CLO Virtural Fashion settles US patent infringement lawsuit against Style3D

CLO Virtual Fashion, the parent company of 3D fashion design software CLO, has reached a settlement with Zhejiang Lingdi Digital Technology Co., Ltd., the company behind Style3D, regarding its US patent lawsuit.

The patent lawsuit, initially filed in 2023, alleged that the company, also known as Linctex, had “engaged in willful and unauthorized use of CLO's patented technology.” The lawsuit sought damages and injunctive relief regarding three CLO patents used in the US. As part of the settlement terms, Linctex has acknowledged that its Style3D Studio software infringes the patents, and that those patents are valid and enforceable.

“CLO has spent years and invested substantial resources and energy into developing groundbreaking solutions that have revolutionized numerous industries,” said Simon Kim, CEO of CLO Virtual Fashion, in a statement. 

“The protection of intellectual property is not just about our business; it's about maintaining the value of great ideas and fostering an environment of fair competition and innovation that benefits everyone. In this age of digitization, it is vital to safeguard the work of creators and inventors to ensure the healthy and sustainable growth of industry. This outcome demonstrates our commitment to that principle and to our user community.”

Other terms of the settlement agreement were not disclosed. The US agreement comes more than six months after the Zhejiang Provincial High People's Court ruled in favor of CLO against Linctex in China and found the company guilty of knowingly infringing copyright through extensive commercial use of unauthorized CLO software.

The settlement reflects a broader shift in the industry, as more and more fashion companies in the US increasingly turn to litigation to defend patents and intellectual property. Recent cases include Lululemon’s dupe lawsuit against Costco regarding its Kirkland dupes, and Stanley parent PMI's design patent claim against Five Below.