Lawsuit drible


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Lawsuit drible

  1. 1. International Law Office - Legal Newsletter Page 1 of 2 Newsletters I Law Directory IDeais I News I Subscribe I Home Intelleetual Property - Brazil Lawsuit Filed Against Sportswear Manufaeturer Contributed by Stroeter, Royster & Ohno - Advogados Associated with Steel Hector & Davis LLP September 9 2002 In 1999 São Paulo Alpargatas, Brazils biggest footwear manufacturing company (with a 22% share of the sports footwear market), signed an exclusive trademark Iicence agreement with San Remo Empreendimentos Comerciais for use of the laUers DRIBLE trademark. DRIBLE was first registered in 1958 and has a long-standing reputation in the football goods market, particularly for footwear and balls. (Football king Pele scored his 1,00Oth goal with a Drible ball.) Alpargatas owns the trademarks TOPPER and RAINHA, and is the exclusive licensee in Brazil for the trademark MIZUNO, ali well-known names in the domestic sports footwear market. Under the exclusive trademark licence agreement, Alpargatas agreed to manufacture, sei I and promote 23 types of sporting goods under the trademark DRIBLE for at least five years, with the possibility of automatic renewal for another five years. In return for the investments that Alpargatas expressly agreed to make in the trademark, San Remo was prevented from manufacturing and selling, directly or through a third party, any product bearing the trademark DRIBLE during the term of the agreement. In addition, an indemnification was established for transference of the DRIBLE trademark by San Remo to any third party, and another of R4 million for termination caused by breach of either party. Soon after the first anniversary of the agreement, San Remo claimed that Alpargatas had breached the contracts terms by failing to manufacture, sell and promote the goods listed in the agreement. Alpargatas denied the breach. Six months later, San Remo terminated the agreement based on the conitinuing breach of the agreement by Alpargatas. San Remo filed a civil law suit which is being tried before the 22nd Civil Court of São Paulo. San Remo ciaims payment of the R4 million indemnification, as well as damages and profits that it lost as a result of the agreement. The case is likely to turn on antitrust matters (albeit with ramifications for IP owners), since Alpargatas allegedly produced a restrictive effect in the market by withdrawing a product that was aimed at a certain sector of the economy (Drible products are aimed at the lower-middle and working economic classes, while Alpargatass products are targeted at the upper-middle and upper economic classes). For further ínformation on this topic p/ease contact Erica Aoki at Moreíra Lima, Royster & Ohno Advogados with Steel Hector & Davís LLP by telephone (+55 11 2832077) or by fax (+55 11 283 2078) or by emai! (eaoki@stee! .cfm?Newsletters_Ref=5566 9/23/02
  2. 2. International Law Office - Legal Newsletter Page 2 of2 The materiais contained on this website are for general information purposes only and are subject to the disclaimer. IQ] CommenUQuestion for the Author @ Prinl Version @ Send 10 a colleague X Subscribe Newsletters I Law Directory IDeais I News I Subscribe I Home .cfm? Newsletters_Ref=5566 9/23/02