American Eagle Outfitters, Inc. said that it has won a preliminary injunction against Payless ShoeSource, Inc. in a trademark infringement and unfair competition lawsuit arising out of Payless' use of the American Eagle mark for footwear and bags. The ruling requires Payless to adopt a clear disclaimer stating that American Eagle by Payless is not affiliated with American Eagle Outfitters.
AEO contends that Payless, a discount shoe chain, is deceiving consumers by portraying itself as the owner of “the youth fashion brand American Eagle” and indicating that it is selling genuine American Eagle Outfitters merchandise when in fact it is not.
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 claiming to be the exclusive source of American Eagle and AE “women's,” “men's” and “accessories,” which continues to cause consumer confusion as to the relationship between Payless and AEO.
