Deckers Loses Appeal in Boot Patent Dispute

Deckers Outdoor Corp., maker of Teva sandals, must pay at least $1.8 million to a woman who claimed the Goleta-based company stole her design for a winter boot, a federal appeals court ruled.

The U.S. 9th Circuit Court of Appeals upheld the $1.8-million jury award to footwear designer Molly Strong and her company, Yeti by Molly Ltd. The court also ordered a lower court to consider whether Deckers acted maliciously, which could lead to additional damages.

Strong sued the company in 1995, saying Deckers learned of her patented boot design from her business associate, who later went to work for Deckers. The boot is designed to increase traction, warmth and dryness. A jury found Deckers liable for deceit, misappropriation of trade secrets and civil conspiracy, and the appeals court upheld that finding.

Both sides had appealed the jury’s award of $425,000 to Strong and $1.36 million to her company. Deckers wanted a new trial, which the appeals court denied.

Deckers shares rose 25 cents to close at $4.89 on Nasdaq.