Intellectual Property - Copyright Infringement

DAILY JOURNAL VERDICTS & SETTLEMENTS
July 2005

INTELLECTUAL PROPERTY

Copyright Infringement
Lost Profits

SETTLEMENT/VERDICT: $115,000.

CASE/NUMBER: Girl Mania, Inc. v. Design Zone, Inc. / SACV 05485CJC.

COURT/DATE: United States District Court Central / June 13, 2005.

ATTORNEYS: Plaintiff - Mark B. Wilson (Klein & Wilson, Newport Beach).

Defendant - Stanley W. Levy (Manatt, Phelps & Phillips, LLP, Los Angeles).

FACTS & CONTENTIONS: Girl Mania designs and manufactures its own private label clothing and sells the garments at its retail store in Newport Beach. Design Zone/KWDZ, a garment manufacturer, allegedly copied two of Girl Mania's copyrighted designs and sold the infringing garments to various retailers.

The plaintiff contended that the defendants infringed two of its copyrighted designs.

The defendants denied liability.

DAMAGES: The plaintiff sought from the manufacturer and the retailer's profits from their sale of the allegedly infringing garments.

SETTLEMENT DISCUSSIONS: The retailers tendered their defense to the manufacturers Design Zone/KWDZ. After exchanging information about defendants' profits, Design Zone/KWDZ paid Girl Mania $115,000, which represented all of the defendants' profits from the sale of the allegedly infringing garments.