H.D. Lee Company, Inc. and Authentic American Apparel, Inc. vs. Emerald Garment Manufacturing Corporation: A Case Analysis

In the realm of business and commerce, legal battles often arise, challenging the boundaries of intellectual property rights, contracts, and fair-trade practices. One such intriguing case is “The H.D. Lee Company, Inc. and Authentic American Apparel, Inc. vs. Emerald Garment Manufacturing Corporation” (G.R. No. 207060). This blog post will delve into the case details, explore the key issues, and analyze the court’s decision.


The case revolves around H.D. Lee Company, a prominent American apparel manufacturer, and Authentic American Apparel, a local distributor of Lee products in the Philippines. Both companies alleged that Emerald Garment Manufacturing Corporation, a local garment manufacturer, infringed upon their trademark rights by producing and selling counterfeit Lee-branded jeans. The plaintiffs sought legal action to protect their intellectual property and maintain the reputation of their brands.

Key Issues

  1. Trademark Infringement: In this case, the primary issue was whether Emerald Garment Manufacturing Corporation had indeed infringed upon the trademarks owned by H.D. Lee Company and Authentic American Apparel. Trademarks serve as identifiers of origin and differentiate products or services in the market. The plaintiffs argued that the use of their registered trademarks by Emerald Garment without authorization created confusion among consumers and diluted the value of their brands.
  2. Counterfeiting and Unfair Competition: Counterfeit products significantly threaten legitimate businesses. The plaintiffs contended that Emerald Garment’s production and sale of counterfeit Lee-branded jeans constituted unfair competition. Counterfeit goods deceive consumers and harm genuine brand owners by eroding consumer trust and revenues.

Court Analysis

The court conducted a thorough analysis of the evidence and legal arguments presented by both parties. It acknowledged the registered trademarks of H.D. Lee Company and Authentic American Apparel, emphasizing their exclusivity and protection under intellectual property laws. The court also recognized the potential confusion caused by counterfeit Lee-branded jeans.

Furthermore, the court examined the evidence of counterfeiting, including testimonies from consumers, investigators, and plaintiffs’ representatives. The existence of counterfeit products, along with their packaging and labels, strongly supported the plaintiffs’ claims. The court concluded that Emerald Garment Manufacturing Corporation had engaged in trademark infringement and unfair competition.

Court Decision

The court ruled in favor of H.D. Lee Company and Authentic American Apparel, granting the requested relief. It issued an injunction against Emerald Garment, prohibiting the manufacture, sale, and distribution of counterfeit Lee-branded jeans. The court also awarded damages to compensate for the losses incurred by the plaintiffs due to trademark infringement and unfair competition.

Implications and Lessons

This case highlights the significance of trademark protection and the consequences of trademark infringement. It reaffirms the importance of intellectual property rights in fostering fair competition and maintaining brand integrity. The court’s decision sends a strong message to other entities engaged in counterfeiting practices, emphasizing the potential legal repercussions they may face.

Moreover, this case underscores the need for businesses to be vigilant in protecting their intellectual property. Registering trademarks and regularly monitoring the market for counterfeit products can help brand owners identify and address infringement promptly. Early intervention can mitigate damage to a brand’s reputation and financial well-being.


The H.D. Lee Company, Inc. and Authentic American Apparel, Inc. vs. Emerald Garment Manufacturing Corporation case remind businesses of the legal battles that businesses may face in protecting their intellectual property. The court’s decision to grant relief to the plaintiffs showcases the significance of trademarks, fair competition, and the repercussions of counterfeiting. It also emphasizes the responsibility of businesses to safeguard their intellectual property rights to maintain brand value and consumer trust.

By resolving this case in favor of the plaintiffs, the court sends a clear message that trademark infringement and unfair competition will not be tolerated. This decision serves as a precedent for future cases, reinforcing the importance of upholding intellectual property laws to foster a fair and competitive business environment.

In a world where intellectual property is a valuable asset, this case analysis serves as a valuable resource for businesses, legal professionals, and consumers alike, reminding us of the significance of protecting trademarks and the consequences that follow when those rights are violated.

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