American Eagle Outfitters was awarded a preliminary injunction against Payless Shoes back in July of 2008, for the discount shoe store’s infringement upon it’s mark.  However, if you take a look at their websites, it seems that the confusion is still present.

American Eagle Outfitters filed trademark infringement and unfair competition claims against Payless in April 2007, one year after Payless acquired a footwear brand called American Eagle from Jimlar Corp., a shoe wholesaler.  American Eagle Outfitters claimed that Payless began using advertising, and selling shoes and accessories that copied the “look and feel” of it’s marketing.  Though the brand was new to Payless,  American Eagle Outfitters said that for more than 20 years, it Jimlar co-existed without customer confusion.  However, when Payless acquired the brand, they falsely indicated to consumers that it sold genuine American Eagle Outfitters merchandise, which they did not. 

According to American Eagle Outfitters’ legal counsel, the company’s “ultimate goal is to stop Payless from misleading and confusing consumers and to protect the integrity of our brand.”  (See: American Eagle wins injunction against Payless)

However, after glancing at the two stores’ websites, I noticed that Payless still has several types of shoes that resemble the “look and feel” of the American Eagle Outfitters brand.  Confused, I did some further research and found out that there has been a recent development in the case.  According to Law360.com, American Eagle Outfitters has agreed to let Payless continue to sell its shoes and bags as part of the settlement of the trademark infringement suit.

American Eagle Outfitters Boot

Payless "American Eagle" Boot