YSL drops 18-month Lawsuit against Christian Louboutin as both sides claim they won battle of the red-soled shoes

 

Yves Saint Laurent has dropped its lawsuit against Christian Louboutin, finally closing a drawn-out case over who owns red-soles, for good.

The most recent court decision satisfied the french fashion house, which allows YSL to make monochromatic red shoes, where both the soles and uppers are red.

However Louboutin's 2008 trademark protection over the red sole alone will continue to be upheld, a decision which lead YSL to cancel its six counterclaims against Louboutin.

In court documents filed Tuesday, YSL said it has decided that these claims are no longer worth pursuing thus resolving what remains of this litigation and allowing the parties to close the book on this litigation and refocus their attention on their respective fashion creations.

The case began in April 2011, when Christian Louboutin sued YSL for using red soles on the bottom of its red pumps.

Louboutin demanded $1million in damages, which was based on a trademark granted to Louboutin in 2008 for red soles.

Yet the case was subsequently referred to the appeals court after a New York district judge ruled that Louboutin had exclusive rights to red soles, but dismissed claims that YSL’s all-red shoes were an infringement of Louboutin’s trademark.

Last month, the case was mostly resolved when the Court of Appeals ruled that Louboutin’s trademark should not be enforceable on red-sole shoes with matching red uppers.

YSL filed a request to drop the rest of its counterclaims without prejudice against Christian Louboutin, according to a brief issued by YSL’s lawyer, David Bernstein.

Without prejudice means we have the right to re-file claims to cancel the trademark if Louboutin challenges us again with respect to our designs, he told WWD.

Both sides claim victory.

Louboutin’s lawyer, Harley Lewin, telling Reuters that the ruling enables the company to protect a life’s work embodied in the red sole found on his women's luxury shoes.

And in a statement released Tuesday evening, Louboutin added that the ruling reaffirm[s] the validity of our trademark rights on the red sole in the U.S. (which) deprived Yves Saint Laurent of its claim for cancellation of our trademark.

Mean, Mr Bernstein, YSL's lawyer, told WWD: Now that the Court of Appeals has definitively ruled for Yves Saint Laurent and has dismissed Christian Louboutin’s claims, Yves Saint Laurent has decided to end what was left of the litigation and refocus its energies on its business and its creative designs.

Christian Louboutin has applied glossy vivid red to its soles since 1992, the iconic shoes selling for upwards of $700 a pair.

Last year Louboutin sued lost a lawsuit against Spanish brand Zara after claiming that an open- toed red-soled shoe it was selling for £40 was similar to its Yo Yo style.

A French court ruled that Zara’s cut-price shoe could not be confused with that made by the high-end designer and the Cour de Cassation – the final court of appeal – upheld the decision.

By Daily Mail Reporter (October 18, 2012)

Read more: http://www.dailymail.co.uk/femail/article-2219103/YSL-drops-18-month-lawsuit-Christian-Louboutin-sides-claim-won-battle-red-soled-shoes.html#ixzz29cDFOCRy

FORESTRY AND PLANTATION COMPANIES URGED TO PREVENT FOREST FIRE

Forestry Minister, Zulkifkli Hasan, appealed to the society to increase alertness to forest fire as the recent dry season is drier than normal. He urged companies utilizing land, like forestry and plantation companies, to help prevent land fire. According to the Forestry Minister, there are habits of the local communities during the dry season that must be given up, including burning land clearing debris.

Around 80% of fire occurs outside forest are and only 20% occurring in forest area, which is the jurisdiction of the Forestry Minister. According to the Minister, for fire prevention, his party relied on Manggala Agni (Forest Fire Brigade) which is equipped with modern equipment. Yet, however, support from the society at large, including land management companies, is required to prevent land fire. It is difficult to handle fire. Therefore, preventive action must be prioritized he said.

Director General of Forest Protection and Nature Conservation, Darori, said that forest management companies, such as forest concession (HPH) and industrial forest (HTI) concession holders are ready to prevent forest fire. He expected that plantation companies will do the same. HTI management companies in general have had a very good equipment to prevent forest fire. We expect that plantation companies will do the same, he said.

