A court-ordered review has concluded that Nike Inc. knowingly violated the trademark rights of Norristown-based Lontex Corp., owned by Efraim Nathan, reports Joseph N. Distefan for The Philadelphia Inquirer.
Nike copied Lontex’s “Sweat It Out” knit garments used for athletic recovery. In 2021, Lontex won a federal jury verdict against Nike for trademark infringement. Nike appealed the decision, particularly regarding the legal fees awarded to Lontex’s lawyers.
Jane Cutler Greenspan, a retired Pennsylvania Supreme Court justice, has recommended that Nike pay millions in legal fees to Lontex’s attorneys. Greenspan’s report highlighted Nike’s “reckless indifference”. She says Nike attempted to drown Lontex in expensive litigation to deter the smaller company from pursuing the case.
“In the world of sports apparel, with the same customer base, Nathan’s trademark was an edge that Nike did not see fit to respect,” she added.
This behavior, according to Greenspan, justifies an “exceptional” payout in attorney’s fees.
Nathan, who founded the company in 1989, runs his business from his office in Norristown. Despite the lawsuit, he continues to produce his high-quality garments and counts NFL and NHL teams among his customers. However, he has struggled to compete with Nike’s large-scale production and exclusive contracts with professional teams.
The case will return to federal court to finalize the award, with both sides expected to respond by mid-October.
Read more about the battle between Lontex and Nike at The Philadelphia Inquirer.
