Asos forced to pay European retailers £20m

Asos, the London-headquartered online fashion company, has had to pay out £20.2m to two retailers in Europe after allegedly infringing on the trademarks of their names.

The firm reached a settlement with Switzerland-based cyclewear business Assos and German menswear retailer Anson’s Herrenhaus, The Guardian has reported.

While the deal will enable Asos to sell athletic leisurewear, the company will be restricted from retailing cyclist clothing or establishing stores in Germany.

Asos, which rebranded from As Seen on Screen in 2002, saw legal challenges from Anson’s and Assos launched in 2010 and 2011 respectively. Both were already in operation at the time of the rebrand.

Asos chief exec Nick Beighton said of the ruling: “We are pleased to have put this litigation behind us.

“Entering into this settlement at this juncture is the right commercial decision for our business.”

Assos is set to expand into London’s West End later this year with its first flagship store outside Switzerland.

According to The Guardian, Simon Bowler, an analyst at investment firm Exane, commented: “Whilst Asos has successfully defended itself until now, there was no certainty they would be successful in these markets. Losing a case in either of these markets would force Asos to rebrand, which was a significant risk that Asos has eliminated.

“Whilst the £20.2m cash payment is optically large, this looks to be the right commercial decision for the business in the long term. The settlement brings certainty over the end of the dispute and eliminates any further litigation risk in Asos’ biggest markets.”

He added: “The settlement also opens up the opportunity of moving the Asos own-brand into the attractive ‘athleisure’ market.”

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