Payless and K-Swiss reach agreement
27/06/2008
Collective Brands, owner of Payless ShoeSource, has agreed to pay $30 million to K-Swiss to resolve claims from the footwear brand that the retailer had violated trademark issues.
Under the terms of the settlement, neither company admits liability to the other, however, Payless agreed to pay K-Swiss $30 million in response to the brand’s claims for compensatory damages.
Collective Brands said it expected that some portion of the $30 million settlement payment would be covered by insurance.
Payless has agreed to refrain from making, advertising, promoting or selling footwear “confusingly similar” to that sold by K-Swiss, including footwear that bears K-Swiss’ trademark or trade dress but it will have until the end of this calendar year to sell existing inventory of the shoes that sparked the controversy because K-Swiss felt they resembled its trademark five-stripe athletic shoes too closely.
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