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JUDGE FINDS NIKE WILLFULLY INFRINGED UPON SIDEOUT SPORT TRADEMARK

JUDGE FINDS NIKE WILLFULLY INFRINGED UPON SIDEOUT SPORT TRADEMARK
 Court Orders Nike to Stop Sales of All Side 1 Merchandise
 LOS ANGELES, Dec. 19 /PRNewswire/ -- U.S. District Court Judge David Kenyon has found that Nike willfully infringed upon Sideout Sport, in a trademark dispute between Nike's Side 1 line and Sideout Sport. Late last month, Sideout won a preliminary injunction against Nike for trademark infringement. Yesterday, Kenyon ordered that upon Sideout's posting of a $100,000 bond, Nike will be ordered to immediately stop selling and advertising all Side 1 merchandise.
 Sideout, which is best known for its lines of stylish casual sportswear, has sued Nike for deliberately creating a new line of sportswear and women's athletic shoes marked under a "Side 1" name and design logo calculated to capitalize on Sideout's eight-year reputation of high-quality, fashionable attire.
 In his order, Kenyon said, "Although the court previously ruled that the evidence as to Nike's intent is inconclusive, upon further and considerable reflection, the court finds that it is inconceivable that Nike did not realize how closely its 'Side 1' trademark in its current elongated lettering style resembles Sideout's trademark, even to the extent that the first and dominant half of both trademarks are identical." The court's order raises the possibility that Nike may be liable to Sideout Sport for punitive damages in addition to actual damages.
 J.C. Penny's, Lady Footlocker and Mervyn's stores voluntarily pulled Side 1 merchandise from their shelves nationwide when they heard that Sideout Sport had won the preliminary injunction. With the posting of the bond, Nike will be forced to stop selling Side 1, a major loss for Nike during this busy holiday season. It is expected that this will mean a multi-million dollar loss in revenue for Nike.
 Since 1984, Sideout has been actively marketing its line of clothing through the promotion of beach volleyball tournaments and for the past several years has been the exclusive apparel of world volleyball champion Sinjin Smith. Smith is a part-owner of Sideout Sport.
 Sideout was founded by 29-year old Stephen Ascher, Jr. who created Sideout while a student at University of California, Berkeley. Ascher runs Sideout from a 28,000 square-foot warehouse in Pasadena, Calif. with a staff of 50. A young and energetic company, the average age of Sideout's staff is only 28. Sideout apparel is sold in upscale department stores such as Nordstrom, Dillard's, Bullocks's and Bloomingdales, and in more than 2,000 stores across the country.
 Upon reading the court order, Ascher was so ecstatic that his only comment was, "We just did it!"
 Mark Harmon, Sideout's general counsel said, "with the court's order, Sideout has beaten Nike on all major legal issues."
 -0- 12/19/91
 /NOTE: Photographs available upon request.
 /CONTACT: Steve Ascher, president of Sideout Sport, 818-795-0743; Richard Doyle (attorney), 415-781-1989 or Mark Harmon (attorney), 415-435-8541, for Sideout Sport; or Holly Howe of The Ford Goup, 310-550-6771, for Sideout Sport/ CO: Sideout Sport; Nike ST: California IN: SU:


DM-EH -- LA005 -- 3727 12/19/91 09:05 EST
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Publication:PR Newswire
Date:Dec 19, 1991
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