NWA is ceasing production of the range, which features the slogan 'Tike - Just Done One' and a design which the sportswear giant believes is similar to its own swoosh.
While Nike has accused the design of infringing its trademark, NWA founder Ian McLaren compared the dispute to David and Goliath. It is the same charge levelled at Levi-Strauss (Marketing, May 15) after it forced sportswear brand Howies to change its jeans labels, claiming they infringed its 'red tab' patent.
The Tike range, available in babies' bodyvests and toddlers' tops, has been on sale for just under a year and has become one of NWA's best-selling items. The e-commerce firm has never advertised, relying on viral marketing and word of mouth.
NWA, which also sells bibs and T-shirts sporting an image of Che Guevara, said it has decided not to fight the sportswear giant due to the expense.
McLaren said: "They can't really argue against 'tike' - does this mean nobody can use 'bike' or 'like'?"
A spokesman for Nike said: "In order to protect what the brand stands for we have to deter people from exploiting its integrity."
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