NEW YORK, May 16, 2025 /PRNewswire/ — In a significant decision with far-reaching implications for the fashion industry, a New York Appellate Court unanimously held that US Pony Holdings (“Pony”) — an affiliate of global licensing powerhouse Iconix Brand Group — improperly terminated its exclusive footwear license with New York-based Fashion Footwear LLC. The Appellate Court held that Pony’s attempted termination was void and rejected Pony’s argument that Fashion Footwear’s substantial damages should be limited to the prior year’s royalties paid by Fashion Footwear.
The Appellate Court’s decision upheld the lower court’s ruling that Pony’s attempted termination of Fashion Footwear’s license agreement in order to enter into a license agreement with a new licensee, Genesco, was improper and invalid. Both courts found that Pony had no contractual right to terminate the license, as neither it nor its affiliates had entered into a binding agreement to sell a majority of Iconix’s shares — a condition required to trigger any such termination right.
Fashion Footwear’s majority shareholder Harry Adjmi hailed the court’s decision and commented:
“This victory is a testament to the excellence and perseverance of Oved & Oved’s legal team of Darren Oved, Terrence Oved, Aaron Solomon and James Reilly. Their tireless commitment and steadfast belief in our cause made this spectacular outcome possible.”
In a further win for Fashion Footwear, the Appellate Court also reversed the lower court’s decision permitting Pony to attempt to escape liability by asserting a defense based on its assertion that Fashion Footwear did not immediately challenge Pony’s unlawful termination, holding that Pony may not “mislead [Fashion Footwear] and then claim the benefit of [Pony’s] deception”.
Fashion Footwear’s counsel Terrence Oved and Darren Oved of Oved & Oved LLP stated:
“We applaud Fashion Footwear’s unwavering determination. We will continue relentlessly pursuing Pony until it has been made to ‘pony up’ for the millions of dollars in damages and attorneys’ fees it forced our client to incur.”
This ruling is a decisive victory for Fashion Footwear and a powerful affirmation of the rights of licensees throughout the fashion industry. It serves as a reminder to dominant licensors like Iconix that they cannot arbitrarily disregard their contractual obligations or the rights of their licensee-partners who help build, develop and expand their brands.
SOURCE Oved & Oved LLP
