Yves Saint Lauren SAS is throwing in the towel, or shoe technically speaking, and relinquishing its counterclaims against rival Christian Louboutin. After the Second Circuit held that YSL’s monochromatic red shoe did not infringe Louboutin’s trademark, only YSL’s counterclaims remained in the case. A total of six, the counterclaims sought cancellation of some Louboutin marks and damages stemming from YSL retailers being forced to return numerous red-soled shoes.
As to YSL’s reasons for seeking dismissal of the case, it said it wants to “refocus its energies on its business and creative designs.” The fashion company is smart not to push the issue too far. YSL recognizes that by dismissing the case now it preserves the right to keep selling its all-red shoe and the Second Circuit’s ruling, which allows color to function as a trademark in the industry.