Skechers Sues Hermès for Patent Infringement of Its Proprietary MASSAGE FIT® Technology

Rhea-AI Summary

Skechers USA, Inc. has initiated a lawsuit against Hermès International for patent infringement related to its MASSAGE FIT® sole technology. Filed in the United States District Court for the Southern District of New York, the suit claims that Hermès' footwear styles, Éclair and Envol, infringe multiple Skechers patents. Skechers emphasizes its commitment to innovative footwear technology, expressing disappointment that Hermès chose to infringe patented designs rather than compete fairly. The outcome of this case could impact Skechers' market positioning and intellectual property strategy.

Positive

• Lawsuit may protect Skechers' proprietary MASSAGE FIT® technology and reinforce brand integrity.
• Emphasizes commitment to innovation in footwear technology.

Negative

• Potential legal costs associated with the lawsuit could impact financial resources.
• If the lawsuit is unsuccessful, Skechers may face increased competition and loss of market share.

LOS ANGELES--(BUSINESS WIRE)-- Skechers USA, Inc., The Comfort Technology Company^TM, announced today that it has sued Hermès International and Hermès of Paris for patent infringement of its proprietary MASSAGE FIT® sole technology. The lawsuit was filed today in the United States District Court for the Southern District of New York in Manhattan.

In 2022, Hermès introduced two footwear styles, the Éclair and Envol, which incorporate mid-sole and undersole design elements that infringe multiple Skechers patents for its MASSAGE FIT® technology that Skechers incorporates into its highly successful SKECHERS GO WALK® series, as well as other product lines.

A Skechers spokesperson stated: “Skechers invests tremendous resources into research and development to introduce fresh, unique and exciting footwear technology to its customers year in and year out. It is disappointing that a company of Hermès’ reputation and standing has chosen to copy and infringe Skechers’ patented designs. While Skechers always prefers to compete in the marketplace rather than the court room, the Company has no choice but to seek legal recourse when competitors blatantly tread on our rights.”

About Skechers USA, Inc.

Skechers USA, Inc. (NYSE:SKX), based in Southern California, designs, develops and markets a diverse range of lifestyle and performance footwear, apparel and accessories for men, women and children. The Company’s collections are available in the United States and over 180 countries and territories through department and specialty stores, and direct to consumers through digital stores and 4,355 Company- and third-party-owned physical retail stores. The Company manages its international business through a network of wholly-owned subsidiaries, joint venture partners, and distributors. For more information, please visit about.skechers.com and follow us on Facebook, Instagram, Twitter, and TikTok.

This announcement contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may include, without limitation, Skechers’ future domestic and international growth, financial results and operations including expected net sales and earnings, its development of new products, future demand for its products, its planned domestic and international expansion, opening of new stores and additional expenditures, and advertising and marketing initiatives. Forward-looking statements can be identified by the use of forward-looking language such as "believe," "anticipate," "expect," "estimate," "intend," "plan," "project," "will," "could," "may," "might," or any variations of such words with similar meanings. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in forward-looking statements. Factors that might cause or contribute to such differences include the disruption of business and operations due to the COVID-19 pandemic; delays or disruptions in our supply chain; international economic, political and market conditions including the effects of inflation around the world, the challenging consumer retail markets in the United States and the impact of Russia’s recent invasion of Ukraine; sustaining, managing and forecasting costs and proper inventory levels; losing any significant customers; decreased demand by industry retailers and cancellation of order commitments due to the lack of popularity of particular designs and/or categories of products; maintaining brand image and intense competition among sellers of footwear for consumers, especially in the highly competitive performance footwear market; anticipating, identifying, interpreting or forecasting changes in fashion trends, consumer demand for the products and the various market factors described above; sales levels during the spring, back-to-school and holiday selling seasons; and other factors referenced or incorporated by reference in Skechers’ annual report on Form 10-K for the year ended December 31, 2021 and its quarterly reports on Form 10-Q in 2022. Taking these and other risk factors associated with the COVID-19 pandemic into consideration, the dynamic nature of these circumstances means that what is stated in this press release could change at any time, and as a result, actual results could differ materially from those contemplated by such forward-looking statements. The risks included here are not exhaustive. Skechers operates in a very competitive and rapidly changing environment. New risks emerge from time to time and we cannot predict all such risk factors, nor can we assess the impact of all such risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, you should not place undue reliance on forward-looking statements as a prediction of actual results. Moreover, reported results should not be considered an indication of future performance.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221017006010/en/

Jennifer Clay

SKECHERS USA, Inc.

jennc@skechers.com

Source: Skechers USA, Inc.

FAQ

What is the basis of Skechers' lawsuit against Hermès?

Skechers' lawsuit against Hermès is based on allegations of patent infringement related to its MASSAGE FIT® sole technology used in Hermès' Éclair and Envol footwear styles.

When was the lawsuit filed by Skechers against Hermès?

The lawsuit was filed on October 17, 2022, in the United States District Court for the Southern District of New York.

What does the MASSAGE FIT® technology refer to in Skechers' products?

MASSAGE FIT® technology refers to Skechers' patented sole technology designed to provide comfort and support, utilized in their popular SKECHERS GO WALK® series.

What could be the potential impact of the lawsuit on Skechers' stock (SKX)?

The outcome of the lawsuit could affect investor confidence, Skechers' market positioning, and its intellectual property strategy, ultimately influencing the stock's performance.