Nike and Adidas leverage their trademarks and product names to establish strong brand identities and sustain their competitive dominance in the global sportswear market. To better understand how these brands utilize trademarks as a competitive strategy, it is essential to first examine their most recognizable trademarks.
This article will discuss how Adidas and Nike use trademarks to secure a competitive edge in the sports industry.
Trademark Strategies of Nike and Adidas
A trademark is any visible sign capable of distinguishing the goods (trademark) or services (service mark) of an enterprise and shall include a stamped or marked container of goods.1 A registered trademark confers upon the registrant the exclusive right to use the mark as well as the corresponding right to prevent others from using or exploiting the mark.2
Nike
Nike has a powerful brand identity through its strategic use of trademarks which translates to a strong market presence as well as legal protection.3 Here are some of Nike’s trademarks:
- Swoosh Logo. Nike’s swoosh logo is one of the most recognizable symbols in the world.
- Just Do It. Nike’s iconic slogan “Just Do It” serves as a powerful marketing tool promoting motivation, performance, and empowerment.
Adidas
Adidas employs trademark strategies to protect its brand identity, maintain market dominance, and prevent infringement. Below are Adidas’ trademarks:
- Three Stripe’s Logo. The Three Stripes design is Adidas’s most iconic trademark, instantly recognizable worldwide.
- Trefoil and Performance Logos. Adidas owns the Trefoil logo (used for lifestyle products) and the Performance logo (used for sports gear). These trademarks help distinguish different Adidas product lines while maintaining brand consistency.
- "Adidas" Name – The company’s name itself is a registered trademark, ensuring exclusive rights to its use in branding, marketing, and merchandising.
Trademark Disputes and Legal Battles
One of the most iconic legal disputes between Nike and Adidas is the so-called “Stripe” dispute. This case began in 2022 when Adidas filed a lawsuit before Düsseldorf Regional Court. While Nike was initially prevented from using striped patterns on five variations of its jogging pants in Germany, on appeal, the court reversed its ruling. Thus, permitting Nike to market, possess, and advertise four of the five contested designs.
According to the appellate court,4 a pair of Nike track trousers violated Adidas’ trademark rights due to a striking similarity between the three stripes on the trousers and Adidas’ iconic trademark. The court emphasized the importance of assessing the overall impression that disputed designs create on the target audience. The court noted that the similarity of the trousers’ three stripes and Adidas’ three-stripe mark outweigh the difference – even if the consumers do not immediately recognize them.
Nonetheless, the Court clarified that not all striped patterns on sports trousers are automatically associated with Adidas. To successfully claim trademark infringement, Adidas must still provide strong evidence of consumer confusion regarding the product’s origin.
Key Factors which the Court took note of:
The court took note of various factors in determining Nike’s trademark infringement. These include:
(a) the arrangement and positioning of the stripes;
(b) the overall design of the garment; and
(c) the inclusion of other brand logos.5
In stark contrast, the court in holding that Nike’s other 4 stripe variations did not violate Adidas’ trademark, the Court held that factors such as the stripe width, spacing, and color contrast, effectively differentiated Nike’s design from Adidas’ trademark. The court likewise emphasized that the clear prominence of Nike’s distinctive logo reinforced the argument that the stripes were simply considered decorative stitching.
Conclusion
Nike and Adidas use trademarks to protect their brand identity and market dominance, even as far as taking legal recourse. This further shows how trademarks serve as both legal protections and competitive tools in the sportswear industry, and how these brands ultimately use their marks to their advantage.
To know more about trademark law, book a consultation with a trademark attorney. You may also email us at admin@pinollaw.com.
1 Intellectual Property Code of the Philippines, §121
2 https://www.ipophil.gov.ph/trademark/
3 Nike v. Adidas. https://bir.ch/blog/nike-vs-adidas
4 Nike partially wins Appeal over Stripes Dispute with Adidas. https://www.reuters.com/business/retail-consumer/nike-partially-wins-appeal-over-stripes-dispute-with-adidas-germany-2024-05-28/Accessed on 03 February 2025
5 Nike vs Adidas: A Trademark Dispute Battle Over Stripes! https://tennantip.co.uk/2024/08/12/nike-vs-adidas-a-trademark-dispute-battle-over-stripes/
