Crocs, Inc. and Shaka Holdings, Inc. have agreed to settle a lawsuit concerning Crocs' proprietary footwear, pending in the United States District for the District of Colorado and alleging that Shaka infringed Crocs' US Patents; and an administrative action pending in the International Trade Commission alleging unfair acts concerning the importation of infringing footwear.

The lawsuit was resolved this week with the entry of a Consent Judgment finding that Shaka's "Shaka Shoes" may have infringed Crocs' patents, and that the Crocs' patents are presumed to be valid. The administrative action was resolved with the filing of joint motion to terminate the ITC Action against Shaka based on the settlement agreement. As part of the settlement, Shaka has agreed not to infringe Crocs' patents and trade dress in the future, and Crocs has released Shaka and its customers of any past liability.

Crocs designs and manufactures footwear for men, women and children under the Crocs brand. All of its footwear products incorporate a proprietary closed-cell resin material, croslite, which is said to produce soft and lightweight, non-marking, slip- and odour-resistant shoes.