In This Blog Post:

• Trade libel case example: Parigi v. Puma;
• Explanation of why many unfair competition lawsuits involve trade secret and trade libel claims;
• Contact information for an unfair competition lawyer.

Defamation lawsuits aren’t exclusively matters of personal scorn and trash-talk. More often than not, libel and slander suits are nuanced, business law battles.

A recent legal tussle between Puma SE (“Puma”) and the Parigi Group Ltd. (“Parigi”) illustrates how defamation and trade secret torts can be leveraged in unfair competition lawsuits.

Background: Longstanding Licensing Agreement

The backbone of this trade libel example lawsuit is a longstanding licensing agreement.

For over ten years, Puma and Parigi enjoyed an amicable business relationship. A mutually beneficial agreement, Puma licensed its marks to Parigi, who then manufactured child-sized versions of Puma’s tracksuits and sportswear.

The Breakup: Longstanding Licensing Deal Broken Without Much Notice

The proverbial $#!+ hit the legal fan when Puma allegedly started cheating with United Legwear and Apparel Co. (“United”) behind Parigi’s back. According to Parigi, not only did Puma initiate clandestine talks with United, but executives from the fashion conglomerate supposedly bad-mouthed Parigi to several influential department stores. According to reports:

“’Puma intentionally and fraudulently made repeated misrepresentations to Parigi that Puma intended to renew the parties’ more than 10-year-long license agreement.’ It also alleges that Puma disclosed trade secrets and proprietary business information to United Legwear & Apparel Co. and tried to discredit Parigi among retailers such as Bloomingdale’s and Macy’s.”

Puma spokespeople swear that company representatives did nothing untoward, and the company is looking “forward to presenting [their] case.”

Trade Libel Example Case: Licensing Partner Problems

Full disclosure, we’ve not yet read the entire Parigi v. Puma filing. But judging from available reports, the crux of the lawsuit appears to be binary, in that the suit addresses both trade libel and trade secret issues.

Generally speaking, trade libel is the unfair disparagement of a product, service, or business. (Read more about trade libel here.) Conversely, trade secrets are confidential, quasi-intellectual property holdings. (Read more about trade secrets here.)

In this case, Parigi is arguing:

Trade Secret Claim: Puma violated a trade secret agreement with Parigi by sharing information with United, before formally inking the deal.

Trade Libel / Defamation Claim: Puma executives purposefully and negligently spoke disparagingly of Parigi to executives at several department stores.

In Parigi v. Puma, the former insists the latter wasn’t forthcoming about its intentions to terminate a contract. Puma’s alleged reticence to renew the contract, however, isn’t the legal issue anchoring this case; it’s simply the branch on which the actual unfair competition claims — trade libel and trade secret misappropriation — were hung.

Puma and Parigi are two big business players in the fashion world. So, expect this lawsuit to be well-fought and long-lasting. In the words of Parigi spokesperson:

“We will see some very ugly things. Puma’s a major name in the industry, and my client’s a major name in the industry, and they’re going to war.”

Questions For A Business Defamation Lawyer?

Kelly / Warner handles all manners of business law legalities, including trade libel and business defamation. If you need an attorney to review documents, we can. Need startup legal counsel? We’ve got answers.

Pick up the phone or shoot us a message. Let’s start solving your Internet and business law needs.

More trade libel example lawsuits? Head here.

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