The U.S. Patent and Trademark Office rejected the shoemaker's infringement argument, saying Crocs' design isn't original and that another company applied for a patent with similar design a year ahead of Crocs. Crocs told Footwear News it plans to appeal the decision.
This is a major hit for the company, which has spent years suing its rivals on claims they have infringed on Crocs' design. Most recently, Crocs launched a legal battle against USA Dawgs, which makes a lookalike shoe similar to Crocs' iconic colorful clog.
It's been a tough few years for Crocs outside the courtroom, too. The Colorado-based company has seen declining sales and announced it's shuttering 160 stores over the next two years. Revenue was down 3.3% in the second quarter compared to the same period in 2016.
Crocs stock traded up nearly 3.5% at Friday's close.
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