Arc'teryx wins summary judgment against Adidas over Terrex store in Vancouver

Adidas must cover the sign of its Terrex store. This was decided by the Supreme Court in Vancouver following a court order from rival sportswear manufacturer Arc'teryx.

Arc'teryx's parent company, Amer Sports Canada, filed a lawsuit last year against the international sportswear giant's sub-brand, claiming that Adidas would "create consumer confusion" with its Terrex-branded store on West 4th Avenue. Terrex opened a store a year ago a few doors down from Arc'teryx. Like Arc'teryx, the store sells outdoor products.

According to the court filing, Adidas' socalled "performance bars" - the distinctive three stripes in a triangular formation - are too similar to the letter "A" of Arc'teryx's logo. "When one places an image of the performance bars and Terrex trademarks next to an image of the Arc'teryx trademark, the similarity between the two and the likelihood of confusion is immediately obvious," the judge ruled. This combined with the fact that Adidas also does not have a proper trademark registration for Terrex in Canada, has resulted in the requirement to cover the Terrex logo.

"Adidas knew full well that it did not have a trademark registration in international class 35 for its Terrex brand when it opened its new store using the combination performance bars/Terrex as its store banner and expressly chose not to use the "Adidas" brand in that store banner, even though the store was located on the same block, just a few doors down from the Arc'teryx store on W. 4th Ave. in Vancouver," the judge stated.

Arc'teryx presented the court with evidence from private investigators who said Terrex store staff admitted that at least 100 people entered the store thinking they were walking into an Arc'teryx store. The brand claimed to have suffered damages from Adidas' "trademark infringement", though Arc'teryx must first prove this in order to receive a sum of money. Adidas has denied all allegations of trademark infringement. If Adidas gets the proper trademark registration for Terrex, the ban on the sign could be dropped.