Summary
- Nike is suing CLOT founder Edison Chen for breach of contract, demanding over $126 million USD, a lawsuit that comes more than a year after Chen ended his Nike collaborations to partner with Adidas.
- The specific details of the breach are currently unknown, but the lawsuit reflects Nike’s increasing vigilance in protecting its brand, as it recently settled a separate case with custom-sneaker designer the Shoe Surgeon.
CLOT founder Edison Chen is being sued by former partner Nike for breach of contract, demanding a sum of more than $126 million USD.
Multiple sources, including @SneakerLegal have shared the information, including the case number (2:25-cv-07447), cause (28:1332 Diversity-Breach of Contract), and the demand of $126,615,000. Other than these details, still little is known about the specific violations and events that led to the escalation. The lawsuit has emerged more than a year after Chen terminated his collaborations with the American sneaker label and began releasing products with adidas, like the CLOT Silk Gazelle and the CLOT Anthony Edwards AE-1.
For years, the CLOT designer worked closely with Nike on various models before partnering with the Three Stripes brand in 2023. In 2004, Chen founded CLOT in Hong Kong and began partnering with Nike in 2006. The brand still maintains special popularity in the Asia Pacific region for its exploration of Eastern heritage and aesthetics, but has become increasingly global thanks to partnerships with sportswear titans.
As the brand charges forth with a new CEO at the helm, it seems that it’s become more vigilant of its brand universe than ever, targeting direct collaborators like Chen and even designers outside of their direct sphere, like the Shoe Surgeon. Nike’s move to sue Chen comes right after the brand finally settled with the famous custom-sneaker designer, a de-escalation from the $60 million originally demanded.
Stay tuned to Hypebeast as more details emerge on the case.
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