On January 14, 2009 adidas America and adidas AG filed suit against The Aldo Group and Aldo US Inc. alleging federal and state trademark infringement, dilution, injury to business reputation, unfair competition, and deceptive trade practices. adidas is also claiming that Aldo breached two settlement agreements the parties entered into 2004 and 2006 concerning Aldo’s use of stripe design marks that adidas contends are confusingly similar to its own famous three-stripe mark. adidas, one of the world’s largest sportswear and footwear manufacturers, owns a number of trademark registrations for its three-stripe mark for various clothing and footwear products in the United States and abroad. 

According complaint, adidas first objected to Aldo’s sale of footwear bearing two- or four- parallel stripes on the side of the upper that it believed infringed and diluted its own three-stripe mark in 2004. In December of that year, the parties entered into a written settlement agreement wherein Aldo agreed that it would not sell footwear bearing two- or four-stripe marks. The Agreement provided that Aldo would cease and permanently refrain from selling Aldo shoes or any goods bearing its three-stripe mark “(in the approximate size and spacing ration as depicted in the trademark registrations therefore) less one of the three stripes; or …with one additional stripe.” In 2005, however, adidas apparently became aware that Aldo was selling footwear bearing two- parallel stripes on the upper that it again believed infringed and diluted its three-stripe mark. According to the complaint, this second dispute was resolved by Aldo agreeing to cease selling the shoe at issue. Then, in 2006, adidas’ issues with Aldo’s use of stripe marks resurfaced when it apparently discovered that Aldo was once again producing and selling footwear bearing two- or four-parallel stripes. The parties agreed to settle that dispute by entering into a second written settlement wherein Aldo agreed to stop selling the footwear at issue, as well as the footwear that was the subject of first written settlement.

In the instant complaint, adidas is alleging that Aldo is once again producing and selling footwear featuring a two-stripe mark that is confusingly similar to its own three-stripe mark.  adidas is seeking injunctive relief, trebled compensatory damages, punitive damages, profits, and attorneys’ fees. adidas is also requesting that all Aldo products bearing its three-stripe mark, or any confusingly similar mark, be destroyed. 
This is the latest of a number trademark suits filed by adidas against competing designers and retailers in an increased effort to police its three-stripe design mark. adidas has previously lodged actions against Payless ShoeSource, Ralph Lauren, and Abercrombie & Fitch to name but a few.   

The Arent Fox intellectual property group represents a number of footwear and apparel designers and retailers in trademark and related IP matters, and is monitoring developments related to this case, including Aldos’ response to the complaint, and other similar cases.

If you have any questions, please contact:

Anthony V. Lupo
lupo.anthony@arentfox.com
202.857.6353

David S. Modzeleski
modzeleski.david@arentfox.com
202.857.6073