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Heelys Sues Wal-Mart Over Footwear Patent

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Bloomberg News

Published: October 11, 2007

Wal-Mart Stores, the world's largest retailer, was sued by wheeled-footwear maker Heelys for making knockoff skates that Heelys claims violate a patent.

Heelys' shoes, which cost about $60 a pair, come with a removable wheel in the sole, allowing wearers to move from walking or running to skating by shifting weight to their heels.

Wal-Mart sells a knockoff model called 'spinners' that violate a Heelys patent titled 'multi-wheel heeling apparatus,' Heelys said in a complaint filed Friday in Dallas federal court.

'Wal-Mart's infringing acts are causing irreparable harm' without 'adequate remedy,' Heelys said in the complaint.

The company, based in Carrollton, Texas, is seeking a court order blocking Wal-Mart from selling products found to violate the patent, and cash compensation.

'We have not yet read the complaint in detail and it would be inappropriate to comment until we have,' said John Simley, a spokesman for Bentonville, Ark.-based Wal-Mart. 'We take intellectual-property rights very seriously.'
Heelys depends on its novelty sneakers, targeted at children 6 to 14 years old, for about 99 percent of sales. The company's forecast of third-quarter profit that trailed estimates signaled the wheeled shoes' popularity may have been a fad that's fading, analysts said in August.
Heelys fell 1 cent to $7.88 in Nasdaq composite trading. The shares have dropped more than 75 percent this year.

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