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Tommy, Wal-Mart settle
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July 14, 1999: 7:45 p.m. ET
Department store to pay Tommy Hilfiger $6.4M to settle counterfeiting charges
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NEW YORK (CNNfn) - Wal-Mart Stores Inc., the world's biggest discount chain, will pay units of Tommy Hilfiger Corp. $6.4 million to settle charges that it willfully sold counterfeit Tommy Hilfiger clothing and merchandise after it was warned not to, the companies said Wednesday.
As part of the agreement, Wal-Mart will pay Tommy Hilfiger U.S.A. and Tommy Hilfiger Licensing Inc. a fine and donate the remaining merchandise it hasn't already sold to a charity of Tommy Hilfiger's choosing, preferably an organization that helps clothe individuals in war-torn countries like Kosovo, and in third-world nations.
The settlement stems from a 1996 injunction successfully brought by Tommy Hilfiger against Wal-Mart for knowingly selling counterfeits of its products. Wal-Mart, at the time, agreed to a permanent injunction against knowingly or intentionally using Tommy Hilfiger's trademark logos and designs.
Last year, however, a federal court found Wal-Mart in contempt of that injunction because it was still selling counterfeit copies of the designer company's shirts, pants, sunglasses and other merchandise on its Internet website and at its Sam's Club discount stores.
For its part, Wal-Mart insists it only purchased what its suppliers provided and did not intentionally buy counterfeit Tommy Hilfiger goods.
"Wal-Mart has no interest in carrying non-authentic products," the Bentonville, Ark.-based company said in a statement, adding that the company has since hired an inspector to examine the merchandise it buys to ensure its authenticity.
Tommy Hilfiger Chief Executive Joel Horowitz said the agreement "is an important legal initiative to protect consumers who fully expect goods to be genuine when they walk into stores like Wal-Mart."
Wal-Mart (WMT)shares closed Wednesday up 1/16 at 47-5/8 while Tommy Hilfiger (TOM) shares closed up 1 at 38-1/8. 
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Wal - Mart
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