MILAN, Italy: Italian shoemaker Geox SpA, which sprang to success with its breathable shoe technology, has been accused by Nike Inc. of copying a design in one of its 2007 spring/summer models.
Geox Chairman and founder Mario Moretti Polegato has expressed confidence that the matter would be resolved amicably, and analysts said Thursday that while companies like to keep such disputes quiet, they are increasingly common in an industry that seeks to grab consumers with cutting-edge technologies and styles.
Still, the accusation was startling since Geox has made its name with "breathable" technologies in both footwear and more recently outerwear that allow air to circulate to release excess heat and is studious about protecting its innovations with patents.
Geox spokesman Thanai Bernardini said the company is accused of copying a design element in the toe of its Calamity children's sneaker from Nike's Shox Turbo III — which was viewed by Geox and analysts alike as less severe than an alleged infringement into the technology arena so prized by Geox.
Polegato told analysts during a conference call this week that it affects one of the 1,700 models introduced in the spring/fall season.
"In any case, we want to resolve this with a gentleman's agreement, with a handshake," Polegato said.Nike, which is based in Beaverton, Oregon, said in an e-mail to The Associated Press that it was pursuing legal action against Geox, but declined an interview request.
Analysts suggested it was in no one's interest to go to a full-fledged lawsuit and said the alleged infringement appeared to be relatively minor in a cutthroat industry.
"It is classic. They are always at each other's backs," said Peter Farren, financial analyst at Bryan, Garnier & Co. in London, citing a recent suit by Reebok against Nike. "For Geox, it is a very, very small part of their sales and it is only one style. I think they will try to resolve it out of court and that it will have no real impact."
In the Reebok case, Reebok accused Nike of infringing on a patent covering "collapsible shoe" technology that allows sneakers to be folded so they can more easily be packed for travel or shipping.
Analyst Elena Sottanella at ABAXBank said the similarity between the Nike and Geox models was likely an oversight by a designer and should not have any impact on the company's reputation for innovation.
Geox's Bernardini said that Geox has more than 40 patents on its footwear and more recently on outerwear to protect itself against rip-offs and that it does not enter a new market until it has secured the necessary patents.
Such thoroughness delayed Geox's entry into China by six years, he said, more than twice the time it takes to obtain patents in Western countries.
"We believe very strongly in patents," Bernardini said, saying that U.S. shoemaker Kenneth Cole recently pulled a model of shoes from the market after Geox said that it used a sole technology that it had patented.
Geox launched in 1995 after Polegato was inspired on a hike to puncture holes in his rubber-soled shoes to let the air through, releasing excess heat and inspiring a system that Geox patented for "breathable shoes." The company expanded beyond Italy in 2000 and now has patents in more than 100 markets.
Geox this week reported a 46 percent increase in net income in the first half of 2007 to €68.9 million (US$94.14 million) , while orders for the fall/winter 2007 season were up 24 percent from a year earlier. The company expects to produce 21 million shoes this year, compared with about 10 million pairs in 2006.
