A Shanghai-based company said yesterday that it is buying the Chinese licenses of French fashion giant Pierre Cardin, but other media reports indicate the deal may be clouded by prior agreements with other potential purchasers.

Shanghai Century Star Imp & Exp Corp, a unit of state-owned China National Garments Group Corp, reached an initial agreement with Pierre Cardin for the deal in June, and final talks are still under way, according to a company statement released yesterday.

It was in June, in fact, that the fashion giant’s founder, 87-year-old Pierre Cardin, announced plans to sell the company’s textile and accessories licenses in China for 200 million euros (US$285 million). The Chinese licenses cover men’s suits and casual wear and women’s clothing and accessories.

In June, China’s Xinhua and French news agency AFP identified the two potential buyers as private shoe makers Jiansheng Trading Ltd and Cardanro, from Guangzhou in Guangdong Province. Jiansheng, however, later denied the reports to Reuters.

A Hong Kong newspaper reported last week that Cardin is scheduled to fly to China next month to sign an ownership transfer agreement with a consortium of four Wenzhou businessmen, including Sun Xiaofei, chairman of Cardanro. (Shanghai Daily)

OK, first off, you don’t sell licenses. You either license IP or you transfer/sell IP. Legal terminology. Muy importante.

With that out of the way, why do I think that something here smells funny? Take a close look at the players.

You’ve got on one side Pierre Cardin, a famous brand globally (including China, no doubt about that) that has been over here for a very long time. The brand has also been getting ripped off (counterfeits) for many years, just like all other luxury brands.

On the other side of the deal you have companies “Cardanro” and “Jiansheng Trading” from Guangzhou. The article excerpted above notes that Cardin himself might be coming to China soon to sign a deal with the Chairman of Cardanro.

Yeah. Um, that “Cardanro” mark sounds a wee bit similar to “Cardin,” doesn’t it? More on that later.

At the same time, the article notes that Shanghai Century is claiming that they have been promised the IP.

Strange, although rumors always persist with certain big transactions like this, particularly if the IP owners has been talking to several potential suitors.

But what are we to make of Cardanro? This is obviously a company that has been trading off the “Cardin” name for some time. Has Cardin been fighting them on their trademark over the years? Did they lose that fight? Or perhaps Cardanro is an old licensee that was permitted to use a similar name? Wouldn’t be the first time something like that happened.

Just the fact that this Cardanro company is in the mix makes me speculate whether this might be a company that got away with trademark infringement (if not worse) for many years and that Pierre Cardin might be giving up the fight by selling them the franchise.

Also wouldn’t be the first time that happened.

Well, I hope that my completely groundless speculation is way off base. If it was even partially true, it certainly wouldn’t put Pierre Cardin in a favorable light.

I’m sure more details will be forthcoming.