Nike, the world's biggest maker of athletic shoes, accused rival Adidas-Salomon of infringing its patented method for cushioning soles and using it in its running, basketball and tennis footwear lines.
Nike filed a lawsuit in federal court in Lufkin, Texas, saying Adidas infringed Nike's "Shox" cushioning technology, which is protected
by 19 patents and took 16 years to develop, the company said.
Nike said the Adidas 1 running shoe, the German company's most expensive men's shoe at US$250 ($375) , and its US$150 Kevin Garnett basketball shoes have cushioning systems that infringe the patents.
Adidas, which purchased Reebok International last month for US$3.8 billion to better compete with Nike, has 28 per cent of the US$18 billion global athletic-shoe market. Nike has 31 per cent.
"It is deeply frustrating and inappropriate when companies borrow or re-fashion such technologies as their own without making similar investments," said Eric Sprunk, vice-president of global footwear at Nike.
The suit seeks to halt the sales of the shoes that infringe the patents, as well as unspecified damages.
Nike began offering the Shox cushioning system in 2000 and received patents for it in 2002, said Nike spokesman Vada Manager.
The cushioning is used across many lines of shoes, including running, basketball and tennis footwear.
Manager said the lawsuit was filed in Texas as some of the shoes in question were sold there and the court in Lufkin has expertise in intellectual-property cases.
Nike's profit rose 15 per cent in the second quarter, the company reported in December . Global orders of shoes and clothing for delivery between December and April, a gauge of future sales, rose 2.5 per cent less then the 7 per cent estimated by some analysts.
Adidas has about 20 per cent of the US market after the Reebok purchase, compared with Nike's 40 per cent.
- BLOOMBERG
