Nike sues New Balance and Skechers over patent infringement (2024)

Sports apparel giant Nike is suing two of its competitors, arguing that New Balance and Skechers are wrongfully using technology that Nike developed for making shoes light-weight and strong.

Nike filed two patent infringement lawsuits on Monday, one in federal court in Massachusetts againstNew Balance and another federal suit in California againstSkechers. The cases come after Nike sued Puma in 2018, Adidas in 2021 and Lululemon this year over the same issue.

Nike's lawsuit focuses on Flyknit, a special type of fiber the company developed and which it uses for the so-called upper of shoes, or the parts of a shoe above the sole and which cover the foot. Flyknit is a high-strength fiber that supports the user's feet but is also lightweight and breathable, according to Nike.

Nike said in court documents that Flyknit took more than a decade of research to develop and helps the company reduce materials waste. Nike has saved 3.5 million pounds of waste since Flyknit's launch and diverted 182 million plastic bottles from nine landfills by switching to recycled polyester in all Nike Flyknit shoes, according to a 2016 analysis from New York University.

Nike said in court documents that the company has sent cease-and-desist letters to New Balance this year regarding Flyknit, but alleged that "New Balance's infringement is accelerating in breadth and scope despite notice from Nike."

"Due to the success of Nike's Flyknit, many of Nike's competitors have copied and made unauthorized use of Nike's Flyknit technologies," Nike lawyers claim in the Skechers lawsuit. "Skechers has likewise used Nike's Flyknit technologies without authorization."

Flyknit patents

Nike said in its lawsuits that it owns the Flyknit technology through nine patents filed between September 2012 and July 2023. Nike accused New Balance of using Flyknit to sell certain footwear, including the Fresh Foam X 1080 v12, the Fresh Foam X Vongo v5, the FuelCell SuperComp Trainer and the Tekela v4 Magia FG. In the lawsuit against Skechers, Nike alleged Skechers infringed upon Flyknit technology by selling its Ultra Flex 3.0, the Glide Step Sparkle and other shoes.

Nike didn't immediately respond to requests for comment Tuesday. In a statement e-mailed to CBS MoneyWatch, Skechers declined to comment on the lawsuit.

New Balance told CBS MoneyWatch in a statement Tuesday that it "fully respects competitors' intellectual property rights, but Nike does not own the exclusive right to design and produce footwear by traditional manufacturing methods that have been used in the industry for decades."

Nike wants a federal judge to block New Balance and Skechers from selling shoes with copied Flyknit material. In the lawsuits, Nike has also asked for "an award of damages," but didn't specify a dollar amount.

Nike settled its Flyknit lawsuit against Adidas in August 2022 and settled its Puma case in January 2020. Nike's case against Lululemon, which began in January, is ongoing.

Khristopher J. Brooks

Khristopher J. Brooks is a reporter for CBS MoneyWatch. He previously worked as a reporter for the Omaha World-Herald, Newsday and the Florida Times-Union. His reporting primarily focuses on the U.S. housing market, the business of sports and bankruptcy.

Nike sues New Balance and Skechers over patent infringement (2024)

FAQs

Did Nike file lawsuits against Skechers and New Balance? ›

In two separate complaints filed Nov. 6, Nike accused New Balance and Skechers of infringing on its patented Flyknit technology in several of their shoe models. In the complaint filed against Skechers in California, Nike said that Skechers' Slip-ins, Go Walk and Ultra Flex shoe lines infringe on its Flyknit technology.

Why did Nike sue New Balance? ›

Sports apparel giant Nike is suing two of its competitors, arguing that New Balance and Skechers are wrongfully using technology that Nike developed for making shoes light-weight and strong.

What is the patent dispute against Nike? ›

In November 2023, Nike fired the first shot, filing patent infringement lawsuits against New Balance and Skechers in federal courts, claiming unauthorized use of Flyknit technology in various footwear models.

What shoe companies are Nike suing? ›

Nike claimed that BAPE's footwear business "revolves around copying Nike's iconic designs," and that some of its shoes are "near verbatim" copies of Nike's Air Force 1, Air Jordan 1, and Dunk sneakers. Nike accused BAPE of trademark infringement and said its designs would cause consumer confusion.

