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Industry News

Adidas case highlights benefits of incorporating in Delaware

Adidas and Under Armour are currently locked in a dispute about mobile applications.

Adidas and Under Armour are currently locked in a dispute about mobile applications.

Adidas, the world's second largest manufacturer of sporting apparel, is suing Under Armour Inc., claiming that the company created products that infringed on Adidas' patents.

The patents in question  cover Adidas' mobile application products, specifically those tracking information gathered during workouts, such as heart rates and calories burned. Under Armour provides similar functionality in chest straps and wrist watches it markets under its Armour39 brand. MapMyFitness, an app created by Under Armour, currently has roughly 20 million users globally.

These items are too similar, according to the legal team representing Adidas. While many fitness gear manufacturers are making strong inroads into the mobile development game, they believe the particular techniques used by Under Armour bear too close of a resemblance to software already patented by Adidas. 

Adidas believes that Under Armour may have been privy to inside information. Under Armour's current director of research was once employed by Adidas's German affiliate. 

"Accordingly, Under Armour, by and through its director of innovation and research, has direct knowledge of Adidas' patent portfolio," the company said.

As so many high level business disputes are, this case is being tried in Delaware.  While things don't seem to be currently working out very well for the two fitness giants (ironically), everything in its history suggests the state's court system is well-equipped to come up with a fair and judicious solution to this most recent legal spat. Access to the wealth of case history and the highly qualified judges employed by the state is one of the primary benefits of incorporating in Delaware.