A Federal Judge Has Overturned the Jury Verdict That Fined Lululemon $335,000 for Flyknit Patent Infringement

A US federal judge in the Southern District of New York ruled on March 31, 2026, that Nike’s US Patent No. 8,266,749, covering knit sneaker construction, is invalid, wiping out a jury verdict that had found Lululemon owed $335,450 in damages for infringement. Judge Arun Subramanian granted Lululemon’s motion, ruling that the relevant patent claims were obvious and that Nike is not entitled to any damages.

Background to the Case

A jury originally issued the infringement verdict in March 2025, finding that Lululemon’s introductory athletic footwear lines infringed claims in Nike’s Flyknit related patent. The case drew attention as one of the first meaningful legal tests of Nike’s knit construction intellectual property against a competing lifestyle and athletic brand that had entered footwear more recently. The court also rejected Nike’s bid to increase the damages award before ultimately overturning the verdict entirely.

Lululemon’s Position

Lululemon stated it was very pleased with the court’s decision, noting it confirms the brand has now prevailed in every jurisdiction where the matter was contested. The ruling is a clean legal outcome for Lululemon’s footwear ambitions, removing a damages liability and invalidating the specific patent claims Nike had pursued against it.

What it Means for the Industry

The decision signals that Flyknit-adjacent knit construction patents face a high bar for enforcement when challenged on obviousness grounds. For brands building footwear programs on woven and knit upper technologies, the ruling points to limits on how broadly Nike can assert intellectual property protection over construction methods that courts may view as extensions of existing textile and apparel techniques. Nike has not commented publicly on whether it intends to appeal.