Adidas Strikes Out Against Herbalife

     PORTLAND, Ore. (CN) – A federal judge denied Adidas an injunction against Herbalife, whose three-leaf logo Adidas claimed violated its trademark.
     Adidas sued Herbalife in 2009, claiming the company violated a 1998 settlement agreement that arose from a dispute over the companies’ logos.
     Herbalife, which sells diet supplements, has a logo with three upturned leaves. Adidas’ famous “trefoil” logo also features upturned leaves.
     Adidas claimed in the lawsuit, among other things, that Herbalife was using its logo to sponsor the Los Angeles Galaxy soccer team, which Adidas already sponsored.
     The parties argued over the remaining claims before U.S. District Judge Michael Mosman in December 2011. Mosman on Friday denied Adidas’ motion for injunctive relief.
     “In order to avoid further delay in this already protracted lawsuit, I construed plaintiff’s proposed judgment as a motion for a permanent injunction,” Mosman wrote.
     Herbalife claimed Adidas was not entitled to injunctive relief based on the Supreme Court ruling in eBay Inc. v. MercExchange LLC.
     In that 2006 decision, the court unanimously determined that courts must use a four-part test before granting an injunction in patent infringement cases.
     In his 3-page opinion Friday, Judge Mosman found that Adidas failed to prove that it suffered “irreparable injury” from Herbalife’s breach of the settlement agreement.

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