Nearly one year after the legal sparring match between Orange 21 and Oakley began, the two companies have come to a resolution regarding Orange 21s Spy Optic brand and the now defunct e Eyewear brand. In late February, the two companies entered into a Settlement Agreement with respect to the civil action filed by Oakley on March 7, 2005 in CA. Oakley alleged that the company and its subsidiary, Spy Optic, were selling eyewear that infringed certain of Oakley's intellectual property rights.
The terms of the agreement call for Spy to sell all of their remaining inventory of e Eyewear product to Oakley for $1.00 and cease all further manufacture and sale of e Eyewear products. In addition, Spy must refrain from making, offering or selling any eyeglasses bearing any marks having the letter “e” or “E” or having the mark “E Eyewear” and abandon all existing trademark applications worldwide for these marks related to sunglasses, eyeglasses or related products.
Finally, Spy must cease all manufacturing of their Espada and Meteor sunglasses, which accounted for approximately 5% of the company's total net sales for 2005. Spy shall have 180 days from the date of the agreement to sell any remaining inventory of Espada and Meteor products.
Under the agreement, the action will be dismissed with prejudice within 10 days of the company's and Spy's delivery of their e Eyewear inventory to Oakley. Neither party admitted any wrongdoing or liability with respect to the claims asserted in the Action.
