Page 15 - The Katten Kattwalk - Summer 2025 - Issue 29

Chanel’s Legal

Victory Sends a

Clear Message: Authenticity Isn’t

Just a Luxury —

It’s the Law

By Carly Ryan

“ ard times arouse an instinctive desire
for authenticity,” Coco Chanel once said.
Chanel, the eponymous company, has
Htaken this motto to heart in its unwavering
commitment to protecting its intellectual property —
an effort that recently culminated in a unanimous
verdict against luxury reseller What Goes Around
Comes Around (WGACA) for trademark infringement,
false association and false advertising.
On February 6, a jury for the US District Court
for the Southern District of New York found the
reseller liable on all counts, awarding Chanel $4
million in statutory damages. Chanel also sought
$6.7 million from WGACA in attorney’s fees. On
February 26, the court entered its final judgment
on equitable remedies, enjoining WGACA from the
use of confusingly similar marks. The nearly six-
year-long case alleged that WGACA sold counterfeit
Chanel bags and used Chanel’s trademarks without
authorization. In this article, we cover the most
significant federal legal developments of the case and
distill the valuable takeaways.

Trademark Infringement and
False Association Claims
To prevail on a claim of trademark infringement or
false association, the plaintiff must show that the
defendant’s use of a mark creates a likelihood of
consumer confusion. The consumer is not required
1
15
Creative Lab/Shutterstock.com