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Description: Last Monday Nike Inc. announced it was suing Lululemon Athletica for an unspecified amount of damages. Nike’s claims allege four articles in Lululemon’s footwear lineup – Blissfeel, Chargefeel Low, Chargefeel Mid and Strongfeel – infringe on Nike patents. Last year Lululemon was on the other end of the legal argument when it settled a legal action against Peleton regarding Peleton’s supposed knock-offs of Lululemon’s branded clothing.

Date:  January 30, 2023

Source:  cbc.ca

 Link: https://www.cbc.ca/news/canada/british-columbia/nike-lululemon-footwear-patent-infringement-lawsuit-1.6731445

Discussion points:

1) Do you or anyone you know own any of these Lululemon products?

2) What sort of system do you think a company like Nike has for finding issues like this and then pursuing them through the courts?

3) Chapter 9 of Wiley’s Financial Accounting: Tools for Business Decision-Making discusses both intangible assets, like patents, and the distinction between capital and operating expenditures. Do you think the legal defense of a patent would be a capital or an operating expenditure?

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