Nike Clothing, Shoes Pulled in Logo Dispute

Nike Inc. is withdrawing up to $5 million in shoes and clothing from the marketplace after a federal judge found that the Oregon apparel giant deliberately infringed on a small Pasadena firm’s name and trademark.

Last month, Judge David V. Kenyon of U.S. District Court in Los Angeles issued a preliminary injunction against Nike’s advertising or selling its Side 1 line of women’s aerobic footwear and apparel, ruling that the line’s name and logo were too similar to those of Pasadena-based Sideout Sport.

In a follow-up order Wednesday, Kenyon added that he believes that the infringement was intentional.

“Although the court previously ruled that the evidence as to Nike’s intent is inconclusive,” Kenyon wrote, “upon further and considerable reflection, the court finds it inconceivable that Nike did not realize how closely its ‘Side 1’ trademark in its current elongated lettering style resembles Sideout’s trademark.”

The injunction became effective Thursday, when Sideout Sport posted a $100,000 bond to cover damages to Nike should Sideout lose its lawsuit at trial.

However, J. C. Penney, Lady Foot Locker and other chain stores began pulling Side 1 items from their shelves after Thanksgiving, when they learned of the initial ruling.