Canada Goose has launched a lawsuit against Sears, accusing that sears department sell the coats that resembles its “Kensington”. Not only the design, Sears also use similar tag and trademarks, which lead consumers to confusion.
If the selling price of Sears’ copycat coat is relatively lower than Canada Goose’s, Sears will be more competitive in market. To be honesty, everyone is inclined to the side of more benefit they can get. And the behalf of CG will be harmed when this situation occurs. Sears do not need to pay design fee, while they can earn more profit. This is not fair. The negative effects that Sears given rise to Canada Goose are far more than the current profit loss. If fake coats have any quality problems, misled customers will put the blame to Canada Goose rather than Sears. Canada Goose has high brand identification; consequently, it is the Canada Goose’s reputation that will be harmed rather than Sears’. Damaged brand name indicates large amount of potential loss in the future: lose of royal customers, reduction in sales, lose of key partners’ trust, etc. All of these will burden by Canada Goose and these are unlikely compensated.Sears copies other brands’ design, sears do not obey business ethics although they can make a great fortune.
sources:
http://www.pm.gc.ca/eng/news/2013/11/08/pm-tours-canada-goose-inc-manufacturing-facility-toronto
http://www.thestar.com/business/2013/11/08/canada_goose_sues_sears_over_parka_design.html