Nike Takes Legal Action Against New Balance and Skechers Over Flyknit Technology
On November 6, 2023, Nike filed two complaints against New Balance and Skechers, concerning its patented Flyknit Technology. A patent is a legal document granted by the government that gives the person or entity holding the patent the exclusive right to make, use, and sell a particular invention for a certain period. Having a patent means that others are not allowed to use, make, or sell the patented invention without the permission of the patent holder. Nike’s patent in dispute is U.S. Patent No. 9,060,562 (the “’562 patent”), which protects the method of making a part of a shoe using a specific knitting method. Nike is claiming that New Balance and Skechers have infringed its patent by creating and selling shoes that involves this specific knitting method.
Nike has spent over a decade on dedicated research and development of its Flyknit technology, which has earned its reputation as a game-changing technology.
Recognizing the value of Flyknit, Nike has taken proactive steps to secure its technology by filing and obtaining patents worldwide. However, the success of Flyknit has attracted the attention of competitors like Puma, adidas, Certain Knitted Footwear, Lululemon, New Balance, and Skechers, leading to allegations of unauthorized use and infringement.
Nike's legal battle with New Balance started in early 2023. Despite Nike’s multiple cease and desist letters to New Balance requesting them to stop using this specific knitting method, Nike claims New Balance has persisted in introducing new knit footwear styles, escalating the scope of its alleged infringing activities. Nike's letters dated January 31, 2023, March 3, 2023, and September 1, 2023, explicitly outlined infringement claims, and demanded that New Balance cease its activities.
In a parallel situation, Nike alleges that Skechers has also used Flyknit technologies without authorization. This is not the first time Nike has taken legal action against Skechers to enforce its patents. a
In both complaints against Skechers and New Balance, Nike seeks the following relief:
Finding of Infringement: a determinaion that both Skechers and New Balance infringed upon Nike’s specific U.S. Patents.
Damages: damages sought against Skechers and New Balance to compensate Nike, including a reasonable royalty, interest, and costs. Nike did not specify a specific dollar amount.
Willful Infringement: a determination that the infringement by Skechers and New Balance is willful, potentially leading to increased damages under the law.
Permanent Injunction: a permanent injunction to stop further infringement by Skechers and New Balance and their related entities.
Additional Relief: Nike asserts its entitlement to any other relief under the law and any further relief that the court or a jury deems just and proper.
In short, Nike is in legal battles with New Balance and Skechers over its patented Flyknit Technology, a game-changing method for making knitted shoe parts. It is not just about safeguarding Nike's innovation; it highlights the broader problem of unauthorized use in the competitive footwear industry.
Why should readers care? It underscores the importance of intellectual property and innovation. Nike invested significantly in developing Flyknit, and these legal actions aim to defend that investment. The case also sets a precedent, emphasizing the need to respect and preserve technological advancements in the industry.
Beyond the legal details, it sparks a broader conversation about creativity, fair competition, and protecting innovative ideas. The case's outcomes will likely influence how companies navigate intellectual property protections, shaping the future of innovation in sportswear. For those interested in law, business, and cutting-edge tech, this case offers a peek into the complexities of protecting intellectual property in a fiercely competitive market.
