Sketcher and Nike Locked in Patent Battle

Nike recently filed a lawsuit against Skechers, accusing the shoe company of infringing at least 12 design patents. In its complaint, Nike claims that Skechers uses competitors’ shoe designs in order to gain market share. The dispute concerns Skechers’ Sketch-Air 92, Sketch-Air Status, Sketch-Air Blast, and Sketch-Air Atlas styles, among others. In particular, Nike has said Skechers ripped off its VaporMax and Air Max 270 shoe designs.

Although Skechers has not yet filed a formal response, it has addressed the matter on social media. It referred to Nike as a “bully” and asserted that the company respects others’ intellectual property rights.  While Nike has said its competitor creates “Skecherized versions” of its shoes, Skechers has denied misappropriating Nike’s designs.

In its complaint, Nike claims that it has built a worldwide reputation for athletic shoe designing and marketing. On the other hand, the company claims, Skechers relies on a business strategy of copying its competitors. Nike even put it as bluntly as saying Skechers CEO Robert Greenberg “gives orders to knock-off competitors’ [successful] products.”

Nike’s lawsuit makes the point that patent infringements can afford a company considerable – and undeserved – market share. The company paints itself as an innovator that has earned its portion of the athletic shoe market through its designs. Patents allow all companies to profit off of their own creativity. And they exist to prevent other companies from coming in and stealing their ideas.

In particular, Nike claims that Skechers’ models have designs that share “the same overall appearance” as Nike products. The designs are “substantially the same” such that an ordinary observer would perceive them to be nearly identical. This raises an important point with regard to intellectual property. An offending company need not completely misappropriate a competitor’s designs or ideas to be liable for infringements. Intellectual property rights exist to keep companies from replicating others to the degree that it causes market confusion. In other words, Nike asserts that Skechers would want a customer to see little or no difference in the shoes. This, the company claims, is intentional.

For its part, Skechers says that Nike is using its wealth and resources to try to stifle competition. Those who have been accused of infringements often argue that companies misuse their patents to oppress competitors. It’s a common point of contention in intellectual property cases and one that courts have to wrestle with. A court must determine how similar the designs are and whether Skechers is trying to capitalize on Nike’s designs.

Skechers announced that it will stand by its retail partners during the lawsuit. If its shoes have to be pulled from the shelves, Skechers said it will compensate retailers for their losses. The company also pledged to stick with any retailers who find themselves targeted by Nike’s “bullying.”

The lawsuit was filed in the U.S. District Court for the Central District of California. Skechers has until early December to file an Answer or Motion to Dismiss.

Reach Out to Us for Your Intellectual Property Concerns

Our award-winning intellectual property firm understands how important design patents are. Large companies, especially, invest astronomical sums of money into their designs. These and other intellectual properties are designed to profit the company by rewarding their market share and customer loyalty. But customers who come to identify companies by their brands can be misled if another company steals its designs. That, allegedly, is what is happening in this case.

And it’s why intellectual property litigation exists. When intellectual property holders suffer infringements, the damages can be incalculable. You need an effective and aggressive law firm that will take fast action and look out for your interests. You need the intellectual property attorneys of Eddington & Worley. Contact us to discuss your case today.

Sources:

https://www.thefashionlaw.com/home/skechers-says-that-with-new-lawsuit-bully-nike-is-trying-to-stifle-competition

https://www.thefashionlaw.com/home/skechers-entire-model-is-based-on-copying-its-competitors-designs-per-new-nike-lawsuit