Daily Independent (Ashland, KY)

Local News

December 5, 2013

Settlement reached in Coach trademark infringement suit

ASHLAND — A settlement agreement has been reached in a federal lawsuit filed by a New York-based leather goods manufacturer against a Carter County businessman and former political candidate over the sale of knockoff versions of the manufacturer’s products.

According to a joint status report filed Tuesday in U.S. District Court by attorneys representing Coach Inc. and Coach Services Inc., the plaintiffs in the suit, and David K. Hayes of Grayson and Hayes & Co. LLC, doing business as Hay Mart, the parties have reached an agreement to settle all claims in the matter.

Terms of the settlement were not disclosed.

Judge David L. Bunning ordered the parties to file a proposed agreed order of dismissal by Dec. 20. The case had been scheduled to go to trial March 10.

In the suit, filed in May 2011, Coach accused Hayes and his company of trademark and trade dress infringement, unfair competition and trademark dilution. The company sought damages equivalent to $2 million per infringement, or, in the alternative, all of the profits Hayes & Co. reaped from selling counterfeit Coach products.

According to the lawsuit, on Dec. 8, 2010, Coach purchased from Hayes and Co. a black fabric-and-leather handbag “bearing at least four marks subject to Coach registered copyrights and trademarks” for $50. The average retail price for a comparable authentic Coach item is $298, the suit states.

An inspection by Coach revealed the bag was counterfeit and infringed on Coach’s intellectual property for a number of reasons, according to the suit. However, the company said while it found the bag bore a number of similarities to an actual Coach item, the product contained uneven stitching and other flaws and did not meet Coach’s quality standards.

At the time of the handbag purchase, Hayes & Co. also was selling approximately 20 other imitation Coach items, including handbags and wallets, the suit states.

Hayes & Co. has never been an authorized retailer or manufacturer of Coach products, according to the suit. The lawsuit alleges Hayes and Co. has used, and is continuing to use “spurious designations that are identical to, or substantially indistinguishable from” Coach’s trademarks.

Those actions “are likely to create a false impression and deceive consumers, the public and the trade into believing that there is a connection or association between the infringing products and Coach,” the suit states.

Coach was founded more than 60 years as a family-run workshop in Manhattan. Today, the company’s annual worldwide sales total more than $3 billion, according to the suit.

Hayes, who has run for state representative and for Carter County judge-executive, denied Coach’s allegations in a response to the lawsuit.

Hayes’ sister, Sandra Seagraves, also is a defendant in the suit. She filed a counterclaim accusing Coach of “outrageous and aggressive” conduct, which was dismissed in April of last year.

KENNETH HART can be reached at khart@dailyindependent.com or (606) 326-2654.

Text Only
Local News
  • Tensions rise among city commission members

    The controversy about City Manager Ben Bitter’s moving expenses revealed a division in the Ashland Board of City Commissioners.

    July 29, 2014

  • ambulance.jpg Ambulance flips on Winchester

     One minor injury was reported after a passenger car collided with an ambulance at the intersection in front of the Paramount Arts Center on Winchester Avenue around 10 a.m. Tuesday. Independent videographer Adam Black witnessed the accident and reported the ambulance was traveling south of Winchester with lights on and siren activated when it was struck in the rear quarter panel by a passenger vehicle that had a green light for the intersection and failed to yield for the emergency vehicle.

    July 29, 2014 1 Photo

  • 0730Grimes_080.jpg Grimes campaign comes to Lexington

    A recent poll that has twice previously shown Democrat Alison Lundergan Grimes with a slim lead over incumbent Republican U.S. Sen. Mitch McConnell now has McConnell up by two points.

    July 29, 2014 3 Photos

  • U.S. 60 yard sale will be Friday and Saturday

    Bringing bargain shoppers from miles around, the U.S. 60 Yard Sale officially begins Friday morning in Carter County.

    July 29, 2014

  • John Cannon: Bracing to stand on her own 2 feet: 7/30/14

    My youngest granddaughter, who will turn 5 on Sept. 2, has been fitted with a pair of ankle braces to help prevent her from falling down so often.

    July 29, 2014

  • War firearms demo set

    A few of the most devastating and accurate firearms used in conflicts ranging from the Civil War to world wars will be demonstrated for an audience limited to about 40 during an upcoming event sponsored by the Eastern Kentucky Military Historical Society.

    July 29, 2014

  • Lawmaker pays tribute to late WWII veteran

    July 29, 2014

  • Local briefs: 7/30/14

    The Carter County Sheriff's Department charged an Olive Hill man Thursday with trafficking in a controlled substance in the first degree.

    July 29, 2014

  • OLBH receives Quest Award

    Our Lady of Bellefonte Hospital has been honored by Premier Inc. with a Quest Award for High-value Healthcare Citation of Merit for delivering high-quality, cost-effective health care.

    July 29, 2014

  • 0730Grimes_406.jpg Grimes bus tour gets rousing sendoff

    A recent poll,which has twice previously shown Democrat Alison Lundergan Grimes with a slim lead over incumbent Republican U.S. Sen. Mitch McConnell, now has McConnell up by two points.

    July 29, 2014 3 Photos

Featured Ads
Seasonal Content
AP Video
Raw: Japanese Soldiers Storm Beach in Exercises Raw: Weapons Fire Hits UN School in Gaza Raw: Rocket Launches Into Space With Cargo Ship Broken Water Main Floods UCLA Two Women Narrowly Avoid Being Hit by Train In Virginia, the Rise of a New Space Coast New Sanctions on Key Sectors of Russian Economy Crayola Announces Family Attraction in Orlando US Ready to Slap New Sanctions on Russia Kerry: Not Worried About Israeli Criticism Boater Rescued From Edge of Kentucky Dam Girl Struck by Plane on Florida Beach Dies Rodents Rampant in Gardens Around Louvre House to Vote on Slimmed-down Bill for Border Looming Demand Could Undercut Flight Safety Raw: 2 Shells Hit Fuel Tank at Gaza Power Plant Raw: Massive Explosions From Airstrikes in Gaza Giant Ketchup Bottle Water Tower Up for Sale Easier Nuclear Construction Promises Fall Short Kerry: Humanitarian Cease-fire Efforts Continue
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
AP basketball
SEC Zone