Former NFL Player Takes on Nike, Alleging Unfair Competition and Trademark Infringement
The sports apparel industry is a ruthless business, where the big dogs control the supply chain and the retail outlets, and few are willing to challenge their dominance.
Count former San Diego Chargers player Shawne Merriman as one of the few.
Earlier this week, the founder of Lights Out Holdings, LLC took the venerable Nike to task, suing the corporate giant for unfair competition and trademark infringement in California Federal Court.
Merriman is seeking immediate injunctive relief to stop Nike’s actions, as well as millions of dollars of damages, including “statutory damages of up to $2 million per content mark per type of goods or services sold, offered for sale or distribution,” according to the complaint.
Merriman contends that in late 2006 he entered into negotiations with Nike to sell his LIGHTS OUT line of apparel. Negotiations between Merriman and Nike were unsuccessful, according to the complaint. Nevertheless, “Nike decided to use the LIGHTS OUT clothing brand anyway.”
Merriman contends that he “earned” his “Lights Out” nickname in high school when he “knocked out four opposing players in one football game. I made things official by securing the federal rights to my LIGHTS OUT trademark and have been using it ever since. I am suing Nike as a last resort, not only to protect my brand, but to protect other athletes who are trying to develop a brand.”
The LIGHTS OUT trademark registration covers a broad range of apparel, including “clothing for men, women and children, mainly, bottoms, boxer shorts, caps, hats, headwear, nightwear, shirts, shorts, sleepwear, sweatshirts, tank tops, tops, t-shirts, underwear,” according to Merriman. He added that because his company “has had rights in the LIGHTS OUT mark for so long, the trademark has been deemed incontestable by the U.S. Patent and Trademark Office.”
The suit demands “a preliminary and permanent injunction from trademark infringement and related unfair business practices by Nike in addition to a damages amount to be determined at trial, disgorgement of Nike’s profits and treble damages for willful infringement.”
Merriman played for the Chargers from 2005 to 2010. He even filmed commercials for Nike.
The case has been assigned to San Diego Federal Court Judge John Houston.
