The ruling stems from JS China's trademark lawsuit against American Eagle Outfitters for Aerie's use of the label.

JS China, a small manufacturer of apparel, won the first round of its trademark infringement lawsuit against American Eagle Outfitters Inc.

In mid-September, JS China hit the retailer with a federal trademark suit over the ”Overslept by Aerie” line of sleepwear, which is produced by its Aerie division.

On Monday, U.S. District Judge Loretta A. Preska entered a preliminary injunction barring Aerie from selling its Overslept merchandise. Aerie removed the label from its website shortly after the lawsuit was filed, but continued to carry the line in its stores.

JS China indicated that it has been selling sleepwear under the federally registered Overslept trademark since 2019, “moving nearly 1.5 million units and generating more than $3.8 million in sales.”

“JS China is gratified that the court recognized the incontestable trademark for the Overslept brand and stopped Aerie’s bad faith use of the trademark,” said Marc Greenwald, partner at the Quinn Emanuel law firm, representing the plaintiff. “They were aware of it. In October, they ran a trademark search and found JS China’s registered trademark yet they decided nevertheless to proceed with their product branding and launch, and the court found that was evidence of Aerie’s bad faith.”

The New York-based JS China manufactures women’s apparel under several brand names including Breakfast in Bed, End of Story, Grumpy & Gorgeous and Not a Morning Person. JS China wholesales its merchandise to such stores as Charlotte Russe, Burlington and Urban Planet.

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