August 2008

By Charles H. Hooker III and Sara M. Vanderhoff

After almost seven years since inception, the lawsuit by adidas against Payless ShoeSource, Inc. ended at the trial level with a jury verdict against Payless in the amount of $305 million. Payless was found guilty of willful federal trademark and trade dress infringement, trademark and trade dress dilution, and state-law unfair and deceptive trade practices as a result of its sale of footwear bearing confusingly similar imitations of adidas’s famous Three-Stripe Mark and Superstar Trade Dress.

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