08.13.19
Startup beats behemoth! Yes, it's happening more frequently now in these indie-crazed days, but it's still eyebrow-raising to learn that Olaplex has won a patent dispute against L'Oréal over a hair bleaching system. Yesterday, a jury in federal court in Wilmington, DE awarded Olaplex $91.3 million after deciding that L'Oréal had stolen trade secrets and infringed on patents for protecting hair during the bleaching process.
Four years ago, Olaplex charged that L'Oréal swiped trade secrets when the two companies were in talks about a L'Oréal takeover. For its part, L'Oréal maintains that it developed the acid-based process on its own in 2014. Of course, L'Oréal is appealing the decision and a company spokesperson noted that the ruling only applies to the US market.
L'Oréal, with 2018 sales of $31.7 billion, is the biggest pure-play beauty company in the world and is ranked No. 2 in Happi's The International Top 30. In contrast, Olaplex has fewer than 30 employees and sales of about $70 million, according to sources.
Four years ago, Olaplex charged that L'Oréal swiped trade secrets when the two companies were in talks about a L'Oréal takeover. For its part, L'Oréal maintains that it developed the acid-based process on its own in 2014. Of course, L'Oréal is appealing the decision and a company spokesperson noted that the ruling only applies to the US market.
L'Oréal, with 2018 sales of $31.7 billion, is the biggest pure-play beauty company in the world and is ranked No. 2 in Happi's The International Top 30. In contrast, Olaplex has fewer than 30 employees and sales of about $70 million, according to sources.
