Tsubi, Tsubo in Trademark Case
Can a premium-denim label survive a change in its brand name?
Australia-based jeans company Tsubi PTY Ltd. will soon find out. It recently settled a trademark infringement lawsuit with Tsubo LLC, a Carlsbad, Calif.–based footwear label.
The suit had been filed in U.S. District Court for the Southern District of New York. The matter was settled June 30, when the Australian company agreed to refrain from using its brand name everywhere but in its home country. U.S. representatives of the Australian brand, which owns a boutique in New York, declined to comment.
The Australian fashion label will change its name to Ksubi. The deadline to make the change will be Oct. 31, 2007, according to Richard Lehv, a lawyer for the footwear designer. No cash damages were awarded in the settlement.
Tsubo started doing business in 1998. It registered in Australia in 2000, two years before Tsubi. Patrick McNulty, a co-founder of the footwear company, said an Australian distributor tipped off his company on the debut and success of Tsubi.
“We just wanted to alleviate confusion,” McNulty said. “We thought the names were too close. There was a one-letter difference, and the font was similar. We needed to protect the aspirations for the brand to grow into other areas.”
Tsubo, a private company, reported doubling its sales growth in 2005. It also reported a 45 percent sales increase in 2006. The footwear brand plans to eventually debut an apparel and accessories line. It will open a U.K. office this fall.
The denim brand might just be able to turn the settlement in its favor, according to marketing and branding consultant Rick Barrera. “It’s just one letter. It’s minor,” said Barrera, chief executive of San Diego–based Overpromise Inc. “You’re always after word-of-mouth and marketplace chatter. This is an excuse for them to get more.”
—Andrew Asch
