License holder violates license
Search Engine Issues
A major international fashion brand had licensed a line of apparel products to a firm responsible for production, distribution and some marketing of the products to consumers. In violation of the terms of the license the products were distributed through discount outlets such as “warehouse clubs.” Mind/Share conducted a large-scale field experiment in which consumers in the target market were shown images of the products as presented in the appropriate retail outlets as well as in the disputed discount outlets. Using industry standard metrics of brand perception and product evaluation, the research showed that consumers’ perceptions of the brand, their evaluations of the product and their willingness to pay were all negatively affected by the presentation of the products in the discount outlets. A favorable settlement was reached prior to trial.