Laura Ashley wins ruling against L’Oreal
Dispute over licensing agreement to move to next phase
Laura Ashley has succeeded in the first phase of arbitration proceedings bought against cosmetics brand L’Oreal, which relates to a licensing agreement between the two.
L’Oreal terminated the 20-year perfume licence agreement with Laura Ashley in 2002, claiming that the retailer was not maintaining its brand properly. Laura Ashley then sued L’Oreal for breach of contract..
Under the rules of the International Chamber of Commerce, which has considered both parties’ claims, a tribunal has ruled in favour of the Laura Ashley companies on the issue of liability. L’Oreal’s termination of the licence was found by the tribunal to be invalid and any damages due to the companies will be calculated in principle on the basis of the 20-year licence.
The questions of costs and compensatory damages will go to a second phase of the arbitration proceedings.
Ainum Mohd-Saaid, Laura Ashley joint chief executive, said: “I am delighted that the first phase of the proceedings is now successfully behind us. This outcome vindicates our decision to pursue our claim against L’Oreal. We are now taking steps in preparation of the second phase.”
