SKECHERS USA, Inc. stated that it denies all trademark infringement, unfair competition, trademark dilution and false advertising claims filed against it by ASICS America Corporation and ASICS Corporation (Japan) on January 26, 2007 in the U.S. District Court, Central District of California. ASICS alleges that several SKECHERS styles bear a stripe design similar to an ASICS stripe design. SKECHERS “vehemently denies the allegations and is preparing to defend its shoes and customers in court.”

“We believe that this lawsuit is completely without merit and will vigorously defend ourselves and our customers against such baseless allegations,” says Philip G. Paccione, General Counsel and Executive Vice President of SKECHERS. “Our stripe design does not look like the ASICS trademark; in fact, on the shoes in issue, our differences are patently obvious. Our designs use one horizontal stripe while ASICS uses two horizontal lines – a prominent feature of the ASICS trademark. In addition, our designs do not mimic the curves and contours of ASICS’ design. There are many differences.”

Paccione continued: “It is incredulous for ASICS to state in a press release that SKECHERS is trying ‘to free-ride on the ASICS brand image and good will.’ As owners of numerous famous trademarks and other intellectual property in the footwear industry, SKECHERS respects the trademarks of other brands and spends tens of millions of dollars each year to prominently brand and distinguish its own products from competitors. And as a practical matter, there is no possibility that any trade or individual consumer will be confused by the SKECHERS design. SKECHERS footwear and packaging are prominently branded with the globally recognized SKECHERS name and trademarks at every turn, which ASICS conveniently omitted from their complaint. We believe that this lawsuit is an attempt by ASICS to monopolize the use of commonly used stripe designs on footwear and undermine legitimate competition by using the courthouse.”