NEW YORK — Seven For All Mankind has won a $4.45 million default judgment in a counterfeiting and copyright infringement case against Rational Fashion Inc. and its owner Josh Mohrer.

The judgment was granted by U.S. District Court Judge Joel Pisano in Newark last week. Rational Fashion sold counterfeit apparel directly to customers on the Internet and operated auctions on eBay, according to court documents. The lawsuit against Rational, filed in August 2005, charged the defendants with buying and selling jeans that infringed on Seven’s trademarks and copyrights.

The original Seven complaint against Mohrer and his company included allegations of trademark infringement, false designation of origin, false advertising, trademark dilution, unfair competition and false and deceptive business practices.

Mohrer declined to comment on the case.

He has to pay Seven $4 million in damages for counterfeiting its trademarks and $450,000 for willful copyright infringement, court documents said. The statutory damages assigned by the judge represent the maximum — $1 million per trademark and $150,000 per copyright.

“We’re obviously pleased with a judgment of this amount,” said Barbara Kolsun, senior vice president and general counsel, Seven For All Mankind. “I think it sends a message to the counterfeiting community that we will not tolerate the sale of counterfeit goods.”

“[With this judgment] we believe the judge was commenting on the impact of Internet sales. Anybody can get on the Internet and sell goods and they have to take responsibility for what they are selling as if they were a brick-and-mortar location,” said Martin Feinberg, who represented Seven.

His firm, Dreier LLP, also rep­resented jeans manufacturer Rock & Republic in a similar law­suit against Rational Fashion. Rock & Republic was granted a judgment for $1 million in its lawsuit against Rational Fashions and Mohrer the same day as Seven, according to court records. Rock & Republic’s lawsuit was filed in September 2005.

This story first appeared in the March 7, 2006 issue of WWD. Subscribe Today.

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