Crocs’ Beach model shoes “lack individual character” compared with other similar brands. Thus reads a recent ruling of the European Union’s Office for Harmonization in the International Market which has invalidated Crocs Inc’s Registered Community Design.
In consequence, Crocs’ shares dropped $5.00 last Friday, representing a devaulation of over 13% in the worth of the company.
The ruling is fascinating as it is extremely rare for design registrations to be rejected.
This ruling follows the latest round of emnity between Crocs and a Canadian competitor, Holey Soles Holdings. The two companies have been selling essentially the same shoes since 2001. In early 2005, Western Brands, renamed Crocs, filed a lawsuit against Holey Soles in the Federal Court of Canada, and Holey Soles responded by filing for a declaratory judgment from a New York court stating that Holey Soles’ designs do not infringe on Crocs’ intellectual property.
In the latest round, Crocs inventor Scott Seamans filed a deposition admitting that he knew of a “Battiston Aqua Clog” sold in 2001, which is similar to Crocs’ Beach model. It is possible that the corresponding U.S. design patent may also be invalidated.
Personally, I think the clogs are revolting looking. One thing in their favour however; they are less damaging to endangered species than alligator skin shoes!
