Following an Oregon court’s decision that gave adidas the largest trademark award ever in a jury decision in its stripe fight against Payless (see SEW_0819), it was only a matter of time before K-Swiss had some good news. That news came Friday when the company announced that it had won $30 million as part of a 2004 lawsuit against Payless ShoeSource, Inc. over alleged trademark and trade dress infringement. The settlement agreement was spelled out in a filing with the Securities & Exchange Commission. In the lawsuit filed in the United States District Court for the Central District of California (Western District), K-Swiss alleged trademark and trade dress infringement, trademark dilution, unfair competition and breach of contract.

 
As part of the settlement, Payless will have to make its $30 million payment before July 1, 2008, but will have through December 31, 2008 to sell off any remaining infringing inventory. Payless was able to save some face by not having to admit liability as part of the settlement, but did agree to refrain from making, advertising, promoting or selling footwear confusingly similar to that sold by the company, including footwear that bears the K-Swiss's trademark or trade dress.