Professional Digest

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California’s governor Gavin Newsom signed a bill this past weekend that will establish an Extended Producer Responsibility (“EPR”) scheme for the collection and recycling of “covered products” in the state. Called the Responsible Textile Recovery Act of 2024 (SB 707), the newly-signed and chaptered law, which was introduced by California Senator Josh Newman, aims to enhance the recycling and reuse of textiles in California.

Among the key elements of the Responsible Textile Recovery Act of 2024 are ….

> The law will “enact a stewardship program known as the Responsible Textile Recovery Act of 2024, which would require a producer of apparel … or textile articles, as defined, to form and join a producer responsibility organization,” which will be required to “submit to the [Department of Resources Recycling and Recovery], for approval or disapproval, a complete plan for the collection, transportation, repair, sorting, and recycling, and the safe and proper management, of apparel and textile articles in the state.”

– Julie Zerbo
Founder & Editor-in-Chief

New cases, litigation & other legal updates …

> Bath & Body Works, Inc. v. Health & Beyond Health Technology: Bath & Body Works is accusing H&B Health of “blatantly appropriating [the] patented ornamental designs” of its hand sanitizers (including the ones with silicone holders), body lotions, and shower gels in a new design patent lawsuit.

> Zlozower v. CR Fashion Book: Fashion mag CR Fashion Book is being sued for making use of a photo of Guns ‘N Roses in an article about Alessandro Michele’s Gucci designs without licensing it.

> Chrome Hearts LLC v. HRH Collection aka HRH: In its latest TM infringement action, Chrome Hearts claims that HRH Collection and its founder Alexandra Piece are offering up jewelry that co-opts its protected cross logos.

> Snap, Inc. v. Vidal: A C.D. Cal. Judge sided with Snap recently, finding that while Snap “has not produced enough evidence to prove even by a preponderance standard that SPECTACLES carries enough secondary meaning to be included immediately on the principal register,” the mark “can acquire such source-identifying significance if for no other reason than the term’s arcane etymology and alternative dictionary meanings. SPECTACLES should thus be eligible for supplemental registration.”

> And in a TM matter … Guangzhou Xiaolingwan Trading Co., Ltd. has (unsurprisingly) abandoned its application to register a mark consisting of “a bag imprinted with a standard character of ‘THE TOTE BAG’” that is identical to Marc Jacobs’ mark, following pushback from the USPTO. 

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

> LVMH has sold its stake in Off-White to Bluestar Alliance. 

> In other LVMH news, the group will acquire a 10% stake in Double R, the investment vehicle controlled by Moncler Chairman and CEO Remo Ruffini.

> Augmodo, which provides retailers with real-time inventory trackers, has raised $5.3M in a Seed round. 

> AI-powered supply chain tool provider Ameba has raised €6.4M in a Seed round. 

> MarqVision, a leader in online brand protection, has raised $36M in its Series A. 

> AI-powered contract review & negotiation tool provider DocJuris has raised $8M in a Series A. 

> Gen-Z-favored AI “Answer Engine” iAsk has raised $4.2M in a Seed funding round. 

> Loti AI, “a leader in likeness protection technology,” has raised $6.65M in a Seed round. 

> ESG compliance & sustainability performance management platform Atlas Metrics has raised €12.2M in a Series A.

> ESG and sustainability compliance startup Briink has raised €3.85M in a Seed round.

Here are TFL’s top articles of the week …

1. As first reported by TFL … Mytheresa to Acquire Loss-Making YNAP from Richemont, Sources Say. Looking to off-load loss-maker YNAP, Richemont seems to have finally landed a buyer for the company: German luxury e-commerce platform, Mytheresa.

2. Where Nike Went Wrong: Leadership Shakeup, Investor Lawsuits Shed Light. Nike’s decision to pivot to a DTC model over the last several years has led to a fractured distribution network and legal troubles for the sportswear giant.

3. Lawsuit Over Miley Cyrus’ “Flowers” Provides Warning for Brands, Retailers. Miley Cyrus is on the receiving end of a new © challenge that accuses the singer and a slew of other defendants of ripping off a Bruno Mars song to create the “overnight sensation” that is her 2023 hit, “Flowers.”

4. Gen Z Supports Sustainability – And Fuels Ultra-Fast Fashion. They covet a brand-new clothing item that is markedly more affordable when purchased from an ultra-fast fashion brand. On the other hand, they are aware of the environmental harms. What explains this cognitive dissonance?

5. Avoiding Greenwashing: What Companies in Australia, Singapore Need to Know. On the heels of publishing an article with a non-exhaustive outline of the current laws, codes, and guidelines in relation to greenwashing in the EU & the UK (you can find that here), here is one that is focused exclusively on Australia & Singapore.

6. GOAT Files Lawsuit Against Culture Kings Over “GOAT CREW” Trademark. GOAT has waged a new lawsuit against Culture Kings USA, Inc., accusing the company and its CEO of deliberately infringing its trademarks by using the GOAT CREW brand.

7. Dolce & Gabbana NFT Lawsuit Escalates With New Fraud Allegations. Dolce & Gabbana is facing a new set of allegations in the ongoing investor lawsuit waged against it & its partners over their controversial NFT project.

8. Emphasizing “Brand Heat,” Tapestry Pushes Back Against FTC in Merger Battle. The FTC did not present an accurate picture of the luxury handbag landscape & mischaracterized how it operates during the parties’ trial, Tapestry argues.

9. Our Running Timeline of Fashion, Luxury Funding and M&A is up to date. The newest deal on this list: LVMH has sold its stake in Off-White to Bluestar Alliance.

10. In case you missed this… From Luxury Leader to Loss-Maker: What Went Wrong for Yoox Net-a-Porter? Lack of tech strategy at Richemont, poor planning at YNAP, and distractions from a failed deal with Farfetch had a hand in YNAP’s downfall.