Nike sues HK star Edison Chen over alleged breach of contract

Nike has filed a lawsuit against Edison Chen, a Hong Kong singer and founder of streetwear brand CLOT, over an alleged breach of contract. This came after Chen announced a new global partnership with adidas Originals in 2023 after years of collaboration with adidas' competitor Nike since 2006.

Nike’s lawsuit, filed on Monday in a US federal district court in California, accused Chen of abruptly switching to its rival without prior negotiation. The sportswear giant alleged that his work with adidas involves the disclosure of trade secrets and intellectual property infringement.

Initial reports such as Hypebeast claimed that Nike was seeking over US$126 million in damages, but the figure was later corrected to US$126,615 due to a clerical error in court documents. At the same time, reports have pointed out that Nike took legal action more than a year after Chen joined adidas.

Neither Nike nor Chen has issued an official statement regarding the case. On the other hand, Chen posted "WORD!?!?" on Instagram after emerging news surrounding the lawsuit, sparking speculation among netizens that it may be a response to the lawsuit.

MARKETING-INTERACTIVE has reached out to Chen and Nike for a statement.

Established in 2003 by Chen, CLOT has built its reputation on selling a unique selection of lifestyle goods as well as launching its own line of products from 2004. CLOT is more than just clothes, it's a creative moment that celebrates individuality and injects life and character to local culture, instilling creativity and inspiring perspectives in hopes of bridging the gap between the East and West is core to the brand, according to its website.

In fact, this is not the only breach of contract lawsuit that emerged recently. Back in June, G-III Apparel Group filed a US$250 million lawsuit against PVH Corporation, with accusations of breached licensing agreements and interference in business relationships. The lawsuit also targets PVH's Calvin Klein and Tommy Hilfiger licensing divisions.

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