Opinion ID: 1460047
Heading Depth: 2
Heading Rank: 2

Heading: The Sale Agreement

Text: In 2000, Abboud, Houndstooth, and JA entered into an Agreement of Purchase and Sale dated June 16, 2000, and executed on July 13, 2000 (Sale Agreement or Agreement), for the sale of certain assets to JA. The Sale Agreement provided in pertinent part that Abboud and Houndstooth would, in exchange for the payment to Abboud of $65.5 million, transfer to JA all of their right, title and interest in and to: (A) The names, trademarks, trade names, service marks, logos, insignias, and designations identified on Schedule 1.1(a)(A), and all trademark registrations and applications therefor, and the goodwill related thereto (collectively the Trademarks), together with all causes of action (and the proceeds thereof) in favor of [Abboud and Houndstooth] heretofore accrued or hereafter accruing with respect to any of the Trademarks, and all other Intellectual Property (as hereinafter defined). (B) All licenses to use the Trademarks granted by Houndstooth or Abboud. (collectively, the License Agreements). (C) All rights to use and apply for the registration of new trade names, trademarks, service marks, logos, insignias and designations containing the words Joseph Abboud, designed by Joseph Abboud, by Joseph Abboud, JOE or JA, or anything similar thereto or derivative thereof, either alone or in conjunction with other words or symbols (collectively, the New Trademarks), for any and all products or services. (D) All books, financial records, invoices, and other documents, records and data files relating primarily to the Trademarks or the License Agreements. (E) The goodwill of or pertaining to the Trademarks. (The items referred to in clauses (A) through (E) of this Section 1.1(a) are collectively referred to as the Assets). (Sale Agreement ¶ 1.1(a) (emphasis in original).) The Agreement defined Intellectual Property, referred to in ¶ 1.1(a)(A), as all of the trademark registrations, service mark registrations and applications and copyright registrations and applications currently used by [Abboud and Houndstooth] in connection with the Trademarks listed in  Schedule 1.1(a)(A).  ( Id. ¶ 3.6(a) (emphasis in original).) Schedule 1.1(a)(A), referred to in ¶¶ 1.1(a)(A) and 3.6(a), bore the title Joseph Abboud/J.A. Apparel, with a subheading Trademark Report by Mark. It listed pending and completed trademark and service mark registrations in various countries, grouped largely by type of design, with headings such as Diamond and Rectangle Design, Miscellaneous Diamond Design, Joseph Abboud, Joseph Abboud & Design, and Joseph Abboud and Miscellaneous Diamond Design. In conjunction with their execution of the Sale Agreement on July 13, 2000, Abboud and JA also executed a Personal Services Agreement that was to span a total of seven years. In the Personal Services Agreement, Abboud agreed that for the first five years he would provide personal services to JA (the personal services period) by, inter alia, becoming Chairman Emeritus and supplying ideas for the design and marketing of Joseph Abboud products. For two additional years, Abboud agreed not to compete with JA (the non-compete period).