Expected ruling - Will Adidas or Nike triumph in the competition for the trademarked lines?
The fierce competition between the gigantic sports apparel manufacturers, Adidas and Nike, has been ongoing for a while. In the most recent instance, this feud escalated when the German Football Association (DFB) declared a shift in sponsorship from Adidas to Nike.
Currently, they are not just locked in a fierce business competition, but they're also battling in court over their iconic stripes. While Nike's "Swoosh" symbol is notoriously connected with the brand, Adidas owns the right to the three parallel stripes as their trademark. In 2022, Nike introduced a sports pants design adorned with two or three parallel stripes on the outer seam. These pants were remarkably similar to Adidas' design, prompting Adidas to sue them.
Adidas has already prevailed twice against Nike in the Düsseldorf District Court: Nike had to pull five pants models out of the German market, and the court upheld its decision after a subsequent appeal from Nike. Now, the Higher Regional Court (OLG) is anticipated to deliver the final verdict.
How expansive is the protection zone for the stripes?
The court is navigating a tightrope walk between maintaining intellectual property rights and encouraging healthy competition. Nike's defense hinged on the premise that not every design with stripes automatically falls under Adidas' purview. The design is deemed "very common, simple, and closely related," and the width, spacing, and color contrast of the stripes are significantly dissimilar between the two brands. Additionally, Nike's Swoosh logo is highly recognizable.
Adidas' lawyer, Christian Rassmann, argued that Nike's stripe design was a calculated assault on Adidas. "Can my brand function if a rival begins mass-producing similar products?", he queried during the oral trial. Besides the potential for confusion, such imitation could also erode the brand's identity. The public typically equates the stripes with the manufacturer, according to Adidas' argumentation.
Adidas' lawsuit was initiated after a test purchase at Nike's online shop in 2022. The appeal proceedings before the Higher Regional Court have been ongoing for about a month.
Adidas was successful 20 years ago
Nike is currently the largest sportswear company globally, with a revenue of around 48 billion euros in 2023. Adidas, on the other hand, ranks second in the industry with an annual turnover of approximately 21 billion euros. Both brands have resorted to legal battles in the past to protect their well-known logos —20 years ago, in fact. Back then, Adidas successfully prohibited Nike from selling pants that sported a two-stripe design, encroaching on their trademarks.
In 2018, Adidas won another lawsuit against a competitor who intended to secure shoes with parallel cross-stripes at the European Union Intellectual Property Office.
However, in 2019, Adidas experienced defeat in a case involving "The Union Mark," where the stripes run in all directions. The European court found that the logo lacked the requisite distinctiveness to be protected by trademark law. The three stripes are therefore not safeguarded in all variations.
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In response to Adidas' lawsuit, the German Football Association (DFB) chose to side with Nike, further fueling the rivalry between the two brands. Despite Adidas' previous success in preventing Nike from selling pants with a two-stripe design, the European court ruled against Adidas' protection of the "The Union Mark," where the stripes run in all directions, in 2019.
Source: www.stern.de
