AEO wins preliminary injunction against Payless regarding trademark infringement

PITTSBURGH American Eagle Outfitters today announced that it won a preliminary injunction against Payless ShoeSource in a trademark infringement and unfair competition lawsuit regarding Payless' use of the American Eagle mark for a line of footwear and handbags. The ruling means that Payless will have to adopt a clear disclaimer that American Eagle by Payless is not affiliated with American Eagle Outfitters to avoid further customer confusion.

“We’re pleased with the court’s decision to issue a preliminary injunction against Payless,” said Neil Bulman, vp and general counsel for American Eagle Outfitters, Inc. “Our ultimate goal is to stop Payless from misleading and confusing consumers and to protect the integrity of our brand.”

AEO contends that Payless is deceiving consumers by portraying itself as the owner of "the youth fashion brand American Eagle" and indicating that it is selling genuine AEO merchandise when it actually is not. AEO shoes and handbags are available exclusively at AEO stores and on www.ae.com.

Additionally, Payless is marketing American Eagle shoes and accessories with advertising and promotional materials that copy the look and feel of AEO's marketing style and falsely claim to be the exclusive source of American Eagle and AE "women's," "men's" and "accessories."

The April 2007 suit was filed in United States District Court Eastern District of New York.