The Ugg Boot Controversy in Australia

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Case Details:

Case Code : BENV020
Case Length : 14 Pages
Period : 2003-2008
Pub Date : 2008
Teaching Note :Not Available
Organization : Deckers Outdoor Corporation
Industry : Footwear
Countries : Australia, USA

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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“The worldwide popularity the Ugg brand enjoys today is a direct result of Deckers'heavy investment over many years in building the brand.Deckers will continue to take any and all necessary actions to protect its Ugg brand around the world.”¹

- Middletons Lawyers², Deckers Outdoor Corporation's³ representatives in Australia, 2006.

“Uggs are as Australian as the Harbour Bridge.”⁴, ⁵

- Brain Iverson, owner of Blue Mountains⁶, 2006.

“Who do they think they are, telling us what we can and can't call our product; trying to stop us from making a living.”⁷

- Tony Mortel, owner of Mortels Sheepskin Factory⁸, in 2004.

Introduction

On January 16, 2006, IP Australia⁹ ruled that 'UGH-BOOTS'was a generic term, and removed it from the Australian Register of Trademarks.

In Australia, Ugh or Ugg refers to sheepskin boots that originated in Australia decades ago.¹⁰

But US-based Deckers Outdoor Corporation (Deckers), which acquired the trademark for 'Ugg'in 1995, tried to prevent local Australian sheepskin manufacturers from using the variants of 'Ugg'in 2003, after they had become highly popular.

The Ugg Boot Controversy in Australia - Next Page>>

1] “US Firm May Challenge 'Ugg,'Ruling,” www.theage.com.au, January 20, 2006.
2] Middletons Lawyers is a leading national law firm in Australia.
3] Deckers Outdoor Corporation designs and manufactures footwear for outdoor activities as well for casual use. Its footwear brands include Teva, Ugg, and Simple.
4] The Sydney Harbour Bridge is the world's largest steel arch bridge, weighing about 52,800 tons. It was opened in March 1932. Harbour Bridge became synonymous with Australia as an iconic landmark and cultural hub that attracted tourists from all over the world.
5] Kathy Marks, “Ugg: How a Minnow Put the Boot into a Fashion Giant,” www.independent.co.uk, January 18, 2006
6] Blue Mountains is an Australian sheepskin boot manufacturing company located in western Sydney.
7] Kathy Marks, “Boot Battle Turns Ugg-ly,” www.nzherald.co.nz, February 21, 2004.
8] Mortels Sheepskin Factory is a family owned sheepskin business, located in the Hunter Valley Region of New South Wales.
9] IP Australia is the Australian Government agency responsible for administering registered intellectual property rights (IPRs) including trademarks in Australia.
10] The variants of Ugg are UGG BOOTS, Ug Boots, UGH Boots, Ugh Boots, Ugg Boots, Uggboots, UGGBOOTS, UGGS, UGG-BOOTS, etc.

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