New York federal judge Paul Crotty is understood to have issued a final ruling on a court case between EGL USA and the European Gemological Laboratory, ultimately opting to dismiss both parties’ lawsuits.
According to a report by trade publication JCK, the dispute began in February 2004 when the European Gemological Laboratory sued EGL USA in relation to a breach of contract regarding royalties from a 1986 licensing agreement.
EGL USA responded with its own lawsuit, attempting to block European Gemological Laboratory from conducting business in the US by claiming an infringement upon its exclusive US rights to the EGL trademark.
The US company also claimed its reputation had been damaged through an incorrect association with the international laboratory, which in the past has been accused of over-grading its diamonds.
In his ruling, Crotty reportedly stated that European Gemological Laboratory had failed to prove EGL USA had breached its contract.
With regards to EGL USA’s lawsuit, Crotty was said to have determined that European Gemological Laboratory had used its own EGL mark “in good faith” and that there was little chance of confusion between the two trademarks.
“That these certificates ultimately make their way into the US where they may conflict with [the] defendants’ certificates cannot form the basis of a Lanham Act [trademark] violation,” he was cited as saying, adding that EGL USA had offered no proof that it had lost business due to European Gemological Laboratory’s allegedly inaccurate grading services.
It is understood EGL USA does not plan to pursue the matter further.
Jeweller contacted both EGL USA and European Gemological Laboratory for comment but neither had responded by the time of publication.
As previously reported by Jeweller, European Gemological Laboratory was at the centre of a controversial over-grading debate last year.
In addition to battling EGL USA over trademark infringement, it was also embroiled in its own internal dispute, with “the holders of the worldwide rights” to European Gemological Laboratory claiming to have revoked the EGL International branch’s licence agreement, meaning it could no longer use the ‘EGL’ name.
EGL International refuted the claim, stating that the notice was “deceitful” and an attempt to cause harm to the operation. However, EGL International now appears to be defunct, with the global European Gemological Laboratory network currently being co-ordinated by the head of EGL Platinum.
The full JCK report can be viewed here.
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