Crocs Settles Australian Trademark Infringement Lawsuit Over Famous Clog Design
As one of the most easily recognizable footwear brands in the world, Crocs, Inc. has a coveted design and brand to protect. Crocs is the owner of a registered trademark for its well-known footwear shape and for the word CROCS. However, for global companies with the exposure and brand recognition of Crocs, protection in a single country is not enough. Trademarks and patents are country specific, so it is highly imperative to file protections in each country operated in.
Crocs has been operating in Australia since 2005 as a subsidiary called Crocs Australia Pty Ltd. In 2021, Crocs, Inc. initiated legal proceedings for trademark infringement against the Australian company Mosaic Brands Limited.
Crocs has a unique IP strategy that involves protecting the unique shape of its shoes through trade-dress trademarks in multiple countries. Crocs filed trademark applications because trademarks last perpetually as long as the mark is still in use. Patents, on the other hand, have a limited lifespan.
The lawsuit alleged that Mosaic infringed on the clog shoe shape that Crocs is known for. The Australian brand’s design was deceptively similar to Crocs, according to the infringement claim. In addition to the similarity in design, Mosaic was also describing their shoes as having a classic clog design. Crocs believed the claim was infringement on its shoe style named the “Classic Clog.” Crocs also claimed that Mosaic breached the Australian Consumer Law and was guilty of “passing off.”
Australia’s Trademark Protections
In addition to typical trademark protections, the Australian Consumer Law covers issues like consumer rights regarding the purchase of goods and services, product safety laws, and enforcement of violations. Crocs filed its suit based in part on the fact that Mosaic’s shoes could be deceptive to consumers who might mistake them for Crocs and were committing trademark infringement. In addition, the suit was based on a violation of the Australian Consumer Law because it also states that companies must not engage in misleading or likely misleading commerce behavior.
The Outcome of the Crocs and Mosaic Lawsuit
The two companies were able to reach a settlement and avoid litigation. One of the stipulations of the agreement is that Mosaic will stop production and sale of the footwear in question, as well as various similar styles, by the end of 2024.
This is not the first time Crocs has been forced to defend its trademarks. A similar case involving the shoe company occurred in 2021 when it filed a lawsuit against numerous companies that were suspected of infringing on Crocs’ trademarks. The companies included Walmart and Hobby Lobby.
Protection
Widespread brand recognition comes with risks like trademark infringement, which is why protecting your intellectual property is crucial if you are looking to expand into foreign markets.
The trademark attorneys at EmergeCounsel have extensive experience protecting IP for brands and businesses. Contact us today for a free consultation to discuss how we can help you protect your brand’s trademark.