In June 2003 VF Corporation established that a Dutch company, MCCS Trading (near Amsterdam), was selling EASTPAK backpacks originating from the US, on the Dutch market via its website, without VF Corporation's permission.
By doing so, MCCS Trading was infringing the Benelux and Community trademark rights indirectly owned by VF Corporation. VF Corporation has been the owner – through its subsidiary – of the Benelux trademark Eastpak since 1987 and the Community trademark Eastpak since 1996. Both trademarks are registered for – inter alia – backpacks.
VF Corporation's inhouse counsel contacted its Dutch lawyers (Paul Reeskamp and Jasper de Gier of Allen & Overy Amsterdam). After collecting sufficient evidence of MCCS' unauthorised parallel import activities, VF Corporation's lawyers sent a cease and desist letter to MCCS Trading. MCCS Trading was demanded to cease and desist immediately from any infringement of the above mentioned trademark rights, and to provide VF Corporation with information as to its supplier in the US, the number of EASTPAK® backpacks sold and still in stock, and the profits made per backpack sold.
Subsequently MCCS Trading has signed a cease and desist statement in which it states that it will cease and desist from any infringement of the trademarks indirectly owned by VF Corporation. More in particular the statement stipulates that MCCS Trading will cease and desist from importing, exporting, and selling products bearing the EASTPAK trademark insofar as such product has not been brought onto the European market by or with the permission of VF Corporation. The statement also stipulates that MCCS Trading will forfeit a penalty of 10,000 for each product or for each day that MCCS Trading fails to comply with the above undertaking. Moreover, MCCS Trading has provided VF Corporation with all relevant details of its US source.
“We are glad to have stopped this trademark infringement effectively. VF Corporation will not hesitate to defend its trademark rights in other cases.” said a company spokesperson.