2004 were counterfeit.

But the entered by Judge Richard Sullivan at the U.S. District Court for the Southern District of New York on Monday puts the onus for policing its brand on Tiffany. The ruling said the company failed to prove that eBay was liable for the sale of the goods.

As in other cases, eBay argued that it is merely a host for buyers and sellers. That argument didn't fly in France but but Judge Sullivan said in his opinion that "Given Tiffany's choice to sue eBay, rather than individual sellers, and this Court's conclusion that eBay does not continue to supply its services to those whom it knows or has reason to know are infringing Tiffany's trademarks, Tiffany's claims against eBay must fail."

If the decision had come back in Tiffany's favor it would have been a decisive blow for eBay, showing that they were liable for the actions of their sellers. But this decision, combined with the LVMH lawsuit, which puts forth a different view, show that right now there is no clear answer in the question of who is responsible for counterfeit goods on eBay. As always, if you are buying on eBay, caveat emptor.

For the consumer who wants to avoid counterfeit merchandise on eBay, a little research can make a big difference. Looking at the feedback score of the seller and reading the comments can give you some insight into the seller's history. A feedback score of at least 99 percent is best. Also when you are in the seller's history click on the past auctions. If this seller has sold a lot of similar or even identical branded items this is a big red flag. Also, sadly, if it sounds too good to be true and the price is really low you may be looking at a fake.

How Much Is The Trump Name Worth?

Filed under: Real Estate Developments

Just how much is the Trump name worth? The plaintiffs in a lawsuit by buyers of luxury condominiums say that condos in buildings that carry the Trump name are worth 36 percent more than units in similar building without the name. The lawsuit was brought by around 80 condo buyers who are suing the developers of the Trump Towers complex in Sunny Isles Beach, Fla. for using the Trump name to attract buyers. As Law.com reveals, the suit says that Trump's name can only be used temporarily and could be changed once the buildings are completed. Based on this information and a fear that the condos will be worth less without the Trump brand, buyers are asking to cancel sales contracts worth over $100 million and to have around $20 million in deposits returned. The name Trump appeared on the promotional material but not on any of the condo documents or purchase contracts. Donald Trump, who is not named in the suit, has been quoted as saying that he was "honored" by the lawsuit doubtlessly because it backs up his own decades-long campaign to turn his last name into a valuable brand.

Uma Thurman Sues Lancome

Filed under: Celebrity Shopping

It's safe to say Uma Thurman won't be wearing Lancome any time soon. The actress has filed a $15 million lawsuit against the French cosmetics company saying that they continued use her face in their ads after her contract expired. The licensing agreement to use Thurman's image ended in 2004 but the suit says that the brand has continued to use her face to sell products around the world for the past four years. Lancome has filed their own suit saying that it did not violate the contract and does not owe her money. A spokesperson for L'Oreal, the owner of Lancome, said that the use of her image after the contract expired was not deliberate or intentional.

This isn't the first time we've seen celebrity endorsement gone wrong. Last year, watch company Raymond Weil sued Charlize Theron after she wore a Dior watch to an event while under an exclusive endorsement agreement with Weil.

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