Nike ordered to pay legal fees in trademark dispute with Lontex Corp

A Pennsylvania judge has reinforced a prior ruling requiring Nike to pay attorneys' fees to Lontex Corp following its defeat in a trademark infringement case over the "Cool Compression" mark.

The case, originally filed in 2018, has been drawn out by Nike’s appeals, but the Eastern District Court’s ruling ultimately found that Nike knowingly infringed on Lontex's trademark, according to a report by Yanoo Finance. In addition to its loss, Nike was ordered to cover Lontex's legal costs, as the court deemed the case “exceptional” due to Nike’s conduct during litigation.

The debate over attorneys' fees was remanded to the district court after a ruling called for a clearer justification. It was found that Nike’s behaviour warranted the fees, citing unreasonable delays and a particularly aggressive litigation strategy, which included threats to "kill" Lontex's business through costly legal battles.

Nike was subsequently ordered to pay nearly 5 million dollars in fees plus interest. According to Yahoo, Lontex now has the option to file additional claims for fees incurred during the appeal process, potentially increasing Nike’s financial liability in the case.