Hackney Council wins logo dispute with Nike

Hackney Council today claimed a victory over Nike following a dispute about the unauthorised use of its logo.

The sportswear giant paid out a £300,000 settlement after using the London borough's name and replica logo without permission.

It sold the Hackney-branded range as far afield as Japan, Russia and the Philippines. Nike will pay all the council's legal costs as part of the out-of-court settlement.

The sportswear company used the logo on T-shirts, trainers and footballs to promote its grassroots football campaign for the World Cup. The £300,000 settlement was based on a percentage of the global sales figures for the range.

Hackney mayor Jules Pipe said the money would be spent on sports activities in the borough: "This was always about more than cash - there is a serious principle at stake here. Just because we are a public organisation, it does not mean that big corporations can take what they want from local people without asking."

Hackney Council's logo features a round letter H surrounded by the words The London Borough of Hackney. It was designed in 1965.

Nike UK's head of corporate communications Charlie Brooks said the firm had reached a "mutually satisfactory agreement" with Hackney Council.

"Nike created a range of products that was designed to celebrate the amateur football heritage and culture of Hackney Marshes," he said.

"In doing so, we inadvertently used imagery that included the council's logo. This was done in good faith and not as a deliberate act. However, we recognise the concern this has caused Hackney Council and we are pleased that this matter has now been concluded."