Nike sues Edison Chen for alleged breach of contract, demanding $126 million in damages

The globally renowned sports brand Nike has recently filed a lawsuit against artist and streetwear brand CLOT founder Edison Chen, accusing him of breaching their collaboration agreement and seeking damages of $126 million (approximately HK$990 million). The case has been filed in the United States District Court for the Central District of California, with case number 2:25-cv-07447, drawing widespread attention from the fashion and streetwear communities.

According to reports from multiple streetwear websites such as House of Heat, Sole Retriever, and Hypebeast, Edison Chen founded the CLOT brand in Hong Kong in 2004 and began collaborating with Nike in 2006, launching several sneaker models beloved by streetwear enthusiasts. However, the partnership between the two parties underwent significant changes in 2023. In October of the same year, Edison Chen announced a global partnership with competitor adidas Originals and planned to launch a new series called "adidas Originals by Edison Chen." Although Edison Chen has switched to adidas for over a year, Nike has chosen to file the lawsuit at this time, adding complexity to the case.

Currently, the details of the alleged breach in the lawsuit have not been publicly disclosed, but analysts point out that Nike's action indicates a stricter approach to brand management under the leadership of its new CEO, Elliott Hill. Earlier, Nike had also sued sneaker customizer "The Shoe Surgeon" for unauthorized use of Nike trademarks and sought $60 million (approximately HK$470 million) in damages, with the parties eventually reaching a settlement.

As of now, neither Edison Chen nor Nike has responded to the lawsuit. Market analysts believe this move demonstrates that Nike is adopting tougher legal measures in the face of brand competition and partner defections to safeguard its market position and brand territory.