Sportswear giant Nike Inc has been accused of trademark infringement by fellow American competitor, Lontex Corporation. Lontex has claimed Nike has used its branding term, 'Cool Compression', without permission in its filing at the Pennsylvania Federal Court.
Lontex started using the term 'Cool Compression' in 2007 and subsequently registered the term as a trademark the following year. In 2015, Nike launched its own products using the term 'Cool Compression', a move that Lontex has since described as "malicious" and "fraudulent".
In its complaint, Lontex claim that Nike used its trademark recklessly knowing there would be a likelihood of confusion with its valid and subsisting marks. Lontex has also commented on the fact that it was never approached by Nike for permission to use the mark.
Lontex also claim that the actions of Nike are a clear breach of the Lanham Act and common law unfair competition. The Lanham Act is the federal trademark statute of law in the United States, which governs trademarks, service marks and unfair competition.
It has been reported that Lontex is seeking statutory damages of up to $2 million per infringement, an injunction against Nike's 'Cool Compression' products and legal costs as a result of what they believe has been a "deliberate" act made in bad faith.
Nike has not yet made an official statement about the dispute.
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