In February 2024, Chanel" was awarded $4 million in statutory damages for trademark infringement related to the sale of counterfeit Chanel"-branded products. The courts have not yet granted the equitable remedies sought by Chanel". As we previously reported, possible equitable remedies include disgorgement (giving profits from the sale of Chanel" goods to Chanel") and injunctive relief.
Chanel" is now seeking a permanent injunction to prevent WGACA from participating in infringing activities and unfairly competing with Chanel". Chanel" aims to prevent consumer confusion by restricting WGACA's use of Chanel" trademarks, unauthorized advertising, and the sale of altered or repaired Chanel"-branded products. Chanel" also intends to restrict WGACA from making claims about the genuineness of Chanel"-branded items without proper documentation. If granted, this may impact resellers' ability to advertise authenticity without Chanel"-issued documentation.
The proposed injunction also includes demands for recalling all infringing Chanel" items WGACA sold to consumers and wholesalers since March 2018. Additionally, Chanel" is requesting that disclaimers of affiliation be displayed on WGACA's website and on all physical products, and that photographs of all Chanel"-branded goods with their Chanel" serial numbers be posted on each Chanel" sale listing.
We are eagerly watching for the equitable remedies that could potentially be awarded to Chanel" and what this will mean for the luxury resale industry.
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