What: Nordstrom has settled a lawsuit with Patagonia over accusations of selling counterfeit apparel.

Why it is important: This settlement highlights the critical issues surrounding trademark and copyright infringement in retail, emphasizing the need for stringent supply chain controls and the potential repercussions for brand reputation and legal liabilities.

Nordstrom and outdoor clothing manufacturer Patagonia have reached a settlement in a lawsuit where Patagonia accused Nordstrom of selling counterfeit versions of its clothing. The lawsuit, filed in the U.S. District Court for the Central District of California, claimed that Nordstrom continued to sell counterfeit sweatshirts and t-shirts after their retail agreement ended. Nordstrom responded by denying knowledge of the items' inauthenticity at the time of purchase and stated that it had ceased business with the supplier of these goods and removed the products from sale. The settlement likely aims to avoid prolonged litigation and preserve the business reputations of both companies, although specific terms of the agreement were not disclosed.

Nordstrom settles Patagonia counterfeiting lawsuit