Online Startup Fab Sued for Copyright Infringement, 'Unfair' Competition

Online Startup Fab Sued for Copyright Infringement, 'Unfair' Competition
Image credit: Venture Beat

Grow Your Business, Not Your Inbox

Stay informed and join our daily newsletter now!
2 min read
Opinions expressed by Entrepreneur contributors are their own.

Fab, the popular design oriented online retailer, is heading to court as a competitor with a similar name is suing the company over and what it claims are unfair competitive practices.

The lawsuit, filed in last week by membership-based internet shoe retailer Just Fab, calls Fab's name "confusingly similar" and asserts that it "intended to capitalize on Just Fab's goodwill for's own pecuniary gain." Just Fab asks that Fab be barred from selling any items that compete with its own and to reimburse the company for business lost due to and brand confusion.

In its defense, Fab says it will aggressively defend its brand. 

Fab originally launched in 2010 and was called Fabulis, a social network for gay men. Founders and changed the and re-named as about a year later. Also launched in 2010, Just Fab originally billed itself as Just Fabulous. It was founded by Don Ressler and Adam Goldenberg.

The lawsuit comes about a month after Fab closed a $150 million round of financing, bringing total investment in the company to $310 million. As Fab looks to expand its business, the company is laying off more than 100 employees in as part of an effort to reduce redundancy in its European and U.S. flash-sales divisions. Seventy employees will be issued pinks slips immediately while the remaining are asked to stay on through the transition. Thirty-six employees will be asked to move to Berlin or New York.

Even amid the layoffs, Fab is hiring for 70 unfilled positions in the U.S. Europe and India, the company says.

Related: 10 Questions to Ask Before Naming Your Business

More from Entrepreneur

We created the SYOB course to help you get started on your entrepreneurial journey. You can now sign up for just $99, plus receive a 7-day free trial. Just use promo code SYOB99 to claim your offer.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Create your business plan in half the time with twice the impact using Entrepreneur's BIZ PLANNING PLUS powered by LivePlan. Try risk free for 60 days.

Latest on Entrepreneur