LOS ANGELES — Stüssy Inc. said it has settled a lawsuit against Fresh Jive Manufacturing, based here, for using a graffiti-style logo Stüssy said infringed on its registered trademark.

The logo is a spray-paint-style squiggle spelling out the name “Stüssy” that has been registered with the U.S. Patent and Trademark Office and used by Stüssy since 1997, according to court documents. It was among the designs in Fresh Jive’s spring 2005 “Mad Parody Series” T-shirts, along with the logos of Quiksilver, Volcom and Obey. Fresh Jive’s version, rendered in a similar style, spelled out the word “Juicy.”

“Fresh Jive has agreed to recall the product, give the products in question to charity, not use the design in the future and not to copy our other trademarks,” said John Sommer, Stüssy’s general counsel.

Rick Klotz, Fresh Jive’s founder and president, confirmed the terms of the settlement. “There was an opening to come to an agreement,’’ he said. “I had to ask myself whether I wanted to spend a lot of time and money — which I wasn’t afraid to do — or put this behind me and move along. We finally got to a point in negotiations where they came to the table with a more reasonable offer, so I’m going to put it behind me.”

The complaint, which Stüssy, of Irvine, Calif., filed in December 2004 in U.S. District Court, accused Fresh Jive of trademark infringement, injury to business reputation, false representation and unfair competition. The company sought unspecified damages, restraint of Fresh Jive’s use of the design, and the destruction of all merchandise, packaging and labels bearing the disputed design.

Klotz said he had intended the shirts to serve as a commentary on the label-driven streetwear industry and, as such, protected as parody. Stüssy argued that the likeness probably would confuse consumers.

Klotz declined to say how many of the $20 shirts had been sold since they hit retail shelves in April, but characterized the series as “very popular.”

This story first appeared in the October 24, 2005 issue of WWD. Subscribe Today.

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