L.A. Gear Will Pay $425,000 to Rival to Settle Patent Suit

Footwear maker L.A. Gear has agreed to pay $425,000 to settle a lawsuit that accused it of illegally copying the patented design of a competitor’s line of shoes.

The settlement comes two weeks after the U.S Court of Appeals in Washington upheld a lower court’s judgement against Los Angeles-based L.A. Gear.

Lawyers for Avia Group International, the Portland, Ore., sports-shoe maker that sued L.A. Gear, said the case could help curb the sale of so-called knockoffs, or cheap copycat products.

“There are a lot of knockoffs from foreign manufacturers that have been a problem for the large athletic-shoe manufacturers,” said Susan Weller, a Washington lawyer representing Avia. U.S. manufacturers “spend a quite of bit money and time in shoe design,” Weller said. “The designs have become even more crucial to the footwear industry.”

In its suit, Avia, a subsidiary of Reebok International, said the Boy’s Thrasher model introduced by L.A. Gear in 1986 violated the design patents of its Model 750 tennis shoe. The patents included the upper portion of the shoe and the sole. The Boy’s Thrasher line has been discontinued.

In a related action, the companies dropped suits filed against each other concerning L.A. Gear’s Street Slammer and Street Player tennis shoes.

L.A. Gear had sought a ruling that its shoes did not infringe on Avia’s Model 750 patents. Its suit also asked for damages for letters Avia attorneys sent to retailers advising them not to sell L.A. Gear’s shoes.

Avia countersued L.A. Gear and its president, Robert Greenberg, seeking damages for patent infringement.