Adidas has taken legal action against Fashion Nova for allegedly violating a 2022 settlement agreement over the sportswear giant’s famous Three Stripe trademark. The lawsuit, filed on March 4, 2025, in the U.S. District Court for the Central District of California, accuses Fashion Nova of breach of contract, trademark infringement, counterfeiting, dilution, and unfair competition. This is not the first time Adidas has pursued litigation to protect its iconic design, and the latest case raises questions about the enforceability of past agreements and the persistent issue of fast fashion copying established brands.
Adidas and Its Three Stripes
Adidas has built its reputation on innovation and brand strength, with its Three Stripe Mark serving as a cornerstone of its identity since the 1950s. The company has secured numerous federal trademark registrations for the mark, which courts have deemed famous among consumers. Adidas aggressively enforces its rights, having pursued multiple legal actions against competitors and retailers over the years to maintain exclusivity.
Fashion Nova’s History with Adidas
Fashion Nova, known for rapidly producing trendy apparel at budget-friendly prices, has faced its fair share of intellectual property disputes. This latest lawsuit is not its first encounter with Adidas. In 2019, Adidas sued Fashion Nova for selling apparel and footwear that allegedly mimicked its Three Stripe Mark. That case was settled in 2022 with an agreement that Fashion Nova would cease selling infringing products. However, Adidas now claims the company has disregarded the agreement and resumed selling apparel featuring similar stripe designs.
The Case Against Fashion Nova
Adidas’s complaint alleges that Fashion Nova has breached the 2022 agreement by selling products bearing designs that are confusingly similar or substantially indistinguishable from the Three Stripe Mark.
The lawsuit includes multiple claims:
- Trademark Infringement – Adidas argues that Fashion Nova’s products are likely to confuse consumers into believing they are affiliated with Adidas.
- Trademark Counterfeiting – Adidas alleges that Fashion Nova’s use of similar stripe designs constitutes counterfeiting, which is a more severe form of infringement.
- Trademark Dilution – Adidas contends that Fashion Nova’s designs weaken the distinctiveness of its Three-Stripe mark.
- Unfair Competition– Adidas claims that Fashion Nova is unlawfully profiting from Adidas’ established brand reputation.
- Breach of Contract – Adidas asserts that Fashion Nova has violated the 2022 settlement agreement by continuing to sell the disputed designs.
Key Issues in the Case
Adidas must prove that Fashion Nova’s products are confusingly similar to its own. Courts assess trademark infringement using the Likelihood of Confusion Test, which considers factors such as the similarity of the marks, the strength of Adidas’ brand and evidence of actual confusion. Adidas will likely argue that its Stripe mark is widely recognised and that Fashion Nova is exploiting this recognition to mislead consumers.
In the trademark dilution claim, Adidas must demonstrate that its Three Stripe mark is so well known that Fashion Nova’s use of similar designs diminishes its distinctiveness. Given Adidas’ long-standing market presence and extensive advertising, it is well positioned to establish this claim.
Fashion Nova’s potential defences may include arguing that its designs are not confusingly similar, that the stripes serve a decorative rather than trademark function or that the Stripe mark has become too common to be exclusively associated with Adidas. Fashion Nova may also dispute whether the 2022 agreement explicitly covers the new designs at issue.
Looking Ahead
This lawsuit raises broader concerns about how effectively brands can enforce settlement agreements against fast fashion companies that operate at high volume and speed. Adidas’s aggressive litigation strategy suggests it is unwilling to let past agreements be ignored, but whether this case leads to a significant financial penalty for Fashion Nova remains to be seen. If Adidas prevails, it could set a precedent for stricter enforcement of intellectual property rights in the fashion industry. However, if Fashion Nova mounts a strong defence, the case may reveal limitations in Adidas’s ability to control stripe based designs. Either way, this fight is far from over.
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