According to Darori, to increase alertness to land fire, the Forestry Ministry will hold apel siaga (call for readiness) in Pekanbaru, Riau on September 6, 2012. Based on records of the Forestry Ministry as stated in indofire.org website, since January 1 to August 26, 2012, there are 29,731 hotspot points monitored. In the same period of 2011, 18,146 hotspot points were monitored, it means that there is increase in the number of hotspot points by 2,585 (14%) this year.

Director of Perennial Plants of the Directorate General of Plantation at the Agriculture Ministry, Rismansyah Dansaputra, said that based on the prevailing legislation, plantation companies are required to have forest fire prevention and forest the extinguishing equipment. But, this is frequently ignored.

This is proven when a company is conducting Indonesia Sustainable Palm Oil (ISPO) certification. Many plantation companies spent a large amount of money to obtain ISPO certificate as they must equip themselves with new fire extinguishing equipment. While in fact, according to the legislation, since the beginning of investment, fire extinguishing equipment must already be available, he said.

President Director of PT Riau Andalan Pulp and Paper (RAPP). Kusnan Rahmin, said that his party is committed to perform no-burn forest management. This is a proactive initiative by integrating fire prevention management and minimizing fire potency in an integrated sustainable wood planting system.

RAPP has invested in no-burn forest management equipment and fire prevention training. We also conducted training of the local community on fire prevention methods and launching no burn policy campaign, Kusnan said. He also explained about a serious threat that causes forest fire, which is land conversion conducted by irresponsible parties during land opening. In facing this threat, Quick Response Integrated Team of RAPP is conducting an intensive control over fire threat and operating land and air patrol to respond to fire.

We have become a member of the Fire Management Actions Alliance coordinated by FAO since May 2007. RAPP has also formed Masyarakat Peduli Api (Fire Care Community) around concession area, including infrastructure assistance and training to develop care to fire threat, he said.

Joko Supriyono, Director of PT Astra Agro Lestari, Tdk, said that all Astra’s oil palm plantations have been equipped with fire trucks. And, non-burn land opening has become a common norm in large scale oil palm plantation companies. 

Business News - August 31, 2012  

CHALLENGE FACED BY OIL PALM INDUSTRY IS INCREASINGLY HEAVY

Challenge and problem in development of national oil palm industry in the future will be heavier. To maintain growth momentum of the industry which could absorb 3.5 million direct workers, there are many things that must be paid attention to by oil palm industry operators. Fadhil Hassan, Executive Director of Indonesian Palm Oil Association (GAPKI), stated this matter.

Indonesia’s success as the biggest palm oil producer in the world is not only due to climatologically factor, agronomic techniques, and land suitability, but especially due to government’s policy at that time which supports development of oil palm industry, whether policy concerning production, financing, infrastructure support, and a good cross-sectoral cooperation. As the biggest CPO producer in the world, Indonesia is facing bigger and more complex challenges that require handling and policy support from all stakeholders, especially from the government.

The challenges are: rampant negative campaign on Indonesia’s CPO product launched by domestic and foreign non-governmental institutions (NGO); increasing demand for a sustainable oil palm industry management; the appearance of new competitors in oil palm industry like Brazil and Africa.

Development of national oil palm industry is facing challenges related to unconducive and overlapping policy between one governmental institution and another. For example, policy on regional spatial planning in relation to land certainty for expansion, export duty on CPO, and imposition of double taxation. In addition to that, inadequate infrastructure has caused development of oil palm plantation in the future to become more limited.

Another thing that must be paid attention to is fluctuation of CPO prices in short and medium terms in the midst of weakening of CPO prices in the global market in the first semester of 2012. Yet, however, export of palm oil and its derivative products up to July 2012 grows by 7% if compared to the same period of last year. If climate condition is continuously supportive, the expectation is that Indonesia’s CPO production in 2012 will reach 25.5 million tons with export expectation at 18 million tons.

With the various challenges as mentioned above, it is worth questioning whether Indonesia will be able to maintain its position as biggest CPO producer in the world in the midst of government’s optimism in setting target of CPO production to reach 40 million tons by 2020. Concerning the effect of crisis, according to Fadil, currently there is a decline of demand in China. While in fact, China is the second largest palm oil importer in the world, where in 2011 China imported around 5.9 million tons of palm oil. Size of China’s oil palm plantation reaches 1.5 million hectares.

