Oakley Wins Ruling in Luxottica Sunglass Suit

WASHINGTON — A federal appeals court Thursday barred Luxottica Group, the world’s largest maker of luxury eyewear, from selling some sunglasses in the U.S. while rival Oakley Inc. pursues a claim that the products infringe its patents.

The U.S. Court of Appeals for the Federal Circuit upheld a trial court’s December 2001 order preventing Luxottica from selling sunglass models with “Emerald” green or “Ice” blue tinted lenses. The court said Oakley had proved a “likelihood of infringement” of a patent for the colored lenses.

Luxottica bought Sunglass Hut, the biggest seller of Oakley sunglasses, in April 2001. Oakley claimed Luxottica Chairman Leonardo Del Vecchio tried to force Oakley to slash prices and ordered his Ray-Ban sunglass unit to make copycat designs to be sold at Sunglass Hut and LensCrafters, a unit it acquired in 1995. The Italian company says its glasses differ from Oakley’s designs.

Although the issues in the case “are close, they favor Oakley,” the three-judge panel said. Evidence that Sunglass Hut “was poised to release ‘huge numbers’ of the disputed sunglasses” backed Oakley’s claims that it would be harmed if they were allowed on the market before courts decide the case on its merits, the court ruled.

Officials with Milan-based Luxottica and Foothill Ranch-based Oakley didn’t immediately respond to requests for comment.

Earlier Thursday, Oakley lowered its estimate for 2003 sales growth, saying the company expects to have $560 million in sales this year and earnings per share of 55 cents to 60 cents. Analysts had been expecting earnings of 61 cents to 71 cents a share, according to Thomson First Call.

Oakley shares fell 15 cents to $10.10 on the New York Stock Exchange, while Luxottica’s American depositary receipts, each representing one ordinary share, rose 3 cents to $13.44.