Adidas Renews Legal Battle Against Nike’s Flyknit Technology (NKE)

Nike Inc (NYSE:NKE) is facing a renewed legal battle over a key shoe material patent from its largest rival.

As HNHH reports, Adidas has asked a top court to review Nike’s Flyknit patent, which was granted back in 2012:

On Thursday, Adidas filed an official appeal with the U.S. Federal Court of Appeals, in an effort to overturn an October 19th decision by the Patent Trial and Appeal Board upholding Nike’s Flyknit patent.

According to Portland Business Journal, “the “749 Patent,” which Nike obtained back in 2004, gives Nike ownership of the invention of a shoe upper that is knitted by a machine from a single piece of yarn, creating a tube-like structure that is then cut and attached to the sole of the shoe, as well as the methods of manufacturing that type of upper. The technology reduces the labor, material and time needed to produce each shoe.”

Adidas is claiming that the aforementioned manufacturing process is unpatentable, citing Title 35, Section 103 of U.S. patent law. That section states that a patent for an invention can’t be claimed if the invention “would have been obvious before the effective filing date of the claimed invention to a person having ordinary skill in the art to which the claimed invention pertains.”

Flyknit is perhaps Nike’s most beloved shoe material, so the lawsuit is highly important to its bottom line.

Nike Inc shares closed at $59.88 on Friday, down $0.54 (-0.89%). Year-to-date, NKE has gained 19.38%, versus a 20.00% rise in the benchmark S&P 500 index during the same period.

NKE currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #1 of 32 stocks in the Athletics & Recreation category.

Source Stock News

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