Roxy Dispute Goes Before Jury
The trial between surfwear apparel giant Quiksilver Inc. and small apparel manufacturer Kymsta Corp. began on Jan. 27 in U.S. District Judge Dickran Tevrizian’s courtroom at the Roybal Federal Building in downtown Los Angeles.
The Huntington Beach, Calif.–based surfwear giant filed a lawsuit against Los Angeles– based Kymsta for trademark infringement in May 2002, claiming that Roxywear, Kymsta’s juniors label, was riding on the success of Quiksilver’s girls’ label, Roxy, which earned more than $200 million last year. Rather than seek punitive damages, Quiksilver is requesting full rights to the Roxy label.
The jury is expected to reach a verdict by Feb. 6 or shortly thereafter.
Quiksilver’s active apparel for men, women, girls and boys under the Silver Edition, Roxy and Hawk labels earned the company $975 million in 2003. Quiksilver’s Roxy line is sold at the company’s flagship stores as well as at specialty retailers nationwide.
Kymsta’s Roxywear, which reportedly earned $2 million in 2002, is sold at specialty retailers and department stores.
Both apparel collections share the same channels of distribution, including Nordstrom and The Buckle stores.
Quiksilver’s attorney, Michael Yoder of O’Melveny & Myers LLP, in Newport Beach, Calif., said the surfwear maker was aware of Kymsta’s Roxywear but maintained a “live and let live” ethos until last year, when brand confusion became evident after retailers returned several apparel orders for Kymsta’s Roxywear to Quiksilver’s headquarters.
“Under the law, a company like Quiksilver is required to take action to protect its marks when there’s evidence of actual confusion in the marketplace,” Yoder said.
The determining factor in the case will likely be first use—which side can prove it used the logo first.
Kymsta claims it has produced juniors sportswear under the Roxywear label since 1991. The company, represented by attorney James Nguyen of Foley & Lardner in Los Angeles, said the Roxywear trademark only became a problem when Quiksilver dropped its name from the hangtag and continued the Roxy logo with a Balinese-style wave-andmountain image.
During the first part of the trial, which commenced shortly after jury selection, the surfwear maker presented the court with annual reports, promotional materials, news clips and sales receipts for its Roxy label dating back to 1990.
During his testimony, Quiksilver Chief Executive Officer Bob McKnight said, “Our intention is to come up with common ground for both companies to operate.” —Claudia Figueroa
