North Face, like the song says, "Caught in the middle again...." struggles to protect their brand, trademark and integrity.
On September 22, 2009, the U.S. Environmental Protection Agency filed suit against VF for alleged sale of unregistered pesticides in more than 70 styles of North Face Inc. shoes. Possibly the company simply overstated their product’s performance, but the EPA states, “The company sold the products making unsubstantiated claims that the footwear would prevent disease-causing bacteria.” This suit’s 162 counts could potentially cost VF more than $1 million.
For a manufacturer to make such a statement the product must first be tested by the EPA and then it must register the pesticide. The brands from North Face include "Fury Gore-Tex XCR," "Hedgehog SCR" and "Off-Chute." They are advertised as preventing bacterial and fungal growth for their wearers. EPA adds that North Face incorporated registered pesticides in the shoes, but the claim to protect users against bacteria went too far.
Then, on Sept. 29th, North Face took on Little Jimmy, sending a cease and desist letter to the 18-year-old University of Missouri freshman over his clothing line: South Butt.
The Battle of Face and Butt
Jimmy Winkelmann’s attorney, Albert Watkins, says the problem stems from the company motto: Never Stop Exploring. Winkelmann’s motto for South Butt clothing “Never Stop Relaxing,” according to North Face Inc., violates its trademark and could confuse the public.
A comparison of the graphic logo, trademarked by North Face and modified by Winkelmann, may be the bone of contention. Whatever the argument, sales of South Facing clothing skyrocketed and Winkelmann’s profits right along with it when news of the legal confrontation went public.
According to Winkelmann’s press release, he started the clothing line in an effort to help his parents pay for his education in these tough economic times. How much help they needed remains unclear. His lawyer explained that his own involvement began on the squash court during a game with Winkelmann’s father, who is a stockbroker, at the exclusive St. Louis Racquet Club.
Litigants Include
Morningstar describes VF, owner of among others the North Face brand, “well positioned to withstand a slowdown in consumer spending” and a company that “successfully made the transition from being a manufacturer of low-priced denim and lingerie to a global marketer of diversified apparel brands.”
VF describes itself in their 2005 Global Compliance Report as a company “with more than $6 billion in annual sales, VF Corporation1 is one of the world’s foremost manufacturers of branded apparel. Headquartered in Greensboro, North Carolina, we operate in approximately 150 countries with 53,000 full-time employees. We also source our production with over a thousand contracted facilities around the world in any given year. We own some of the best-known apparel brands in the world, which are managed within five product categories, or “coalitions.”
Winklemann’s attorney categorizes this David and Goliath conflict in this way: “We’re going to continue to do everything we can to ensure that capitalism and the ‘American Way’ are not trampled and that a creative entrepreneur can still make a go of it in this country.”
A Little History
Forty years ago, two mountaineers were the little guys, trying to strike out in the retail business, creating their own products and logo – they became North Face Inc.
The company has grown into a multi-million dollar company that expends money and time to protect its brand. Their high end products have attracted a growing illegal knockoff market. In 2007, North Face won a victory against Bejing Silk Market, the first case in China where a manager was found culpable, opening the door for other manufacturers whose items had also been illegally made and sold.
North Face products have been targeted in street muggings and thefts- signs of success, for sure in this strange land where brand means everything. And, of course, there’s Little Jimmy. Protecting a company brand takes away from other aspects of business. Not only must they fend off trademark infringement and knockoffs, companies must be ever vigilant to protect themselves against cybersquatters and an evergrowing array of Internet connected attacks.
Dawn Goldsmith - Dawn Goldsmith is a freelance writer and former news reporter with Freedom Communications and Gannett. Her work has been published in a ...
