3-Stripes Brand Protection
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Transcript of 3-Stripes Brand Protection
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3-Stripes Brand Protection The three-stripe brand is out for proactive, some would say aggressive,
brand protection.
We are all familiar with the adidas three-stripes trademarks, which
consist of three parallel lines that usually appear on the side of adidas
apparel and footwear.
The symbol protects both consumers and the producer and
distinguishes adidas in a very competitive market. But to what extent
should trademarks protect stripes? And should they be exclusive, or
can other brands use them too?
Footwear brand protection
Sneakers are a huge business with trademarks, logos, and designs that
consumers recognize and associate with a specific brand.
The market is about quality and performance, but no less about
designs and logos.
Trademarks, logos, and designs help consumers identify the source of
the footwear, such as seeing three stripes on the side of a shoe and
immediately recognizing the brand.
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A short brand history
Founded by Adolf “Adi” Dassler in Germany, the company started
producing running shoes back in 1924.
Adolf and his brother Rudolf became well known after Olympic athlete
Jesse Owens wore their rubber spikes shoes for the Olympic games and
won four gold medals. In 1947, the Dassler brothers split.
Adolf registered a new shoe company: Adidas. Rudolf went on to found
Puma, but this is another story.
It was somewhere around 1952 that adidas bought its three-stripe logo
from a Finnish footwear brand. Soon Adolf referred to adidas as “the
three-stripe company”.
Adidas trademarks and brand protection
Over the years, adidas has built a strong brand and protected it with
multiple trademarks, including three-stripes trademarks. It also has
endorsement and sponsorship agreements with various entities, such
as soccer superstar Lionel Messi, that strengthen the brand and grow
its sales.
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The brand is known to use legal means to protect its many striped
trademarks.
Trademarks are specific in what they defend. Some instances of
trademark infringements are straightforward, like counterfeits. In other
cases, it depends on how the intellectual property right is applied.
Some brands believe that adidas is within its right to protect its
valuable trademarks, while others accuse it of applying the trademark
too broadly and going after those who use stripes on their products.
The Germany-based brand sends cease-and-desist letters or files
lawsuits. Often companies do not wish to enter into expensive
trademark litigation battles and withdraw or negotiate with adidas.
In recent years adidas has filed many trademark infringement lawsuits
and opposition proceedings, including against Thom Browne, Aviator
Nation, J. Crew, Show Branding Europe, football club FC Barcelona,
Marc Jacobs, Tesla and others.
Let’s review some of the recent adidas cases, with a focus on its latest
one.
2021 adidas v. Thom Browne
In a new complaint filed in a New York federal court, adidas is suing
Thom Browne for trademark infringement and dilution as reported
by TFL.
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There, adidas claims it has “manufactured, advertised, marketed,
promoted, distributed, and sold footwear and apparel bearing its
famous and distinctive Three-Stripe trademark” for decades.
It asserts that it has been using the trademark continuously and
promoting it “in connection with apparel and footwear”. According to
adidas, it has invested “millions of dollars” to promote its marks.
The trademarks have come to identify adidas’s products and help the
public recognize and distinguish them.
The company’s Three-Stripe Marks are federal trademarks for “athletic
footwear”, “footwear”, and a variety of products including clothing,
sporting goods, and bags.
As for the decades-long use, adidas claims it has used its mark on
footwear since 1952 and on apparel since 1967. Thom Browne
launched his high-end fashion brand in 2001.
Adidas alleges that “despite Thom Browne’s knowledge of adidas’s
rights in the famous Three-Stripe Mark” for apparel and footwear,
Browne “has expanded its product offerings far beyond [its] formal
wear and business attire and is now offering for sale and selling
athletic-style apparel and footwear featuring two, three, or four parallel
stripes in a manner that is confusingly similar to adidas’s Three-Stripe
Mark.”
According to the complaint, the stripes of the Thom Browne sportswear
are “likely to cause consumer confusion and deceive the public
regarding its source, sponsorship, association, or affiliation.”
A likelihood of confusion between trademarks exists when they are
similar to an extent that consumers would believe they come from the
same source.
Adidas also claimed that the Browne brand did more than that.
“Exacerbating Thom Browne’s encroachment into adidas’s core market
category,” adidas claims that it “entered into a partnership with the
famous European football (soccer) club FC Barcelona, beginning with
the 2018-2019 season and continuing today”.
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It added that Thom Browne has “promoted its goods using images
associated with soccer and even several soccer players that are
sponsored by adidas, including most notably Lionel Messi.”
According to adidas, Thom Browne’s actions amount to “trademark
infringement, dilution, unfair competition, and unfair business
practices” arising under the Lanham Act.
A spokesman for Thom Browne responded by releasing a statement
to WWD magazine saying that adidas “consented for 12 years and now
they are changing their mind” regarding the four-striped design. He
added, “we are right and we are confident in the outcome of the case”
at court.
2020 opposition by adidas
Before this, in December 2020, adidas filed an opposition with the U.S.
Patent and Trademark Office’s (USPTO) Trademark Trial and Appeal
Board regarding trademark application by Thom Browne for red, white,
and blue stripes trademarks for use on footwear.
It claims that the trademarks are confusingly similar to the existing
adidas marks. Opposition is still pending (as of July 2021).
