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Decoro, Natuzzi suit dropped

By Joan Gunin -- Furniture Today, January 28, 2007

Hong Kong — A lawsuit over design and hiring issues in China between leather upholstery manufacturers DeCoro and Natuzzi has been dismissed, according to DeCoro.

A suit filed by Natuzzi against DeCoro over breach of contract and copyright infringement was dismissed "in its entirety" last week by the High Court of the Hong Kong Special Administrative Region Court, DeCoro said in a statement it released Monday.

The suit stemmed from DeCoro's alleged "pirating" of three Natuzzi product design employees as well as a series of sofa models.

"We are delighted with the outcome, which totally vindicates our business practices," said Luca Ricci, DeCoro's president and CEO.

Natuzzi executives in Italy could not be reached immediately for comment.

Natuzzi in April 2001 applied for an injunction to block DeCoro from hiring three former China-based Natuzzi employees — including two prototypists (product development specialists) and one designer — while they were under an agreement prohibiting them from working for competitors.

According to DeCoro, a court granted injunctions in respect to the three employees, but set aside the injunctions on the hiring of the prototypists because the covenants did not extend to Asia.

DeCoro said it was cleared of wrongdoing involving the designer's hiring because the agreement was found to be unenforceable. Natuzzi had sought relief also against DeCoro for allegedly procuring the employees to breach their employment contracts.

Natuzzi's charges of copyright infringement against DeCoro involving eight sofa models also were dismissed, DeCoro said.

Although DeCoro did not say what monetary award it stood to receive, it said it will celebrate its success in the case by donating to charity 10% of the legal costs to be recovered from Natuzzi.

The lengthy legal battle started in 2001 and resulted in a 40-day trial spread over 13 months, DeCoro said.

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DeCoro says it won Natuzzi lawsuit

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