Despite its Australian birthplace, the ugg boot industry is now fully dominated by one American company, and the Australian ugg boot industry has been frozen out of global trade. This study aims to consider the impact on the competitive advantage of culturally distinctive but not new, intellectual property (IP) through the historic lens of the Australia–USA battle over the UGG boot trademark.
This study uses trademark applications, court documents, annual reports and brand reports to trace the history of the change and growth of the ugg boot industry from a small cottage industry in Australia to a billion-dollar monopoly controlled by an American company.
Court documents and trademark applications from 1979 to 2019 indicate that Australian firms underestimated the cultural differences between the USA and Australia and thus failed to adequately protect the generic word “ugg” in foreign markets where it was considered to be distinctive, rather than generic.
The paper highlights the importance of the first-mover advantage that can be conferred upon a firm by IP that is not new. Trademarks must be distinctive, rather than new, but properly used, they can offer substantial global competitive advantages to firms.
The in-depth analysis of the development of the UGG brand highlights the importance of intangible barriers in global business. The impact on the competitive advantage these intangible barriers gave US firms over Australian firms in the worldwide sheepskin boot market is discussed.
