Nike Case Could Spark More IP Validity Challenges

Law360, New York (October 31, 2012, 8:53 PM EDT) -- A U.S. Supreme Court case set for oral argument next week involving Nike Inc. could require intellectual property plaintiffs to defend the validity of their intellectual property even after agreeing not to sue an accused infringer, eliminating a way to escape validity challenges and forcing IP owners to rethink their litigation strategy, attorneys said.

In the case, slated for argument on Wednesday, Nike sued rival shoemaker Yums LLC over a sneaker trademark, leading Yums to counterclaim that the trademark was invalid. Nike then executed a covenant not to sue...
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