SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): October 20, 1998
TROPICAL SPORTSWEAR INT'L CORPORATION
(Exact name of Registrant as specified in its charter)
Florida 0-23161 59-3420305
(State of Incorporation) (Commission File No.) (I.R.S. Employer Identification
No.)
4902 WEST WATERS AVENUE
TAMPA, FLORIDA 33634-1302
(Address of principal executive offices, including zip code)
813-249-4900
(Registrant's telephone number, including area code)
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Item 5. Other Events
This Current Report has been filed by the Company to disclose recent
developments in several litigation matters previously reported by the Company.
On March 21, 1997, Levi Straus & Co. brought suit against the Company
in United States District Court for the Northern District of California. The
complaint alleges, among other things, that several marks in the Company's
family of Flyers(TM) trademarks and certain trade dress used in the labeling and
packaging of the Company's Flyers(TM) and Bay to Bay(R) products infringe upon
certain of plaintiff's proprietary trademark and trade dress rights in violation
of federal Lanham Act and California law. The complaint seeks injunctive relief,
as well as treble damages and attorneys' fees. Levi Strauss & Co. has also filed
opposition proceedings in the United States Patent and Trademark Office against
the Company's trademark applications for two marks in the Flyers(TM) family of
marks. These opposition proceedings have been suspended pending resolution of
the litigation. In addition, plaintiff had indicated that it believes that
certain trade dress used in the labeling and packaging of the Company's Bill
Blass(R) brand dress slacks also infringes upon certain of plaintiff's
proprietary trade dress rights. In an attempt to limit the Company's liability,
if any, with respect to such alleged infringement, the Company has unilaterally
altered the trademark and trade dress which are currently the subjects of this
litigation. The Company previously reported that the parties appeared to be very
close to finalizing a settlement agreement; however, a final settlement
agreement was not ultimately agreed upon and the parties have re-commenced
litigation activities. The parties are continuing settlement discussions while
the litigation ensues. The Company intends to vigorously defend these claims,
but remains open to reasonable settlement terms. Given the vagaries of
litigation, the Company cannot predict the outcome of this suit. If plaintiff
prevails, the outcome could have a material adverse effect on the Company's
business, results of operations or financial condition.
As previously reported, on July 3, 1997, Out-of-Mexico Apparel, Ltd.
brought suit against the Company in California Superior Court for, among other
things, breach of contract, breach of a non circumvention agreement, and
violation of the California Unfair Business Practices Act. The complaint alleged
that the Company entered into contracts for the manufacture of apparel with
certain manufacturers in contravention of a customer non-disclosure and
non-circumvention agreement between Out-of-Mexico Apparel, Ltd. and the Company.
The complaint sought compensatory damages and pre-judgement interest, punitive
damages and the costs of suit. The Company has reached a settlement agreement
with the plaintiffs for an amount that will not materially affect the Company's
operating results.
On December 30, 1997, the Company brought suit against Bremen Trouser's
Inc. ("Bremen") in the State Circuit Court in Tampa, Florida seeking a
declaratory judgement that the Company has the right to manufacture and sell
casual pants with "busted seams" using the Bill Blass(R) label pursuant to a
license agreement (the "Pincus License Agreement") between the Company and
Pincus Bros., Inc. ("Pincus"). Bremen is a licensee of Pincus under a separate
license agreement. In March 1998, the Company filed an amended complaint, which
added Pincus as a defendant, alleging breach of contract against Pincus and
tortious interference with business relations against Bremen. Also in March
1998, Pincus and Bremen filed a separate complaint against the Company,
alleging, among other things, that the Company violated the terms of the Pincus
License Agreement by manufacturing "busted seam" pants. Pincus and Bremen sought
unspecified damages and other non-monetary relief. The Company has reached a
settlement agreement with regard to this litigation which does not require that
the Company pay any monetary amounts.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
TROPICAL SPORTSWEAR INT'L CORPORATION
(Registrant)
/s/ N. Larry McPherson
N. Larry McPherson
Executive Vice President
Finance and Operations
Date: November 9, 1998
