When companies in Louisiana and elsewhere experience times of financial strain, they may attempt to recover from financial losses by selling the rights to brand-name products to another entity. In some cases, this entity may allow the previous owner to continue selling its products under certain restrictions, and should it feel the other party fails to adhere to the terms of the arrangement, both parties may engage in intense contract disputes. Stanley Black and Decker has recently filed a lawsuit against Sears accusing the company of breach of contract.
The incident reportedly revolves around tools trademarked under the popular Craftsman brand, which Stanley Black and Decker purchased from Sears in 2017. According to reports, the company had subsequently agreed to allow Sears to continue selling Craftsman products under certain restrictions. However, it claims that the other party recently chose to launch a new line of products under the Craftsman name.
Stanley Black and Decker also states that the manner in which Sears advertised these new products could mislead consumers. The company asserts that the actions of the other party could pose a substantial threat to its own brand of products and harm its reputation. The company has filed a lawsuit accusing Sears of trademark infringement and breach of contract.
Due to the complex nature of similar agreements, allegations of breach of contract can be highly-contested matters that may leave all parties involved gearing up for litigation. Those who wish to seek guidance on how best to approach the subsequent process could benefit from consulting with an experienced attorney early in the process. An attorney can examine the situation a client in Louisiana is facing and assist in forming a strategy to protect his or her business interests through the necessary channels.