Crocs is suing discount store Daiso in the United States, accusing the Japanese retailer of copying its classic clogs design.
The complaint, filed in a California District Court on June 15, claims that Daiso created and sold knock-off versions of Crocs called “Casual Sandals for Men” and “Lined Casual Clog.”
The Daiso products, which Crocs claims is “virtually identical to the design of Crocs’s three-dimensional design marks,” are reportedly made in China and sold at a retail price of $3 to $3.50. Crocs said Daiso has attempted “to free-ride and trade on the significant goodwill developed by Crocs through its innovative footwear.”
“This infringement and dilution scheme is intended to confuse, deceive, and mislead consumers into drawing associations between Crocs and Daiso and their respective footwear products so that Daiso can enjoy unfair gains and profits at the expense of Crocs,” the company, which is being represented by Washington, D.C.-based law firm Arnold and Porter Kay Scholer, said in a statement.
Daiso’s products have reportedly caused confusion among some consumers, with Twitter user @TAFLegal sharing screenshots of people’s posts saying they bought cheap Crocs footwear from the Japanese discount store.
The new lawsuit came almost a year after Crocs sued 21 companies in July 2021 for infringements of its registered trademarks. Some of the defendants involved in the lawsuits, which were filed in several U.S. District Courts, include Fujian Huayuan Well Import and Export Trade Co., Ltd., Royal Deluxe Accessories, LLC and Walmart, Inc.
Crocs saw a massive surge in sales during the COVID-19 pandemic. In the first quarter of 2021, the Broomfield, Colorado-headquartered company experienced a 64 percent climb in sales, reaching $460 million. Crocs sold over 69 million pairs in 2020 and made $1.4 billion in revenue as the world went into lockdown.
Featured Image via Phillip Pessar (CC BY 2.0)