Adidas wins $305M verdict from Portland jury

A Portland jury awarded Adidas America Inc. nearly $305 million in a trademark infringement case late Monday.

"It's my understanding that, if it's not the largest, it's one of the largest trademark infringement verdicts ever," said Stephen Feldman, an attorney with Perkins Coie who helped represent Adidas.

In the case, Adidas alleged that Payless ShoeSource Inc. infringed on its patented three-stripe design.

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The verdict included $30.6 million in actual damages, $137 million for willful infringement and an additional $137 million in punitive damages.

"The company is reviewing the verdict and assessing its impact," Topeka, Kan.-based Collective Brands, owner of Payless, said in a statement. "The company believes that the verdict was excessive and unjustified."

"The company will ask the court to set aside the verdict and, if it is not granted, intends to take all necessary steps to overturn it."

"We are very pleased with this result," said Paul Ehrlich, general counsel for Portland-based Adidas North America. "The three stripes are paramount to the Adidas brand, and a very strong and popular brand symbol globally. It is very satisfying for the three stripes to be recognized as a strong trade mark after the court heard detailed evidence over more than three weeks."

Adidas (Pink Sheets: ADDYY) has aggressively defended its three-stripe design in recent years, filing lawsuits against companies such as Steven Madden Ltd. and Skechers U.S.A. Inc.

Adidas is the second largest athletic shoe and apparel company in the world after Nike Inc. (NYSE: NKE), which is based in the Beaverton area.

Payless had $2.8 billion in sales in fiscal 2006, according to the company's Web site. It has more than 4,500 stores across the United States, Puerto Rico, Guam, Saipan, the U.S. Virgin Islands, Canada, Central America, the Caribbean, and South America.