It seems the two companies are more likely to find themselves in court against each other these days, but a U.S. District Court magistrate in New York made the worlds two largest athletic brands partners of sorts — at least for a day — after recommending that Nike, Inc. and adidas-Salomon AG be awarded a total of $38 million in damages and fees stemming from sales of counterfeit apparel, footwear, balls, and accessories bearing the logos of the two brands.
adidas would receive $22 million in the case and Nike, Inc. was expected to receive $16 million. The recommendation, handed down February 27 of this year, is based on a formula of $1 million per use of an infringing trademark.
A preliminary injunction against the defendants had been issued in November 2000 and the case has taken numerous twists and turns since that time. In the end, the Magistrate issued a recommendation that supported statutory damages in lieu of damages based on profits because of the inability to rely on accurate accounting. At least one defendant was suspected of presenting forged documents in the case.
The defendants included MHK Products Inc., Transfund Capital LLC, and individual Jay Enis. A second group included Rosson Sport Inc., Top Brand Co., Global Surplus Inc., and individuals Vincent Militano and Hanoch Rosner. The “Enis Group” would pay $17 million in statutory damages and the “Rosner Group” would pay $21 million in statutory damages.
The groups would also be on the hook for roughly $248,000 in fees and expenses. The defendants were given ten days to respond to the report and recommendation issued by the Magistrate.
