Calvin Klein Inc.'s Suit Against Warnaco Group, Inc.

622 Words2 Pages

In the year 1990 Calvin Klein, Inc. and Warnaco Group, Inc. entered a licensing agreement. Under the licensing agreement the product that is being produced is the famous Calvin Klein Jeans. The license agreement was to expire in the year 2034 making it a 44 year term, but that all change on May 30, 2000 after Calvin Klein, Inc. filed a law suit against Warnaco Group, Inc. “for breaching its Jeanswear licensing and distribution contract and, in so doing, diluting the equity of CKI’s brand.” On this law suit the Calvin Klein company stated that the Warnaco Group, Inc. has affected the company negatively which has “including unauthorized adaptations of designs, failure to follow designer guidelines, and use of cheaper materials in production,” and they also stated that the Warnaco Group, Inc. used distribution channels that that are not in the licensing agreement, and/or that are a whole lot different price point than the retailer that Calvin Klein merchandises are usually in. Calvin Klein believed that all of these practices corrupted his brand image.
Calvin Klein believed that on...

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