Arc'teryx Wins Injunction to Temporarily Ban adidas From Using TERREX Name in Vancouver Store

Canadian judge claims the obvious similarities in signs may cause confusion on the two stores in Kitsilano, BC.

Fashion
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Vancouver-based outdoor company Arc’teryx has officially won a temporary injunction that temporarily bars adidas from using the TERREX on a Kitsilano, BC store. In yet another David vs. Goliath trademark infringement battle, the judge sides with the Canadian outerwear company.

Arc’teryx’s parent company Amer Sports Canada, recently filed a lawsuit against the German sportswear brand over its signage on its West 4th Avenue store in Kitsilano, Vancouver. The company alleged that adidas’ TERREX signage would cause “consumer confusion.” The store opened after Arc’teryx just a year ago, a few doors down from the Canadian retailer and similar to Arc’teryx, adidas TERREX is sells outdoor apparel fit for activities like hiking and camping.

In the new BC Supreme Court decision, adidas says its logo features its signature “performance bars” with its three stripes triangular emblem to signify the “A” in adidas. However, Justice Nigel Kent wrote in his judgement, “When one places an image of the Performance Bars and TERREX trademarks beside an image of the ARC’TERYX trademark, the similarity between the two and the potential for confusion is immediately obvious.” Kent granted a temporary injunction that forbids adidas from using the TERREX name on the West 4th Avenue store until Arc’teryx’s claim goes to trial. He goes on to say that in Canada, Arc’teryx holds the appropriate trademarks for its retail signage, whereas adidas has only applied for trademark registration for TERREX. Kent adds that he was persuaded by evidence from the Arc’teryx brand marketing expert that said “distinctiveness, once lost is virtually impossible to regain” and “the impact on loss of emotional brand equity would be extremely difficult to quantify.” If Arc’teryx win the lawsuit, it may be entiteld to monetary rewards.

Arc’teryx had submitted evidence to the court from private investigators who said that staff at the TERREX store said at least 100 people go into the shop thinking it was Arc’teryx. Adidas has been warned and it may result in the closure of its store. Adidas has denied all allegations of trademark infringement. If adidas is granted the appropriate trademark registration for Terrex, the injunction will expire.

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