New York-based Fashion Footwear has won a lawsuit against Pony Holdings, a subsidiary of Iconix Brand Group, after the latter “improperly terminated” its exclusive footwear license.

An appellate court recently announced that Pony’s attempted termination of its exclusive footwear license with Fashion Footwear was void. 

The court also rejected Pony’s argument that Fashion Footwear’s substantial damages should be limited to the prior year’s royalties paid by Fashion Footwear.

The decision upheld the lower court’s ruling that Pony’s attempted termination to enter into an agreement with a new licensee, Genesco, was improper and invalid. 

Both courts found that Pony had no contractual right to terminate the license, as “neither it nor its affiliates had entered into a binding agreement to sell a majority of Iconix’s shares”.

Fashion Footwear’s majority shareholder Harry Adjmi attributed the victory to the relentless efforts of Oved & Oved’s legal team.

Terrence Oved and Darren Oved, who acted as legal counsel for Fashion Footwear, said they will continue to pursue compensation for the millions of dollars in damages and attorneys’ fees their client had incurred.