Professional Digest

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A new round of creative director musical chairs is putting elements of employment law back in the spotlight – albeit the latest shakeup of top industry talent is playing out amid an evolution in how much control companies can legally exert over individuals in the immediate wake of their employment. The bulk of the current creative director discourse comes in the form of confirmed departures – such as Virginie Viard’s newly-announced plan to vacate the top creative job at Chanel – and rumored splits, with the most scintillating report being the potential that Hedi Slimane leaves Celine (for Chanel?) if current contract negotiations with the LVMH-owned brand do not go his way.

All the while, there are several big name “free” agents in the mix, as well, including former Valentino creative head Pierpaolo Piccioli, Sarah Burton (formerly of Alexander McQueen), etc.

This latest round of director shakeups is potentially unique in light of a bigger picture, in which the enforceability of non-compete agreements is being considered by regulators. Such contractual limitations are on their way out in the U.S., for example, thanks to the Federal Trade Commission. The government agency voted in April to issue a final rule to ban most new non-compete agreements, including those of senior executives, which the FTC sweepingly defines as individuals who earn more than $151,164 per year and that occupy a “policy-making position.”

A few litigation (and other) updates …

• Anderson v. Roup: A C.D. Cal. judge partially sided with Megan Roup on the basis that “no reasonable juror could find that the [Tracy Anderson workout] Method is not a method, process, or system unprotected by § 102.” (For background on this case, you can find that right here.)

• Nike v. Geox: The EUIPO’s Board of Appeal refused Nike’s appeal of a decision from the EUIPO’s Cancellation Division, which shot down Nike’s bid to invalidate rival GEOX’s “lookalike” logo.

• Gianni Versace, S.R.L. v. Imperial Gift, Inc: Versace has waged TM claims against third parties for “distributing cheap unauthorized imitation Versace merchandise in order to fool unsuspecting consumers and the public.”

• Giana v. Shein Distribution Corp: Shein is looking to escape the lawsuit that artist Alan Giana waged against it for allegedly carrying out an “industrial-scale scheme of systematic, digital copyright infringement.” According to Shein, Giana’s complaint should be dismissed on lack-of-jurisdiction grounds.

In some deal-making (and other finance) news this week …

• Alexi, a “leader in generative AI for legal research and litigation tasks,” has raised $11M in a Series A round. 

• AI marketing engine for law firms FirmPilot has raised $7M in a Series A round.

• LawPro.ai, which provides AI-driven solutions for the legal industry, has raised an undisclosed sum in a Seed round. 

• 3D model creation tech provider Sloyd has raised €3M in a Seed funding round.

• Luxury sneaker-maker Golden Goose set a price range of €9.50 to €10.50 for its impending listing in Milan, aiming at a market capitalization of up to €1.86 billion. (You can find our running list of fashion/retail IPOs here.)

– Julie Zerbo
Founder & Editor-in-Chief

Here are TFL’s top articles of the week …

1. SCOTUS Confirms Rejection of TRUMP TOO SMALL Trademark Registration. Elster may not enjoy the “increased trademark protections” associated with registration, but the court made a critical distinction between TM rights & registrations in its opinion. 

2. Nike Loses Latest Round in EU Fight Over FOOTWARE Trademark. The General Court upheld an earlier determination from EUIPO’s Board, found that the FOOTWARE mark is “descriptive” when used on hardware/software that could be tied to sneakers.

3. What Harley-Davidson’s Right to Repair Case Win Means for Other Brands. Harley-Davidson “has not imposed tying conditions on the purchase of parts or forced buyers to promise not to buy parts from a competitor,” the court held. 

4. TOMS Targets “Unauthorized” Resellers in New Trademark Battle. The defendants are reselling TOMS footwear that is not subject to the company’s quality controls, thereby, transforming otherwise-authentic products into infringing ones, according to TOMS.

5. NFTs Subject to Federal Trademark Law, INTA Argues in Yuga Labs Brief. NFTs – while intangible – are still “goods” subject to the Lanham Act, as TMs perform the same source-identifying functions when used on products “in NFT markets as they do in other markets.”

6. Dior Handbags Unit Under Fire Amid Allegations of Labor Exploitation. Dior bags are coming under the microscope amid a probe by prosecutors in Milan, who are investigating the supply chains of more than a dozen big-name – but largely unnamed – fashion brands. 

7. In case you missed this … What Really Goes into “Made in Italy” Fashion? Luxury-fashion houses often inexpensive Chinese-immigrant labor to create expensive accessories & handbags that bear the coveted ‘Made in Italy’ label.”

8. How Does AI Fit into Companies’ ESG Frameworks? A Look at “Ethical” AI. Companies that pursue ethical AI do so largely for strategic reasons. They want to sustain trust among customers, business partners & employees.