Demand for palm oil in China is predicted to grow by 10% each year and is predicated to reach 8.6 million tons by 2015 and 12 million tons by 2020. China is the third largest palm oil consumer in the world, where a major percentage of palm oil is used for catering industry, food processing industry, and consumer product and chemical industry.

Plant Breeder of Indonesian Oil Palm Research Institute, Razak Purba, said that one of the attempts that can be done to reduce environmental issue is by increasing productivity. If average productivity of oil palm plantation in Indonesia is 5 tons of CPO/hectare/year, to produce 25 million tons of CPO/year it only requires 5 hectares of area. This will satisfy the environmentalists, whether those who really care about environmental destruction or those who only want to earn a living, he said.

Can such productivity be achieved? Of course, it can, considering that plant breeders from various world’s oil palm seed producers have produced varieties that could produce 8-10 tons of CPO/hectare/year, he said. Such productive plant must be supported by suitable land and agroclimate and consistent application of Best Agricultural Practices (BAP).  

Business News - August 31, 2012  

TO MAINTAIN A HEALTHY CREDIT GROWTH

The Governor of Bank Indonesia Darmin Nasution stated that he would strive to put brakes on credit growth which in Semester 1 2012 had reached 25.8%; but to compare with Indonesia’s GDP which was around Rp 7,000 trillion, in fact the credit-to-GDP ratio was still only around 30% so actually there was still enough room for credit to grow.

Over the past 3 years, BI noted that credit growth had always been above 23%, even this year it could come to 25-26 percent. In fact the credit growth was still considerably safe and controllable provided it was allocated for productive investment.

It was a pity that the poured credit was spent on domestic goods consumption, including real estate business. Therefore it was necessary to put brakes on it, especially in the property sector including real estate through application of the loan-to-value (LTV) principle.

The fast growing real estate sector was feared to cause economic overheating in line with the sizable deficit. So economic overheating or not depended on two factors whether credit could drive investment or credit was aimed at investment in production of export commodities.

As told, BI had increased minimum down payment requirement for mortgage by 30 percent for consumers who wished to buy house by credit for house types above 70 effective per June 15, 2012 together with minimum DP of 25 percent for two wheel vehicle credit (KKB) and 30 percent for four wheel vehicle credit.

It seemed that the way Bank Indonesia wanted was that banks should keep their credit provision not to exceed 25 percent but only 20 – 24 percent only. This was the rate felt as safe and controllable and did not tend to lead to economic overheating. Moreover there was a growing new theory that an overgrown credit was feared to interrupt national economic stability. Therefore Bank Indonesia was pulling banks down to a level where increase was not too fast such as in consumptive credit, because productive credit could not be stopped from growing.

It was within 20% - 24% range that credit growth was to be maintained the way it happened 3 years before. Again controlling of credit growth level was necessary so as not to rock economic stability.

The banking regulator needed to monitor and to direct banks whereby to ensure that the channeled credit would bring benefit to the national banking sector. The attainment of Loan to Deposit Ratio (LDR) national wide was also rated as high, i.e. 81 percent, so it should be watched out.

By end of June, BI noted that growth of the banking sector had reached 25.8 percent. The figure had exceeded the trend which happened the year before which was only around 20 – 24 percent. As footnote in 2009 last credit growth was posted at 10 percent, in 2010 it soared up 22.8 percent. Lastly in 2011, credit growth increased again to become 24.5%.

The credit growth of 25 – 26 percent was also slightly above the long term trend which on the average rose for some years. It seemed that BI wished to return credit growth to the past trend in the range of 20 – 24 percent. By estimate, this fast growing credit was more or less on account of the Banking Business Plan (RBB) which was revised. Early this year it was announced that RBB for credit growth was 23 percent. However, the figure was further revised to become 25 percent.

Through various rules and plead to banks, BI was optimistic that credit growth which was rated as growth too fast could be pressed to a safe level (20 – 24 percent). Among the BI rules was the Loantor-Valve policy for the conventional banks which soon would also be applied on Syariah banks.

BI’s policy to release the LTV rule following the same LTV rule for conventional banks was necessary for confining growth of property and automotive credit not to exceed the normal limit. In this case LTV regulated the maximum limit of credit to be extended by banks from the price of asset to be purchased by candidate debtor. BI claimed that the Syariah banking industry had no objection to the application of LTV rules.

