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words // Matt Halfhill:
In a sweeping move last October, Converse, a subsidiary of Nike, Inc. that was purchased in 2003 for $305 Million, filed suit against over 30 brands and retailers who they allege are infringing on the design of the iconic Converse All-Star known to many as the “Chuck Taylor.” The Converse All-Star is cemented in American pop culture having first released in the early 1900s and have appeared on the feet of countless NBA players, collegiate athletes, and in movies on John Travolta in Grease.
Several companies named in the lawsuit have settled out of court with Converse including fashion brand Tory Burch as well as another American fashion icon Ralph Lauren who vowed to destroy all pairs held in inventory sporting the rubber toe-cap, but the world’s largest retailer, Wal-Mart, is not prepared to back down to demands and have filed counter claims against Converse.
In response, Wal-Mart argues that the toe cap, toe bumpers and stripes that Converse claims to own are “actually or aesthetically functional” and therefore “they are not subject to trademark protection.” Wal-Mart cites advertising in which Converse seems to acknowledge that it doesn’t own the rights to the features.
As brands continue to weight their options in terms of settlement versus letting the case drag out, it looks as though Wal-Mart is in the fight for the long haul.
Wal-Mart’s complaint accuses Converse of using the suit to “extort monetary settlements” and says it “will fight Converse’s anti-competitive actions to preserve Every Day Low Prices for Wal-Mart customers.”
To make matters even more complicated for both Nike and Wal-Mart, currently Nike, Inc. owned Exeter Brands Group sells footwear to the retail giant with value priced brands including SHAQ. Exeter Brands was formed in 2004 to add value priced shoes to Nike’s business portfolio named after the New Hampshire town where Blue Ribbon Sport’s first footwear manufacturing plant was opened in 1974. Nike has since closed this manufacturing plant and does not produce any footwear domestically. Exeter Brands does not currently offer any products to Wal Mart or any other retail channels that remotely resemble the Converse All-Star.
While part of Converse’s claim is that the toe cap and toe bumper are trademarks of the Chuck Taylor, it should be noted that it was not the first basketball sneaker in history to incorporate these elements into their design. Colchester Rubber Company created its first basketball sneaker, the Alpha, in 1892 almost two decades before the Converse Rubber Company manufactured the first editions of the Chuck Taylor.
Colchester Rubber Company Alpha (left) vs Converse All-Star (right)At the time of this article, Wal-Mart offers several models of shoes that are similar to the Converse All-Star under several brand names. One of their house brand’s models produced under the house label of Faded Glory populate on walmart.com when one searches for “Converse” in the search bar shown below.
walmart.com search result for “converse”First reported by Footwear News.
