Borough celebrates as sportswear giant shells out

Published by webmaster for Hackney Council in Communities

Hackney Council has won a six figure sum from Nike in an out of court settlement after the sportswear giant produced an unauthorised range of clothing bearing the borough's name, and an exact replica of the Council's logo.  

The £300,000 settlement was based on a percentage of global sales figures of the range, which included trainers, footballs and t-shirts.  Nike has apologised to Hackney and agreed to pay all the borough's legal costs as part of the agreement.  
 
The Council threatened Nike with court action in May this year, after Nike started selling the goods which were produced without the permission of Hackney Council.  Hackney's elected Mayor Jules Pipe pledged to spend any money gained on sports development for the young people of the borough.
 
Mayor Pipe said: "This is a great result for Hackney.   The London Borough of Hackney logo has been in use since 1965.  The Council has established copyright, and Nike used it without permission, for their profit.
 
Our legal team advised us that this was a fair settlement based on the amount of gear sold.  This is extra money to spend on sports activities in Hackney, and shows that it was worth standing up to Nike.   This was always about more than cash - there is a serious principle at stake here.  Just because we are a public organisation, it does not mean that big corporations can take what they want from local people without asking. 
 
We are very glad that Nike agreed to play ball without going to court. I know that this result was in no small part due to the support we have had from local people, and from the media, and I'd like to thank everyone who helped us achieve this.'
 
The solicitor acting for the Council, Gregor Grant of Marks & Clerk said: "This was a good outcome for Hackney.  It was an unusual case because Hackney is a public sector organisation.  Usually these disputes are between two profit making companies.  Many public organisations have not seen the need to trade mark logos or establish copyright, especially with older designs.  This case shows that it really is worthwhile for the public sector to ensure its intellectual property rights are established."
 
Nike's Hackney range sought to capitalise on the company's association with Hackney Marshes where the famous 'Parklife' commercial starring Eric Cantona was filmed in the 1990s.  The goods were marketed globally and were sold as far afield as Japan, Russia and the Philippines.

Ends

Press release issued: September 11 2006