Kaye Scholer Wins Injunction In Abboud Case

On June 5, 2008, in a decisive win that represented complete vindication for our client JA Apparel in its litigation against famous clothing designer Joseph Abboud, Magistrate Judge Theodore Katz of the U.S. District Court for the Southern District of New York granted a permanent injunction prohibiting Mr. Joseph Abboud from infringing on JA Apparel's ownership of the Joseph Abboud name and trademarks, which Mr. Abboud sold to JA Apparel in 2000 for $65.5 million. The Court found that Mr. Abboud's proposed use of his personal name in connection with his new menswear line constituted a breach of the 2000 purchase and sale agreement and constituted trademark infringement under the Lanham Act. In his 91-page ruling, Judge Katz said: "the Court concludes that ... Abboud sold, conveyed, transferred, assigned, and delivered to JA Apparel all of his right, title and interest to the use of his personal name, in addition to the trademarks, trade names, and designations containing his name, for commercial purposes." The Court ruled that Mr. Abboud "is permanently enjoined and restricted from using his personal name to sell, market, or otherwise promote, goods, products, and services to the consuming public." In addition, the Court found that Mr. Abboud breached his noncompete agreement with JA Apparel with intensive planning for his return to the industry, going so far as to secretly take control of a shirt factory by disguising his interest in the factory through a straw owner. JA Apparel was represented by Thomas A. Smart, Phillip A. Geraci, John Geelan and Richard De Sevo of Kaye Scholer.