Friday, July 07, 2006
Sporting Goods Companies Battle Over Branding, Online Commerce
byStart with two big-time sporting goods rivals in a competitive environment. Add a fuzzy noncompete clause, online commerce and trademark infringement allegations.
It equals a legal mess, and that’s exactly what is happening between Gander Mountain and Cabela’s. A story earlier this week outlined the latest twist now taking place in U.S. District Court. The debacle began in 1996, when Gander Mountain’s previous owner sold its direct-marketing division and a short-term trademark license to Cabela’s. It also included a seven-year noncompete clause that appears to have benefited only the lawyers for each side.
Since then, both companies have grown (Gander Mountain has more than 100 stores) and, of course, e-commerce has exploded – bringing an entirely new wrinkle to a 10-year-old legal battle.
Another key aspect of the suit surrounds branding; more specifically, whether a logo depicting a white goose flying over a mountain (the Gander Mountain logo) too closely resembles a black goose flying next to a mountain (the Gander Guide Series logo, occasionally used by a Gander distributor).
It’s amazing how a deal made to generate short-term cash (Gander filed for bankruptcy later in 1996) has led to 10 years of courtroom jostling – and, perhaps more importantly for those of us in marketing, how sloppy branding can create so many legal headaches.
