Spains Supreme Court ruled in 1999 that the Nike brand name did not in fact belong to Nike, Inc., at least if the company wanted to market apparel in Spain. Cidesport, a company that had been a licensee of the Nike name was said to be the lawful owner of the trademark. Nike was permitted to use the Nike Swoosh on apparel but not the word “Nike.”
Nike has been fighting the decision ever since. This past week, Spains highest court overturned the previous ruling and stated that Nike is once again allowed to put its name on apparel. In part the ruling read, “”The Constitutional Court awards the protection sought by Nike against Cidesport and cancels the (Supreme Court's) ruling.”
In other Nike Europe news, the company is reportedly closing two stores in Paris over a contract dispute with its franchise partner, Alain Adjadj. The Nike stores in the Saint Germain quarter and on the Champs-Elysees are to be closed after only a year of operation.
Nike France reportedly said that the closures had nothing to do with plans to open 15 franchise stores in France in the next two to three years. The company said the stores were performing well, but Mr. Adjadj claimed that sales were far below expectations.
