Source AP ©

Burberry Ltd sues Iconix Brand Group Inc

Luxury goods maker Burberry Ltd. has sued Iconix Brand Group Inc. for planning to sell trench coats and scarves that infringe on Burberry's trademarked check pattern.

Britain's Burberry filed a lawsuit Friday in federal court in Manhattan, alleging Iconix intends to introduce a trench coat with a check lining that's "confusingly similar" to Burberry's signature check pattern. Iconix also intends to introduce a scarf that "is nearly identical in its color scheme" to a Burberry scarf, according to the complaint.

"To capitalize further on public confusion, defendant has wholesale co-opted the look and feel of Burberry's advertising campaign," the lawsuit says.

The lawsuit claims Iconix has a four-page advertising spread in the September issue of Glamour that features celebrities Kevin Bacon, Cheryl Hines and Teri Hatcher all wearing London Fog trench coats and scarves with the allegedly "infringing check."

Iconix also has run ads in the September issues of InStyle and Cosmopolitan magazines that prominently display the disputed check pattern, according to the complaint.

"We strongly disagree with Burberry's claims and will be responding accordingly," Iconix said in a statement. "London Fog is an iconic brand with a rich heritage of its own dating back to the 1920s. Plaid designs have been a common element of London Fog products for years."

The London Fog brand was acquired last year by Iconix for $30.5 million in cash as part of London Fog Group Inc.'s bankruptcy proceedings. London Fog Group sought Chapter 11 bankruptcy protection in March 2006.

Iconix is a New York-based brand management business. Shares of the company fell 50 cents, or 2.4 percent, to $20.39 on Tuesday.

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