Trademarks a Hot Topic With Some Shorts

Some people think scratch-and-sniff underwear could end up chafing Hot Topic(HOTT Quote).

The teen fashion retailer has jumped 60% since September on strong sales of hip duds like banana-scented boxers. But some observers say a patent-infringement suit filed by a small California clothing company could spell trouble for the music-themed apparel and accessories chain. They say Hot Topic has repeatedly run afoul of trademark holders in the past, and warn that the company could be vulnerable to a costly court setback.

The company, based in City of Industry, Calif., rejects the notion that it has engaged in copycatting, and calls the Caution Underwear suit "totally without merit." Hot Topic says it has always acted responsibly in licensing and trademarking matters. ...