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Enterprise Digest


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Some of the biggest news so far this month came by way of the close of the jury trial portion of the Chanel v. What Goes Around Comes Around case; the jury sided with Chanel on all four of its causes of action) and the matter now moving on to proceed before Judge Stanton. The parties are now slated to present evidence related to “equitable remedies, such as disgorgement and injunctive relief” to the judge, with Chanel’s brief coming soon.


Against that background, I am turning my attention (to some extent) to another case that is readying for trial: Le Tote v. Urban Outfitters. The parties have been lodging trial briefs, various trial-specific motions (including a motion to instruct the jury on the elements of a trade secret claim by use of a U.S. Patent and Trademark Office video or alternatively permit Le Tote to use the trade secret video as a demonstrative exhibit), proposed jury instructions, etc. as of early this month.


For some background: San Francisco-based fashion rental company Le Tote filed suit in June 2020, accusing Urban Outfitters of gaining access to an array of valuable information – including “proprietary in-house tools” and “technological infrastructure and logistical functions” – under the guise of a potential acquisition. The deal never came to be, according to Le Tote, and instead, Urban Outfitters launched Nuuly – a copycat rental service of its own to “compete directly with Le Tote” – using the secret info that it had “stolen” during the parties’ M&A discussions.


Le Tote’s Causes of Action: Specifically, Le Tote claims that Urban has engaged in violations of the Federal Defend Trade Secrets Act and the Pennsylvania Uniform Trade Secrets Act in connection with its alleged misappropriation of Le Tote’s “business, engineering and technical information, including plans, formulas, compilations, techniques, processes, procedures, and programs, [which] constitute trade secrets.” Urban is also allegedly on the hook for breach of contract, unfair competition, and unjust enrichment, and Le Tote is seeking injunctive relief, “compensatory, punitive, and statutory damages,” and attorney’s fees.

Read More Here

Some Litigation Updates …

> Yuga Labs v. Ryder Ripps: Ryder Ripps & Jeremy Cahen filed a notice of appeal to the 9th Cir. in the TM lawsuit waged against them by Bored Ape Yacht Club creator Yuga Labs. The filing follows from a C.D. Cal. court’s final judgment, ordering Ripps & co. to pay almost $9M to Yuga Labs in connection with their #RRBAYC project.


> Concord Music, et al. v. Anthropic PBS: Concord Music Group & other music publishers lodged a reply in support of their motion for preliminary injunction this week in their case against AI startup Anthropic PBC for allegedly engaging in “systematic & widespread infringement of their copyrighted song lyrics.”


> Barbera v. I.AM.GIA (US) LLC: Copyright cases over paparazzi images are still coming. Robert Barbera is suing fashion brand I.AM.GIA for posting an image he took of Kendall Jenner to its social media accounts without authorization.


> Stewart v. Project 1920, Inc: In a similar complaint, photographer Michael Stewart is suing Project 1920 d/b/a Senreve for posting his copyright-protected image of Angelina Jolie on social media & its website to promote its brand.  

In some deal-making news this week …

– Julie Zerbo
Founder & Editor-in-Chief

Here are TFL’s top articles of the week …

1. Marc Jacobs Urges Court to Dismiss TOTE BAG Trademark Lawsuit. Marc Jacobs is looking to escape a lawsuit accusing it of making “fraudulent” TM infringement assertions with the aim of getting Amazon to remove a third-party seller’s listings.

2. Influencers “Rarely” Disclose Ads, According to New EU Probe. 97% of the influencers surveyed published posts with commercial content, but only 20% systematically disclosed it as advertising. 

3. Farfetch Faces Creditor Challenge Following “Rapid, Unexplained” Downfall. Wilmington Trust says that it seems like Neves “struck a bargain to transfer the business and value of the Farfetch Group to [Coupang] … at the expense of the company and its shareholders.” 


4. Nike Fails to Beat Opposition to FOOTWARE Trademark Registration. The TTAB sustained SAS’s opposition to register Nike’s FOOTWARE mark on the ground that it is merely descriptive when used in connection with computer software, hardware & services in a sneaker context. 

5. OpenAI Nabs Partial Win in Latest Round of Authors’ Copyright Lawsuit. A federal court has sided in large part with OpenAI in the latest round of a couple of nearly-identical lawsuits that two groups of authors, including Sarah Silverman, filed against the generative AI giant last year.


6. In a separate AI copyright case … Public Interest Exemption Applies in Artists’ Case Over Gen AI, Per Court. According to the court, the defendants cannot rely on California’s anti-SLAPP statute to shield themselves from liability.


7. U.S. Patent Office Provides New Guidance on Inventions Created Using AI. The USPTO asserts that “based on the holding in Thaler that an ‘individual’ must mean a natural person, it is clear that a ‘joint inventor’ or ‘coinventor’ must also be a natural person.” 

8. Learning From Lululemon: Disclosure Laws Won’t Fix Forced Labor. Despite being recognized as an industry leader in this area, an investigation found that Lululemon was at a high risk of sourcing from the Xinjiang region in China.