Athletic wear producer Lontex Corp. filed a lawsuit against Nike Inc. for allegedly using its "Cool Compression" trademark without permission, according to court documents.
In the complaint filed Dec. 31 to the U.S. District Court for the Eastern District of Pennsylvania, Lontex said it obtained federal trademark registrations for the name "Cool Compression" between 2006 and 2008 for a variety of clothing and accessories. However, it discovered in January 2016 that Nike had been selling products under the "Cool Compression" brand since October 2015.
Lontex said that the sportswear giant knew the trademark belonged to Lontex and was aware of the "Cool Compression" mark registrations that specifically protect the mark with respect to the sale of athletic apparel, yet still used the name without authorization or approval.
The accused Nike goods are in the same class of apparel identified in Lontex's trademark registrations. Nike had been selling sports apparel under the "Cool Compression" trademark directly to consumers and also through authorized distributors and retailers, according to the complaint.
Lontex said Nike's unauthorized use of the trademark "aggravates consumer confusion" and gives the impression that Nike is associated with Lontex. It is seeking an injunction and statutory damages of up to $2 million for trademark infringement per type of goods or services, on top of legal and other fees.
Nike did not immediately respond to a request for comment from S&P Global Market Intelligence.