Adidas is suing White Fox over its new design, arguing it's 'deceptively similar' to their signature three stripe trademark.
The sports giant has long been known for its vertical three stripes on their clothes, but the fast-fashion Australian label has launched trousers with four stripes.
White Fox, which has become increasingly popular with young women and girls, rejected repeated requests to stop selling and promoting clothing bearing the four parallel stripes, its rival claims.
Lawyers for the brand denied any breach of trademark in the Federal Court on Friday.
Adidas claim White Fox has been selling and promoting the striped clothing since at least March and says this is an infringement of their trademark.
The well-known three-striped design has been trademarked in Australia since 1957 and the written claim states it has a 'substantial and valuable reputation' there.
The claim added White Fox's designs are 'substantially identical with or otherwise deceptively similar' to Adidas.
In court, Adidas's barrister Patrick Flynn SC pointed to a picture of a White Fox-endorsed influencer wearing the company's four-stripe shorts with genuine Adidas shoes as a promotion that would confuse consumers.
Adidas is suing White Fox over its new design, arguing it's 'deceptively similar' to their signature three stripe trademark
In court, Adidas's barrister Patrick Flynn SC pointed to a picture of a White Fox-endorsed influencer wearing the company's four-stripe shorts with genuine Adidas shoes as a promotion that would confuse consumers
The documents claimed that White Fox is 'drawing an association in the minds of consumers' of the brands
'There's an intention to trade off our reputation,' Mr Flynn said.
The documents claimed that White Fox is 'drawing an association in the minds of consumers' of the brands.
Just days after court proceedings the Adidas logo on the shoes were altered to remove one of the stripes, then a week later all of them were gone.
Adidas is seeking orders that will prevent White Fox making clothing with four stripes and force it to hand over profits it made on the products.
White Fox's barrister Ed Heerey KC said the Australian company would argue the four stripes emblazoned on the label's clothing were simply decorative rather than a trademark.
He highlighted similar items bearing the four stripes from other brands such as fast-fashion labels Princess Polly, Glassons, and Shein.
In 2013, Adidas successfully sued Pacific Brands in Australia for selling shoes with four stripes.
It marks the first high-profile litigation of this kind against White Fox Boutique, which has become a major player in the retail industry since it was launched in Sydney in 2013.