A Blog by Jonathan Low

 

Oct 16, 2014

Look and Feel Redux: Nike Suing Walmart, 31 Other Companies Over Fake Chuck Taylors


Now that's what you call look and feel. Chucks, aka Chuck Taylor kicks, the original athletic shoe, now the hip, urban streetwear for everyone from debs to digerati.
Nike bought Converse, the company that made Chucks famous. And Nike has a thing about protecting its brands. So when retailers like Walmart, an important Nike customer, started knocking them off, conversations were had. But when designers like Ralph Lauren and Tory Burch (Tory friggin' Burch, preferred fashion princess for the 'ladies who lunch' set?)  jumped in with their own versions? This means war. Of the relatively genteel 'have your lawyer call my lawyer' variety.

The broader implication is that it is, literally, the trademarked look and feel of the Chucks, not their logo or the Nike/Converse brand that is driving both the legal wrangling and the consumer appeal. Whether in smartphones or apparel or soft drink containers or any other product, design will increasingly be an asset of considerable value. JL

Kyle Stock reports in Business Week:

No wonder Nike wants to protect its Chucks. Last quarter they posted a 16 percent increase in sales and accounted for about 15 percent of Nike profit.
Converse loves tweaking the original Chuck Taylor All Star. The company, now owned by Nike (NKE), makes the iconic kicks in the original canvas, leather, and rubber—even with fuzzy shearling lining, for the street baller who finds himself trudging through a freak snowstorm.
But plenty of other sneaker designers have drawn inspiration from the stripped-down shoe. They just don’t happen to be owned by the same company. This week, Nike is suing 31 retailers and shoemakers for trademark infringement on its Chuck Taylor design. The targets include some of the biggest names in U.S. retail, such as Wal-Mart (WMT), H&M (HMB:SS), Tory Burch, Ralph Lauren (RL), and Skechers (SKX). The company is seeking monetary damages in individual complaints, though it primarily wants the purported imposters off of shelves.
“We welcome fair competition, but we do not believe companies have a right to copy the Chuck’s trademarked look,” Converse Chief Executive Jim Calhoun said in a statement. Nike is also filing a complaint with the International Trade Commission to block counterfeit Chucks from jumping U.S. borders.
And no wonder Nike wants to protect its Chucks. Last quarter they posted a 16 percent increase in sales and accounted for about 15 percent of Nike profit.

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