Lyle & Scott Loses Attempt to Toss American Eagle Mark Dispute

The Scottish knitwear brand Lyle & Scott Ltd. must face allegations that it violated its contract with American Eagle Outfitters Inc. by trying to block the trademark application for a new eagle design, according to an order from a Pennsylvania federal court.

Lyle & Scott, a clothing retailer based in London, also owns an eagle design mark in several territories, including the U.S. American Eagle said Lyle & Scott broke a previous agreement by opposing American Eagle’s new trademark application in the United Kingdom for their second eagle design.

The High Court in the United Kingdom rejected Lyle & ...