What is the controversy with Skechers? ›

Skechers founders, Robert Greenberg and son Michael Greenberg. Top executives at Skechers USA allegedly cost the footwear maker millions of dollars by hopping on corporate jets for personal jaunts to vacation hot spots such as Fiji, Bora Bora and Hawaii — and the company's directors didn't do anything to stop them.

Who owns New Balance? ›

The current owner of New Balance, Jim Davis, bought the company in 1972, the landmark day of the Boston Marathon. In 1976, the now legendary, 320, the first New Balance running shoe designed with the «Ν» feature on the side, was awarded as the best running shoe by the «Runner's World».

Why did Nike lose so much money? ›

Executives acknowledged that Nike's direct-to-consumer strategy was not driving growth as expected and that it was losing ground in the running category. In December, Nike outlined a $2 billion savings plan, which included reducing the supply of underperforming products and improving its supply chain.

Should I buy Nike or New Balance? ›

It depends what you're looking for. Both companies make great shoes, but if you need any special sizing or if your foot runs even the least bit wide, New Balance is the answer. Available in multiple widths, NB shoes tend to fit a wider variety of feet than Nike shoes, which tend to run a bit narrow for many people.

What was the biggest issue with Nike? ›

When customers discovered in 1996 that their shoes were manufactured using child labour, Nike's stock price collapsed by 58% in 19 months. This shock began Nike's deep interest in the social impact of their business and has since landed them at the top of the Dow Jones Sustainability Index (DJSI).

Why did Nike sue Adidas? ›

PLAINTIFF'S COMPLAINT

The Court refers to both Defendants collectively as "adidas." Nike alleges it produces garments that incorporate a two-stripe design. Nike seeks a declaration from the Court that Nike's use of two stripes in apparel designs does not infringe or dilute adidas's Three-Stripe Mark.

How many shoe patents does Nike have? ›

Nike's patent portfolio as of June 2022, by technology area

Nike also owned some 1,200 footwear and just under 300 apparel patents.

Who owns the copyright to Nike shoes? ›

OWNERSHIP OF CONTENT

All trademarks, service marks and trade names (e.g., the NIKE name and the Swoosh design) are owned, registered and/or licensed by NIKE.

Does Nike still pay Michael Jordan? ›

Yes. Nike still produces Air Jordans—reportedly, there's no end in sight—and therefore, Jordan still gets paid by the company behind the Swoosh.

Is Skechers better than Nike? ›

Choosing between Skechers and Nike ultimately depends on your specific needs and preferences. Skechers shines in comfort and affordability, while Nike is synonymous with high-performance athletic footwear. Consider your priorities, whether it's style, comfort, or athletic performance, and make your choice accordingly.

Is Converse owned by Nike? ›

Since 2003, we have been part of Nike, Inc. Our shoes have gained added support, stability, and technology—and our workforce has too. Joining Converse today offers you global reach, personal impact and all the benefits of being owned by Nike, while working within a nimble and independent environment.

Is there a class action lawsuit against Skechers? ›

Skechers denies any wrongdoing, but has agreed to establish a $40 million class action lawsuit settlement fund to resolve the litigation.

What is the court case for Skechers? ›

The suit alleged that Skechers made no effort to put reasonable limits on the use of private jets by executives, who made “excessive” use of the planes and racked up millions in expenses, an attorney for the plaintiff said during a court hearing according to a report by Bloomberg.

What are the claims on New Balance toning shoes? ›

In its marketing campaign, New Balance allegedly claimed that, compared with regular walking shoes, its toning shoes would result in "16 percent more activation to the gluteus, 16 percent more activation to the hamstrings, 14 percent more activation to the calves, 29 percent more total muscle activation, and a 10 ...

What is the major changes that happened to Nike after the allegations of the use of sweatshops to produce their product? ›

Beginning in 2002, Nike began auditing its factories for occupational health and safety. The backlash and its public relations impact forced the company to change methods, improve conditions, and implement social responsibility reports in 2005. Nike has since began initiatives to improve their factory conditions.

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