Legal Matters. Adidas Wins Suit Against Payless

May 7, 2008 • Fashion



Payless has to pay more. A lot more. $305 million to be exact. The jury, in a legal showdown between Adidas AG and Payless ShoeSource over parallel
stripes, sided with Adidas.

Henn, a partner at the Kilpatrick Stockton LLP law firm that
represented Adidas, said the jury award from a federal court in
Portland included roughly $30 million in actual damages, $137 million
for profits Payless made on the infringing goods and $137 million in
punitive damages.

"Our belief is that this is the largest award
ever in a trademark case," said Henn.
"The jury in this
case sent a very clear message to companies that are engaged in the
practice of selling knockoffs," he contunued.

Topeka, Kan.-based Collective Brands Inc., parent to Payless, doesn’t plan to pay without a fight.

company is reviewing the verdict and assessing its impact," Collective
said in a statement. "The company believes that the verdict was
excessive and unjustified. The company will ask the court to set aside
the verdict and, if it is not granted, intends to take all necessary
steps to overturn it."

Adidas began using its recognizable three-stripe design in 1952 and trademarked the design in 1994.

Read more "Adidas Awarded $305M in Suit Against Payless" here

Source & Photo: WWD

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