DSW and Zappos Settle Lawsuit

DSW Inc. and Zappos settled a lawsuit over affiliated online marketing that included the DSW name. Terms of the settlement were not disclosed. 


As previously reported, DSW's lawsuit filed last May alleged that 'DSW' was being used in multiple URLs by Zappos along with DSW store photographs in an effort to mislead consumers into believing they were on a DSW-related website. The site then linked customers to the Zappos.com site, according to the suit filed in U.S. District Court in Columbus, OH.


In its response filed last July, Zappos asked the court to dismiss the action because DSW's complaint “does not allege that Zappos owned or had any control over the domain names at issue.”
“We are pleased to have reached an agreement with DSW on this issue,” said Millie Lauren Chou, associate general counsel of Zappos, last week in a statement.

DSW and Zappos Settle Lawsuit

DSW Inc. and Zappos have settled a lawsuit over affiliated online marketing that included the DSW name, the companies said in a statement. Terms of the settlement were not disclosed.

“We respect Zappos as a competitor, and this case provides a framework for discussing intellectual property and brand equity issues in the affiliate advertising context,” said Bill Jordan, general counsel of locally based DSW Inc., in a statement

As reported, DSW Inc. in May 2008 filed a lawsuit in an Ohio federal court charging Zappos.com Inc. with misuse of DSW service marks. The suit alleged that 'DSW' is being used in multiple URLs by Zappos.com along with DSW store photographs in an effort to mislead consumers into believing they were on a DSW-related website. The site, according to the complaint, then linked customers to the Zappos.com site, according to the suit filed in U.S. District Court, Southern District of Ohio, Eastern Division, in Columbus.

DSW opened its e-commerce site, DSW.com, last Spring. The suit seeks an injunction and damages resulting from the misuse of those marks.

At the time, Zappos said in a statement, “We were surprised to find out through a press release that DSW filed a lawsuit against Zappos.com. We are currently reviewing the complaint and do not have additional comments at this time.”

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