Part VI Case Study: Nike, Converse Sue 31 Companies for their Chuck Taylor Knockoffs
Converse Chuck Taylor All Stars have been on the market for almost a century. They have weathered the
trends, standing strong as an American fashion icon. Converse estimates they have sold about one
billion Chuck Taylors worldwide over the years. So, unsurprisingly, Converse has been plagued by low-
cost knockoffs detracting from their sales.
Nike purchase Converse in 2003, after the company filed for bankruptcy in the 1990s. Nike was able to
revive the brand by expanding color and style options and extending into overseas markets. During its
2014 fiscal year, Converse made up $1.7 billion of Nike’s roughly $28 billion in sales.
The upsurge in popularity for Converse let to what Jim Calhoun, Converse President and CEO, called “an
explosion in knockoff activity.” After over 100 cease-and-desist letters did not achieve results, Nike and
Converse decided to go a step further to protect their brand.
In October 2014, Converse accused 31 companies of trademark infringement in 22 lawsuits filed in the
United States District Court in Brooklyn. Some of the companies named were Walmart, Kmart, and
Skechers. Converse sued for monetary damages, but their main priority was to get imposters off the
shelves and keep them off. The company also filed a separate complaint with the International Trade
Commission, hoping to stop counterfeit products from even entering the country.
“Our decision to bring these lawsuits is grounded in the basic principle of fairness, our well-established
right and responsibility to protect Converse’s intellectual property, and our commitment to
prevent consumer confusion in the marketplace. For generations, the Chuck Taylor, universally known
as the ‘Chuck’, has captured the hearts and minds of millions of consumers, selling over a billion pairs
globally during the past century. We welcome fair competition, but we do not believe companies have a
right to copy the Chuck’s trademarked look,” said Calhoun in an official press release.
In June 2016, the I.T.C. issued their ruling: No shoes that violated Converse’s trademark for their
diamond-patterned outsole could be imported into the country. However, the commission ruled that
other parts of the sneaker’s iconic look such as its rubber-toe band, top cap, and stripes are not
protected under Converse’s trademark. Meaning: Shoes featuring a similar look to Converse but without
the diamond outsole can continue to be imported and sold.
The outsole protection is a win for Converse; they are appealing other parts of the verdict. “While we do
not agree with all of the I.T.C.’s findings, we feel confident our rights will be vindicated on appeal,” said
Brian Fogarty, senior director, global intellectual property litigation at Nike. “This is but one step in a
long process.”
Sources: H. Milnes, “Converse is Suing 31 Companies for Imitating the Chuck Taylor,” BostInno, October 15, 2014,
accessed October 18, 2016, http://bostinno.streetwise.co/2014/10/15/converse-is-suing-31-companies-for-
imitating-the-chuck-taylor/; R. Abrams, “Converse Sues to Protect Its Chuck Taylor All Stars,” The New York Times,
October 14, 2014, accessed October 18, 2016, http://www.nytimes.com/2014/10/15/business/converse-sues-to-
protect-its-chuck-taylor-all-stars.html; R. Abrams, “For Chuck Taylor, a Sole Trademark is Uphelp,” The New York
Times, June 23, 2016, accessed October 18, 2016, http://www.nytimes.com/2016/06/24/business/for-chuck-
taylor-a-sole-trademark-is-upheld.html?ref=business&_r=0.