Nike Will Pay $5 Million to Lontex’s Attorneys in Trademark Suit

Nike Inc. must pay $4.99 million to cover the attorneys’ fees and expenses that Lontex Corp. incurred in litigating to trial a dispute over the sportswear giant’s infringement of the smaller company’s “cool compression” trademark.

Judge Michael M. Baylson awarded Lontex about $4.62 million in attorneys’ fees and $369,263 in expenses, according to the order entered Tuesday in the U.S. District Court for the Eastern District of Pennsylvania.

The award excludes the $262,687 in costs for the experts that Lontex hired to testify to its damages at trial.

Baylson previously denied Lontex’s bid to recoup those costs on March 17, finding that Nike shouldn’t have to pay for those experts when the jury had “soundly rejected” their testimony that the damages exceeded $100 million.

The jury awarded $507,000 in damages for Nike’s contributory infringement of Lontex’s “cool compression” trademark on athletic wear. Baylson later increased that amount to $791,000.

Although Lontex sought a new trial on damages and an award of Nike’s profits from the sale of the infringing products, Baylson denied both motions on March 3. Lontex appealed that decision to the Third Circuit on March 16.

Lontex is represented by Troutman Pepper Hamilton Sanders LLP. Nike is represented by DLA Piper LLP.

The case is Lontex Corp. v. Nike Inc., E.D. Pa., No. 2:18-cv-5623, 3/29/22.