Asos vs Assos: Asos just paid out £20m to settle a trademark dispute
In the battle of Asos vs Assos, there were only ever going to be two winners.
Online retail giant Asos announced today it had settled a trademark dispute with Assos of Switzerland, a high-performance cycle wear manufacturer and German menswear retailer Anson's Herrenhaus.
Asos said it will pay a total of £20.2m in cash to Assos and Anson's, which it said will "secure a comprehensive co-existence for all parties". Phew.
The case had resulted in "several" court hearings, Asos said, as well as multiple trademark registry actions around the world.
The payment will be chalked up as an exceptional item in the fashion retailer's full-year results.
"We are pleased to have put this litigation behind us," said Nick Beighton, Asos' chief executive, today.
"Entering into this settlement at this juncture is the right commercial decision for our business."
Shares dipped as 4,535p in early trading, before bouncing back to 4,555p, 0.15 per cent down.
Earlier this week Asos was named as one of the retailers least likely to be hit by Brexit by Royal Bank of Canada, which said it was "especially well positioned" to capitalise off recent falls in sterling.
However, the company's working practices have been called into question by Labour leadership contender Owen Smith, who has dubbed it the "new Sports Direct".