Boston, MA 09/12/2014 (wallstreetpr) – A war of words is ensuing between Crocs, Inc. (NASDAQ:CROX) and a family-owned shoe Company in Nevada, which is accusing the giant footwear company of engaging in unfair practices in the industry. Reuters reports that the family-owned shoe company is accusing Crocs of suing small players in the space with a view of reducing competition in the industry.
Accusations against Crocs
A lawsuit has already been’ filed in Nevada against Crocs, Inc. (NASDAQ:CROX) with the family-owned company alleging that Crocs is using ‘sham’ patents to put small players out of business. The complaint also alleges that Crocs has suppressed more than 90% of the market despite recording declining profits in the recent past.
The wrangles seem to have started back in 2006 when Crocs is alleged to have obtained patents for products that were already in the market. It is’ alleged that the company concealed some facts when filling for the Patents something that has not gone well with the competitors. With the issuance of the Patents, Crocs acquired an import ban against its competitors on some products. Competitors were’ thus barred from selling look alike clogs a move that might have pushed some of the small players out of business. Crocs, Inc. (NASDAQ:CROX) has been in and out of courts having sued some shoe makers of infringing its patents for making Holey soles as well as Gen-X-Sports and Effervescent. Crocs has also sued its distributors and among others its biggest clients CVS, with the lawsuit currently on hold
Crocs, Inc. (NASDAQ:CROX) has also experienced drawbacks in courts after a verdict reportedly cancelled one of its patents. One of the complainants alleges that consumers have been forced to pay more for some products because of Crocs suppressing competition in the space.
