Asos to pay £20m in trademark settlement

Asos has announced it has reached a settlement over a trademark dispute with two European companies.

Asos has agreed to pay a total of £20.2 million to settle the global disputes over outstanding litigation with high-performance cycle wear manufacturer, Assos of Switzerland GmbH, and German menswear retailer, Anson’s Herrenhaus KG. The £20.2 million will secure a comprehensive co-existence for all parties. 

The result of the settlement followed a number of cases heard in court and multiple trade mark registry actions around the world.

Asos CEO, Nick Beighton, said: "We are pleased to have put this litigation behind us. Entering into this settlement at this juncture is the right commercial decision for our business."

Asos said the payment will be reported as an exceptional item at the end of its financial year. The e-tailer announced strong sales for its third quarter ending 30 June 2016, with growth of 30% (26% on constant currency basis). Meanwhile, international sales increased 31%, with 32% growth in the EU.

Earlier this year, the e-tailer discontinued its operations in China, after failing to gain traction in an increasingly competitive Asian market.