October 22, 2014

Revisiting Reebok's Rebrand and Converse's Trademark Infringement Cases

by Guest Blogger


Back in March, we wrote about Adidas's attempt to rebrand Reebok with a new focus on fitness.

Earlier this week, the Wall Street Journal reported that a group of investors including Jynwel Capital and funds with ties to the government of Abu Dhabi plan to offer Adidas $2.2 billion for Reebok. As you may recall from our prior post, Adidas purchased Reebok for $3.8 billion in 2005, so the potential offer falls well short of what Adidas paid for the company almost a decade ago. Therefore, this next statement might surprise you:

The rumored $2.2 billion offer for Reebok is a sign that the rebrand is working.

Reebok's sales have increased for five quarters in a row with revenue rising 6 percent to over $911 million in the first half of 2014. Because its profitability is improving, pundits are predicting that Adidas will reject the offer. Several reports indicate that Adidas believes it finally has the brand on the right track with its emphasis on fitness and its affiliation with the increasingly popular CrossFit movement.

Pivoting to another shoe-industry update, last week, I discussed Converse's all out effort to protect the Chuck Taylor All Star with Colin O'Keefe of LXBN. In the brief interview, we discussed Converse's potential for success based on a similar lawsuit filed in 2011 by Christian Louboutin against Yves Saint Laurent.

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