WARRENDALE, Penn. (April 23, 2007)—Clothing and footwear retailer American Eagle Outfitters, Inc. filed a lawsuit against Payless ShoeSource, Inc. over Payless' newest footwear collection, American Eagle. American Eagle Outfitters believes the similar name produces confusion for its consumers.

A photo from the American Eagle Outfitters spring/summer '07 ad campaign

In a publicly released statement, American Eagle Outfitters contends that Payless is misleading consumers by "portraying itself as the owner of 'the youth fashion brand American Eagle®' and indicating that it is selling genuine American Eagle Outfitters merchandise." Additionally, the company believes Payless marketed its American Eagle products with "advertising and promotional materials that copy the look and feel of American Eagle Outfitters' distinctive marketing style."

“Our most valuable asset is our brand. We are committed to providing only high-quality, authentic merchandise to our loyal customers,” American Eagle Outfitters vice president and general counsel Neil Bulman, Jr. said in a statement. “The mounting public confusion that Payless created has compelled us to take this action. As always, we will vigorously protect our brand as a leading lifestyle destination for 15-25 year olds.”

Payless acquired the American Eagle footwear mark last year from footwear wholesaler Jimlar Corp., which also produces shoes under the brands Frye, Calvin Klein and RJ Colt. Payless has declined to comment.

The suit was filed in the United States District Court in the Eastern district of New York.

American Eagle Outfitters designs, markets and sells its own brand of clothing, footwear and accessories geared toward young adults. It operates more than 900 stores throughout the United States, Puerto Rico and Canada.

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