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Jury Rules Against Nike in Trademark Infringement Case

A Philadelphia-area sportswear company has taken Nike to trial and won.

A Pennsylvania federal jury found Wednesday that the Oregon-based footwear giant willfully infringed on Lontex Corp.’s “cool compression” trademark, according to Law360. The decision arrives nearly three years after the company’s initial complaint.

Lontex, maker of Sweat It Out athletic apparel, applied for its first two “Cool Compression” trademarks—a word mark and a design mark—in 2006. Two years later, it applied for a third that would cover compression supports. According to the company’s original lawsuit, Lontex launched its Cool Compression line of clothing as early as June 2007. Nike’s first Cool Compression products arrived eight years later.

In its complaint, Lontex claimed Nike “pervasively and intentionally” launched products using the phrase “cool compression” across its various divisions. In doing so, it said, Nike was “at the least” “reckless and careless in its evaluation of the likelihood of confusion resulting from its infringing use of ‘Cool Compression’ line of products.”

The Pennsylvania sportswear company said it sent Nike a demand letter identifying the infringement, to which it responded saying it would cease use. Despite this, Lontex said Nike’s catalogues and sales through intermediaries continued to use the “cool compression” term. Lontex estimated Nike made “well over $40 million” in estimated profits off its Cool Compression products.

The jury’s official verdict remains sealed, so it is unclear how much Nike will ultimately be forced to pay out. Nike did not respond to a request for comment.

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