WAREHOUSE GIANT’S FAILED ATTEMPT AT SEEKING LUXURY STATUS

A lawsuit was recently filed against the warehouse giant, Sam’s Club. Consumers would be happy to know the suit is not the result of spoiled produce or faulty products but for allegedly selling David Yurman jewelry without authorization.

In the lawsuit filed this Thursday in U.S. District Court in Houston,Texas, David Yurman Enterprises LLC accused Sam’s Club of trademark infringement, unfair competition, false designation of origin, and tortious interference. The complaint stated that Sam’s Club intentionally sought and purchased Yurman’s jewelry from one or more of their authorized dealers and used Yurman’s trademark and point of sale materials to promote the product.

Yurman first learned of the unauthorized selling back in June after several of the company’s authorized dealers complained that Sam’s carried the brand. So far most of the sales took place in the Houston area including a total of seven stores in three different counties, as well as online. Yurman has asked Sam’s to cease carrying its pieces and to reveal the dealers from which it obtained the jewelry but Sam’s refused to do so.

Sam’s club lawfully purchased Yurman’s jewelry; the subsequent sales of the jewelry were also lawful. So what’s the big deal? David Yurman is only sold by certain authorized dealers. Vice President and general counsel of Yurman stated, “The company very carefully controls the retail distribution of its merchandise to ensure that David Yurman jewelry and timepieces are available at only the finest jewelry and department stores, consistent with the image and goodwill of the David Yurman brand.” To put it simply, Sam’s club does not possess the luxury status needed to sell their jewelry.

Yurman is seeking monetary damages and a permanent injunction to prevent Sam’s from further acquiring, advertising, and selling its jewelry. While the injunction is an appropriate remedy to prevent further sales, to seek damages from Sam’s seemed a little unjust. Authorized Yurman retailers sign an agreement stating that they will only sell the brand’s jewelry at the location, or locations, designated in the agreement. Sam’s lawfully purchased the jewelry from one of these retailers same as a customer. If anyone should be reprimanded for the result of Sam’s subsequent sales, it should be the retailers from which the warehouse obtained the jewelry and should sue under a break of contract theory.

By: Nicole Harris, Associate Editor of Art, Publishing, Music & Fashion

photo credit: miamism via photopin cc

Sources:

http://www.thefashionlaw.com/david-yurman-sues-sams-club-for-selling-its-jewelry/

http://www.nationaljeweler.com/majors/market-developments/David-Yurmans-legal-5382.shtml