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PHAT FASHIONS WINS SUIT

Byline: Vicki M. Young

NEW YORK — Russell Simmons’ Phat Fashions won a trademark infringement and unfair competition action against Phat Game Inc., barring the competitor from using its mark.
The court issued a permanent injunction that barred use of the Phat Game trademark, disabled the PhatGame.com Web site and ordered that ownership to the Internet domain name be transferred to Phat Fashions. It wrote that “without a permanent injunction, plaintiff will likely suffer a loss of substantial profits and business opportunities.”
The legal action against Phat Game and Phat Game Athletic Apparel, initially filed in Manhattan federal district court, was decided last week by a Sacramento district court judge after the case was transferred because of jurisdictional issues connected to the defendants’ locations.
Phat Fashions makes apparel under the Phat Farm, Phat Threads, Phat and Baby Phat brands.
In the judge’s order, filed March 20 but not immediately available, the court found that the defendants’ style and placement of its logo design features were too similar to the plaintiff’s. Phat Game also sells urban athletic apparel and accessories. Those similarities, along with the closeness of price points and the age bracket of targeted customers, led the court to conclude that Phat Fashions demonstrated irreparable injury because consumers could be confused.
According to the court’s order, Simmons’ company in 2000 had annual revenues of $111.5 million and sales by third parties pursuant to licenses equaled $110.3 million.

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