It was feared that if bank Syariah were restricted like conventional banks, the industry would spur on great financing. In that case many credit applicants would turn to Syariah banks since they fail to obtain credit from conventional banks and in the end there would be bubble in the mortgage and automotive market which finally ended in non performing loan.

In this case BI controlled credit growth by measuring growth, speed of credit pipelining, and credit ratio of non performing loan. The Central Bank itself deliberately issued LTV rule on March 15 this year to be effective by June 15 to halt buying of outomotives toward Labaran which traditionally soared high.

One thing noteworthy was that BI released LTV rules in response to the condition of deficit in current transaction in the past three months. As known, the extended credit was not used for investment in procuring raw material and auxiliary goods so national producers tend to import raw materials.

It would be much better if the productive credit was invested to build factories capable of producing raw materials and semi-finished materials (complementary components) so it might control the passion to import by local producers in the long term.

Essentially BI’s policy in regard to LTV rules and increased DP was not meant to stop credit flow, but only to ease down credit flow. Still banks should make credit expansion especially to respond to the need of middle class who had strong purchasing power and high mobility.

They needed good banking services whereby they could deposit fund or apply for credit facilities. Growth of Indonesia’s middle class which tend to excel in the past decade was seen as sustainer to performance of national economy. Such was rated as supportive to national fundamental economy. Naturally banks should not miss the golden opportunity in sight.

Growth of the middle class would continue until the momentum of demographic bonus of 2040 where Indonesia’s demographic structure would be dominated by people in productive age bracket while dependency ratio slowed down. Toward 2045 predictably Indonesia would be one of the world’s economic powers playing a great role in global economic growth.

In this case BI controlled credit growth by measuring growth, speed of credit pipelining, and credit ratio of non performing loan. The Central Bank itself deliberately issued LTV rules on March 15 this year to be effective by June 15 to halt buying of automotives toward Labaran which traditionally soared high.

One thing noteworthy was that BI released LTV rules in response to the condition of deficit in current transaction in the past three month. As known, the extended credit was not used for investment in procuring raw materials.

It would be much better if the productive credit was invested to build factories capable of producing raw materials and semi-finished materials (complementary components) so it might control the passion to import by local producers in the long term.

Essentially BI’s policy in regard to LTV rules and increased DP was not meant to stop credit flow, but only to ease down credit flow. Still banks should make credit expansion especially to respond to the need of the middle class who had strong purchasing power and high mobility.

They needed good banking services whereby they could deposit fund or apply for credit facilities. Growth of Indonesia’s middle class which tend to excel in the past decade was seen as sustainer to performance of national economy. Such was rated as supportive to national fundamental economy. Naturally banks should not miss the golden opportunity in sight.

Growth of the middle class would continue until the momentum of demographic bonus of 2040 where Indonesia’s demographic structure would be dominated by people in productive age bracket while dependency ratio slowed down. Toward 2045 predictably Indonesia would be one of the world’s economic powers playing a great role in global economic growth.

The Asia Development Bank’s (ADB) report on the Rise of Asia’s Middle Class sometime ago, indicated rise of Asia’s economy signified by the development middle class population in Asia including Indonesia. The World Bank’s report entitled “Global Development Horizon 2011-Multi Polarity: the New Global Economy” positioned Indonesia together with China, India, South Korea and Brazil as the epicentrum of global growth; these six countries contributing significantly to global economic growth in 2025.

The World Bank, the International Monetary Fund (IMF) and some international institutions projected global economic slowdown in resulting from crisis in Europe and the USA and Japan but also economic slowdown in countries originally expected to pose as sustainer of global economic growth: Brazil, China and India.

The World Bank predicted global economy this year would grow by 2.5 percent, while growth in emerging economies slowed down to 5.4%. The keep Indonesia from sinking in the quicksand of economic contraction, the banking sector would still channel out the needed credit but within the range rated as safe and controllable.

Business News - August 31, 2012

GOVERNMENT DEBT UNDER QUESTION

In view of the soaring Government’s debt, many parties warned the Government to be cautious the keep the nation from sinking the way it happened to Greece who failed to keep their head above water. The alarm was clear since Government’s debt nearly touched the psychological level of Rp 2,000 trillion or around 27% of total GDP which was Rp 7,000 trillion.

