Crocs, Inc. Design Infringement Victory Awarded as Leading Intellectual Property Case in China
May 16 2016 - 4:00PM
Crocs, Inc. (Nasdaq:CROX) today announced that a landmark ruling
last year in the Shanghai Intermediate People's Court has been
selected by China's Supreme People's Court as one of the top 50
leading IP cases of 2015, and also selected as one of the top 10
leading IP cases of the Shanghai Courts. These two announcements
recognize the groundbreaking nature of the judgment, which protects
the classic design of Crocs footwear in China.
In 2015, the Shanghai Court handed Crocs a
favorable judgment in its long-running dispute with Chinese
manufacturer Jinjiang Jinsike Footwear (JSK). The ruling finds that
JSK violated China’s Anti-Unfair Competition Law in its use of shoe
designs, logos, labeling and store decoration that too closely
resemble that of Crocs' footwear and branding.
The most significant portion of the judgment
recognizes that Crocs’ iconic clog design, including the
distinctive holes, are a "unique decoration" whose use by JSK could
lead consumers to confuse JSK's shoes with those manufactured and
distributed by Crocs. The judgment in effect prevents any other
competitors from imitating the unique "look" of Crocs' classic clog
design, which has been advertised and sold extensively in China
since 2006.
The ruling is particularly noteworthy given that
China's law against ‘passing off’ typically only protects packaging
and decorative features on products, not the shape of products
themselves. With this ruling, Crocs becomes one of only a handful
of companies in China that has successfully demonstrated that the
shape of its products is inherently linked to its brand identity
and merits legal protection.
China's major IP courts publish lists of leading
cases each year. The cases are nominated based on whether they
establish an important legal precedent or cover a ground-breaking
new area of law. Selection of the case by the Supreme People's
Court, for its "top 50" list means that the case is considered to
have nation-wide significance.
"We are delighted that this significant legal
victory, which provides protection for our classic clog design
against imitators, has been listed as one of the leading IP cases
of 2015 by China's highest court. This is fitting recognition for
the determination that Crocs showed in pursuing this legal battle,
and demonstrates that China's courts are capable of protecting
brand owners and consumers against imitators,” said Sara
Hoverstock, Vice President, Global Intellectual Property and Asia
Legal for Crocs, Inc. “We will continue to take legal action
against those who unlawfully seek to imitate our brand and
products."
At the end of 2015, close to 1,500,000 pairs of
counterfeit and imitation Crocs shoes have been confiscated through
factory raids and customs seizures in China. These seizures and
lawsuits are the result of increased pressure from Crocs, in
cooperation with Chinese authorities, to put a stop to counterfeit
and imitation Crocs products.
Crocs, Inc was represented in this case by
international IP law firm Rouse & Co. and their associated law
firm in China, Lusheng Law Firm.
About Crocs, Inc. Crocs,
Inc. (Nasdaq:CROX) is a world leader in innovative casual
footwear for men, women and children. Crocs offers a
broad portfolio of all-season products, while remaining true to its
core molded footwear heritage. All Crocs™ shoes feature Croslite™
material, a proprietary, revolutionary technology that gives each
pair of shoes the soft, comfortable, lightweight, non-marking and
odor-resistant qualities that Crocs fans know and
love. Crocs celebrates the fun of being a little
different and encourages fans to "Find Your Fun" in every colorful
pair of shoes. Since its inception in 2002, Crocs has
sold more than 300 million pairs of shoes in more than 90 countries
around the world.
Visit www.crocs.com for additional
information.
Media Contact:
Katy Michael
Crocs, Inc.
(303) 848-7000
klachky@crocs.com
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