Skechers Sues Reebok For Infringing Patents

(RTTNews) - Sports shoe company Skechers USA Inc. (SKX), Thursday filed a lawsuit against Reebok International Ltd., a subsidiary of German sports goods giant Adidas AG (ADDYY.PK, ADDDF.PK), alleging infringement of patents related to its Skechers Go Walk product line.

The suit states that Reebok is selling the infringing products under the name Reebok Walk Ahead RS. Skechers is seeking compensatory and punitive damages as well as injunctive relief. The case is filed in the U.S. District Court for the Central District of California.

Chief Operating Officer David Weinberg said, "While we prefer to compete in the market place, Reebok is selling its infringing footwear to Skechers wholesale customers and in other sales channels where Skechers GO WALK is sold, and we believe this is causing us enormous damage."

"We plan on taking similar action against any company that develops any products that infringe on the patents and trade dress of Skechers Go Walk as well as our other proprietary product lines, and any retailer that sells Reebok Walk Ahead RS," Weinberg added.

Adidas, the world's second-biggest sporting-goods maker, acquired Reebok in 2005 for $3.8 billion, giving it a substantial market share and a foothold in the US to directly confront with rival Nike Inc. (NKE). However, both Reebok and Adidas have been losing market share to Nike.

SKX is currently trading at $44.99, down $0.99 or 2.15%, on the NYSE.