May 30, 2000, Calvin Klein, Inc (CKI) has filed suit against the Warnaco Group, Inc and Linda Wachner, its CEO, for breach of its licensing and distribution of jeans contracts and, thus, the dilution of brand equity. June 26, 2000, Warnaco oppose the suit, the denial of basic allegations of trademark dilution and justification of the distribution through the warehouse clubs, as an acceptable business practice. The counterclaim also alleged that CKI was, in fact, violated the law and undermines the brand through its own policies and practices. Claims precedent: It was the first time the license of the manufacturer / distributor has been charged in the brand equity dilution or designer responsible for the ineffective brand advertising. It was a case that has the potential to rewrite the rules of fashion licensing and distribution, and bring into focus the tension faced by each brand manager trying to balance the goals of revenue growth while maintaining brand equity. This case contains an extensive background facts. "Hide
by Susan Fournier, Jessica Boer Source: Harvard Business School 28 pages. Publication Date: November 19, 2002. Prod. #: 503011-PDF-ENG
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