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Top Notes: Arcade Ownership to Shift … Ruling on a Scent … Chain Gang …

<B>ARCADE OWNERSHIP TO SHIFT:</B> DLJ Merchant Banking Partners, the parent company of cosmetics sampling supplier Arcade Marketing Inc., has taken on a new partner in a deal that will involve corporate restructuring but have little impact on Arcade...

ARCADE OWNERSHIP TO SHIFT: DLJ Merchant Banking Partners, the parent company of cosmetics sampling supplier Arcade Marketing Inc., has taken on a new partner in a deal that will involve corporate restructuring but have little impact on Arcade operations. William J. Fox will remain as chairman and chief executive officer of the marketing and sampling systems provider, which is perhaps best known for its ScentStrip technology. Since 1997, the DLJ banking operation, a unit of Credit Suisse First Boston, has owned Arcade. In a venture between DLJ and another private equity firm, called Kohlberg Kravis Roberts & Co., that was announced Wednesday, each firm plans to take a 45 percent stake in a new company that will be named upon the transaction’s completion this fall. Along with Arcade, the yet-to-be-named firm will include Von Hoffman, a textbook publisher, and printing company Jostens, which are both owned by DLJ. The remaining 10 percent of the new firm’s shares will be held by its management, as well as by a group of existing minority investors in Jostens.

RULING ON A SCENT: In a landmark decision, a Dutch court has ruled that copyright protection can be applied to fragrance composition.

An appeal court in The Netherlands decreed that Kecofa, a Dutch manufacturer of fragrances, may no longer market its Female Treasure scent, since its olfactory makeup too-closely resembles that of Lancôme’s Trésor.

Female Treasure was found to have 24 out of 26 of the same ingredients as the L’Oréal-owned brand’s classic scent.

“The Trésor perfume was considered by the court as having an original character bearing the personal imprint of its creator, thus entitling it to copyright protection in The Netherlands,” said Nauta Dutilh, the law firm that represented Lancôme, in a statement.

The firm noted that copyright protection for a fragrance is relevant only to the scent-generating substance that is bottled and sold on the market. “The court stressed that the smell of a perfume is too transient and too variable to be copyrighted,” the statement said.

Jose Monteiro, head of L’Oréal’s trademarks department, said a similar case also recently had been won by his firm in France against another company.

This story first appeared in the July 23, 2004 issue of WWD.  Subscribe Today.

“[The decision] makes it easier for us to fight counterfeiting,” he said.

Kecofa plans to appeal the Dutch court’s decision, according to press reports.

CHAIN GANG: Another chain has been snapped up by Pine Bluff, Ark.-based USA Drug, and with it comes the departure of a highly visible beauty merchant, Diana Wolff of Med-X. Wolff, who confirmed the purchase, has been a factor in making Med-X a power in beauty in its 22 stores in the Tulsa, Okla., area. The buy came just a month after USA Drug also purchased another Tulsa operation, May’s Drug. USA Drug now has more than 170 units under various banners, including USA Drug, Super D and Ike’s.

PUIG APPOINTMENT: Carolyn Zonino has been appointed vice president of marketing for Puig Prestige Beauty North America. Zonino’s responsibilities include all aspects of marketing for the brand’s fragrance portfolio. She reports to Martha Brady, general manager of North America and president of Puig USA. Zonino, who has worked for Lancaster Group, was most recently a marketing consultant for clients such as Lancôme and Creed.

SYMRISE MOVE: Nancy Rogozinski has been named senior marketing director for consumer products within flavors and fragrances supplier Symrise’s fragrance division. Most recently, Rogozinski headed her own marketing consultancy. She has previously worked for both L’Oréal and Bath & Body Works.

HOUX TO FLEXPAQ: Marc-André Houx has been named general manager and chief operating officer of Flexpaq Corp., the sample-container-producing unit of Paris-based Ileos Group. In his new role at South Plainfield, N.J.-based Flexpaq, Houx is responsible for the management of Flexpaq in North America. Houx most recently worked for 12 years at Techpack, where he had been senior vice president of sales since 2000.