Nike is asking the International Trade Commission to block imports of an Adidas shoe that allegedly copies technology in the Nike shoes worn by stars like LeBron James and Cristiano Ronaldo.

The Oregon-based company claims that 49 shoe designs by Adidas use its Flyknit technology, which infringes six patents that it owns. In response, Adidas said it will defend itself against the allegations because its Primeknit technology “resulted from years of dedicated research.” 

Sneaker Fights Heat Up

• Last year, the U.S. Court of Appeals for the Federal Circuit upheld two Nike patents that were challenged by Adidas for potential infringement of its Primeknit shoes.
• Nike claims that its Flyknit technology is the product of $100 million spent on development.
• The Swoosh seeks to ban imports of Adidas shoes that include collaborations with fashion designer Stella McCartney and record producer Pharrell Williams.
• Nike previously settled shoe-related lawsuits with Puma in January 2020 and Skechers last month. 

Adidas reported a drop in third-quarter operating income, lowering its full-year forecast. The company generated $6.6 billion in revenue in Q3, a 3.4% uptick year-over-year, but operating income fell 8.5% to $776.7 million. 

Nike reported $12.2 billion in revenue in fiscal Q1 2022, a 16% increase year-over-year.

California’s state housing agency declared the sale of Angel Stadium illegal on Wednesday for not following the Surplus Land Act, in which public land should first be offered to affordable housing developers. 

The Anaheim City Council sold the stadium — home of the Los Angeles Angels — and the 150 acres around it for a total of $320 million to a new company started by team owner Arte Moreno, who reportedly agreed to keep the team in Anaheim until at least 2050 as part of the deal.

The cost included $150 million to the city and $170 million for affordable housing and a seven-acre park.

Illegality of the Stadium’s Sale

The sale was declared illegal because the city did not properly classify the land as surplus — make it available to other developers — or notify the agency of availability or negotiations.

• The deal was only spoken about publicly in two meetings before being approved.
• A citizens group has sued the city, accusing it of violating state transparency laws.
• Assemblyman and former Anaheim mayor Tom Daly wrote at the time of the sale, “… this is a massive, historic giveaway costing at least $1,000 for every man, woman, and child in the city.”

Anaheim argues that the land is not considered surplus, as it was initially intended for the ballpark.

The state housing agency says the city of Anaheim has 60 days to redo the deal or allow bids on the land. The Angels control development on the site until at least 2038.

GameStop posted net sales of $1.29 billion in Q3 2021, up from $1 billion for the same period last year. 

The video game retailer attributed the increase in sales to new and expanded brand partnerships that include deals with Samsung, LG, Razer, Vizio, and others. 

Despite the revenue growth, GameStop posted a net loss of $105.4 million during the quarter, a significant increase from a loss of $18.8 million in Q3 2020. 

Shares of the company fell more than 7% on Thursday following the release of its Q3 earnings and a subpoena issued by the SEC regarding trading activity. 

A Year Full of Change

GameStop continues to make significant moves and overhaul its business. 

• In June, the company raised $1.13 billion to expedite its pivot toward e-commerce through an at-the-market offering.
• The same month, it appointed a new regime of leadership — including a revamped executive team and board of directors.
• It is hiring to build an Ethereum-based NFT platform.
• The company is reportedly in talks with fellow meme stock company AMC on a potential partnership. 

GameStop reported $669.9 million in hardware sales in Q3 2021, up from $413.4 million in Q3 2020, despite the semiconductor shortage and supply chain issues plaguing the tech industry. Software sales reached $434.5 million in Q3, down from $444.4 million a year prior.