SKECHERS USA, Inc. Sues Sears Holding Company for Infringing on its Shape-ups by SKECHERS, Twinkle Toes by SKECHERS and SKECHERS Z-Strap Product Lines
MANHATTAN BEACH, Calif.--(BUSINESS WIRE)-- SKECHERS USA (NYSE:SKX), a global leader in the lifestyle footwear industry and the number two footwear brand in the United States*, today announced that it filed a lawsuit against Sears Holding Corporation for selling footwear that infringes on SKECHERS' popular Shape-ups by SKECHERS, Twinkle Toes by SKECHERS and SKECHERS Z-Strap product lines.
The suit, filed in the United States District Court for the Central District of California, seeks compensatory and punitive damages as well as injunctive relief for infringing on SKECHERS' patents, trademark, and trade dress rights, for dilution and for unfair competition. The suit states that Sears Holding Corporation is selling the infringing products at Sears and KMart's retail stores and websites under the TheraShoe, Melrose Avenue, Paris Blues and Athletech labels.
"SKECHERS has invested tremendous resources into designing, developing and marketing our SKECHERS Shape-ups, Twinkle Toes and Z-Strap product lines. We have obtained more than 150 patents and trademarks on these lines, and have built them into brand names universally recognized around the world as synonymous with SKECHERS," stated Philip Paccione, General Counsel of SKECHERS. "While we value our relationship with Sears, their actions are causing us tremendous damage, and we simply cannot let any company, let alone a company the size of Sears, infringe on our most valuable intellectual property."
SKECHERS USA, Inc., based in Manhattan Beach, California, designs, develops and markets a diverse range of footwear for men, women and children under the SKECHERS name, as well as under several uniquely branded names. SKECHERS footwear is available in the United States via department and specialty stores, Company-owned SKECHERS retail stores and its e-commerce website, in over 100 countries and territories through the Company's global network of distributors and subsidiaries in Canada, Brazil, Chile, and across Europe, as well as through joint ventures in Asia. For more information, please visit www.skechers.com.
* In revenues, Sporting Goods Intelligence, June 21, 2010
This announcement may contain forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or simply state future results, performance or achievements, and can be identified by the use of forward-looking language such as "believe," "anticipate," "expect," "estimate," "intend," "plan," "project," "will be," "will continue," "will result," "could," "may," "might," or any variations of such words with similar meanings. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in forward-looking statements. Factors that might cause or contribute to such differences include international, national and local general economic, political and market conditions including the global economic slowdown and market instability; entry into the highly competitive performance footwear market; sustaining, managing and forecasting costs and proper inventory levels; losing any significant customers, decreased demand by industry retailers and cancellation of order commitments due to the lack of popularity of particular designs and/or categories of products; maintaining brand image and intense competition among sellers of footwear for consumers; anticipating, identifying, interpreting or forecasting changes in fashion trends, consumer demand for the products and the various market factors described above; sales levels during the spring, back-to-school and holiday selling seasons; and other factors referenced or incorporated by reference in the Company's Form 10-K for the year ended December 31, 2010. The risks included here are not exhaustive. The Company operates in a very competitive and rapidly changing environment. New risks emerge from time to time and the Company cannot predict all such risk factors, nor can the Company assess the impact of all such risk factors on their respective businesses or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, you should not place undue reliance on forward-looking statements as a prediction of actual results. Moreover, reported results should not be considered an indication of future performance.
Source: SKECHERS USA, Inc.
Released Mar 8, 2011 • 1:30 pm EST