Skechers Sues Steven Madden, Says It Infringed Walking Shoe Patents--Update

By Tess Stynes and Sara Germano 

Skechers USA Inc. said it filed a lawsuit alleging that a footwear style sold by rival Steven Madden Ltd. infringes patents for the company's walking-shoe line and other products.

Manhattan Beach, Calif.-based Skechers is seeking an injunction against the Setta line of footwear sold under the Steven by Steve Madden line. Skechers also is seeking compensatory and punitive damages in the suit, though further details weren't provided.

A Steven Madden spokesman couldn't be reached for comment.

Skechers, which sells casual and fitness shoes, has continued to report strong sales in recent quarters. The company recently surpassed Adidas AG as the second-largest sports footwear brand by U.S. market share, behind only Nike Inc, according to retail tracker NPD Group.

Much of the company's growth has been driven by Skechers's GOwalk line of competitively priced casual athletic shoes. In 2014, Skechers-sponsored marathoner Meb Keflezighi became the first runner to win the Boston Marathon in the company's shoes, as well as the first American to win the race in 29 years.

Also giving Skechers a lift has been the rise of the so-called athleisure trend--whereby sportswear has become appropriate for everyday fashion, even at the office. The demand for lower-priced sport-styled footwear has upended the running shoe industry, as more affordable brands crowd into the athletic category and demand for higher-priced premium sneakers slows.

Skechers' sales jumped more than 40% to $768 million for the first three months of the year, after hitting a record $2.4 billion in 2014.

Steven Madden in March reported earnings and sales that the company's chief executive said met expectations, following a difficult 2014 hurt by weak fashion trends, production delays on goods from Mexico and the West Coast port slowdown.

Write to Tess Stynes at [e-mail] and Sara Germano at [e-mail]

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