Shoe Firms Step on Each Other’s Toes

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Two Southern California shoe companies have gone to war over a checkerboard pattern even though the black-and-white design can be found on more than a dozen other shoes.


But the issue is so important to Skechers USA Inc. that it has hired high-profile attorneys in its fight with Vans Inc. over the right to put the squares on the footwear.


Attorneys for the Cypress-based Vans wrote in court papers: “Skechers wants to walk in Vans’ shoes.” Skechers executives wouldn’t comment.


The dispute began early this year when Skechers introduced a slip-on model that resembled Vans’ classic canvas shoe that for a generation has popular among the surf and skateboard set. It was the shoe of choice for “Fast Times at Ridgemont High” character Jeff Spicoli, portrayed by Sean Penn.


Anticipating a legal challenge from Vans, Skechers filed a pre-emptive suit in March.


Michelle Cooke, an intellectual property attorney not involved in the case, said this type of dispute has become more common as fashion cycles and trends have become even shorter.


“Some companies are willing to push the envelope and risk a lawsuit because they are only interested in putting things on for this season,” said Cooke, a partner in the Century City office of Steptoe & Johnson LLP. “Next season they’re moving on.”


Meanwhile, there has been a development that emphasizes the oddity of this intense fight over a common pattern and illustrates Cooke’s perspective: Skechers, which has developed a quick turnaround process of designing and manufacturing shoes in order to best take advantage of fashion trends, seems to have stopped selling the shoes in its main retail stores and relegated them to discount outlets.


In November, Vans had sought a preliminary injunction that would have barred Skechers from selling the shoe. Federal Judge Dale Fischer rejected it, however.



Judge’s ruling

In seeking the injunction, Vans claimed that the Skechers’ line of slip-on shoes not only violates its registered trademark for “a checkerboard design covering the top, or toe vamp, of a shoe” but also shoe soles “covered in geometric pattern composed of diamonds and six-pointed stars.”


In her order refusing to grant a preliminary injunction, the judge acknowledged that Vans has advertised the checkerboard pattern at issue so that it could be identified with the brand.


“However, the likelihood of confusion is diminished by the widespread use of checkerboard mark shoes,” the judge wrote.


Skechers had submitted evidence of 13 other shoe manufacturers that use the checkerboard patterns on their shoes.


The judge also said that Vans had not established that its trademark of the checkerboard design was extensive enough to prohibit Skechers from using it.


In reference to the pattern on the bottom of the shoe, the judge said there was little danger of confusion between the Vans and Skechers models: “In most situations, the sole would not be visible as it appears on the bottom of the shoe.”


The Vans checkerboard slip-on on dates to 1981, and remains popular among present-day teens. It’s been worn by characters on teen television programs such as Fox’s “The O.C.,” which ran from 2003 to 2007.


“We have always defended and will continue to defend our registered trademarks which uniquely identify Vans products and separate our brand from others in the market,” Vans spokesman Chris Overholser said in an e-mail.


“Vans is saying the pattern is not just some cool design that is nice to look at, but something that consumers identify with them,” Cooke said. “They are saying that significant sums of money over years have been invested to educate consumers so when they see that pattern they think of Vans.”


Vans is a subsidiary of VF Corp., which acquired the company in 2004 for $396 million.


In its third quarter report released in October, VF, which owns such brands as Wrangler and 7 For All Mankind, stated that the Vans brand enjoyed double digit revenue gains.



Skate style

“Vans has done pretty nicely as the skate category has come back,” said Christopher Svezia, an analyst as Susquehanna Financial in New York. “It has been a key category this year.”


Manhattan Beach-based Skechers has also seen an increase in revenues in recent months. Sales have increased each month for the past 15 months, and third-quarter sales of $395 million were a company record.


But according to analysts, much of the company’s success stems from its ability to quickly react to popular trends, such as the resurgence of the skater segment.


“Skechers has done a nice job over the years taking those trends they are seeing in the marketplace and making it their own,” Svezia said.


For example, when Skechers executives realized Crocs were only sold in certain locations, they designed a gardening shoe that they shipped to other retailers.


The practice has engendered some acrimony among competitors.


In January, shoemaker Asics sued Skechers alleging trademark infringement. The lawsuit was settled last month.


In a sign Skechers may be ready for a bigger fight with Vans, the company is represented by Morgan Chu, one of the country’s leading intellectual property litigators. Chu replaced Daniel Petrocelli best known for his victory over O.J. Simpson in a civil suit.


Vans is represented by lawyers at Sonnenschein Nath & Rosenthal LLP.


But is Skechers’ interests in the checkerboard pattern fading?


The Skechers store at the Beverly Center shopping mall in Los Angeles was selling a number of slip-on shoes but none with the checkerboard pattern.


“We had them a couple of months ago but we don’t have them anymore,” said a saleswoman. “We only keep the latest designs here. You should check our outlets.”

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