Columbia Sues Crocs Over Trade Secrets

Crocs once again finds itself the target of a lawsuit, this time filed by Columbia Sportswear.

This go around, however, is not about safety concerns on escalators.

Columbia’s lawsuit claims that Crocs siphoned off trade secrets, interfered in a contractual agreement, and aided and abetted in a breach of duty and loyalty. The suit seeks $310,000 in damages as well as a halt in sales of specific footwear models and the forfeit of profits.

Columbia alleges that footwear designer Brian O’Boyle began working for Crocs while still employed by Columbia. So Columbia filed a lawsuit against O’Boyle in August.

According to Columbia, Crocs “earned $10 million in revenue and $3 million in profit on four models” incorporating O’Boyle’s designs: the Electro clog and the Prepair collection.

Neither Crocs nor O’Boyle have commented on the lawsuits.

"We just can't allow a competitor to sneak in the back door to take advantage of the investment we made," said Peter Bragdon, general counsel and vice president for Columbia.

The lawsuit is a distraction for Crocs, which is currently battling Porsche in a German court over the use of the name, “Cayman.”

While cost-cutting measures have improved Crocs economic performance over the last two quarters, analysts expect Crocs to return to a loss during the 4^th quarter.

Though the Porsche lawsuit is laughable, Columbia is leveling very serious allegations at Crocs.

No word as yet regarding whether Crocs will fight these allegations or settle out of court.