In February 2024, Chanel" was awarded $4 million in statutory damages for trademark infringement related to the sale of counterfeit Chanel"-branded products. The courts have not yet granted the equitable remedies sought by Chanel". As we previously reported, possible equitable remedies include disgorgement (giving profits from the sale of Chanel" goods to Chanel") and injunctive relief.
Chanel" is seeking nearly $94 million in disgorgement and a permanent injunction to prevent WGACA from continuing to engage in what it considers to be misleading and confusing marketing practices. WGACA maintains that Chanel" has not suffered any actual harm or loss of profits, as WGACA operates exclusively in the secondary market, in which Chanel" does not operate.
The magnitude of the possible equitable remedies that the court may grant could be devastating to WGACA, the luxury resale market, and the fashion industry at large. The lack of clear fair use and trademark enforcement guidelines within the secondary markets exacerbates the power imbalance between global luxury brands and their resale counterparts.
We are eagerly awaiting the court's decision on the equitable remedies that may be granted to Chanel" and what this will mean for the luxury resale industry. We are also curious to see how this decision will affect other luxury secondary markets.
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