Chanel Inc. won a small victory Wednesday when a federal judge ruled in its favor in a trademark infringement case that it filed against a group of companies doing business under the name Perfume Collection Inc.

This story first appeared in the April 15, 2011 issue of WWD. Subscribe Today.

In February, Chanel sued Haim Yaacovi and his Florida-based companies, which run mall-based stores in Tampa, Sarasota and Bradenton, for selling unauthorized Chanel products and fragrances. Filed in the Southern District of New York, the original complaint said that OK Perfume, doing business as Perfume Collection, sold Chanel’s Coco Mademoiselle, Chance Eau Fraiche and Allure Homme fragrances “without Chanel’s distinctive outer packaging.”

This included selling products without the cellophane wrapping that shows consumers there has been no tampering, without a list of ingredients and without batch and bar codes.

According to presiding judge Naomi Buchwald, the defendants, which included Yaacovi and Oren Sharony, sold more than 233 Chanel products amounting to about $2,937.50 up until the plaintiff lodged the complaint.

The judge ordered the defendants to surrender any remaining Chanel inventory it has to the plaintiff, including advertising and marketing literature, within five business days of the judgment. Additionally, the defendants must pay Chanel $10,000 within 10 days and an additional $6,000 in monthly installments of $500. If the defendants are found to be selling any Chanel goods, they must pay Chanel liquidated damages of $50,000 for each product.

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