Fashion Footwear secures ‘victory’ in licensing dispute with Iconix

A New York Appellate Court has ruled in favour of Fashion Footwear LLC in a legal dispute between the firm and US Pony Holdings, an affiliate of Iconix Brand Group. The court determined that Pony’s attempt to terminate an exclusive footwear license was invalid.

The Appellate Court upheld a lower court’s ruling that Pony had no right to terminate the licensing agreement, particularly as it was revealed that Pony was allegedly looking to replace Fashion Footwear with another licensee, Genesco, resulting in legal issues.

It was also determined that there had been no binding agreement in relation to the sale of a majority of Iconix shares, which had been a condition in the duo’s contract.

In the court filings, it states that a tender offer from Iconix Sub Merger, which was not an affiliate of Pony or Iconix at the time of the sale in 2021, was an agreement to sell that, upon acceptance, members of the public would sell their Iconix shares.

Pony’s initial argument that Fashion Footwear’s damages should be limited to the prior year’s royalties paid by Fashion Footwear was further rejected. The court also reversed a prior decision that would have allowed Pony to avoid liability by alleging Fashion Footwear did not immediately challenge the termination.

In a release, Fashion Footwear’s majority shareholder Harry Adjmi, said the “victory is a testament to the excellence and perseverance” of Fashion Footwear’s legal team at Oved & Oved, and “their tireless commitment and steadfast belief in our cause made this spectacular outcome possible”.

FashionUnited has contacted Iconix Brand Group with a request to comment.