YS Garments obtains dismissal of trademark infringement action concerning apparel

Client(s) YS Garments LLC

Jones Day represented YS Garments, LLC ("YS Garments"), and various distributors of YS Garments' products in its defense against allegations of trademark infringement and related claims concerning apparel. YS Garments is one of the top suppliers of fashion blanks in the world market. YS Garments successfully moved to dismiss the action pursuant to Federal Rule of Civil Procedure 12(b)(7) for failure to join Sierra Sportswear, Inc. ("Sierra"), co-owner of the purported trademark at issue. The Jones Day team successfully argued that judgment affecting the validity of the trademark at issue would prejudice Sierra's rights, and that judgment rendered in Sierra's absence created the potential for multiple and inconsistent judgments. Because trademarks perform a source-identifying function, co-ownership by two otherwise unrelated entities is an infrequent occurrence. This is one of the only reported decisions on this issue.

Next Level Sportsystems, Inc. v. S&S Activewear, LLC, et al., No. 1-18-cv-05926 (N.D. Ill.)