Luxury counterfeit production has soared due to rising prices in the authentic luxury market. Now, luxury brands are fighting back and using the legal system to combat counterfeiters. An average 33% price increase occurred in the luxury market between 2019 and 2023, as consumer demand rose in the wake of the pandemic. (Reuters, Business of Fashion). The classic Chanel “quilted flap bag more than tripled [in price] between 2015 and 2024,” while the popular Louis Vuitton “Keepall travel bag more than doubled.” Id. Consequently, consumers struggled to keep up with rapid price increases, and the counterfeit industry worked to solidify its place in the market by mimicking luxury products. Id.; (Malique Morris, Business of Fashion). Luxury brands, in an effort to protect themselves and their customers, are targeting online retailers and luxury resale stores. Id. This post explores recent and ongoing trademark lawsuits directed at a variety of counterfeit and “dupe” markets, with luxury brands defending their reputations from purposeful copying and disguised counterfeit reselling.
Read MoreDelaware law, British courts, and a material adverse effect all converged in BM Brazil, a recent decision by the England and Wales High Commercial Court that applied Delaware law to interpret a Material Adverse Effect (“MAE”) clause in a cross-border merger dispute. BM Brazil v. Sibanye, EWHC 2566 (Oct. 10, 2024). MAE clauses are used in sale and purchase agreements (“SPA”) to give buyers protection against certain events in the merger and acquisition (“M&A”) context, allowing the buyer to terminate the contract between signing and closing. (Bloomberg Law). Although these clauses are commonly included in M&A contracts, findings that an event constitutes an MAE occurred are few and far between. (Glenn D. West, Business Law Today). While BM Brazil provides valuable insight on how courts analyze MAE clauses, courts remain unlikely to find an MAE occurred in most cases. (Charlotte Eborall, Journal of International Banking and Financial Law (UK); Glenn D. West, Business Law Today). This post discusses the details of the case, the Commercial Court’s holdings, and the application of MAE clauses to modern contract execution.
Read MoreConsumers and states are bringing lawsuits against social media conglomerate Meta, seeking billions in damages and substantial change to the company’s allegedly addictive technologies. (Naomi Nix, The Washington Post). Meta runs Instagram, Facebook, WhatsApp, and other popular technology platforms. (Meta.com). Despite the company’s commitment to “keeping people safe and making a positive impact,” many users and state governments believe Meta leverages addictive methods to encourage teen engagement on Instagram and Facebook. (Meta.com; Jonathan Stempel et al., Reuters). States and individuals are pushing for Meta to take accountability for its addictive algorithms and make changes to protect the mental health of its minor Instagram and Facebook users, which would likely affect company policies and Meta’s stakeholders. (Meta.com; Jonathan Stempel et al., Reuters). This post considers the social media policies giving rise to widespread claims against Meta, as well as the potential effects of such claims.
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