Adidas America, Inc. v. Skechers Usa, Inc.

890 F.3d 747 (9th Cir. 2018)

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Nature of the Case

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Facts

P is a manufacturer of athletic apparel and footwear. D competes with Adidas in the active footwear and apparel market. D is the second largest footwear company in the United States, ahead of P. The Stan Smith sneaker has become one of P's most successful shoes in terms of sales and influence since its release in the 1970s. P is also known for its Three-Stripe mark, which has been featured on its products for many years as part of its branding strategy and for which it owns federal trademark registrations. The parties have a history of trademark litigation that has previously resulted in D acknowledging that 'P is the exclusive owner' of the Three-Stripe mark and agreeing not to use it or any other protected mark 'confusingly similar thereto.' Despite the agreement, P has sued D several times in the last twenty years for infringement of its Three-Stripe trademark. Yet again, P sued D claiming that D's Onix shoe infringes on and dilutes the unregistered trade dress of P's Stan Smith shoe. P claims that D's Skechers's Relaxed Fit Cross Court TR infringes and dilutes P's Three-Stripe trademark, in violation of 15 U.S.C. § 1125(a), (c). P filed a motion for preliminary injunction and the court issued it finding that P established that it was likely to succeed on the merits, likely to suffer irreparable harm in the absence of preliminary relief, that the balance of equities tips in its favor, and that an injunction is in the public interest. D appealed claiming that P had not shown a likelihood of success on the merits and irreparable harm.