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Levi’s Delays Arbitration in $15M Royalty Dispute

When it’s deliver-or-die, supply chains become the lifeblood of a company. To that end, the fashion industry has embraced technology to navigate today’s hyper-complicated supply chain, with myriad solutions shaping the first, middle and last mile. Call it Sourcing 2.0.

A court ruled that Aqua Dynamics Systems Inc., a water treatment company, cannot yet force Levi’s to arbitrate a $15 million royalty dispute. Aqua Dynamics is looking for compensation for an ozone washing treatment Levi’s has used since 1993.

Levi’s, in turn, filed a lawsuit discrediting Aqua Dynamics’ claims. A California federal judge ruled that Aqua must first demonstrate that it is the owner of the patent, which the company took over, before arbitration can occur.