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Universal Furniture wins $11.2 million judgment against Collezione Europa

Suit claimed copyright infringement

Heath Combs -- Furniture Today, February 19, 2009

GREENSBORO, N.C. — A federal court has awarded Universal Furniture an $11.2 million judgment against Collezione Europa after a two-year fight for copyright damages that continued to trail Collezione through a Chapter 11 bankruptcy filing.

The U.S. Middle District of North Carolina court granted the judgment as an estimated figure for gross revenues Collezione Europa made from willfully infringing on Universal's English Manor and Grand Inheritance bedroom and dining copyrights.

The court estimated the damages figure because it said Collezione Europa's methods for calculating costs were confusing, unreliable and internally inconsistent.

Collezione filed for bankruptcy in February 2008, shortly before a court was to award damages to Universal in the case. Universal continued to seek damages through the bankruptcy filing.

Universal will become an unsecured creditor in Collezione's bankruptcy filing, said Eric Chien, Universal's chief financial officer.

"We are very pleased that the Court has ruled in Universal's favor on all counts and has entered a substantial monetary judgment. The court's ruling should serve notice that we will take aggressive action to protect ourselves and our dealers," said Jeff Scheffer, Universal CEO.

Collezione Europa was found to have engaged in unfair competition and unfair and deceptive trade practices — violating the Lanham Act, infringing Universal's copyright and violating North Carolina's Unfair and Deceptive Trade Practices Act.

Leonard Frankel, a former Collezione principal, last year formed Frankel Furniture Inds. to act as agent for Pan Pacific Furniture Inds. of Hong Kong, and showed for the first time at the fall High Point Market last year with a team from Collezione Europa.

He said an interview with Furniture/Today in October that he was no longer involved with Collezione as of Sept. 1, but said that about 50% of the product Pan Pacific showed at market was duplicated from its line.

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Universal wins $11.2M judgment against Collezione

Feb 23, 2009

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