Case Study : Role of IP and associated rights in corporate growth. Selected company : Nike.

1. Role of Intellectual Property in Corporate Growth
Submitted to : Ms. Amisha Mehta Submitted by : Bittu Singh
Shubham Singh
FPT

2. About the Company : Nike
 American Multi-National Corporation
 Engaged in Design, Development, Manufacturing, world-wide Marketing
and Sales of :
• Footwear, Apparel, Equipment, Accessories and Services
 World’s largest supplier of athletic shoes and apparel
 Major manufacturer of Sports equipment
 Employs more than 60,000 people worldwide
 Most valuable brand among Sports Business Nike Head-Quarters

3. Trademark
 Logo design “ Swoosh ”
• designed in 1971 by a college student
• official registered trademark of Nike since 1995
• also comes with the words “ Just do It ” or “ NIKE ”
• described as “ Living and Vibrant symbol of the firm” by Nike
Nike Logo

4. Trademark
• registered in over 150 countries
• one of the most recognizable and profitable
logos in the world
• helped to bulid a unique identity and Fan-
base for the brand
• utilized to market products
• Important for brand success and competitive
position
Nike Advertisement

5. Patents
 Currently, Nike holds 6675 patents according to the US Patents database.
 These are related to varied areas such as :
• Golf balls
• Colour changing footwear
• System and Wearable Device for analyzing athletic activity
• Microwave bonding of rubber items
• Sports garments with enhanced moisture management properties
• Non-Woven Textile technology
• Footwear with sensors
• Knit component bonding
• Footwear with mono-filament knits

6. One of the Famous Patents
 Exclusive, worldwide license to make and sell footwear
using patented “Air” technology
• process utilizes pressurized gas filled in capsules
• can inflate itself due to properties of inert gas
 One of the most successful shoe lines of the company
• still running high since 1987
Nike Air Max

7. Nike Fly Knit
 Fly Knit technology
• Precise engineering of yarns and fabric variations
• Running footwear
• Weighs just 160 grams
• Precision fit
 Patented with the USPTO
 Used by almost all the top athletes in the world at all the
major sports events
 Most sought after shoe for athletes round the world
Fly Knit Shoe

8. Conflicts : Design Patents
 January, 2016 : Nike sued Skechers for infringing eight of its Design Patents
 Violated Nike’s patents
 Demanded profits from sales
 Seeked order to prevent further sales and damages
 Inference – Aggressive IP protection – helped maintain uniqueness and strategic advantages in
market

9. Conflicts : Trade Secrets
 2014 – Nike sued three former designers who had left the company
 Nike – alleged that the designers sold Trade Secrets to Adidas
- stole trade secrets from its Innovation house “ The Kitchen “
- information about Soccer product lines
 Inference - Active and vigorous IP protection helped Nike to
prevent/minimize its subsequent losses.

10. Conflicts : Copyright
 Michael Jordan “Jump Man” logo
• used by Nike since 1988
• used on a broad range of branded Nike products worth $3.2 Billion of
sales in 2014
 2015 – New York photographer Rentmeester
• claimed Nike was using his photograph of Jordan without permission
• photo taken for a magazine in the year 1984
 However, Nike dismissed the allegations by saying that they were
instead using photos from their arranged photoshoot of Jordan in 1985.
 The Court ruled in favor of Nike.
 Inference : Strong IP culture helped Nike maintain an advantageous
position by not compromising on one of its top brands.
Jump Man Logo

11. Conflicts : Patent
 A German court ruled in favour of Nike by saying that Adidas’
“Adi Zero Prime Knit” violated the patent rights of Nike’s Fly
Knit.
• Adidas was barred from manufacturing and distributing the
shoe for a considerable time in Germany.
 Both shoes – based on the idea of knitting the uppers of a
sneaker
 Injunction helped Nike protect its innovative Fly Knit
technology introduced by it in February 2012.
 Inference – Sound IP system helped Nike consolidate its market
position in this segment.
Nike vs. Adidas

12. Conclusion
 With each subsequent year, innovation is touching new heights in businesses. Nike, too
is a leading innovator.
 The number of patents filed by or granted to Nike is increasing every year.
 Number of patents granted to Nike
• year 2012 – 340
• year 2013 – 60% increase to 540
• rises an average 14% every year
 This helps Nike remain the market leader and churn huge amount of profits.

13. Conclusion : Graphs
Patent Trend Analysis of Nike Growth Chart of Nike for previous years

14. References
Retrieved from :
 http://money.cnn.com/quote/profile/profile.html?symb=NKE
 http://xroads.virginia.edu/~class/am483_97/projects/hincker/nikhist.html
 http://www.wikinvest.com/stock/Nike_(NKE)/Failure_Adequately_Protect_Intellectual_Property_Righ
ts_Adversely_Affect
 http://patft.uspto.gov/netacgi/nph-
Parser?Sect1=PTO2&Sect2=HITOFF&p=1&u=%2Fnetahtml%2FPTO%2Fsearch-
bool.html&r=0&f=S&l=50&TERM1=nike&FIELD1=&co1=AND&TERM2=&FIELD2=&d=PTXT
 http://sneakers.pair.com/airtech.htm

15. References
 http://news.nike.com/news/nike-flyknit
 http://nlipw.com/nike-sues-skechers-for-design-infringement/
 http://espn.go.com/espn/story/_/id/12007269/nike-sues-former-designers-trade-secrets
 http://www.mhc.ie/latest/blog/everybody-jump-us-copyright-infringement-claim-over-nike-air-
jordan-logo
 http://www.highsnobiety.com/2012/09/24/nike-wins-in-court-and-forces-adidas-to-stop-
selling-its-adizero-primeknit-sneaker/
 http://blogs.marketwatch.com/behindthestorefront/2014/04/17/nike-was-awarded-540-patents-
in-2013-heres-what-that-means-for-investors/