Stanley Black & Decker Inc has filed a lawsuit against Sears, accusing the retailer of trademark infringement and breach of contract over its use of the Craftsman brand. The legal action, filed in Manhattan federal court, centers on Sears' launch of the Craftsman Ultimate Collection, a line of professional-grade tools.
The dispute stems from a 2017 agreement where Stanley Black & Decker acquired the Craftsman brand for $900 million, granting Sears a limited license to sell certain products. The company claims Sears violated this arrangement by promoting its tools as the authentic representation of Craftsman, including assertions that its stores are "the real home of the broadest assortment of Craftsman."
Stanley Black & Decker argues this messaging risks consumer confusion and damages the brand's reputation. The lawsuit highlights Sears' 2019 emergence from Chapter 11 bankruptcy following a $5.2 billion takeover led by Edward Lampert, which included Craftsman licensing rights. The case, Stanley Black & Decker Inc v Transform Holdco LLC, is pending in the U.S. District Court for the Southern District of New York under docket number 19-02081.
The legal battle also references the 2005 merger of Sears and Kmart, which significantly reduced the retailer's store count from 3,500 to 425 locations. Sears brands now include DieHard and Kenmore, but the Craftsman licensing remains a focal point of contention.
