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US & Indonesia Sign Agreement
Page 1

Sri Lanka to Offer Aids Classes
Page 1

Congress Moves to Improve Trademark Protection
Page 1

PETA Protestors Crash Fashion Show
Page 1

Lingerie Americas Fashion Show in New York
Page 2

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  October 1, 2006                                            Issue #178


             McPete -Sez, 
The Lingerie Newsletter 
       Women's Wear Journal


                              Ready to-wear.

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        US & Indonesia Sign 
    Bilateral Agreement

US Trade Representative Susan C Schwab and Indonesia’s Trade Minister Mari Pangestu have signed a Memorandum Understanding (MOU) aimed at stopping illegal transshipment of textiles and apparel through Indonesia to the US.
The signing ceremony followed a meeting between between Schwab and Indonesian Vice President Jusuf Kalla that focused on the bilateral trade relationship and opportunities to expand economic ties between the two sides. 
"This MOU establishes a formal mechanism to help safeguard legitimate textile trade between our two countries, while stopping illegal textile transshipments," said Ambassador Schwab. 
"Today’s agreement demonstrates a commitment by the US and Indonesia to work together to strengthen our trading relationship." 
The MOU provides for customs cooperation, identification of textile and apparel manufacturers, and joint verification visits to provide each country’s government with the information necessary to stop textile and apparel transshipments. 
The MOU is the latest achievement in ongoing work under the bilateral US-Indonesia Trade and Investment Framework Agreement (TIFA). The TIFA, which was established in 1996, seeks to further strengthen ties between the US and Indonesia and to enhance two-way trade that currently stands at around US$16.5bn per year. 
In their meeting, Schwab, Pangestu and Kalla discussed issues including the enforcement of intellectual property rights, and reviving the World Trade Organization Doha Round.
The US is Indonesia’s largest market for exports of textile and apparel products. In 2005, textile and apparel imports from Indonesia were valued at $3bn, making Indonesia the US’ fifth-largest textile and apparel supplier in value terms. 


 Sri Lanka to Offer Aids

With more than 100,000 people contracting sexually transmitted diseases 
every year despite Sri Lanka’s conservative attitudes, the International Labor Organization (ILO) and the Employers Federation of Ceylon (EFC) have decided to educate factory workers about AIDS.
"In a cultural context the home environment is not suitable to discuss such 
things and neither is school. So the workplace is the ideal place to discuss these things," said Gotabaya Dassanayaka, Director General, EFC. 
The AIDS classes will target working adults, as part of a US-funded factory improvement program. Already 9 garment factories have signed up.
Garment factory workers living in free-trade zones are considered at high risk of both STDs and AIDS. 
Sri Lanka’s growing commercial sex trade coupled with low condom use among men, and the increasing travel to and from India - that has the second largest population of HIV victims in the world - have increased the risk of an outbreak in Sri Lanka. 

          Models present items by Claire Pettibone 
 at the Lingerie Americas Fashion Show in New York, 
                                July 30 - August 1.  
                 Photographed by
Russell VanBrocklen
See more pictures from the Lingerie Americas Fashion 
    Show in the September 15th issue of McPete Sez!

Congress Moves to Improve
 Trademark Protection
Congress has moved to improve trademark protection in legislation that had its origins in a dispute between a famous lingerie retailer and an adult novelty store. 
The legislation, approved by voice vote in the House and sent to the president for his signature, makes it easier for the owner of a well-known trademark to take legal action against imitations that could impair its distinctiveness or undermine its reputation.
Congress turned to the issue after the Supreme Court in 2003 ruled against lingerie giant Victoria's Secret, which filed trade infringement and dilution claims against an Elizabethtown, Ky., adult novelty shop originally named Victor's Secret.
The court ruled that trademark law required the trademark's owner to prove that the knockoff had caused it actual dilution, or harm, rather than the likelihood of injury.
The ruling was contrary to Congress' intent when it passed trademark legislation in 1995, said Rep. Lamar Smith, R-Texas, sponsor of the bill. "Diluting needs to be stopped at the outset," he said. "Once it occurs, the good will of a mark cannot be restored."
The measure makes clear that the owner of a famous mark, one that is widely recognized by the general consuming public, can seek injunction against someone who makes use of an identical or similar mark that is likely to cause dilution by blurring its distinctiveness or tarnishing its image.
The legislation originally passed the House last year and was amended by the Senate earlier this year. The final version lets the owner of a famous mark to seek damages and other additional remedies if the imitator willfully intended to trade on the recognition of the famous mark or harm its reputation.
To protect First Amendment rights, the bill exempts the use of trademarks for noncommercial purposes such as parodies, criticisms or news reporting.

