Counterfeit Armani trademark infringement case in Kuwait

Academic Activity Model of Court Hearing Session

Plaintiff Role

Good morning, my name is Nicholas Youseff and I was born in La Crescenta, California. Currently, I work as a franchisee of Armani in Kuwait. I received my license in 2000 to sell and distribute Armani in Kuwait, something that I have been doing for the last 15 years. It is a renewable license. As an official franchisee of Armani, it is my job to ensure that the brand is protected. In part this means that I\'m responsible for making sure that all clothes which are sold in Kuwait and which bear the official Armani logo, are in fact authentic. If there are counterfeit brands of Armani wafting around the area where I am an official seller, it becomes problematic for me, and it also undermines the integrity of the entire Armani brand. In the last two years, I found repeated incidences of clothes in Kuwait which bore the Armani trademark, but which were not in fact authentic Armani clothes. I have thus filed suit against the sellers of these items. This is my responsibility as a franchisee: it is my responsibility to the brand and it is something which I absolutely have to do in order to ensure that the products I sell continue to sell. Armani is an unparalleled luxury brand and it is my job to protect it. Cheap products which resemble the elite Armani brand undermine our sales and demean the Armani name. Allowing counterfeits to be available on the market is incredibly harmful to my business as a whole. It is absolutely vital to trade and free enterprise that we adequately regulate such entities which are harmful to business.

Plaintiff Lawyer

Hello, my names is Mark Taperoff, I represent Nicholas Youseff and will be representing him today. At this time, in the Middle East, or in the region defined as the 22 member state of the Arab League, there are no specific \"franchise laws.\" In most areas of the Middle East, the legal systems are founded around civil law for specific franchising legislation, with laws applicable to franchising taken from the group of laws which already exist. These other laws are largely trademark laws, contract laws and the civil code. As a result of the lack of specific franchise legislation, the franchise agreement is the primal document which governs the rights of all involved parties. Thus, as a result of these existing laws, if someone is going to engage in commercial activity, they really should be a commercial agent who is registered with the ministry of economy and commerce and who is specialized in engaging in commercial agency activities. Furthermore, Armani is a clear and absolute commercial agent. My client, Mr. Youseff is a specified agent with a right to the exclusive territory for Armani products. These agents have a right to the entire territory in which they sell: that right is absolutely exclusive. Even if there were another licensed Armani representative, that representative would not be able to sell in Kuwait as well. Youseff has exclusive rights to Kuwait: he is the sole seller to the Kuwait area. Moreover, James MacEvoy is not even licensed to sell Armani products or any products in the state of Kuwait. Thus, his entire presence as a merchant in Kuwait is fundamentally illegal. No other company or agent has any right to sell the Armani brand in Kuwait for any reason whatsoever. \" I ask the court to apply articles 92 and 93 of the section three of the TRADEMARK LAW in Kuwait no. 68/1980 and to sentence Mr. Defendant to the penalties mentioned in these articles.\" Without a doubt, the law is firmly on the side of my client in this matter. The fact that there is no franchise law in Kuwait, is something which can make it seem appealing to foreign companies (Walker, 2014).

Defendant Lawyer

Hello, my name is Matthew Hanover, I will be representing the defendant in this case. I admit that the defendant was selling counterfeit items, but had no knowledge of this issue, as the items looked exactly the same as authentic items. My client engaged in his absolute due diligence and looked at the company representative\'s papers, asking for complete and utter disclosure on the matter. My client was lied to and can be treated as a victim in this entire issue. Furthermore, while I admit that the defendant was in fact selling counterfeited items, he still had no knowledge of this issue, as the items were identical to the ones he was used to seeing. There was absolutely no way for him to know that the items he was purchasing were not from the legitimate Armani Brand. Moreover, because there is no particular franchising law here in Kuwait, there are thus no disclosure requirements for either the franchisor or the franchisee. The law as it stands right now is only dependent on the connection between the parties where the defendant in this case was beholden to misleading information and can consequently be treated as a victim in the matter.

Judge\'s Ruling

Thank you counsel for your work, and thank you plaintiffs and defendants for your candor in this matter. The first instance court, judges and council have clearly heard this session, after taking into consideration all the information which has been presented, in conjunction with the evidence gathered, the following appears to be most relevant: Article 92. Article 92 reminds us that any person who engages in such acts will receive a term of imprisonment and a fine no more than 600kd, or both punishments. The same article also asserts that: \"counterfeits a mark lawfully registered or imitates it is in such a manner as to deceive the public, or mala fide uses a counterfeit or an imitated mark.\" Moreover, it\'s important to keep in mind that Article 93 asserts that any trademark proprietor at any time even before instituting any action, can still engage in a petition to support the registration of a given mark to any experienced judge so that the necessary measures can be taken. Based on all of these legal facts, it\'s important to bear in mind the following as the most justifiable course of action for the situation at hand: \"The forfeiting and destroying of all goods counterfeited - Mr. defendant will be liable for distributing a forfeited good by the tort of negligence and to pay a fine of 400 KD.\" This sentence is just and fits the crime committed, though it is subject to appeal, if either party should feel so inclined.