A year-long lawsuit between retailers Nordstrom and Patagonia has finally been settled, as accusations of counterfeit products fly.
Counterfeit Accusations
Two big US retailers have spent nearly a year going back-to-back over accusations of counterfeit sales that tread all over a company’s trademark. Last week the lawsuit finally came to a close.
Lawsuit Settled One Year On
Luxury department store chain Nordstrom and clothing company Patagonia settled the lawsuit on Wednesday, almost exactly a year after Patagonia moved to sue their competitor back in May 2023.
Described as “Obvious” Copies
Patagonia accused the brand of selling counterfeit apparel that was described as “obvious” rip-offs of Patagonia, sold under Nordstrom’s sister brand, Nordstrom Rack.
“Thousands” of Counterfeit Products
In a suit filed with the U.S. District Court for the Central District of California, Patagonia claimed Nordstrom had sold “thousands of counterfeit Patagonia sweatshirts and t-shirts,” directly profiting from Patagonia’s designs without acknowledging the debt.
A Past Relationship
The accusations were particularly dicey since Nordstrom was a former “dealer” of Patagonia clothing, selling their items in department stores around the country.
Betraying Their Reputation?
“Nordstrom holds itself out as a trusted retailer with a strong reputation among its customers,” the Patagonia suit stated. “For many years Nordstrom was an authorized dealer of Patagonia, Inc.’s (‘Patagonia’) apparel, in part because of that reputation.”
What Customers Expect
“While Nordstrom is no longer an authorized Patagonia dealer, Nordstrom’s customers expect to find genuine Patagonia products at Nordstrom stores, including its Nordstrom Rack stores,” the suit continued.
Photographic Evidence?
They supplied photographic images comparing the products sold by Norstrom to similar products created and sold by Patagonia.
Confusing Claims
These included typographic errors on the labels of the allegedly counterfeit clothes, including misspelled words and contradictory claims that the clothing was made of both 100% polyester and cotton.
Decades and Millions Invested
The company also explained the potential impact these counterfeit sales from Nordstrom could have on the Patagonia brand. “Patagonia has spent decades, and invested millions of dollars, to establish product quality and fair labor practices as pillars of its brand.”
“Preying on Patagonia’s Reputation”
The lawsuit claimed that such products served to “prey on Patagonia’s reputation, misleading customers into buying poor quality products that were, on information and belief, made in factories with conditions that do not meet Fair Trade Certified requirements.”
Copyright and Trademark Infringement
Patagonia formally accused the department store brand of copyright and trademark infringement and sought both damages for the profits gained from the counterfeit products, and an order to block the counterfeiting.
An Immediate Block
This would formally prevent Nordstrom from buying, selling, ordering, and manufacturing products that look too similar to items sold by Patagonia.
“No Knowledge at the Time”
During a court filing later in 2023 Nordstrom representatives explicitly denied the allegations, claiming “To the extent any of the products at issue were not genuine Patagonia products, Nordstrom had no knowledge of this at the time these products were purchased.”
Ending Their Business Relationship
The Seattle-based company then brought evidence that it had ended its dealer relationship with the company that had produced the items and agreed to divert all profits to Patagonia.
The Razaz Group
The company in question was the Razaz Group, a New Jersey-based vendor who sold the items to Nordstrom.
Joint Filing for the Settlement
On Wednesday, in a joint filing between the two companies in the U.S. District Court for the Central District of California, they confirmed that Nordstrom had agreed to settle the lawsuit.
“No Admission of Liability for Nordstrom”
A spokesperson for Nordstrom told reporters “The matter has been settled with no admission of liability for Nordstrom. At Nordstrom, the quality and integrity of our products is our top priority.”
Long-Term Effects
While Patagonia has now dismissed the lawsuit in the wake of the settlement, it is still unclear how seriously the alleged counterfeit sales have affected the brand.
50 Years of US Business
The company has been a major player in the outdoor recreation clothing space and now sells clothing and equipment in more than 10 countries since it first opened in Ventura, California over 50 years ago.
Remote No More: 19 Companies Returning to the Office
As the pandemic wanes, companies are recalling remote workers back to the office, sparking debates on fairness, costs, and convenience. However, there are also notable productivity, coworking, and mental health benefits to consider. Feeling the effects of these changes? Remote No More: 19 Companies Returning to the Office
8 Costco Must Buys and 8 to Leave Behind
Ever wandered Costco’s aisles, questioning if that giant jar of pickles is a real bargain? Or debated buying tires where you get your rotisserie chicken? Welcome to the definitive guide to Costco shopping—a journey to save money, prevent regrets, and offer quirky insights into bulk buying. 8 Costco Must Buys and 8 to Leave Behind
23 Reasons Texas Is the Next Big Thing
Texas is becoming a beacon of opportunity, blending cultural heritage with economic growth. From its landscapes to its industries, the Lone Star State offers a dynamic lifestyle. Here are 23 reasons why Texas stands out, attracting entrepreneurs, artists, tech professionals, and families seeking new beginnings. 23 Reasons Texas Is the Next Big Thing
15 Top Sites to Sell Your Unwanted Goods Besides Craigslist
Selling your unwanted items can declutter your space and boost your income. While Craigslist is popular, there are many alternatives with unique features and wider audiences. Explore these 15 Craigslist alternatives for selling everything from furniture to electronics, finding the perfect platform to turn clutter into cash. 15 Top Sites to Sell Your Unwanted Goods Besides Craigslist
Work from Anywhere: 19 Companies Still Supporting Remote Work
Tired of commuting and craving work flexibility? You’re not alone. Many companies now offer remote work, benefiting both employees and employers. Ever wondered how this shift could enhance your work-life balance? Work from Anywhere: 19 Companies Still Supporting Remote Work
The post – Nordstrom Settles Lawsuit With Patagonia Over Allegations of “Obvious Counterfeits” – first appeared on Career Step Up.
Featured Image Credit: Shutterstock / Ulf Wittrock.
The content of this article is for informational purposes only and does not constitute or replace professional financial advice.
For transparency, this content was partly developed with AI assistance and carefully curated by an experienced editor to be informative and ensure accuracy.
