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Nike sues Lululemon over alleged footwear patent infringement – Business News

Nike sues Lululemon

Glen Korstrom / Business in Vancouver – | Stories: 409129

Multiple media outlets are reporting that global sportswear giant Nike Inc. (NYSE:NKE) is again suing Vancouver-based leisurewear retailer Lululemon (Nasdaq:LULU) for alleged patent infringements.

Reuters reported that Nike today filed documents in Manhattan federal court that said it has suffered economic harm and irreparable injury from Lululemon’s sale of its Blissfeel, Chargefeel Low, Chargefeel Mid and Strongfeel footwear.

Nike has not yet released a public statement on the legal conflict.

Lululemon sent BIV an email to say, “Nike’s claims are unjustified, and we look forward to proving our case in court.”

Reuters said Nike’s lawsuit seeks unspecified damages, and that it alleges that the Oregon-based company’s three patents on issue concern textile and other elements, including one addressing how the footwear will perform when force is applied.

This is the second consecutive January in which Nike has taken court action against Lululemon. Media reports in January 2022 noted that Nike filed documents in the US District Court in Manhattan that accused Lululemon of infringing six patents because its Mirror technology, which lets users target specific levels of exertion, as well as compete with others, and record personal performance, infringe on Nike intellectual property.

Lululemon in July 2020 spent US$500 million to buy Mirror – a New-York-based, in-home fitness company.

Mirror’s marquee product is a device that appears to be a standard mirror, unless it is turned on.

Users activate their Mirror to enjoy augmented reality. A fitness instructor could appear – wearing Lululemon clothing, and ready to guide the user through a workout.

The Mirror could also show videos that include Lululemon representatives, or community events.

Nike is said to be seeking triple damages among other remedies for Lululemon’s alleged willful infringement of patents related to its Mirror product.

Saudi Arabia Keeps Betting Big on Lucid Motors (LCID) Stock

LCID stock - Saudi Arabia Keeps Betting Big on Lucid Motors (LCID) Stock

Source: rblfmr / Shutterstock.com

Saudi Arabia increased its stake in electric-vehicle maker Lucid (NASDAQ:LCDs) by 9% last quarter, an SEC filing was disclosed yesterday. The news comes amid speculation about the Middle Eastern country completely taking over the EV maker.

Saudi Arabia Bought More LCID Stock

In the fourth quarter, the country’s Public Investment Fund (PIF) bought nearly 200 million more shares of Lucid, bringing its total position in the automaker to 1.1 billion. The purchases increase the fund’s stake in the EV maker to 62%.

LCID is by far the largest holding in the PIF and the recent purchase has LCID make up close to 25% of the fund’s portfolio. The fund has also recently increased its stake in its second-largest holding Activision Blizzard (NASDAQ:ATVI). Yet ATVI stock only makes up 9% of the fund’s portfolio and it owns just 5% of the videogame maker.

Rumors of a Takeover

Last month, the business news website Betaville reported a rumor that the Saudis could seek to acquire all of the shares of LCID stock that they did not already own. There was also speculation that the country’s investment fund had already been recruited JPMorgan (NYSE:JPM) to work on such a deal.

The fund invested $1 billion in LCID in 2018, before the automaker’s shares were publicly traded. And in April 2022, the Saudi government announced it would purchase 50,000 EVs from Lucid. The country intends to buy 1,000 to 2,000 EVs annually from Lucid.

More About Lucid

As of yesterday’s market close, LCID stock has soared 51% so far this year. However, the automaker’s shares are still down 64% in the last year and had slumped 10% in the previous five trading days.

On Jan. 23, Citi resumed coverage of LCID stock with a “buy” rating. The firm is upbeat about the “company’s technology and product positioning.”

On the other hand, I’ve been bearish on the name, citing Lucid’s lack of brand strength and tremendous competition.

On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Larry Ramer has conducted research and written articles on US stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.