Nike Alleges Infringement by L.A. Gear

Nike Inc., the nation’s leading producer of athletic shoes, on Thursday filed suit against rival shoemaker L.A. Gear, alleging patent and design infringements.

L.A. Gear denied the allegations.

The lawsuit, filed in U.S. District Court in Los Angeles, claims that L.A. Gear incorporated a patented performance-related feature of Nike’s Air Jordan basketball shoes into a Gear product called MVP-1. The suit also alleges that six other L.A. Gear products infringe on that patent, a design in the sole of the Air Jordan shoe.

In addition, Nike claims that L.A. Gear has violated other commercial trade laws by producing MVP-1, alleging that the shoe too closely resembles the look of the the red, white and black Air Jordan.

Nike, based in Beaverton, Ore., is seeking unspecified damages and a ban on the sale of the Gear products. Air Jordan, promoted by basketball superstar Michael Jordan, has accounted for more than $45 million in sales since its introduction in September, 1988, said Lindsay Stewart, general counsel at Nike. Air Jordan, offered at a suggested retail price of $110, is the top-selling Nike shoe, Stewart said.

“Our position is that it (Air Jordan) would be even more successful if it were not competing against a product that infringes . . . on our property rights,” Stewart said.

However, L.A. Gear is unaware of any commercial infringements, said Gil N. Schwartzberg, the Los Angeles shoemaker’s executive vice president and chief administrative officer.

“We’re very careful about this kind of thing,” Schwartzberg said. “We have our shoes examined by outside designers. We have our shoes reviewed routinely and we have been advised that the shoes do not infringe on any rights.”

Schwartzberg said the MVP-1, which retails for about $80, was introduced in June and accounts for less than 1% of L.A. Gear’s sales.