Adidas AG (Herzogenaurach, Germany) was awarded $305 million in damages from Collective Brands Inc. (Topeka, Kansas) in a battle over the rights to using three white stripes in a brand logo.
A jury in a Portland, Ore., federal court awarded Adidas roughly $30 million in actual damages, $137 million for profits Payless made on the infringing goods and $137 million in punitive damages.
“Our belief is that this is the largest award ever in a trademark case,” said the attorneys representing Adidas. They also noted the judge has discretion to tweak the amount and might raise the award.
Collective Brands, the parent company of company of Payless ShoeSource and Stride Rite, suggested it will fight the verdict. “The company is reviewing the verdict and assessing its impact,” Collective Brands said. “The company believes that the verdict was excessive and unjustified. The company will ask the court to set aside the verdict and, if it is not granted, intends to take all necessary steps to overturn it.”
Adidas began using its recognizable three-stripe design in 1952 and trademarked the design in 1994.