USA Dawgs Inc. accused Crocs of misleading consumers with statements about its Croslite foam, which Crocs referred to as 'patented,' when it never was and is widely used.
The Federal Circuit found that the Colorado federal judge acted rashly by stating that the federal false advertising law didn't apply, allowing USA Dawgs' case to proceed.
Concerns were raised over Crocs' claims of exclusivity and proprietary ownership of Croslite foam, leading to allegations that they misled potential buyers and gained unfair competitive advantage.
The outcome indicates scrutiny over marketing language in the footwear industry and highlights the need for accuracy in promotional statements regarding patented materials.
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