Wedding dress designer Hayley Paige Gutman is at the center of a new lawsuit after leaving her post at her JLM Couture-owned brand. In a complaint filed on December 15, JLM Couture (JLM), the parent company to an array of bridal brands, including Hayley Paige, is accusing the designer of federal and common law trademark dilution and unfair competition, breach of contract, conversion, and breach of fiduciary duty, among other claims, and claiming exclusive rights in the Hayley Paige name and variations, thereof, on the basis of the employment agreement the parties entered into when Gutman was relatively new to the fashion industry in 2011.

According to its complaint, JLM which generated $220 million in retail sales between 2017 and 2020 claims that it enlisted Gutman to come onboard as a designer for its bridal collections in July 2011. As a result, the designer entered into an employment agreement with JLM, which is still currently in effect, as JLM exercised an option to extend the term of the agreement by at least 3 additional years in 2019.

The parties partnership has seemingly flourished since 2011, with JLM launching and Gutman designing, serving as the face of, and helping to advertise a number of successful Hayley Paige-specific brands and collections, in connection with which JLM filed for (and received) 37 domestic and international trademark registrations for the various iterations of the Hayley Paige name for its brands from Hayley Paige for using in connection with and La Petite Hayley Paige to Just Got Paiged, among others.

In addition to launching the Hayley Paige brands, in connection with which JLM began using [Gutmans name], as provided in the employment agreement, to sell and advertise clothing designed by Gutman, including by way of the then-newly-created Hayley Paige brands, JLM claims that it launched social media pages for the Hayley Paige brand, such as @misshayleypaige on Instagram, an account that Gutman assisted in maintaining in connection with the scope of her employment.

More than that, JLM claims that it obtained lucrative cross-marketing agreements and tie-ins to capitalize on Gutmans growing recognition, including on social media, such as collaborations with diamond brand Hearts of Fire, and a recurring role on TLCs show Say Yes to the Dress.

Despite the success of the [various Hayley Paige] brands, JLM alleges that things began to go downhill in November 2019 when Gutman began to take steps to not only assert control over JLM property, which has resulted in damage to JLMs business and intellectual property rights.Among the property at stake is the Hayley Paige social media accounts namely, the @misshayleypaige Instagram account which JLM argues that it has owned from the time that the accounts were created.

According to JLM, issues with Gutman began on November 2, 2019, when Gutman created a TikTok account under the misshayleypaige name. This was problematic, per JLM, not only because Gutman allegedly posted videos that did not properly represent the [Hayley Paige] brands, but because the misshayleypaige handle falls within the scope of the rights that Gutman granted JLM the exclusive world-wide right and license to use to JLM in accordance with her employment agreement.

JLM claims that in addition to the customary agreement that of the designs she created during her employment and the rights in such designs would become the property of JLM, Gutman was also required to grant it the exclusive right to use her name Hayley, Paige, Hayley Paige Gutman, Hayley Gutman, Hayley Paige, or any derivative thereof in connection with the design, manufacture, marketing and/or sale of bridal clothing, bridal accessories and related bridal and wedding items, including and all good will associated therewith for the term of the agreement, and for a period of two years, thereafter.

The exception? If JLM exercised its right to file for and obtain a federal trademark registrations for any such name, which is subject to a separate provision in her employment agreement that states that Gutman has irrevocably [sold, assigned, and transferred] all right, title, and interest to [JLM] that now exists or may exist during the term [of the parties agreement] and for a period of two years thereafter, to register [her] name or any derivative(s) thereof as trademark with the USPTO and/or other authorities in the U.S. or abroad.

The parties relationship further broke down in June 2020 when JLM alleges that in the midst of its offer to negotiate to further amend Gutmans employment agreement to increase the term thereof, and to provide Gutman with additional financial compensation, Gutman informed JLM CEO Joe Murphy that it was her position that the [@misshayleypaige] Instagram account was her personal account, which JLM says is at odds with their existing agreement.

Thereafter, JLM claims that Gutman began posting personal images in addition to bridal images to the account, as well as uploading posts promoting the goods of third parties, such as olive oil, beer, and nutritional supplements, none of which were approved by JLM, and none of which relate to the bridal industry.

This was followed by Gutman not only hijack[ing] the [@misshayleypaige] account, but [taking] steps to convert it from a JLM company account and its 1.1 million followers to her own business platform, as if she were an influencer.

With the foregoing in mind, JLM sets forth claims of federal trademark dilution, pointing to Gutmans confusingly similar use of the various Hayley Paige trademarks and the @misshayleypaige Instagram account since at least July of 2020, as well as her efforts to pass off [her] endorsement of third parties goods and services, as being part of, marketed, sponsored, licensed or otherwise authorized or approved by [JLM] when they are not, are eroding the distinctiveness of the [Hayley Paige] trademark and the @misshayleypaige trade name.

Beyond that, JLM claims that Gutman is engaging in false designation of origin and unfair competition by using its trademarks even if those marks include her name, as such use is likely to cause confusion in the marketplace as to the source, origin, or sponsorship of the goods being offered up and/or promoted by Gutman.

Still yet, JLM argues that Gutman is engaging in a whole host of other offenses, including breach of contract as a result of her use of the Hayley Paige trademarks, as well as her unwillingness to provide JLM with access credentials to the social media accounts, which she hijacked for her own personal use, and to promote non-JLM authorized goods and services.

On the heels of a court order last week, in which Judge Laura Taylor Swain of the U.S. District Court for the Southern District of New York issued a temporary restraining order in JLMs favor, Gutman told the nearly 100,000 followers of her @allthatglittersonthegram account in a video published on Monday, I am mortified and devastated but I wanted to be the first to personally tell you that I am no longer posting or engaging on [the @ misshayleypaige] account until this matter is resolved in court, noting that she has resigned from her position at JLM following a year-and-a-half-long legal battle to negotiate a new contract with JLM Couture, one that has resulted in them suing me and convincing a court to grant them temporary control and access over my Instagram account, as well as my TikTok and Pinterest.

In the same video, Gutman states that she did not have a lawyer when she signed the original employment agreement, and says that if there is only one thing that viewers take away from her video it is that if anyone tells you that you dont need a lawyer to take a look at an agreement or contract, please get a lawyer.

Gutman further says in the video that it is with a heavy heart that I have resigned from my role as head designer of my labels with JLM Couture, stating that going forward, I will no longer be associated with any of their products, including the designs and dresses which bear my name.

*The case is JLM Couture, Inc. v. Gutman,1:20-cv-10575 (SDNY).

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Hayley Paige and Bridal Company Are at War Over Use of Her Name, Instagram Handle - The Fashion Law