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Jury steps on Payless over Adidas look-alikes

By Mark Albright, Times Staff Writer
In print: Tuesday, May 27, 2008


Matt Rubel, president and CEO of Payless owner Collective Brands, said his company would fight a judgment that Adidas won this month. “Our designs do not infringe the Adidas designs,” he wrote. He called the verdict “unjustified” and “excessive.”
Matt Rubel, president and CEO of Payless owner Collective Brands, said his company would fight a judgment that Adidas won this month. “Our designs do not infringe the Adidas designs,” he wrote. He called the verdict “unjustified” and “excessive.”
[Associated Press (2006)]
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In the world of fashion knockoffs, imitation is a form of flattery. Then there is Adidas' smackdown of Payless ShoeSource.

The world's second-biggest sports shoemaker just won $305-million from the nation's largest shoe chain in the fattest intellectual property judgment ever.

The case gives the shakes to retailers who sell copies of what they think are ubiquitous sneaker designs at a fraction of the price.

What makes the case stand out: Payless tried two- and four-stripe logos to get around Adidas' trademarked triple stripe.

A jury in Portland, Ore., nailed Payless for copying the Adidas trade dress (an overall "look" built over years) down to such features as flat-soles, a rubber toe and a colored heel pad.

"The jury gave an extraordinary reward because it was so deliberate — they copied big sellers and obscure," said Susan Scafidi, who teaches fashion law at Fordham University.

Indeed, Payless, based in Kansas, pocketed $400-million from 250 Adidas knockoff styles in two years. Payless says it will fight the judgment.

Apparel and shoe companies sue one another all the time for ripping off trade dress. But it's testament to the power of brand names that jurors unanimously backed Adidas. Given a choice between cheap copies and high-priced originals, they chose a promise of brand quality.

Payless is one in a string of retailers Adidas challenged. Don't expect a jury to hear another case. Kmart settled a week later. Wal-Mart goes to trial this fall. Perhaps K-Swiss, which makes a five-stripe sneaker similar to Adidas, should lawyer up.

Mark Albright can be reached at albright@sptimes.com or (727) 893-8252.



[Last modified: May 29, 2008 10:48 AM]



Comments on this article
by Jane May 29, 2008 10:48 AM
"jurors unanimously backed Adidas"...probably because Adidas is in Portland and the trial was in Portland? I have a cheap pair from Payless. Believe me, they look, and feel, nothing like Adidas shoes.
by Brad May 27, 2008 5:39 PM
This judgment is out of line in my opinion. I respect Adidas three stripe trade mark, but they don't own two stripes, or three, or five. The public knowns the difference.
by Kyle May 27, 2008 5:37 PM
this is stupid. if you're dumb enough to not know the difference, you should not be out in public unsupervised anyway. Adidas sucks anyhow. Over priced crap.
by Kay May 27, 2008 2:41 PM
This is silly. I wish I were on that jury. People pay big bucks for adidas and the people who wear adidas wouldn't be caught dead in shoes from payless. Consumers know the difference, yes, it is in the three stripes.
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