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Wednesday, August 11, 2004

Sassoon's P&G suit to go ahead



By Cliff Peale
Enquirer staff writer

It appears Vidal Sassoon will get his day in court with Procter & Gamble Co.

A federal court judge in Los Angeles late Monday denied P&G's motion to dismiss two counts of the hair stylist's suit. While Judge Margaret Morrow dismissed two fraud claims, the suit's claims for breach of fiduciary duty and breach of covenant are scheduled for trial in mid-October in Los Angeles.

Sassoon filed the suit in April 2003, claiming Cincinnati-based P&G had "systematically decimated my brand" by taking it off North American and European store shelves. The brand still is sold in Asia.

"It will go to trial unless there's some Herculean movement from P&G," said Sassoon's attorney, Ann Marie Mortimer. She said the two sides are to meet next week to discuss settlements.

Sassoon has said he wants termination of the licensing deal with P&G, and he would buy the brand and rights to his name back "in a minute." Even if P&G loses at trial, the results likely would not have a significant financial impact. Sassoon, however, appears determined to get to trial.

In preparing for trial, his lawyers have deposed several P&G executives.

They claim P&G's efforts to build Pantene hair-care products hurt the Sassoon brand, all a conscious strategy to avoid paying 1.5 percent annual royalties. While thesuit doesn't specify a damages amount, Mortimer said it would be "at minimum several hundred million dollars."

P&G responded with a statement: "We are confident that the allegations will be found to be without basis, and look forward to the opportunity to present our case to the jury," it said. "We deeply value the brand's equity and continue to work hard and invest consistently to promote the strong Sassoon heritage."

E-mail cpeale@enquirer.com




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