Thursday, May 8, 2008

Payless Pays More

Yesterday, a federal jury in Oregon awarded Adidas about $305 million, supposedly the largest trademark verdict ever.

This is a case that is near and dear to our hearts. Mine, simply because it is some interesting legal issues. Wife's because...well...let's just say she still recalls lot numbers of popular shoes that the chain sold a few years back. Wife has commented to me on numerous occasions that she doesn't understand how the company get away with selling fifteen dollar versions of very expensive shoes.

Predictably, Payless, owned by Kansas-based Collective Brands, called the verdict “excessive and unjustified” and said it plans to ask the court to set the verdict aside. If that request is not granted, the company “intends to take all necessary steps to overturn it. On the other hand, Adidas' lawyer predicts that while a reduction of the verdict is possible on appeal, he thinks Payless could wind up paying Adidas quite a bit more than $305 million. Upon a finding of willful infringement, the judge can not only award the plaintiffs attorneys fees (here, seven years worth) but can triple the damages portion of the verdict, which is $137 million.

Here is a copy of Addidas' brief. While I only skimmed it, the pictures are quite entertaining.

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