SKECHERS Denies Crocs' Baseless Claims
SKECHERS Says: "A Bear is not a Crocodile"
MANHATTAN BEACH, Calif.--(BUSINESS WIRE)--
SKECHERS USA, Inc. (NYSE:SKX), a global leader in the lifestyle footwear industry, today announced that it denies all of the patent and trade dress infringement and unfair competition and trade practice claims asserted against the Company on July 10, 2008 by Colorado-based Crocs, Inc. in the United States District Court for the District of Colorado. The complaint alleges, among other claims, that SKECHERS' Cali Bear logo, which is a depiction of a bear, infringes Crocs' Crocodile logo.
"We believe that this lawsuit is completely without merit and will vigorously defend ourselves against such baseless allegations," says Philip G. Paccione, General Counsel and Executive Vice President of SKECHERS. "Among the outlandish allegations is that SKECHERS' Cali Bear logo is confusingly similar to Crocs' Crocodile logo, and that advertising SKECHERS' products in Boulder, Colorado somehow dilutes the value of Crocs' trademarks and appropriates Crocs' goodwill. Even a cursory review of the two animal marks demonstrates that the allegations are ridiculous.
"As far as advertising in Boulder, Colorado, SKECHERS has had a loyal following in Colorado long before Crocs even existed and we have an absolute right to do that. We believe that this lawsuit is nothing more than a never-ending attempt by Crocs to monopolize the molded footwear market by bullying competitors and customers and misusing the United States Patent Office and federal courthouse. SKECHERS prefers to compete in the market place through the quality of its products and image."
Paccione continued, "Crocs allegations on the shoe designs will fare no better. As owners of numerous famous trademarks and patents in the footwear industry, SKECHERS respects the intellectual property of other brands and spends tens of millions of dollars each year to design and prominently brand and distinguish its own products from competitors. The designs at issue in this case are distinguishable from Crocs' patents and there is no possibility that anyone will be confused by the SKECHERS designs. Indeed, SKECHERS has many of its own design patents in the molded footwear category, including some covering the very styles at issue in this case. Moreover, SKECHERS footwear and packaging are prominently branded with the world famous SKECHERS name and trademarks at every turn, which Crocs conveniently ignores."
ABOUT SKECHERS USA, Inc.
Celebrating its 16th year in business, SKECHERS USA, Inc., 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, as well as in over 100 countries and territories through the company's global network of distributors and subsidiaries in Canada, Brazil, Asia, and across Europe, as well as through a joint venture in China and in Hong Kong. The company is based in Manhattan Beach, California. Please visit www.skechers.com or call the company's information line at 877-INFO-SKX.
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 of the Company, 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 the Company's 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; intense competition among sellers of footwear for consumers; changes in fashion trends and consumer demands; popularity of particular designs and categories of products; the level of sales during the spring, back-to-school and holiday selling seasons; the ability to anticipate, identify, interpret or forecast changes in fashion trends, consumer demand for our products and the various market factors described above; the ability of the Company to maintain its brand image; the ability to sustain, manage and forecast the Company's growth and inventories; the ability to secure and protect trademarks, patents and other intellectual property; the loss of any significant customers, decreased demand by industry retailers and cancellation of order commitments; potential disruptions in manufacturing related to overseas sourcing and concentration of production in China, including, without limitation, difficulties associated with political instability in China, increases in labor or raw material costs, the occurrence of prolonged adverse weather conditions, a natural disaster or outbreak of a pandemic disease in China, or electrical shortages, labor shortages or work stoppages that may lead to higher production costs, production delays and/or transportation delays; changes in monetary controls and valuations of the Yuan by the Chinese government; increased costs of freight and transportation to meet delivery deadlines; violation of labor or other laws by our independent contract manufacturers, suppliers or licensees; potential imposition of additional duties, tariffs or other trade restrictions; business disruptions resulting from natural disasters such as an earthquake due to the location of the Company's domestic warehouse, headquarters and a substantial number of retail stores in California; changes in business strategy or development plans; changes in economic conditions that could affect the Company's ability to open retail stores in new markets and/or the sales performance of the Company's existing stores; the ability to attract and retain qualified personnel; the disruption, expense and potential liability associated with existing or unanticipated future litigation; and other factors referenced or incorporated by reference in the Company's annual report on Form 10-K for the year ended December 31, 2007 and Form 10-Q for the quarter ended March 31, 2008. The risks included here are not exhaustive. We operate in a very competitive and rapidly changing environment. New risks emerge from time to time and we cannot predict all such risk factors, nor can we assess the impact of all such risk factors on our business 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 the Company's future performance.
Source: SKECHERS USA, Inc.
Released Jul 16, 2008 • 4:21 pm EDT