Adidas vs. Payless ShoeSource: The High Cost of Trade Dress Infringement
Adidas filed suit against Payless ShoeSource for trade dress and trademark infringement, alleging that Payless’s sale of shoes with two and four stripes infringed upon Adidas’ iconic three-stripe mark. After a prolonged legal battle spanning over a decade, the court awarded Adidas $305 million in damages, one of the largest damages awards in a trade dress infringement case.
Legal Takeaways:
Trade Dress Protection: This case highlights the significant legal protections available under the Lanham Act for trade dress, which covers the overall look and feel of a product that signifies its source. Companies should actively protect not just logos and names, but also distinctive product designs and packaging.
Enforcement of Trademark Rights: Adidas vs. Payless demonstrates the importance of diligent enforcement of trademark and trade dress rights. Legal departments must actively monitor the market for infringing products and be prepared to pursue litigation when necessary to protect brand equity.
Dilution and Consumer Confusion: The court’s ruling underscores the legal risks associated with product designs that could cause consumer confusion or dilute a well-known mark. Businesses should conduct thorough clearance searches and risk assessments before launching products with potentially similar designs to existing brands.
–Esraa Sadek, Jan.2025
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