Sports and Active Lifestyle

Growing & Financing Sports and Active Lifestyle Businesses

• Represented a high-end hunting gear company in the $50-million sale of a minority interest to a leading consumer growth equity firm.
• Represented SIR Fitness Holdings in the acquisition and development of six Crunch Fitness facilities in Orange County.

Protecting Products & Brands

• Developed an intellectual property assessment and worldwide brand protection strategy for a ski apparel company.
• Negotiated an international licensing agreement for a skate apparel company granting exclusive rights to use its brand on clothing and accessories in Thailand.
• Managed international trademark and patent matters for surf and skateboard companies, including protecting and policing intellectual property rights in foreign markets.
• Prosecuted and counseled on trademarks and patents for golf companies, protecting products and brands in the United States and internationally.
• Defended a ski company in patent infringement litigation and a surf apparel company in trademark infringement litigation.

Mergers, Acquisitions & Successful Exits

• Represented Oakley, a global performance optics brand, in its $110-million acquisition of Eye Safety Systems, its $55.7-million acquisition of Oliver Peoples, and its acquisition of The Optical Shop of Aspen.
• Represented DC Shoes, a performance skateboarding footwear and action sports brand, in its $50-million acquisition by Quiksilver.
• Represented Prana, an activewear designer and manufacturer, in its $50-million acquisition by Liz Claiborne.
• Represented Callaway Golf Company in its acquisition of FrogTrader, an ecommerce and retail logistics company that became Callaway Golf Interactive.
• Represented Family Fitness Centers in its $63-million acquisition by 24 Hour Nautilus and Ray Wilson California Fitness in its $42-million acquisition by an affiliate of 24 Hour Fitness.
• Represented a premier surf and stand-up paddleboard company in its acquisition by a leading watersports company, a leading climbing shoe company in its acquisition by a large outdoor company, and a leading surf company in multiple strategic acquisitions.
• Represented a golf simulation company in its $30-million sale to a private equity firm and golf manufacturing company.

When should a sports or active lifestyle company involve legal counsel?

Legal counsel can add value well before a dispute arises. Companies often benefit from advice when developing or launching products, choosing and protecting a brand, raising capital, negotiating significant commercial relationships, expanding into new markets, acquiring another business, or considering a sale. Involving counsel at these decision points can help protect the value you’re creating, identify risks early, and avoid legal issues that could complicate future growth.

How can we protect our products and brand as the company grows?

The right strategy depends on what makes your business distinctive. Patents and design patents can protect innovations and product designs, trademarks and trade dress can protect brands and product identity, copyrights can protect original content, and trade secret protections can help safeguard valuable confidential information. As a company introduces new products and enters new markets, its intellectual property strategy should evolve with it, including monitoring and enforcement when others infringe those rights. Our attorneys help sports and active lifestyle companies build and manage intellectual property portfolios in the United States and internationally.

We’re expanding internationally. How can we protect our brand in other countries?

Trademark and other intellectual property rights are territorial, so protection in the United States does not necessarily protect your brand elsewhere. We help clients develop international filing strategies, coordinate with trusted foreign counsel, monitor portfolios, address potential infringement, and structure licensing and distribution arrangements that protect brand value as companies enter new markets. Our attorneys manage global trademark portfolios and work with counsel around the world on brand protection and enforcement.

What should we consider before licensing our brand or entering a distribution agreement?

These relationships can accelerate growth, but the agreement should clearly establish who can use your intellectual property, where and how products may be sold, exclusivity, performance expectations, quality standards, financial terms, and what happens when the relationship ends. For international arrangements, local legal requirements and protection of intellectual property in the relevant markets may require additional consideration. Our experience includes negotiating international licensing and distribution arrangements for active lifestyle brands.

What should founders consider when raising capital or bringing in an investor?

The amount invested is only one part of the transaction. Founders should consider valuation and dilution, governance and voting rights, board representation, investor protections, future financing needs, and how the terms may affect control of the company or a later sale. Understanding those implications before accepting an investment can help companies secure the capital they need while preserving flexibility for their next stage of growth.

When should we start preparing for a potential sale of the company?

Well before you’re ready to put the company on the market. Buyers will examine corporate records, ownership and protection of intellectual property, material contracts, employment matters, financial obligations, and other potential liabilities. Addressing issues before due diligence begins can reduce surprises, strengthen the company’s negotiating position, and help keep a transaction on track. Our attorneys have represented sports, fitness, outdoor, and active lifestyle companies in strategic sales, private equity transactions, and other exits ranging from emerging brands to well-known companies.