The Law Office of Lynnette Ariathurai A Professional Corporation

Nike sues former designers in business contract dispute

In the apparel industry, it is important to stay on the cutting edge of style and design. Therefore, new design and creative talents are always in high demand for companies in the apparel industry in California, as well as other states. The need for new talent seems to be at the center of a recent business contract dispute involving Nike and three of its former employees.

Nike is accusing three of its former designers of conspiring to leave the company in order to start a new design studio with Nike's rival, Adidas. Nike filed a 50-page legal complaint in court against the three former employees. The complaint alleges breach of contract, breach of duty, misappropriating trade secrets, as well as various other allegations of wrongdoing. The complaint is asking for monetary damages up to $10 million.

The lawsuit filed by Nike describes Adidas as a company in desperate need of finding new talented designers. The three designers in question had apparently made names for themselves by creating designs for Nike, which had garnered considerable acclaim and popularity. Adidas has denied any involvement in any wrongdoing. However, Adidas did admit it that it hired the three designers to open a new design studio.

On the other hand, the contractual agreements in question are those between the three designers and Nike. The shoe company, just like any other company in California or elsewhere, has the right to protect its intellectual property in the business contract dispute. However, the company will have to present its case by applying contract and business law to the specific circumstances of the case. This may require significant legal research, as well as knowledge of correct court procedures.

Source:, "Nike files breach of contract lawsuit against former designers", Allan Brettman, Dec. 9, 2014

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