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Skechers USA Inc. (NYSE:SKX) has filed a lawsuit against LL Bean accusing the company of illegally copying its shoe designs.
The shoe company filed the complaint in Manhattan federal court. It alleges that LL Bean’s Freeport casual shoes infringe on two patented designs for “heel cups” that surround the back of the foot.
Skechers claims these designs are “unique and eye-catching” with “graceful, sweeping, gently rolling lines and slopes.”
Skechers asserts that LL Bean entered the market with its infringing shoe only after Skechers had invested significantly in developing and promoting its designs, which have gained broad appeal, reported Reuters.
The lawsuit seeks unspecified damages, including triple damages, if there was any willful infringement. It aims to halt the sales of the allegedly infringing shoes.
Also Read: Footwear Stocks Poised for Strong Q2: BofA Analyst Sees Attractive Upside for Crocs and Skechers
The lawsuit comes at a time when many Americans are curbing discretionary spending due to inflation concerns. LL Bean’s Freeport shoes, named after the company’s Maine hometown, are sold for $99 on their website.
LL Bean, a privately held company founded in 1912, has yet to comment on the lawsuit. Skechers, founded in 1992 and based in Manhattan Beach, California, did not immediately respond to requests for comment.
The outcome of this legal battle could impact how the footwear industry handles design patents and market entry strategies.
Skechers stock has gained more than 26% in the last 12 months. Investors can gain exposure to the stock via First Trust Consumer Discretionary AlphaDEX Fund (NYSE:FXD) and Invesco S&P Midcap Momentum ETF (MYSE:XMMO).
Price Action: SKX shares are trading higher by 1.32% at $66.96 at last check Tuesday.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
