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Klein, Warnaco settle
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January 22, 2001: 12:05 p.m. ET
Last-minute agreement averts high-profile legal battle
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NEW YORK (CNNfn) - Calvin Klein reached a last-minute settlement Monday in the designer's trademark licensing battle with Warnaco Group Inc..
The dispute began in May when Calvin Klein sued Warnaco, alleging trademark infringement and violation of a licensing contract by distributing Calvin Klein jeans to discount retailers like Sam's Club, BJ's and Costco.
Calvin Klein told reporters after the deal was announced in federal court in Manhattan that the terms would not be made public. "It's confidential," he said.
"The parties believe their resolution will protect and promote the integrity and success of the Calvin Klein brand for their mutual benefit and the benefit of other Calvin Klein licensees," the two companies said in a statement.
"The parties look forward to expanding jeanswear sales consistent with the image and prestige of Calvin Klein products and to expanding and concentrating the distribution of Calvin Klein jeanswear products in the department and specialty stores," they added.
 The lawsuit alleged trademark violation and breach of contract when New York-based Warnaco began distributing Calvin Klein merchandise to off-price warehouses. Klein also alleged that Warnaco was altering its designs and skimping on quality.
In the lawsuit, privately-held Calvin Klein sought millions in damages and termination of the jeanswear license, which was not set to expire for another 44 years.
In June, Warnaco counter sued and accused Klein of bad-dealing and trade libel related to Klein's appearance on the "Larry King Live" television show. Warnaco claimed that Klein's comments on the show were "defamatory."
Monday's agreement "settles all issues related to the suit," Calvin Klein spokesman Don Nathan said. Warnaco's licensing agreement was not terminated, but the designer issued no other details of the settlement.
Calvin Klein was set to testify this week as well as several high-profile lawyers. Klein was represented by David Boise, the attorney that prosecuted Microsoft Corp. in its recent antirust case. Boise also helped Vice President Al Gore in his attempt at a recount of the presidential vote in Florida
Warnaco (WAC: Research, Estimates) shares gained 81 cents, or 32.5 percent, to $3.31 in mid-day trading.
-- from staff and wire reports 
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