US court rejects lawsuit over Nike trademark

10/01/2013
The US Supreme Court has thrown out a claim against Nike by Already Sportswear, following a three-year wrangle over trademarks.
 
The case began in 2009, when Nike claimed that Already's Sugar and Soulja Boy shoes infringed Nike's trademark of its Air Force 1 design. Already countersued, trying to void the trademark, so Nike dropped the case.

This week's ruling came about because Already wanted a guarantee that it would not be sued again, according to reports in the US, because it said investors were wary of more litigation.

However, its case was unanimously rejected, with the judge commenting: "Already's arguments boil down to a basic policy objection that dismissing this case allows Nike to bully small innovators lawfully operating in the public domain," but he added that the argument did not justify letting the lawsuit proceed.

The decision could help companies such as adidas and luxury goods makers Coach and LVMH, which often sue to prevent alleged imitators from interfering with their revenue streams and customer goodwill, according to Reuters.