DeCoro Reports Winning Legal Battle with Natuzzi on Employee Recruitment and Copyright Issues

Furniture World Magazine

DeCoro, a leading manufacturer of leather upholstered furniture, announced that the High Court of the Hong Kong Special Administrative Region has dismissed, “in its entirety,” competitor-firm Natuzzi’s claims against it for procurement of breach of contract and infringement of copyright. This decision, announced on January 16, 2007, ends a five and a half year legal battle, which culminated in a 40-day trial spread over 13 months. “We are delighted with the outcome, which totally vindicates our business practices,” said Mr. Luca Ricci, DeCoro’s President and Chief Executive Officer. “The court decision clears us of any wrongdoing.... My particular thanks go to our lawyers, Baker & McKenzie, and to our Counsel, who did an excellent job in representing DeCoro. To celebrate our success, we will donate 10% of the legal costs we recover from Natuzzi to charity.” he said. In April 2001, Natuzzi applied for an injunction to prevent DeCoro from hiring three former Natuzzi employees - two prototypists and a designer - at a time when they were under covenant not to work for competitors. Interlocutory injunctions were granted in respect to all three employees, but the injunctions on the hiring the two prototypists were subsequently set aside because the covenants did not extend to Asia. The Hong Kong Court decision clears DeCoro of any wrongdoing in the case of the designer, finding the covenant to be unenforceable as in unreasonable restraint of trade. Natuzzi also sought relief against DeCoro for allegedly procuring the three individuals to breach their employment contracts and duties of fidelity. Natuzzi also alleged that DeCoro had infringed Natuzzi’s copyrights on eight of their sofa models. During the trial, Natuzzi reduced the claim for infringement from eight sofa models to five, but the Hong Kong Court dismissed each of the claims as groundless. About DeCoro: DeCoro was founded in 1997 by Luca Ricci. The company has revolutionized the leather furniture industry by pioneering new production standards and making quality Italian furniture at previously unachievable prices. Today, it is a global leader and the first successful producer of quality Italian leather-upholstered furniture in Asia with a burgeoning presence in key markets across five continents.