Bloomberg Anywhere Bloomberg Professional About Bloomberg


Apple, Nike Sued Over Sport Shoe IPod Device Patent (Update1)

By Jeff St.Onge

Feb. 2 (Bloomberg) -- Apple Inc. and Nike Inc. were sued by a Colorado company accusing them of infringing a patent covering shoes that collect data on the wearer's activity in their Nike+iPod Sport Kit.

PhatRat Technology LLC, a maker of wireless devices that gauge a wearer's performance, said in a complaint yesterday in Denver federal court that Apple and Nike are using its patented innovations without permission. PhatRat asked for cash compensation and a court order blocking the use.

``PhatRat has been damaged by the infringing acts of Apple and Nike, and will continue to be damaged unless'' they are stopped by the court, closely held PhatRat said.

Nike, the world's largest athletic-shoe company, and Apple, dominant in the digital music-player market, started selling the Nike+iPod Sport Kit in July. A sensor and receiver let the shoes communicate with an iPod over a radio frequency so runners can learn their speed, such as 15 miles an hour, and pace, such as four minutes a mile. It costs $29 and requires a special Nike shoe and an iPod Nano.

PhatRat, based in Niwot, Colorado, makes products such as the airRat, a device for measuring sports performance while snowboarding, skiing or riding a BMX bicycle, the company said on its Web site. The patent at issue is entitled ``shoes employing monitoring devices, and associated methods.''

``Nike is aware of the complaint and is reviewing the allegations alongside our own intellectual property rights,'' said Vada Manager, a spokesman for Beaverton, Oregon-based Nike.

PhatRat sued Cupertino, California-based Apple in the same court in October, claiming the computer company infringed four patents in their Nike+iPod Sports Kit and iPod products.

IPod Dominance

Apple doesn't comment on pending litigation, spokesman Steve Dowling said. Officials at PhatRat didn't immediately return a voice-mail message requesting comment.

Shares of Nike fell 48 cents to $100.20 in New York Stock Exchange composite trading. Shares of Apple rose 1 cent to $84.75 in Nasdaq Stock Market composite trading.

The iPod is the best-selling digital music player in the U.S., with 75 percent of the market, according to the NPD Group Inc. in Port Washington, New York.

The case is PhatRat Technology LLC v. Apple Inc., 07cv238, U.S. District Court, District of Colorado (Denver).

To contact the reporter on this story: Jeff St.Onge in Washington at jstonge@bloomberg.net.

Last Updated: February 2, 2007 19:13 EST

Sponsored links