While losing a case in the Supreme Court might sound like a big deal for most people, it’s just another day in the life of the world’s biggest footwear brands.
What happened: The US Supreme Court has refused to hear a complaint by Nike in a decade-long sneaker design dispute with its archrival Adidas, per Reuters.
- The spat was over whether Nike owned the method of creating knit sneakers without punching out holes for shoelaces.
- If Nike had defended the patent, it could have forced Adidas and others to seek licences to use its resource-saving and punch-less method.
Catch-up: Nike and Adidas have been publicly fighting over patents since George W. Bush lived in the White House.
- Fights over IP rights are so common in the space that the news hardly even nudges stock prices. Nike sues Adidas, Adidas sues Nike, we all move on.
- Last year, Adidas launched a lawsuit alleging that Nike's Adapt shoe-fitting technology, Run Club, and Training Club exercise apps all violate its patents.
Why it matters: If your product is nearly identical to your competitor’s except for one little differentiator, from fabric to support, it’s a hill most brands would die on.
Bottom line: Nike’s been suing competitors since way before it was cool, but as a slowing economy increases competition, the stakes for protecting IP have only gotten higher.—SB
