Chanel Seeks Permanent Injunction Against WGACA

The ongoing legal dispute between the luxury brand Chanel and the high-end reseller What Goes Around Comes Around ("WGACA") has intensified, with the brand pursuing a permanent injunction against WGACA. This follows a jury in New York granting the luxury label a $4 million verdict due to the sale of counterfeit products bearing its name by WGACA. The brand is now pushing for a permanent injunction to prevent WGACA from using its trademarks to advertise unauthorized products or those that have been significantly altered. 

The injunction encompasses several provisions, including barring WGACA from advertising or selling any items under the brand without Chanel's consent, utilizing Chanel marks in promotions, and mandating the inclusion of holographic Chanel serial numbers for each item offered for sale. Additionally, WGACA would need to include a disclaimer stating that the items for sale haven't been authenticated by the brand and to recall and refund all non-genuine products sold since the lawsuit began.  

WGACA contends that the brand's request for injunctive relief is anti-competitive and would impede the second-hand market, particularly with demands like acquiring original proof of purchase for each item. It also alleges that the brand has acted unfairly and failed to provide evidence of irreparable harm.  

This disagreement brings to light significant considerations for both brands and resale enterprises, especially given the burgeoning resale market and the potential appreciation in value of vintage luxury goods over time.

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