News & Events

On March 16, 2006, Simpson Thacher prevailed in a summary judgment motion on behalf of Wella AG, in a case in the Southern District of New York concerning the alleged expiration of a license to distribute Gucci(R) brand fragrance products. A subsidiary of Wella (which in turn is now a subsidiary of Procter & Gamble) is the exclusive worldwide licensee for such products. Gucci, which is now owned by Pinault Printemps Redoute ("PPR"), claims that the license expired in November 2003 due to an alleged failure by Wella to give timely notice of its intention to renew the license. After negotiations concerning a potential joint venture between the parties broke down, Simpson Thacher filed an action for Wella in January 2004 seeking a declaration that the license remains in full force and effect.

Following extensive discovery, Gucci moved for summary judgment in November 2005, asking the court to rule as a matter of law that Wella's alleged failure to send a license renewal notice could not be excused. Southern District Judge George B. Daniels denied Gucci's motion, finding that Wella presented sufficient evidence to permit the court to find that Gucci should be equitably estopped from contending that the license has expired. The judge's ruling was based upon evidence of an oral understanding between the parties concerning the extension of the license and other evidence obtained in discovery, showing that Gucci had reason to know of Wella's belief that notice was not required but deliberately remained silent in its dealings with Wella until the alleged notice deadline had passed. The case will now proceed to trial on this and other issues.

The Simpson Thacher team representing Wella includes Kerry Konrad, Jennifer Rackoff, Katharine Nolan, Mindy Lok and Lana Maier, with invaluable support from paralegals Timothy Lobdell and Kate Rose.