In early 2026, nostalgic photos from 2016 flooded social media feeds as users and companies took part in the “2026 is the new 2016” trend. However, for the sneaker company Allbirds, 2026 looks drastically different from 2016.
Allbirds distinguished itself as a direct-to-consumer footwear brand utilizing natural materials instead of petroleum-based synthetics. Allbirds made headlines as the company behind the “world’s most comfortable shoes” when it launched the Wool Runner sneakers in 2016. By 2019, the shoe became the it shoe among celebrities, venture capital fund employees, and Silicon Valley engineers.
However, Allbirds’ popularity did not last long. In a dramatic turn of events, Allbirds sold its name and intellectual property (“IP”) to American Exchange Group in early 2026. The company later renamed itself to “SmartBird,” rebranding and refocusing itself as an artificial intelligence infrastructure provider instead.
An overview of Allbirds’ procurement and use of its IP rights provides an interesting look at the role Allbirds’ IP may have played in its eventual evolution into SmartBird.
Allbirds’ Design Patents
Allbirds, like many brands, sought patent protection for its Wool Runner shoe. Four months after its debut in 2016, Allbirds filed a design patent application with the United States Patent and Trademark Office (USPTO) to protect the appearance of their Wool Runner sneakers. Due to several rejections of the application issued by the USPTO, the design patent would not issue until 2019, at the height of the Wool Runner shoe’s popularity. The design patent could be enforced against a competitor who copied the protected “look” of the Wool Runner sneakers.
AllBirds’ Trade Dress
In 2017, years before their design patent would issue, Allbirds brought a lawsuit against Steve Madden for allegedly selling sneakers that looked the same. Without an issued design patent, Allbirds instead relied on its other intellectual property rights and sued based on trade dress.
Trade dress is a type of trademark that broadly protects the overall appearance and distinctiveness of a brand rather than a particular feature. Trade dress protects perception and does not protect function. Examples of trade dress include the shape of glass Coca-Cola® bottles and the red sole of Christian Louboutin shoes.
Allbirds argued that Steve Madden’s alleged use of Wool Runner trade dress would suggest to the public that Steve Madden’s shoe was authorized by or otherwise associated with Allbirds. Ultimately, Allbirds’ lawsuit against Steve Madden ended with an undisclosed settlement.
Allbirds v. Amazon
Amazon began selling an allegedly similar version of the Wool Runner sneakers prior to issuance of Allbirds’ design patents in 2019. Allbirds’ co-founder Joey Zwillinger penned an open letter to Amazon’s CEO noting the many visual similarities of the Amazon sneaker to the Wool Runner sneaker. While seeming to verbally describe Amazon’s alleged infringement of Allbirds’ patent and trade dress rights, Allbirds chose not to file a lawsuit against Amazon. In 2023, amidst a retail landscape reflecting a drop in demand for AllBirds’ shoe products and its loss of market share, Allbirds ended up partnering with Amazon.
Allbirds Evolves Into SmartBird
After purchasing Allbirds’ IP rights and name, among others, American Exchange Group rebranded Allbirds as SmartBird in 2026. While continuing to include “Bird” as part of its name, SmartBird shifted from its origins as a footwear brand. The business today focuses on AI infrastructure as a service and cloud computing.
Designing the Next Trend?
Allbirds’ transition illustrates the importance of consulting an experienced IP attorney to help ensure brands are sufficiently protected, as well as to evaluate whether to enforce or not enforce intellectual property rights in court.
Authors: April Capati, Craig Drachtman and Gabriela Soskind