In fact the position of the Government’s debt which was 27% against GDP was still within safe level, because the permitted limit was 60%. Compare this against Greece’s debt which had reached 160% against GDP. The point was if a country had debt ratio of above 60% it might be regarded as a failure country.

It was noteworthy that the Government remained optimistic although debt had piled up to Rp 1,950.08 trillion was still optimistic to be able to pay off debt because the debt-to-GDP ratio was still small. Meaning, in view of the ratio today, the Government’s capacity to pay debt was still reliable.

Data of the Ministry of Finance had it that the Government’s debt-to-GDP ratio today was 26.9%, which was notably low. Besides, the Government’s financial condition was still healthy because deficit of balance of payment was still controllable at below 3%. The Government expected the public not just to look at the nominal figure of debt but also the Government’s capacity to pay debt, which was still strong.

To illustrate, a company which had asset and high profit, would rather use debt instead of company’s asset of small profit. So far the Government felt that debt management was extremely healthy, where people’s per capita dent was also low.

Total Government’s debt which by July 2012 reached Rp 1,950.08 trillion, when compared to end of 2011, the amount rose by Rp 146.59 trillion. Of that amount, Rp 625 trillion were borrowing from some countries and multilateral financial institutions.

Although the Government was optimistic about settling debt including interest to downpress debt was more important. During the New Order era was more important. During the New Order era (the Suharto era), each time the Government obtained new debt it was always celebrated as an achievement. Indonesia was rated as having successfully gained confidence from creditor country because of being able to return the debt including interest on time. Ironically there had been a systematic misleading campaign which taught that debt was not a burden but an achievement. Data had it that the new Order willed debt amounting to Rp 1,300 trillion or Rp 6.5 million per citizen.

The fact was that view of the Government of the reformation era never really changed. No signs of serious effort was visible to minimize debt or just treat debt as complementary component for financing development. The position of Indonesia’s debt as per July 2012 which reached Rp 1,950.08 trillion was taken lightly and there was no effort to reduce dependency on debt, and the amount even tend to increase.

Nevertheless, for long various circles had been worrying about the trend of swelling Government’s debt without any effort to reduce or downpress the amount. Some observers even remarked that if borrowing were let to happen without control, it was not impossible that Indonesia would end up like Greece.

Debt had sunk this land of the Gods in long and painful crisis wher in the end it was the people who had to shoulder the burden as economic condition turned adverse. Austerity plan at national scale had to be done with all the consequences which even fellow Europeans had the share the pain caused by Greece’s debts. A bail out plan worth 100 billion Euro was prepared to help Greece brunch back on her feet. Indeed a dramatic situation.

As with debt of the Government of RI, apparently the people were not enjoying any benefit from the debt. The quality of management of the fund was low and hence not felt. There were sufficiently sound evident that proved the statement. Firstly, price of food was not stable which eroded people’s purchasing power. Secondly, the condition of infra-structure was still bad and way below expectation. Thirdly, poverty figure was hard to bring down significantly since the cream of wealth from development process was not evenly distributed.

Only trouble was, grievances was expressed that most of the Government’s borrowed money were used for portofolio investment more than allocated for the real sector which were beneficial for the people. From the above picture, lessons might be learned that the Government should better review and manage their overseas debt. It was suspected that the credit was not spent on the basis of a sound and definite plan but rather they were used to serve the interest of creditors and the busiesspeople behind them.

Definitely, reformation and restructurization of of credit was indispensable. It was better to be aware of the trap before it was too late. The Government must be able to use the money efficiently so it could be benefited by the people. Furthermore, as time goes by dependency on borrowed money must be lessened by increasing income from own resources such as tax.

In parallel with that the potential of financial leakings must be walled out by clean, effective and responsible good governance. Funding management must be transparent and accountable all for the sake of people’s prosperity. Fund allocation must be focused on priority afield which was development oriented with highlight on basic infra structure instead of serving short term political interest.

Finally the habit of borrowing itself must be totally abandoned as long as the Government were able to tap non-credit resources. Even if borrowing were necessary, it would be advisable if the Government borrowed money from their own people by way of selling promissory notes to the Indonesian people.

Release of the Indonesia Retail Bond (ORI) which had reached 7^th round was a success story and should be continued because the buyers were purely Indonesian individuals, thereby the Indonesian people had given their contribution to serve the nation.  

Business News - August 31, 2012