COURT FINDS IN FAVOR OF JLM COUTURE - INSTAGRAM AND PINTEREST ACCOUNTS ARE BUSINESS ACCOUNTS - DENIES HAYLEY GUTMAN'S MOTION IN ITS ENTIRETY

Rhea-AI Summary

JLM Couture has achieved a significant legal victory as a Federal Court in Manhattan ruled in favor of the bridal house against former designer Hayley Gutman. The court established a 'clear likelihood of success' for JLM, asserting ownership of the social media accounts associated with the Hayley Paige brand, which are deemed to be products of JLM's marketing efforts. Additionally, Ms. Gutman is prohibited from being identified as a designer of competitive products for five years following her contract expiration, further protecting JLM's business interests.

Positive

• Court ruling confirms JLM Couture's ownership of Hayley Paige brand social media accounts.
• JLM Couture can restrict Ms. Gutman's role in promoting competitive products for five years.

Negative

• None.

• JLM Couture demonstrated "clear likelihood of success" to establish ownership of the social media accounts, Federal Court judge rules.
• Ms. Gutman prohibited from being identified or promoted as a designer of competitive products, under any name or brand, for five years after contract term expires.
• Court found, "Ms. Gutman's unsupported, self-serving position is unpersuasive." And that, "Ms. Gutman has demonstrated her willingness…to harm the reputation of JLM and the Hayley Paige brand, and willingly violate the Contract and this Court's orders. Ms. Gutman voluntarily chose to breach the contract..."

NEW YORK, July 27, 2022 /PRNewswire/ -- A Manhattan Federal Court held that New York bridal house, JLM Couture, has established "a clear likelihood of success" in their lawsuit against former designer, Hayley Gutman, including that the @misshayleypaige Instagram and Pinterest accounts are business accounts for the Hayley Paige brand and thus owned by JLM. The Court held that these accounts, which were created using the Hayley Paige brand name, are the product of JLM's marketing efforts and investments which built the popularity and success of the Hayley Paige brand. Judge Laura Taylor Swain, in 67 pages of decisive rulings found that Ms. Gutman, used JLM's money, resources, and strategies to help the company build the Accounts' image around and for the JLM-owned Hayley Paige brand, and thus, "cannot now claim company property as her own."

Even more compelling, Judge Swain ruled that the Preliminary Injunction should be modified and bar Ms. Gutman from being identified as a designer of competitive products or using or authorizing others to use Ms. Gutman's role as a designer to promote the sale of any competitive goods, no matter what title she may claim in connection with a new venture or new employment, until August 1, 2027. The ruling does not prevent Ms. Gutman from designing wedding dresses. While Ms. Gutman can work for other brands, neither she nor those brands nor other third parties may identify her as the designer of those wedding dresses, and her role as a designer cannot be used to promote the sales of competitive goods.

Separately, and most telling, the Court denied Ms. Gutman's motion, in its entirety, to dissolve the Preliminary Injunction.

JLM said, "We are pleased that the Court continues to uphold the 'clear and unambiguous' language of the employment contract that provided Ms. Gutman with generous compensation as well as complete financial and infrastructural backing for the Hayley Paige brand and afforded her exclusive opportunities for fame and success."

JLM Couture is represented by Sarah Matz and Gary Adelman of Adelman Matz P.C.

ABOUT JLM COUTURE, INC.
JLM Couture, Inc. (OTC: JLMC) is a multi-label bridal house engaged in the design, manufacture, and distribution of bridal gowns and bridesmaids' dresses. The company's collections are Hayley Paige, Blush by Hayley Paige, Lazaro, Tara Keely, Allison Webb, Ti Adora, Francesca Avila and Kali by Francesca Avila, and Hayley Paige Occasions.

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SOURCE JLM Couture

FAQ

What were the results of the court ruling for JLMC regarding social media accounts?

The court ruled that JLM Couture owns the Instagram and Pinterest accounts associated with the Hayley Paige brand.

What restrictions were placed on Hayley Gutman following the court ruling?

Hayley Gutman is prohibited from being identified as a designer of competitive products for five years after her contract term ends.

When does the restriction on Hayley Gutman expire?

The restriction on Hayley Gutman will last until August 1, 2027.

What is JLM Couture's main business focus?

JLM Couture specializes in the design, manufacture, and distribution of bridal gowns and bridesmaids' dresses.

What position did the court take regarding Gutman's claims?

The court found Gutman's position to be unsupported and ruled against her motion to dissolve the Preliminary Injunction.