Explained: Everything to know about Crocs x Daiso lawsuit drama

Crocs has filed yet another lawsuit (Image via Sportskeeda)
Crocs has filed yet another lawsuit (Image via Sportskeeda)

Crocs is suing yet another footwear company for allegedly duplicating their designs.

The American brand recently charged popular Japanese dollar store Daiso with manufacturing and selling knock-off variants of its classic clog silhouette. It called the action an attempt "to free-ride and trade on the significant goodwill developed by Crocs through its innovative footwear."

The lawsuit was filed in a California District Court last Wednesday, June 15, 2022.


Crocs biggest issue with Daiso lies in their "Casual Sandals for Men" and "Lined Casual Clog products

Crocs (left) and Daiso (right) are in conflict amid trademark infringement (Image via Twitter/@jentokki and @qwertybel)
Crocs (left) and Daiso (right) are in conflict amid trademark infringement (Image via Twitter/@jentokki and @qwertybel)

Arnold & Porter Kay Scholer, an American multinational law firm based in Washington, D.C., filed the infringement suit as a representative of Crocs.

Daiso Industries Co. and its American subsidiaries are being charged for selling counterfeit clogs that infringe on Crocs' copyrighted, distinctive '3D' design.

Here's what the American company had to say about Daiso’s alleged knock-off designs:

“... virtually identical to the design of Crocs’s three-dimensional design marks.”

Crocs particularly has a problem with Daiso's "Casual Sandals for Men" and "Lined Casual Clog."

According to the brand, the products bear numerous Crocs-owned patented marks and detailing. It asserted that the duplication of these trademarks has led to misunderstandings about the authenticity of their products.

These Daiso clogs design are under dispute (Image via Twitter/@TAFLegal)
These Daiso clogs design are under dispute (Image via Twitter/@TAFLegal)

These Daiso footwear pieces are manufactured in China and brought to the United States, with retail prices ranging from $3.00 to $3.50.

Crocs further alleged in the lawsuit:

“This infringement and dilution scheme is intended to confuse, deceive, and mislead consumers into drawing associations between Crocs and Daiso and their respective footwear products so that Daiso can enjoy unfair gains and profits at the expense of Crocs.”

Design infringement lawsuits filed by Crocs in previous years

This is not the first time that Crocs has filed a patent infringement lawsuit against any company.

In July 2021, the brand sued 21 companies for purportedly impeding on its copyrights. Some popular businesses, namely Walmart Inc., Loeffler Randall Inc., and Hobby Lobby Stores Inc., were among the plaintiffs, alongside a slew of smaller businesses. The smaller companies were either selling these counterfeit footwear online or in bulk to Walmart.

Crocs said that the footwear, which was originally conceived and advertised as a boating shoe, has been deliberately and frequently duplicated by numerous companies. The suits were filed in several US District Courts.

In June 2021, the brand lodged a complaint with the United States International Trade Commission (USITC) in June 2021, urging an inquiry into the illegal import and sale of ostensibly infringing footwear. The USITC decided to continue the probe.


What more do we know about Japanese retailer Daiso?

Daiso Industries Co., Ltd. is a privately held Japanese company that has a huge chain of more than 100 stores across Japan.

Headquartered in Higashihiroshima, Hiroshima Prefecture, the company has an extensive product line of over 100,000 items.

More than 40% of these items are imported from South Korea and China, while some are produced in Japan.

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