Canada’s Holey Soles Wins Preliminary Decision at ITC Over U.S. Shoe Goliath Crocs
On April 11, 2008, the administrative law judge for the United States International Trade Commission (ITC) issued an Initial Determination in favour of Canadian lifestyle company Holeys (formerly Holey Soles) against allegations made by Crocs. At issue were a design and utility patent.
The judge found that Holeys did not infringe either Crocs’ design patent or Crocs' utility patent, and that Crocs' utility patent was invalid because it was an obvious invention. If the judge's determination is confirmed by the Commission, a Final Determination will issue that no Holeys footwear infringed any valid Crocs patent.
Holeys was defending its right to import and sell its iconic colourful foam clogs in the United States after Crocs, in 2006, filed complaints at the ITC against Holeys and 10 other respondents alleging infringement of its ‘858 utility patent and its ‘789 design shoe patent. Holeys is one of a few companies that remain to defend their case.
“We have continued to defend these legal actions because we strongly believe the facts and the law is on our side. We have always believed that Crocs’ claims were part of a business strategy meant to divert resources and attention from building our company. As early as 2002, Holeys was selling the same clog base that Crocs uses, along with several other companies,” said Holeys CEO Joyce Groote. “We are pleased that the judge at the ITC has recognized that Crocs’ was not the ‘original’ and did nothing more than take the obvious step of adding a pivoting strap to an existing clog design."
This latest legal blow to Crocs comes hard on the heels of another loss it suffered in December 2007. Based on a challenge from Holeys, the European Union’s Office for Harmonization (OHIM) invalidated Crocs’ Registered Community Design. Earlier in the same year, the Canadian Intellectual Property Office also rescinded its decision to give Crocs the equivalent of a Design Patent based on the same facts provided by Holeys.
On April 11, 2008, the administrative law judge for the United States International Trade Commission (ITC) issued an Initial Determination in favour of Canadian lifestyle company Holeys (formerly Holey Soles) against allegations made by Crocs. At issue were a design and utility patent.
The judge found that Holeys did not infringe either Crocs’ design patent or Crocs' utility patent, and that Crocs' utility patent was invalid because it was an obvious invention. If the judge's determination is confirmed by the Commission, a Final Determination will issue that no Holeys footwear infringed any valid Crocs patent.
Holeys was defending its right to import and sell its iconic colourful foam clogs in the United States after Crocs, in 2006, filed complaints at the ITC against Holeys and 10 other respondents alleging infringement of its ‘858 utility patent and its ‘789 design shoe patent. Holeys is one of a few companies that remain to defend their case.
“We have continued to defend these legal actions because we strongly believe the facts and the law is on our side. We have always believed that Crocs’ claims were part of a business strategy meant to divert resources and attention from building our company. As early as 2002, Holeys was selling the same clog base that Crocs uses, along with several other companies,” said Holeys CEO Joyce Groote. “We are pleased that the judge at the ITC has recognized that Crocs’ was not the ‘original’ and did nothing more than take the obvious step of adding a pivoting strap to an existing clog design."
This latest legal blow to Crocs comes hard on the heels of another loss it suffered in December 2007. Based on a challenge from Holeys, the European Union’s Office for Harmonization (OHIM) invalidated Crocs’ Registered Community Design. Earlier in the same year, the Canadian Intellectual Property Office also rescinded its decision to give Crocs the equivalent of a Design Patent based on the same facts provided by Holeys.
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