2019 adidas v. Aviator Nation
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According to a lawsuit filed by adidas, Aviator Nation infringed on its
trademark by using “confusingly similar imitations” of the design on
apparel such as jackets.
Adidas said that after Aviator Nation started selling apparel with a three
parallel stripes design, they have entered an agreement in 2012 for
Aviator Nation to not use the “three-stripe trademark or any design,
mark, or feature that is confusingly similar to the three-stripe mark.”
The agreement did not last long, and adidas accused Aviator Nation of
trademark infringement and breach of settlement agreement. Again,
the two brands settled the matter quietly and in 2013, signed another
agreement.
In 2018, adidas claimed that Aviator Nation was again selling apparel
that is confusingly similar to adidas’s three-stripe mark. The parties
held discussions but were not able to resolve the issue.
Adidas went to court claiming Aviator Nation had continued to
manufacture and sell the allegedly infringing apparel. In the lawsuit,
adidas claims that the allegedly infringing apparel was likely to “deceive
the public regarding its source, sponsorship or affiliation.”
It alleges that in addition to breach of contract, this amounts to
trademark infringement, counterfeiting and dilution, and it poses unfair
competition and injury to business reputation.
2019 adidas v. J. Crew
Adidas objected J. Crew’s trademark application for a striped design for
use on apparel. In its opposition, adidas argues that “the three-stripe
mark [has] come to signify the quality and reputation of adidas.” It,
therefore, objected to this stripe design by J. Crew:
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Adidas wrote that the design “is confusingly similar to adidas’s three-
stripe mark in appearance and overall commercial impression …”.
Furthermore, adidas believes the suggested striped mark by J. Crew can
create trademark dilution because, if approved, the adidas trademark
will not identify and distinguish only adidas. Therefore, adidas has
asked the USPTO’s Trademark Trial and Appeals Board to refuse J.
Crew’s application.
The outcome? after settlement negotiations between the parties, J.
Crew recently withdrew its application. See Adidas comes for J. Crew’s
stripe trademark (yahoo.com)
2019 Skechers v. adidas
The intellectual property rivalry between adidas and Skechers
is nothing new.
This time, Skechers went to court, asking it to declare that despite
adidas’s claims of alleged infringement, Skechers 4-stripe Goldie-Peaks
shoe does not infringe on the three-stripe mark.
According to Skechers, adidas sent “infringement notice” letters
claiming a similarity in the “overall commercial impression” of the
Skechers design, which is likely to result in consumer confusion.
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Skechers believes that the three-stripe mark should have a narrow
scope in an industry full of stripe designs. Therefore, it is not at fault.
The case was settled out of court.
2019 EU refuses adidas
Gaining protection for stripes or bars is not always easy. In 2019,
adidas lost a three-stripe trademark battle in the EU.
In 2009, the Shoe Branding Europe BVBA (Shoe Branding) from Belgium
filed for their own trademark.
In 2010, adidas sued. In 2013, EUIPO (known at the time as the Office
for Harmonization in the Internal Market) rejected adidas’s notice of
opposition.
Adidas then filed an application for wider trademark protection of a
mark as consisting of “three parallel equidistant stripes of identical
width, applied on the product in any direction.”
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In 2014, the European Union Intellectual Property Office (EUIPO),
approved and registered an EU trade mark for products of clothing,
footwear and headgear.
But in 2016, Shoe Branding filed for the trademark to be annulled on
the grounds that it is “devoid of any distinctive character, both inherent
and acquired through use.” EUIPO annulled the registration.
Adidas moved on to appeal the decision but failed, and the General
Court of the EU upheld the 2016 annulment. In its press release it said,
“adidas does not prove that that mark has acquired, throughout the
territory of the EU, distinctive character following the use which had
been made of it.”
In that, adidas failed to broaden trademark protection over three
stripes. This loss should not affect adidas’s existing three-stripe marks
and its trademark protection.
However, it does seem to raise the question of what number of stripes,
colors, or thickness can adidas protect and prevent others from using.
Understanding brand protection
Why is it important for adidas to protect its brand’s logos and not just
the wordmark?
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The answer is that those stripes on the side of athletic shoes create
visual recognition. When we see Messi on the field with the three
stripes on his cleats, it makes us want these products.
Whether or not adidas’s three-stripe mark should get broad protection
is a question for national trademark offices and courts.
It is up to them to decide if a certain stripe pattern infringes or dilutes
adidas’s trademarks.
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WiserTip: Recognize the importance of strategic classification for marks
in light of consumers’ likelihood of confusion between similar or
identical marks in the same category.
FAQ
What is the origin of the name adidas?
Adidas is derived from the first and last name of its founder: Adolf “Adi”
Dassler.
What is a trademark?
A trademark identifies and distinguishes a person or a company’s
goods or services through any name, word, symbol, device, or any
combination thereof. Trademarks protect the exclusive rights to use
them. [See 15 U.S. Code § 1127]
What is a figurative mark?
According to EUIPO, a figurative mark is a trademark where “non-
standard characters, stylization or layout, or a graphic feature or a
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colour are used, including marks that consist exclusively of figurative
elements.”
Among the examples used by EUIPO for a figurative trademark: