The Patent Trial and Appeal Board (PTAB) has invalidated a Nike footwear manufacturing patent that was central to a $355,450 damages verdict in a patent infringement case against athletic apparel maker Lululemon.

A three-judge panel of the PTAB ruled in favor of Lululemon on Wednesday, finding all 21 claims of Nike’s U.S. Patent No. 8,266,749 to be either anticipated or obvious, effectively overturning the earlier federal jury decision.

The PTAB panel determined that an international patent application known as Nishida, which describes a method of using a strip of fabric to form a shoe part, rendered most of the patent claims invalid. The board further concluded that the claims were obvious in light of Nishida combined with general industry knowledge or a 1936 U.S. patent.

In March, a New York federal jury found that Lululemon’s Blissfeel, Strongfeel, and Chargefeel workout shoes infringed two claims of the Nike patent, awarding Nike damages of $1.20 per shoe sold since January 2023, totaling $355,450. This verdict, however, fell short of the $2.8 million Nike sought. The jury rejected Lululemon’s invalidity arguments at that time but cleared the company of infringing a separate patent.

Nike had argued that Lululemon entered the footwear market by utilizing manufacturing techniques from Nike’s Flyknit technology. In a related matter, Nike successfully defended the same patent claims against Skechers in a separate inter partes review petition earlier this year.

The case, Lululemon USA Inc. v. Nike Inc. (IPR2024-00460), remains before the PTAB.