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Seeing the popularity of the boots among American surfers, Australian surfer Brian Smith, then living in Santa Monica, California, bought boots from Country Leather but was unhappy with the brand and decided to register UGG as his own trademark. trademark on a ram's head logo with the words "Original UGG Boot UGG Australia." In 1995, Ugg Holdings purchased Stedman's various trademarks.
Family friends invested ,000 into the new venture and the group set up Ugg Imports. Shoe manufacturer Hide & Feet in Newquay, Cornwall 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.
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.
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 Some variations of ugg style boots have also been made from kangaroo fur and leather. Although derided as "fake" by some in the industry, their lower price made them appealing to large retail chains such as Myer.
Deckers retained the trademark rights to their UGG logo in Australia as trademark protection only applies to the way the mark appears in its entirety and not the words it contains.
IP Australia also ruled that the trademark "UGH-boots" (with hyphen) should be removed from the trademark register for non-use as Deckers had only been using the UGG logo, not the UGH marks.
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.
Traditional Australian ugg boots are made from sheepskins with fleece attached.