CrossFit And Reebok Settle Licensing Dispute

CrossFit And Reebok Settle Licensing Dispute

CrossFit Inc. and Reebok International Ltd. in a joint statement announced that they had settled all litigation related to their licensing agreement, and that they look forward to continuing their work together as partners mutually dedicated to improving individual health and fitness globally.

While the details of the settlement remain confidential, the settlement includes a payment to CrossFit for disputed royalties.

“Every partnership confronts challenges from time to time. Great partnerships learn from them, overcome them and become stronger in the resolution of them,” said Jeff Cain, chief executive officer at CrossFit.  “Our shared resolution is a victory for CrossFit trainers, affiliates and athletes.”

CrossFit and Reebok entered into a 10-year licensing and sponsorship agreement in 2010 which makes Reebok the title sponsor of the CrossFit Games and gives Reebok a license to sell fitness apparel and footwear products bearing the CrossFit trademark.

“We look forward to our continued collaboration with CrossFit,” said Reebok President Matt O’Toole.  “Our brands are stronger together in the resolution of this dispute, which means great things on the horizon for the CrossFit community.”

As reported, Crossfit in June sued Reebok, claiming it was owed “at least $4.8 billion,” plus potentially more for underpaying marketing obligations and diverting sales to to reduce royalty payouts. At the heart of the lawsuit was a dispute over the royalty rate Reebok should be charging as part of the company’s agreement. CrossFit claimed that Reebok at points based the rate on wholesale revenues rather than retail revenues.