By  on January 10, 2012

Deckers Outdoor Corp. has settled its beef with Dr. Jay’s, a New York-based footwear chain, for selling counterfeit Ugg boots.

As part of the settlement, Dr. Jay’s, which is not an authorized Ugg Australia retailer, said Tuesday it will destroy the counterfeit shoes, as well as donate any authentic product that it has in its inventory to charity. The shoe store will also accept returns with a valid receipt.

“We were operating under the belief that the boots and shoes were authentic Ugg Australia product,” said Dr. Jay’s. “When Deckers shared the results of its examination of the product, we cooperated quickly.”

According to Deckers, which owns Ugg, it filed a complaint in the Southern District of New York on Oct. 6, after it discovered Dr. Jay’s was selling counterfeit Uggs. A day later, the court issued a temporary restraining order prohibiting Dr. Jay’s from selling Ugg product, followed by a preliminary injunction on Nov. 10.

“This is a classic example of ‘buyer beware,’” said Deckers president and chief executive officer Angel Martinez. “We do all we can to help consumers and fans of our brands identify authorized retailers and authentic product, and we have our own Ugg Australia stores where you can be sure you’re buying the real thing. We join those retailers and manufacturers who are likewise committed to fighting the counterfeit scourge.”

Even though Ugg has an extensive anticounterfeiting program, this lawsuit marked the first time Deckers has sued a retailer in the New York metropolitan area for selling counterfeit Ugg product.

In 2010, Deckers’ anticounterfeiting efforts resulted in the seizure of more than 420,000 pairs of fake Ugg boots, the takedown of more than 30,000 auction sites selling counterfeit goods and the removal of more than 500,000 listings on wholesale trade boards.

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