Nike clears legal hurdle over three stripes on apparel in Germany

A German court has ruled in favour of Nike in a long-running trademark dispute with Adidas, allowing the US sportswear giant to include three stripes on some of its trouser designs sold in the country.

The ruling, which comes after a second appeal hearing between the two brands, is seen as a significant victory for Nike in its battle against Adidas’ attempts to prevent competitors from using striped designs resembling its famous three-stripe trademark.

Weighing in on the complex legal battle, Rob McLaughlin, a specialized trademark attorney at Reddie & Grose, shared his analysis with FashionUnited:

“Adidas have had a lot of success in the past preventing competitors from selling apparel and footwear with striped designs, but the courts have to draw the line somewhere. Many other brands use decorative stripes on their products that are similar to Adidas’ three stripe trade mark, but Adidas can’t prevent all competing products from having stripes. The key issue is whether or not consumers will actually be confused.”

Mr. McLaughlin elaborated on the nuances of trademark infringement litigation, stating, “Consumers know that Adidas trousers have three stripes down the side, and that these three stripes indicate that this is an Adidas product. Consumers also know that many trousers from other sports brands also have stripes down the side, and that these stripes can be decorative elements rather than indicating the brand of the sports trousers.”

He added, “The objective of trade mark infringement litigation is to prevent the brand owner from losing revenue and brand equity as a result of consumers mistakenly buying competing products thinking that these are the brand owner’s products.”

According to the attorney, while one of Nike’s trouser designs did infringe on Adidas’ trademark rights by featuring three stripes of similar thickness and spacing, the presence of a small Nike “Swoosh” logo was not conspicuous enough to prevent consumer confusion.

However, the court ruled that three other Nike trouser designs did not infringe on Adidas’ trademark, as they either featured only two stripes or had larger Nike branding, such as the iconic “Swoosh” logo or the “Jumpman” logo associated with the Jordan brand.

Mr. McLaughlin cautioned that “the courts must not construe trade mark protection so widely that competing products are prohibited in situations where consumers won’t actually be confused.”

As the battle over striped designs continues, the ruling highlights the delicate balance between protecting trademarks and fostering fair competition in the highly competitive sportswear industry.