Shoe maker Skechers USA Inc has dropped a trade libel and unfair competition lawsuit against Japanese sporting goods company Asics over a stripe design on its footwear.

The case began in January when Asics claimed that Skechers' shoes featured a design "confusingly similar" to its own.

In response, Skechers counter-sued in February, seeking US$100m in punitive damages.

At the time, Michael E Zall, Asics America Corp vice president and general counsel, said: "Asics has taken legal action against numerous shoe manufacturers and retailers that try [to] capture the overall look and commercial impression of our famous Stripe Design. 

"With respect to Skechers, we expect to prevail. A mere look at the Skechers shoes we are suing on clearly indicates that they are trying to capture the look and goodwill associated with the Asics brand."

The reason for Skechers' most recent decision is unknown.