Why a Renzo Rosso company sued DSQUARED2

Dean and Dan Caten, the twin brothers and founders of DSQUARED2, have announced their decision to take full control of the brand, bringing an end to the licensing agreement with Staff International SpA, the production and distribution company owned by Renzo Rosso’s OTB group. The early termination of the contract, which was originally set to expire in 2027, takes effect immediately and will apply starting with the pre-collection SS26 sales campaign. This move towards internalization marks a significant milestone for the brand, which, after more than twenty years under the production oversight of Staff International, will now manage its own supply chain. However, this transition is not without complications, as the originally peaceful collaboration, which began in 2000 and was renewed in 2010, has led to a legal dispute with Staff International. The company, which is part of the OTB Group, has filed a lawsuit against the brand. Following Dsquared2's sudden decision to end the partnership, Staff International has lodged a case with the Court of Milan against Grascoe Holdings Limited, Dsquared2 Trademarks Limited, and the Caten brothers themselves. In its official statement, Staff International has asserted its right to full execution of the licensing contract until its natural expiration, firmly rejecting any possibility of early termination. The company also stated that there are no legal grounds for premature dissolution and expressed its determination to defend its rights with maximum transparency and resolve, reserving the right to take further legal action if necessary.

The exit from the licensing agreement remains for DSQUARED2 a significant milestone, marking the beginning of an era characterized by greater strategic and managerial independence for the brand. This move will allow its founders to have direct control over all production and distribution phases, ensuring stronger brand identity coherence and quality management. This also indicates that the Caten brothers' business has reached a scale where it can begin internalizing its manufacturing processes and consolidating the brand under unified management, avoiding potential compromises and constraints tied to a licensing agreement. Directly managing production could also enable greater creative and commercial flexibility, reducing the limitations imposed by an external partner. However, the ongoing legal battle could pose operational and financial challenges, especially if the Court of Milan sides with Staff International, forcing DSQUARED2 to wait until the agreement’s "natural" expiration. It is also clear why Renzo Rosso’s company has reacted strongly to the immediate termination of the agreement: beyond managing the brands within the OTB group, producing and distributing for third-party brands is a key element of its business model, and losing DSQUARED2 could have significant repercussions on its portfolio.

Of course, this operation is not without risks for the Caten brothers either. While they will surely benefit from internalizing production, they will also need to quickly reorganize their supply chain and distribution strategies, ensuring a smooth transition to avoid disrupting future collections. However, it is evident that they would not have entered this dispute without already having a plan to handle the takeover of their supply chain. Business decisions like this may be born out of instinct, but they are executed with a clear strategy in place. The outcome of this legal battle will ultimately be decided by the courts: if the Court of Milan rules in favor of Staff International, Dsquared2 may face unexpected contractual obligations or even be forced to renegotiate a new deal with its former partner. On the other hand, if DSQUARED2 wins the case, the brand will immediately regain its independence and can start working on its new strategy without further constraints. In any case, exiting the agreement with Staff International marks the beginning of a new era for the brand, bringing both opportunities and uncertainties that inevitably come with such a major transformation.