right|250px|thumb|A pair of ugg boots

Ugg boots Outside Australia and New Zealand, UGG is a brand manufactured by the California-based Deckers Outdoor Corporation, with most of its manufacturing based in China and with registered trademarks in over 130 countries worldwide including the US, UK, Canada, all European Union members, and China. in China), Deckers Corporation actively asserts its "UGG" trade mark against Australian traders who sell their "ugg boots" overseas.

Noteworthy manufacturers in Australia and New Zealand are EMU Australia, Uggs-N-Rugs and Ugg Australia. While Deckers is often referred to as the leading manufacturer of the footwear style outside Australia, Following an investigation by the Australian Competition & Consumer Commission into allegedly misleading and deceptive use of "Australia" in its branding, Deckers has rebranded from "UGG Australia" to "UGG".

History

thumb|Cutting boot pieces from a [[sheepskin using a cutting press]]

thumb|Stitching the innersole of an Australian ugg boot

There are different claims to the origins of the ugg boot style. Artisanal sheepskin boots were known in rural Australia during the 1920s, Perth sheepskin boot manufacturers Bruce and Bronwyn McDougall of Uggs-N-Rugs have manufactured the boots since the late 1970s.

The origin of the term "ugg" is also unclear. Stedman registered the trademark "UGH-BOOTS" in Australia in 1971, and in 1982 registered the "UGH" trademark. Frank Mortel claims that he named his company's sheepskin boots "ugg boots" in 1958 after his wife commented that the first pair he made were "ugly."

The 1970s saw the emergence of advertising using the UGG and UGH terms both in trade names and as a generic term in Australia.

In the 1970s, ugg boots became popular among competitive surfers. By the mid-1970s, several surf shops in Santa Cruz, California and the San Fernando Valley were selling a limited number of boots purchased by the shops' owners while visiting surfing events in Australia. In 1978, a Western Australian manufacturer of sheepskin boots, Country Leather, advertised outside Australia for distributors to sell its sheepskin boots, which were made from sheepskin sourced from Jackson's Tannery in Geelong, Victoria.

Shoe manufacturer Hide & Feet in Newquay, England began manufacturing sheepskin boots in 1973, and in 1990 Nick Whitworth and his wife Kath bought the business and registered "UGG" as a trade mark in the UK. Due to increasing popularity and sales, in 1991 the company changed its name to "The Original Ugg Co." In 1999, Whitworth sold the company name and the British UGG trade mark to Deckers Outdoor Corporation, renaming his company the Celtic Sheepskin Company.

By 1994, UGG boots had grown in status among surfers in California with 80% of sales in southern Orange County where Ugg Holdings saw an increase in sales of 60 percent on the previous season. Smith's UGG boots gained international exposure when they were worn by the United States Olympic team in Lillehammer for the 1994 Winter Olympics. Australian manufacturers also saw an increase in exports of sheepskin boots to the United States, although Ugg Holdings retained an estimated 80% market share. By the end of the year, Country Leather had opened its own shop in Redondo Beach to promote an expansion of the brand from its established surf market into mainstream footwear sales and Ugg Holdings began sourcing UGG boots directly from Jackson's Tannery, which had changed its name to EMU Australia. In early 1995, Smith promoted the UGG AUSTRALIA brand on the Rush Limbaugh show, which spurred sales while the brand gained further exposure when the San Diego Chargers started wearing them. According to retailers, it was not just the footwear that attracted consumers, but the "made in Australia" tie-in as the boots were a unique product only available from Australia and Australian products were at that time very popular. According to Australian fashion stylist Justin Craig: "The only people who get away with wearing them are models, who give out the message: 'I'm so beautiful, I can look good in any crap. Cameron Diaz, Leonardo DiCaprio and Jennifer Lopez, and product placements in television series such as Sex and the City, and films such as Raising Helen. This marketing campaign "led to an exponential growth in the brand's popularity and recognizability." In 2010, worldwide sales of ugg boots by Australian manufacturers combined equalled only 5.9% of Deckers "UGG"-branded sheepskin boots sales,

Design

right|250px|thumb|Fashion ugg boots

Traditional Australian ugg boots are made from sheepskins with fleece attached. The fleece is tanned into the leather and the boot is assembled with the fleece on the inside. Some ugg boots have a synthetic sole, commonly made from ethylene-vinyl acetate (EVA). The stitching is often prominent on the outside of the boot. The natural insulative properties of sheepskin gives isothermal properties to the boots: the thick fleecy fibres on the inner part of the boots wick moisture and allow air to circulate, keeping the feet at body temperature

As one of many clothing products made from animal skin, sheepskin boots have been the subject of criticism by the animal rights movement, and producers have responded by improving animal welfare.

Trademark disputes

The trademarking of the UGG name has been the subject of dispute in several countries. Deckers Outdoor Corporation has won disputes in the United States, and Turkey. In Australia and New Zealand, ugg is a generic term. The trademark for "Ugh-Boots" has been removed from the trademark registry for non-use. In the 1990s, Smith and then Deckers secured additional registrations in the U.S. and other countries.

In response to these actions by Deckers, some Australian manufacturers formed the Australian Sheepskin Association to fight the corporation's claim, arguing that "ugg" is a generic term referring to flat-heeled, pull-on sheepskin boots. One of these manufacturers, Perth's Uggs-N-Rugs, who had been manufacturing ugg boots since 1978 and selling them online since 1996, appealed to Australian trademark regulators.

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  • Documentary film on the trademark dispute:
  • "Save Our Aussie Icon" – campaign against the trademark
  • U.S. Patent and Trademark Office: "Trademark Search"
  • World Intellectual Property Office: ""Trademark Search"
  • A listing of Deckers Outdoor Corporation trademarks containing the word UGG, registered in over 100 countries.