Tempest in a D Cup: IPEX v. ITEC

Victoria's Secret hits La Senza with $1m suit over push–up bra
By RITA TRICHUR The Canadian Press
TORONTO – Lingerie retailer La Senza Corp. has been slapped with a
$1–million lawsuit by U.S. rival Victoria's Secret in a dispute over its new
wireless push–up bra – a case that one analyst quickly dismissed Thursday as
a "ridiculous" publicity stunt.
Neil Linsdell of Versant Partners Inc. said the amount of damages being
sought is "rather insignificant and a little bit silly" because Victoria's
Secret will likely spend more than $1 million on legal fees to settle the
case.
"It seems to be more of a publicity stunt than an actual serious lawsuit,"
Linsdell said in an interview. "If there were suing for $400 million, I
would take it a lot more seriously."
He added: "It is probably the cheapest way they (Victoria's Secret) can get
to get reporters to talk about their patents and designs and how much better
their bras are."
Montreal–based La Senza, which boosted its dividend late Wednesday after
posting a higher annual profit of $17.7 million, also moved to assure
investors the lawsuit was being sensationalized.
"It's a fairly non–material item," CEO Irving Teitelbaum told a conference
call with analysts Thursday. "I can't comment on it because it is before the
courts. But suffice it to say that on both sides of the fence, meaning
lawsuits that we engage in to protect our mark, there are always a raft of
them that are going forward at any one time all over the world, frankly."
Teitelbaum said he wasn't sure how long it would take to resolve the
quarrel, adding: "I think the media blows it out of proportion because it is
a lot more exciting than softwood lumber."
The fracas centres on La Senza's ITEC brassiere, which the retailer claims
is "the world's most technologically advanced bra" because its one–piece
design eliminates all tags and seams. Victoria's Secret, a subsidiary of
Ohio–based Limited Brands, alleges that ITEC is essentially a knock–off of
its trademarked IPEX wireless bra, and that La Senza is confusing consumers
with a similar marketing hook.
The allegations have not been proven in court and La Senza has yet to file a
statement of defence. The lawsuit, filed with the Ontario Superior Court of
Justice last month, is seeking $1 million in punitive damages plus other
unspecified damages.