Huntington Beach surfwear maker Quiksilver Inc. has won a drawn-out court battle over its Roxy brand against Los Angeles-based Kymsta Corp.
Last week, U.S. District Judge Valerie Baker Fairbank upheld a ruling in favor of Quiksilver that found Kymsta to have infringed on the Roxy name.
Kymsta makes women’s clothes under the Roxywear, Roxywear by Roxx and Roxywear by Roxanne Heptner names. Quiksilver’s clothes for girls and young women goes under the Roxy label.
Suing Kymsta was necessary to protect Roxy’s brand and image, Quiksilver Chief Executive Robert McKnight said.
“Anybody who holds trademarks has to be aggressive in protecting those trademarks,” he said. “We want to be clear that we will aggressively defend our trademarks and brands.”
Kymsta now has 18 months to phase out its Roxywear, Roxywear by Roxx and Roxywear by Roxanne Heptner brands.
The suit was more a matter of principle, McKnight said.
“We’ve always been able to solve issues with other companies amicably where we sit in a room, talk about what’s going on and just settle it,” McKnight said. “But this company from day one has been nuclear.”
The two never came close to reaching a settlement, McKnight said. Kymsta refused the company’s offers, which left McKnight frustrated.
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Designing swimsuits at Roxy: brand has $800 million in yearly sales |
“We were going to give them money and let them do their business,” McKnight said. “They could’ve kept going but now after all of this, they got the worst outcome.”
History
The suit has been years in the making.
Quiksilver and Kymsta have been hashing out the issue since 2002. With no deal on the table, Quiksilver eventually sued Kymsta for trademark infringement.
It claimed that Kymsta’s Roxywear, Roxywear by Roxx and Roxywear by Roxanne Heptner brands caused confusion with retailers and shoppers. The names made people believe that Kymsta’s brands were somehow linked to Quiksilver, the company argued.
The case went to trial in 2004 with Quiksilver prevailing after a judge ruled that the evidence presented by Kymsta wasn’t strong enough to present to a jury.
Kymsta appealed and the two again headed back to court this past February. Last month, a jury ruled in favor of Quiksilver.
Last week’s ruling by Judge Fairbank doesn’t sit well with Kymsta.
The company’s lawyer, James Nguyen, a partner at Foley & Lardner LLP in Culver City, said Kymsta disagrees with the verdict. The company could appeal the decision, he said.
“Kymsta’s take on the verdict is that it was improper and a miscarriage of justice,” Nguyen said.
McKnight’s response to a possible appeal by Kymsta: “Good luck.”
Quiksilver’s win marks a coup for the company, which generates $2 billion in yearly sales making surf-inspired clothes, swimsuits, shoes and accessories under the Quiksilver, Roxy and DC brands, among other labels.
The company’s Roxy brand is its premier line of surf-inspired clothes for girls and young women. It’s one of the company’s strongest, accounting for some $800 million in yearly revenue, according to McKnight.
Where They’re Sold
Roxy clothes and accessories are sold at Anaheim-based Pacific Sunwear of California Inc.’s PacSun stores, Nordstrom and Quiksilver shops, as well as others.
It’s a different animal from Kymsta’s clothes, which are a mix of shirts and tank tops that sell for about $100 at Bloomingdale’s, Barneys and other stores.
With the Kymsta lawsuit behind the company, it’s now “business as usual,” McKnight said.
The company’s been focusing on building sales from its Roxy and other core brands. It’s also in the midst of trying to wind down its struggling Rossignol ski business and finding a buyer for the unit.
“Our strategy is to sell Rossignol and continue to focus on Quiksilver, DC, Roxy and build our portfolio in the board riding space,” McKnight said.
