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Crocs Sues Five Below Over Clog Design
Developing
In Short: Crocs claims that the similarities in design could mislead consumers into believing that Five Below's products are affiliated with Crocs.
Crocs and its subsidiary Jibbitz have filed a lawsuit against Five Below, alleging that the retailer's Juniors Charm Clog and related accessories infringe on their trademarks and patents.
According to court documents, Crocs claims that Five Below acknowledged receiving a letter detailing intellectual property concerns but continued to sell the disputed products.
The lawsuit asserts that Five Below was attempting to capitalize on Crocs' brand investment by selling similar-looking footwear at a lower price point.
Five Below lists its Juniors Charm Clog for $7, while Crocs' Kids Classic Clog sells for $39.99, and the company's adult clogs generally cost between $50 and $65.
Crocs and Jibbitz are seeking a jury trial and unspecified damages, including alleged lost profits.
The lawsuit also targets the charms sold with Five Below's clogs and a Novelty Shoe Purse, which Crocs says copies elements of the Classic Clog and a Crocs bag charm.
Crocs, which sells about 150 million pairs of shoes annually and generates more than $4 billion in annual sales, filed the lawsuit in the District Court for the District of Colorado on September 8.
What this adds
While Five Below is known for its lower-priced products, the case underscores the potential for legal challenges when designs are perceived as too similar.
Background
Five Below, Inc. is an American chain of specialty discount gift shops that prices most of its products at up to $5, plus a smaller assortment of products priced up to $40. Founded in 2002 by Tom Vellios and David Schlessinger and headquartered in Philadelphia, Pennsylvania, the chain is aimed at tweens and teens.
What's still developing
- Crocs says those similarities could lead consumers to believe the Five Below shoes are affiliated with Crocs.