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Case 3:15-cv-01741-JE

Document 1-23

Filed 09/14/15

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EXHIBIT B

SETTLEMENT AGREEMENT
adidas and Skechers USA, Inc..
THIS AGREEMENT is entered into this
day of July 1995 by and between adida.s AG, a
joint-stock company, wIth a place of business at Postfach 1120, D-91072, Herzogenauracl:z,
____

Federal Republic of Germany and adidas America, Inc., a Delaware corporation, with a place oi
business at 541 N.E. 20th Avenue, Portland, Oregon97232 (collectively referred to hereinafter ~s
“adidas”). and Skechers USA, Inc., a California coiporation, with a place ofbusiness at 228
Manhattan Beach Boulevard. Suite 200, Manhattan Beach, California.
WHEREAS, adidas commenced an action in the United States District Court, District ofOregc a
against Skechers under Civil No. CV 95-0037-ST. dated January 12, 1995, alleging, inter alia,
that Skechers has engaged in certain acts that violate Sections 32 and 43(a) of the Lanham Act.
and federal and state laws prohibiting icts of~ünfaircompetition (the “Civil Action”); and
WHEREAS, Skechers denies such allegations; and

WHEREAS, it is the judgment ofall parties hereto that their respective interests would be best
served by resolution of the issues raised in adidas’ complaint without the necessity of a hearin.;
or trial;
NOW, THEREFORE, the parties have agreed to settle their dispute under the following terms
and conditions:
1.

adidas agrees to discontinue the Civil Action against Skechers with prejudice;
Concurrently with the execution ofthis Agreement, the parties shall execute a Stipulat on
of Dismissal with Prejudice in the fomi shown and attached hereto as Exhibit 1. Ater
Wynne Hewitt Dodson & Skerritt, counsel for adidas, shall promptly file Exhibit I wi’li
the Court.
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I

2.

Skechers acknowledges that adidas is the exclusive owner ofthe THREE STRIPE
DESIGN. Skechers agrees riot to use the THREE STRIPE DESIGN or any mark
confusingly similar thereto to the extent that any form of that mark is entitled to
protection under state or federal law, and Skechcrs agrees not to challenge or contest, Df
assist another in challenging or contesting, adidas’ exclusive rights in and to the THR 3E
STRIPE DESIGN mark. For purposes ofthis settlement only, the THREE STRIPE
DESIGN is defined as three parallel stripes ofu.niform width.. By way of illustration,
several variations of the THREE STRIPE DESIGN are shown and attached hereto as
Exhibit 2.

3.

Skechers agrees to cease distribution of its KARL K~NIsport shoe, style ~ 4712, shwn
and attached to adidas’ complaint as Exhibit 1, Page 1. Skechers warrants and repre~~nts
that there has been no thither importation, shipment., manufacture, distribution, or sal s of
such footwear since the service of the Civil Action. Skechers further warrants and
Exhibit 17
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Case 3:15-cv-01741-JE

Document 1-23

Filed 09/14/15

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represents it has not, nor any party under its control, placed any additional orders or
otherwise increased its inventory ofsuch footwear.
4.

The parties have agreed that jurisdiction is retained by-the United States District Court,
District of Oregon to enforce this Agreement.

5.

The parties shall be solely responsible for all of their own costs, attorneys’ fees and
expenses incurred in connection with the Civil Action and settlement of this matter.

6.

Each party represents, warrants and agrees that it has the full right and authority to enter
into this Agreement, and the officer, employee, agent or other representative executing
this Agreement on its behalf has the full right and authority to do so,and to fully cornrn.t
arid bind it to this Agreement.

7.

Any amendment, modification or waiver ofany terra or condition of this Agreement rmist
• be in writing and signed by authorized representatives of all parties. No amendment,
modification or waiver of any term or condition of this Agreement shaft be made orally or
implied from conduct or otherwise; and any such attempted amendment, modification cr
waiver shall be null and void, and of no force or effect

8.

This Agreement shall inure to the benefit ofand be binding upon each ofthe parties, an I
each of their officers, directors, partners, employees, agents aiad attorneys; their
predecessors, successors, heirs, assigns; their parent, subsidiary and affiliated
corporations or businesses; and all persons and entities acting by, through, under or in
concert with them or any of them.

9.

if any party brings an action arising out ofor relating to this Agreement, the prevailIng
party shall be entitled to recover its costs and expenses, including reasonable attorneys
fees, incurred in connection with such an action.

10.

This Agreement shall be construed in accordance with, arid all disputes hereunder shal be
governed by, the laws of the State of Oregon. Any rule of construction disfavoring the
drafting party shall not apply in the construction of any provision of this Agreement.

11.

This Agreement may be executed in one or more counterparts, all of which taken together
shall be deemed one original.

12.

This Agreement is the final written expression, and the complete arid exclusive statem~nt,
of all of the agreern iits, conditions, promises and covenants among the parties with
respect to the sub’ ect matter hereof. This Agreement supersedes all prior or
contemporaneou.3 agreements, negotiations1 representations, understandings and
discussions between the parties and/or their respective counsel with respect to the subj~ct
matter covered hereby.
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Exhibit 17
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Case 3:15-cv-01741-JE

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IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of U~e
day and year firstwritten above and intend to be legally bound thereto.

adidasAG

J~o~W.
Title:(~~emark Counsel

adidas America, Inc.

~
W. Erb
Tit1e(~~eral Counsel

Skechers USA, Inc.

Name:

David Ueinber~

Title:

Chief Financial

Officer

3.
Exhibit 17
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