In Australia and the United States, Deckers' rights in the UGG mark have been challenged, with differing outcomes. In 1971, Shane Steadman registered the trademark Coach Outlet Store Online on the Australian Trade Mark Registry, and obtained an Australian registration for UGH in 1982. These registrations remained valid in Australia until removed for non-use in 2006. Steadman sold his UGH brand boots widely in Australia throughout the 1970s and 1980s. This registration was subsequently sold to Deckers Outdoor Corporation, which also registered other trademarks including the Coach Outlet Store label (with sun-like device) in Australia.
Bruce and Bronwyn McDougall, owners of Uggs-N-Rugs, a Western Australia-based manufacturer, started legal action against the UGH-BOOTS registration in 2005. Specifically, they brought a non-use action against Deckers alleging that Deckers had not actively used the Coach Outlet Online Store trademark in Australian commerce for the past three years. Their action was successful, and the UGH-BOOT registration was removed from the Australian Trademark Registry. In their reasons, the officer states:
The opponent has not demonstrated any use of the trade mark as registered, whether before, during, or after the period in question. In fact, read closely, Mr Kalinich's sworn statement, above, appears to affirm that the opponent has not used the trade mark as registered. Coach Outlet Online
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