China Runs Into Cotton
China’s cotton supply looks to run short of demand for a long time, vice-minister of the National Development and Reform Commission (NDRC) Bi Jingquan was reported as saying.
Bi said that because the textile industry will keep up the pace of development, the cotton shortage will be a long-term problem.
The domestic textile industry has developed rapidly since China joined the 
World Trade Organization in 2001 and quotas ended in 2005, NDRC pointed out. 
Bi is urging the development of cotton production and calling for a balance of production, circulation and consumption. 
Cotton companies should take practical action to prevent market risk such as researching supply and demand and price trends as well as learning how to use the futures market, Bi recommended.
He said, however, that the country will also need to boost imports of cotton to make up the shortfall.

22/24                Photographed by Michael Brouwer
Crocs Wins Fight Against
Shoe firm Crocs has ordered a Netherlands store chain to destroy illegal copies of its footwear design.
US-based Crocs said it decided to take legal action against the unnamed discount shoe chain in order to protect its goodwill and intellectual property rights.
The chain had been marketing almost identical copies of Crocs’ Beach/Cayman model for a quarter of the price of the original.
Crocs discovered that nearly all counterfeit products, which have now been destroyed, originated from China. 
The company said it is "in active pursuit of counterfeiters in other 

Cortefiel Breaks into Holland
Spanish fashion retail group Cortefiel has teamed with Dutch department-store operator V&D to enter the Dutch market as part of a plan to expand its 'Cortefiel' chain outside the Iberian Peninsula.
Cortefiel plans to open four stores in Holland this year, eight in 2007 and 
up to 35 in the next three years, the company said in a statement on 
September 25.
Moreover, the Cortefiel Group, which owns several specialized retailers 
including the fast-growing Springfield and Women's Secret fashion banners, plans to beef up its Springfield men's chain in Holland by opening four new corners in V&D stores this year and three next.
Springfield operates 532 points of sale around the world, most of them 
A Cortefiel spokesperson said the company is working to strike retail 
partnership deals to expand in Europe, Asia and India.
Cortefiel, which has become a fixture of Spanish high streets, sells moderately-priced conservative garments for men and women. 
According to the spokesperson, the group will open 205 points of sale this year (including standalones and corners), up from 167 previously scheduled.
As of August 2006,the Cortefiel group had 1,232 points of sale in 43 

          Models present items by Jacalyn Bennett 
 at the Lingerie Americas Fashion Show in New York, 
                                July 30 - August 1.  
                 Photographed by
Russell VanBrocklen
See more pictures from the Lingerie Americas Fashion 
    Show in the September 15th issue of McPete Sez!

