KARDASHIANS’ COURT CASE: The Kardashian makeup brand’s legal drama is continuing. Boldface Licensing + Branding, holder of the license for Khroma Beauty by Kourtney, Kim and Khloé, has filed an appeal in the Ninth Circuit to stay a preliminary junction blocking the manufacture, sale and marketing of Khroma Beauty ordered by the U.S. District Court for the Central District of California Judge Audrey Collins. The judge had immediately stayed the preliminary injunction pending appeal. The preliminary injunction stems from a trademark dispute between Boldface and Lee Tillett Inc., an Altamonte Springs, Fla.-based company that sells a line called Kroma Makeup. Boldface brought a lawsuit last year to obtain a declaration that Khroma Beauty doesn’t infringe on Tillett’s trademark, and Tillett filed a trademark infringement countersuit. In court documents filed to the Ninth Circuit, Boldface’s attorneys argue that “if the current stay is lifted and the injunction issues, Boldface stands to lose tens of millions of dollars, and will likely be put of out business.”
Khroma Beauty products priced from $6.49 to $19.99 are available at retailers like CVS, Walgreens and Duane Reade, and are set to roll out to 5,321 doors by the end of this month. The appeal court documents state that “there are currently millions of units in warehouse or on order, worth tens of millions of dollars.” In the lower court, Collins agreed that an injunction could amount to millions of dollars in losses for Boldface, but determined withholding an injunction “will destroy Tillett’s business, which it has built over a decade, causing losses of hundreds of thousands” and perhaps millions.
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This story first appeared in the March 25, 2013 issue of WWD. Subscribe Today.