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Avon and Moroccanoil settle trademark dispute

By Michelle Yeomans+

09-Jul-2014
Last updated on 09-Jul-2014 at 17:15 GMT

Cosmetics giant Avon and the oil treatment brand have resolved all disputes regarding Moroccanoil's challenge to Avon's trademarks on its' 'Advance Techniques' hair care line.

The now settled disputes involved Moroccanoil's challenge of Avon's trademarks and trade dress for its 'Advance Techniques' hair care products which feature argan oil.

In return, Avon challenged the validity of the oil brand's trademark registrations and opposed Moroccanoil's trademark applications. 

After a hearing in the US District Court for the Southern District of New York and numerous proceedings in global trademark offices, both parties have agreed to a confidential settlement agreement.

Both companies stated that they believe the settlement will protect their respective rights and interests in the long term.

Both parties expressed satisfaction at the resolution of their differences.”

Following the agreement, the lawsuit will be dismissed and Avon's challenges to Moroccanoil's trademarks and trade dress will either be dismissed or withdrawn. 

It hasn't been smooth sailing for Avon of late..

Following a dismal couple of years for cosmetic giant Avon, Forbes reckons withdrawing from the US market could help to recover declining sales.

To date, North America and Asia have been the weakest links for the cosmetics giant when it comes to product and channel presence.

Analysts reported that in 2013, Avon’s revenue share from North America declined 17% to $1.46 billion, which also included the divestiture of its Silpada business in July of that year. 

Reasons offered for this include the brand's reorganization of its' independent sales force during the second quarter which resulted in severe disruption in customer-representative relationships.

Sales figures began to noticeably hit back in January 2013 as Avon announced its’ vice chairman Charles Cramb had been fired following on-going investigations into bribery centred on its China operations.

The internal investigations go back as far as June 2008, with efforts to establish whether or not officials at the company have violated the Foreign Corrupt Practices Act  remaining ongoing.

By April '13, Andrea Jung had announced she was stepping down as executive chairman and board member, who was then replaced by Sherilyn S. McCoy , formerly of Johnson & Johnson. The move had some in the industry concerned regarding McCoy's lack of experience in running a public corporation.

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