Tokyo Lifestyle Co., Ltd.

On October 9, 2024, Tokyo Lifestyle Co., Ltd. (formerly known as Yoshitsu Co., Ltd.), its wholly owned subsidiary Tokyo Lifestyle Ltd., and its wholly owned subsidiary Rakkistar Holding Inc. (collectively, the “Company”) filed a lawsuit against Nanako, LLC, a Texas corporation (the “Defendant”), alleging, among others, that the Defendant willfully adopted the Company’s marks, REIWATAKIYA and 東京生活館 (“TOKYO LIFESTYLE STORE”) (the “Subject Marks”), and was unlawfully reselling goods from the Company’s licensee without consent or authorization. The Company sought, among other demands, an injunction permanently restraining and enjoining the Defendant and its related parties from using the Subject Marks and an award of damages, profits, costs and attorneys’ fees.

On February 7, 2025, the United States District Court for the Southern District of Texas entered into an order granting the Company’s motion for default judgment against the Defendant. The Company was awarded statutory damages in the amount of $1,000,000 due to the Defendant’s willful infringement of the Company’s trademark rights and its attorney’s fees and costs in an amount of $75,000. The Defendant was permanently enjoined from (i) advertising, promoting, representing, offering for sale, or selling any product (a) bearing, displaying, or advertising the Company’s Subject Marks or (b) as being sponsored by, associated with, affiliated with, or connected to the Company, unless such products are obtained by the Defendant from the Company, (ii) representing to the public that it is authorized by the Company to promote, advertise, sell, or offer for sale any product bearing, displaying, or advertised under the Subject Marks, and (iii) advertising, promoting, selling, offering for sale, or in any other way representing to the public that any products, not originating from the Company, are associated with, sponsored by, connected with, or affiliated with the Company.