Sunday, May 20, 2007

Crox Patent Status

I have several links for those who are interested in for Crocs Inc. patents for their shoe designs and issues relating to Croslite(TM).

1. Crocs Prima Flats- made of "patented" Croslite(TM)that softens with body heat.
http://stylebakery.com/fashionindexspring/aprilshowers_shoes.html

2. From December 2005 SEC filing statement:
"We consider the formulation of croslite used to produce our products to be avaluable trade secret. Prior to our acquisition of Foam Creations, FoamCreations developed the formula for croslite, and we believe that they did notpublish or otherwise make the formula available to third parties without the protection of confidentiality or similar agreements. Since the acquisition, we continue to protect the formula by using confidentiality agreements with our third party processors and by requiring our employees who have access to the formula to execute confidentiality agreements or to be bound by similar agreements concerning the protection of our confidential information. Neither wenor Foam Creations have attempted to seek patent protection for the formula butwe are not aware of any third party that has independently developed the formulaor that otherwise has the right to use the formula in their products other thanFinproject. Under the terms of our supply agreement with Finproject, Finprojecth as certain limited rights to use croslite, which were originally negotiated inconnection with our purchase of Foam Creations from Finproject's parent company.We believe the comfort and utility of our shoes depend on the properties achieved from the compounding of croslite and is a key competitive advantage forus, and we intend to vigorously protect this trade secret."

So this is from 2005 which has not patented the Croslite material but relies on confidentiality agreements.

http://sec.edgar-online.com/2006/02/02/0001047469-06-001232/Section18.asp

So Croslite (TM) is protected by trade mark and trade secret confidentiality agreements. My prior sources revealed that they were "patented" and many advertisers of Crocs line advertise that Croslite (TM) is patented. But on further examination, there exists no patent protection on Croslite much like the formulation for Coke. Crocs relies instead on patents on the designs of the footwear, trade secret agreements of Croslite which is trade marked, and aggressive prosecutions of any infringements on design, utility, and materials.

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