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Coachmen Industries Inc. and The Coleman Co. have reached an agreement in their licensing dispute, curtailing the arrangement for production of a “Coleman by Coachmen” towable line while reimbursing the Elkhart, Ind., builder for “certain expenses incurred.”
Coachmen filed suit following a ruling last November in a Kansas Federal Court concerning litigation between Coleman and Fleetwood Industries Inc., which had purchased rights to use the Coleman name on RVs in 1989 and built a popular line of folding camping trailers.
The judge issued a permanent injunction in the case, barring Wichita, Kans.-based Coleman from using the Coleman brand in the RV industry.
In a press release, both Coachmen and Coleman indicated that dismissing the litigation and moving forward would be mutually beneficial for both parties.
“We are obviously disappointed that our licensing relationship with Coleman will not develop as contemplated. However, we believe it is in the best interests of all concerned to bring this matter to a prompt conclusion so that we can all move forward,” said Claire C. Skinner, chairman and CEO of Coachmen.
Coleman and its parent, American Household Inc., were acquired last month by Jarden Corp. In commenting on the settlement, Jarden Chairman and CEO Martin Franklin said, “I would like to express my admiration and respect for Coachmen and wish them the best of success in the future.”
Coachmen had entered into the licensing agreement after Coleman severed its relationship with Fleetwood in late 2002. The company went into production of a fold-down and travel trailer line bearing the “Coleman by Coachmen” brand name with the intent of launching product at last year’s National RV Trade Show in Louisville.
Following the injunction, Coachmen filed suit against Coleman, attempting to “enforce its rights” to license and market the Coleman brand.