Blue Elephant, a latecomer locked in a legal battle with domestic sunglasses brand Gentle Monster, said it "will not evade responsibility if a violation of the Unfair Competition Prevention Act is recognized."
Blue Elephant stated accordingly on the 27th in an official statement on its legal dispute with Gentle Monster, saying, "We immediately halted sales of the products at issue after the complaint, and we are already taking measures necessary to prevent a recurrence."
Blue Elephant explained, "This matter is not about whether a registered design right was infringed, but whether the 'product form' protected under the Unfair Competition Prevention Act was imitated, so a meticulous legal review is essential."
It added, "There is a legal expert opinion that among the products for which Gentle Monster filed a complaint, some are difficult to protect under the Unfair Competition Prevention Act, so we judge there is considerable room for dispute," and "If responsibility is recognized, we will faithfully discuss damages."
Blue Elephant also said that Chief Executive Choi Jin-woo will resign over this situation and the company will shift to a co-CEO system. Yoo In-chul, chief financial officer (CFO), and Ko Kyung-min, chief legal officer (CRO), were appointed as co-CEOs. Former CEO Choi was arrested on the 13th on suspicion of violating the Unfair Competition Prevention Act.
IICOMBINED, which operates Gentle Monster, is pursuing civil and criminal legal proceedings against Blue Elephant, including a design invalidation trial. Gentle Monster said Blue Elephant copied everything from products and accessories to interiors that make up its spaces.