Nike Infringement Of Patent Issues With Puma.docx

Introduction Nike, an American multinational corporation, is a world best foot wear manufacturer in terms of designs, comfort and ease of usage. Nike didn’t limit itself in the footwear but it also engages itself in apparel, sports equipment, accessories and services etc. It is one of the world’s largest suppliers of athletic shoes and apparel. This brand alone is valued at $19 billion, which makes it the most valuable brand among the sports business. So far, during all these years Nike has acquired several apparel and footwear companies. Nike majorly produces wide range of sports equipment. It’s first product was track running shoes. It also sponsors international games like Cricket, Football, Tennis, Badminton etc. This is the one of many ways it involves itself in an international aspect. Being such a big brand, it has to have its trademark, slogan and many other minor things in order to attract wide range of customers and make the brand stand out and shine among many other brands. The bigger the company the more it gets involve into controversies and without knowing embroil in issues like legal International trading, Intellectual Property, etc. Most of the factories of Nikes’ are located in Asia as they have signed contract with local companies in Asia. One of the factories in Vietnam is facing child labour allegations. In this paper we’ll be discussing more about Nikes’ international trading issues it is currently facing and other IP issues which is to be addressed. We’ll try to address all the issues with the possible solution or the way the things could have been prevented entering the trouble.

NIKE Infringement of Patent Issues with PUMA and ADIDAS Intellectual Property is a very common term for intangible assets that are owned and legally protected by a company through patents, copyrights, trademarks etc. in order to prevents its implementation without consent. IP is traded everyday between people, industries, nations in order to benefit the global economy. Lots of money is being flown in protecting IP rights and the figures are astonishing.

To protect your IP, lots of efforts are to be made and at the same time, if required, advancing its share is also important. Recently, Nike has Intellectual property issues with Puma concerning the patent infringement where Nike put allegation on Puma for “forgone independent innovation” and using these technologies without the consent. Nike, basically, accuses puma of infringement upon patents which are held by Nike. These patents are basically about Nike’s Fly-knit, Air and cleat assembly technologies, which Nike demanded to cease and Puma refused to comply. Same Flyknit issue is with Adidas as well since 2012 and Nike and Adidas are still fighting over the issues. Nike alleges Adidas on copying its technology.

After years of research, design and development, it invented the new ways of forming uppers from a single knitted material while providing different textures to different areas. Nike says that it owns more than 300 issued utility patents related to flyknit technology out of which four four patents are at issue in the current disputes against Puma.

Three years after introduction of application of Flyknit technology in the sneakers, Puma tried to copy it and introduced it in market the same feature by naming it IGNITE-branded sneakers. Discovering that, Nike alleges that various elements of Flyknit technology was copied and utilized for the production of IGNITE line of footwear, which infringe upon Nike’s patent of Flyknit technology. Not only this, Nike is also saying that one patent related to Air technology in which a footwear sole structure is designed to protect an athlete’s joints and muscles from impact forces. Nike alleges that this patent was infringe by Puma in Nov 2017 when Nike released jamming footwear that incorporated a fluid-filled bladder for foot support.

Possible ways to settle this issue: WIPO: The WIPO centre observes an even higher settlement trend in relation to IP related disputes. The flexibility of WIPO ADR procedures will allow both Nike and Puma to combine the different procedures and to consider amicable settlement throughout the process that may not always be

available in court litigation. By enabling both Nike and Puma to identify their interests and better to understand the disputes, mediation can provide a basis for direct negotiation between the parties. In this case mediator will help to explore workable interest-based solutions that may help to preserve Nike and Puma long-term relationship.

Another way to protect your firm from infringement, if done, is Acquiring Insurance: Enforcing claims against infringers who breach the organization’s IP: Legal costs relating to IP breaches includes damages, such as loss of profits or reputation and settlements to any IP right domestically or internationally. Defending infringement claims made against the organization: This includes infringement claims against the organization as well as claims made against its customers or licensees. Infringement claims often refer to a violation of a copyright or some other type of IP theft. The claims are often based on plagiarism,

meaning

someone

steals

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creative

work

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another

person.

Requiring Licenses: Puma would have asked Nike for all the necessary licenses in a legal and official way by signing a contract to use Nike’s ideas. There may be some certain types of licenses that cannot necessarily be allowed by Nike to be used by Puma.

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Copyright © Finnegan, Henderson, Farabow, Garrett & Dunner, LLP. This article is for informational purposes, is not intended to constitute legal advice, and may be considered advertising under applicable state laws. This article is only the opinion of the authors and is not attributable to Finnegan, Henderson, Farabow, Garrett & Dunner, LLP, or the firm’s clients.