Fast Retailing Looks to 
Aquire More Companies
Fast Retailing Co., Japan's largest clothing retailer, may add to acquisitions in Europe after it bought two French apparel makers and talks to buy Hong Kong's Giordano International Ltd. collapsed. 
``There are good, traditional brands in Europe,'' said Tadashi Yanai, 57, the chief executive officer of Fast Retailing. ``Some of these good brands can expand many times in scale if they advance into Japan, the rest of Asia and the U.S.'' 
The maker of Uniqlo casual clothing wants to double annual sales to 1 trillion yen ($8.51 billion) by 2010. Fast Retailing's plans to spend as much as 400 billion yen over two years to buy overseas competitors were snagged earlier this month when it withdrew from discussions with Giordano. 
``Without diversifying, Fast Retailing can't grow further, and it must acquire brands to develop into the European markets,'' said Masafumi Shoda, a chief retail analyst at Nomura Holdings Inc. Abandoning the Giordano acquisition was an ``appropriate judgment,'' he said. 
Shares of Fast Retailing, which have fallen 5.6% since the start of this year. 
Europe's branded clothes makers are often conservative, family-run businesses and would benefit from a takeover, Yanai said. He declined to identify specific targets. 
In February, Fast Retailing bought Petit Vehicule S.A., which produces the Princesse Tam.Tam lingerie brand, and in June purchased Nelson Finance SAS, the maker of Comptoir Des Cotonniers casual clothing. 
Fast Retailing abandoned talks to take a stake in Giordano, which sells clothing through more than 1,600 outlets in Asia, Australia and the Middle East, blaming the retailer's reluctance to enter into ``meaningful dialogue'' and the decline in its operating profit. 
Fast Retailing opened stores in the U.S. for the first time last year, and plans to open its largest flagship shop in Manhattan's Soho district on Nov. 10. It is rumored that the company plans to acquire a U.S. retailer within three years.
Fast Retailing expects full-year net profit to rise 18% to 40 billion yen for the year ended August 31, from 33.9 billion yen a year ago, after adding new units. The company, which is scheduled to report full-year earnings results on Oct. 12, estimates full-year sales to increase 16% to 444.9 billion yen for the period, from 384 billion yen a year ago. 

PETA Protestors Crash 
       Fashion Show
Protestors from PETA (People for the Ethical Treatment of Animals) have crashed a Burberry catwalk show in protest against the luxury label’s use of fur.
Holding banners reading ‘Burberry: Fur Shame’ and shouting ‘Fur is dead’, the three campaigners interrupted the Milan Fashion Week show as pro-hunting model Otis Ferry took to the runway.
The company has resisted repeated calls to stop including fur in its collections unlike many of its fashion counterparts. Indie band The Rakes 
recently turned down Burberry’s offer to appear in an advertising campaign because of this.
PETA has previously taken over the fashion show runways of fur designers Karl_Lagerfeld, Oscar de la Renta, Dior, Roberto Cavalli, Jean Paul Gaultier, and Prada, among others.

                    Models present items by Volage 
 at the Lingerie Americas Fashion Show in New York, 
                                July 30 - August 1.  
                 Photographed by
Russell VanBrocklen
See more pictures from the Lingerie Americas Fashion 
    Show in the September 15th issue of McPete Sez!

Reps Wanted

Lingerie distributor looking for US independent 
sales representatives for about 300 items. Contact 
Michael at (909)468-2705

Coles Myer to Cut 2,500 Jobs
Retailer Coles Myer has announced it will lay off 2,500 support staff over the next two years as it embarks on a cost-saving program. 
The company, which has said it might face a second takeover bid soon, expects to save A$425m (US$320.52m) in 2008 from its planned strategies.
It intends to cut 1750 permanent support roles in 2007 and an additional 
750 by the close of 2008. Most will be from the firm's head office. 
Elsewhere in the company, up to 20,000 new jobs should be created as it 
opens up 35 new stores. 
Coles Myer, which rejected a A$13bn takeover offer earlier this month, has also posted a 14% rise in annual underlying profit. It hopes to post 35% earnings increases in 2008 following a static 2007. 

                   Reps Wanted
Fast Growing Sexy Lingerie company looking for Independent Sales representatives for the West Coast, and Mid West/Central/Southeast Regions.  
Ph(866) 615-2175

Icahn Increases Investment
            in Federated
Federated Department Stores said billionaire investor Carl Icahn is planning to increase his investment in the company.
Icahn plans a filing to buy US$113.4m-$500m extra shares in Federated.
"We're glad Mr. Icahn sees value in our company and is increasing his investment," said Terry J Lundgren, Federated's chairman, president and 
"While our stock hit an all-time high four times in the past three weeks, 
we continue to see significant opportunity ahead as we maximize the Macy's and Bloomingdale's brands nationwide."
The latest move from Icahn, who is known for challenging companies' 
management, raises the possibility of a leveraged buyout.

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