Saturday, June 04, 2005

Nike: Bradenton, FL company is faking its sneakers

By Michael A. Scarcella
Bradenton (FL) Herald-Tribune

BRADENTON -- Just stop it.

Attorneys for Nike, the worldwide sporting goods company known for its "Just Do It" slogan, have asked a federal judge in Tampa to force a Bradenton-based company to stop making and selling counterfeit Nike shoes.

The sneakers, according to the lawsuit filed Wednesday, bear the famous Nike "Swoosh" logo.

The civil complaint claims Kevin Lance manufactures Nike knockoffs and sells them on Web sites that include ShowMeMyKicks.com, HipHopValley.com and TopSneakers.com.

"The enormous popularity of Nike's products is not without costs, as evidenced by numbers of counterfeiters in the United States and worldwide," said a Nike attorney in Maitland, Michael Holihan, in court papers.

A second defendant, Greg Harmon, works in North Carolina, according to the lawsuit. The pair apparently are business partners, running the same Web-based shoe and clothing apparel company.

A civil suit contains only one side of a dispute; both Harmon and Lance could not be reached for comment Thursday.

Several e-mail messages to their online customer service addresses were not returned.

The 16-page lawsuit does not say why Nike believes the shoes are counterfeit, and the lawsuit does not state the extent of the alleged fraud.

Nike did not return calls seeking comment.

Holihan, who represented Nike in a 2001 lawsuit against a Bradenton jewelry store, said in court papers that fake, poorly made shoes undermine Nike's reputation as a quality sneaker maker.

Selling knockoffs also cuts into money Nike could be making. The company is seeking monetary damages that are capped at $1 million per trademark violation.

Lance's Bradenton address listed in the lawsuit leads to offices for a mail-forwarding business. Several employees there on Thursday said they'd never heard of him. A company called Slam Dunk Properties owns the building.

On the Web site "ShowMeMyKicks.com," this disclaimer is presented to customers who read the 2,564 words in the user agreement: "We DO NOT GUARANTEE THE AUTHENTICITY of any products purchased through ShowMeMyKicks online."

The company is not affiliated with Nike.

According to the Web site, the shoes are factory variants that are "custom altered." The merchandise comes in "unique and unreleased colors."

The terms say "unacceptable reasons" for a refund or exchange include: the product's color has "minor" differences from the picture shown online; the merchandise doesn't fit; and the product was damaged during delivery.

Nike has made a name for itself suing people across the country for trademark infringement, according to published reports.

Several years ago, a Bradenton jewelry store was sued for selling items bearing Nike's "Swoosh" logo, according to court records. A judge ordered the company, Jewels Enterprises of Bradenton, to stop selling goods with the Nike logo.

An attorney in that case, J. Michael Shea, said Thursday that powerhouse companies like Nike use federal lawsuits to intimidate mom-and-pop shops.

He said that Nike's objective is twofold: to stop the retailer from selling counterfeit goods and to get store owners to divulge where they get their stuff.

"They are trying to get at the bigger fish, and they sue mom and pop to disclose where they got it from," Shea said. "Most of the time, mom and pop have no idea."

Small retailers, the attorney said, may be reluctant to reveal the source of their merchandise for fear of jeopardizing the welfare of their own business.

Some cases end in a nominal settlement. Shea's client paid $2,500 to Nike.

Customers are the ultimate losers when a company sells counterfeit goods, the International Trademark Association says.

"They get a bad product that is not covered by warranty. They lose their money," said Faisal Daudpota, an anti-counterfeiting expert with the association.

1 comment:

  1. I have bought a pair or 2 or real Nike's that were poorly made! I don't think the fake shoe guys can hurt them too much.

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