Sunday, December 13, 2009

Chanel Takes a Licking, But Remains Victorious



Chanel history will show how the fashion luxury brand went from being imitated, to being blamed of forgery....only to be exonerated.

Chanel was charged with forgery (the blasphemy!) four years ago by one of its smaller suppliers World Tricot.

The Wall Street Journal reports that a Paris commercial court has ruled in favor of the legendary design house this past Friday. However, the fashion house was charged with a breach of contract. As a result, Chanel must pay approximately $583,960 to the supplier for Chanel's cancellation of orders. This is a small victory for the supplier, but the French court also awarded Chanel with half that amount for what it called a "smear campaign".

The lawsuit centered around a floral crochet pattern that World Tricot sent to Chanel for consideration, but that Chanel refused to use. Afterwards, the founder of World Tricot spotted a similar crochet design on Chanel clothing. She promptly filed the lawsuit.

While Chanel remained victorious, it was a bittersweet win. The lawsuit centered around a supplier who worked with women from third world countries and focused on female empowerment. As a result of losing its contract with Chanel, the company was forced into bankruptcy.

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