Canada’s Holeys Wins Decision at ITC Over U.S. Shoe Goliath Crocs
On July 25, 2008, the United States International
Trade Commission (ITC) issued its final determination terminating its
investigation of Canadian lifestyle company Holeys (formerly Holey Soles) regarding
allegations of patent infringement made by Crocs. The ITC found that Holeys clogs do not
infringe any valid Crocs patent.
Holeys was defending its right to
import and sell its iconic colourful foam clogs in the United States after Crocs, in 2006,
filed complaints at the ITC against Holeys and 10 other respondents alleging
infringement of its utility and design patents. While some companies have
folded under the crippling costs of litigation, Holeys was one of the five companies
remaining to defend their rights to sell shoes in the US.
"Shoes now make up only one of
Holeys' diversified lines of lifestyle collections, but we stood our ground
throughout this hugely expensive and drawn out process. We believed the facts and law were on our
side. Our integrity is a key value for
Holeys' employees and our expanding base of loyal customers," said Holeys
CEO Joyce Groote. "Holeys is now a distinctly different company with its
own markets. We have responded to popular demand to become a world leader
designing a new generation of foam lifestyle products for fun-loving adults and
children."
CEO Groote added: "Holeys had its best year ever in 2007, and 2008 looks even brighter. Holeys’ Home and Garden, and our Recreation and Retreat lines, plus the too-cute-for-words kids' lines have been a hit. Now that the ITC has spoken, Holeys will be focussing on more innovative product lines as we continue to evolve."
For Crocs, however, this latest legal blow comes hard on the heels of another loss it suffered in December 2007. Based on a challenge from Holeys, the European Union’s Office for Harmonization (OHIM) invalidated Crocs’ Registered Community Design. Earlier in the same year, based on information provided by Holeys, the Canadian Intellectual Property Office also rescinded its preliminary decision to give Crocs patent rights.
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