Chanel seeks $6.7M for attorneys’ fees in reseller lawsuit

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Dive Brief:

• Chanel is asking for $6.7 million in attorneys’ fees following a nearly seven-year long litigation with reseller What Goes Around Comes Around, according to court documents filed last week.
• The French luxury fashion house claims the litigation could have been avoided if the reseller had responded to a cease and desist letter in 2015. 
• Attorneys for Chanel further argued that the luxury brand is entitled to attorneys’ fees because a jury found 10 separate instances of willfulness, or acting intentionally, making it an “exceptional case” under the law, per court documents.

Dive Insight:

Chanel initially accused WGACA of false advertising due to the alleged sale of counterfeit products bearing the Chanel name. That lawsuit also focused on WGACA’s authenticity claims after Chanel alleged the reseller sold counterfeit products.

The latest request for attorneys’ fees follows a federal judge granting Chanel an injunction against WGACA last month, barring the reseller from using any of Chanel’s trademarks to promote its business or products. It also prohibits the reseller from using the Chanel name in hashtags or discount codes.

Chanel sought the permanent injunction last year, and asked that its trademarks not be used more than necessary in WGACA’s business.

WGACA didn’t immediately respond to Fashion Dive’s request for comment.

The Chanel and WGACA lawsuit has been closely watched because of the broader implications it could have on fashion industry resellers as a whole, particularly those that use a brand name in marketing materials.

In February 2024, a jury found that WGACA acted with “reckless disregard” in its use of Chanel trademarks. The jury awarded the luxury brand $4 million in damages, agreeing with Chanel on all of its claims against WGACA.

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