No one bothered with trademarks because Ugg was a ugg generic term. Everyone knew it meant a comfortable, flat-heeled sheepskin boot, although - until the current fashion craze - few people admitted to owning a pair. Brian Iverson, owner of Blue Mountains Ugg Boots, says of Deckers' demands: "It's like saying you can't call a car a car."The problem is: someone did bother with trademarks. In 1971 a local surf champion, Shane Steadman, decided to capitalise on the growing popularity of Uggs among Australian - and visiting US - surfers, who were starting to recognise the appeal of a snug boot when they emerged shivering from the ocean. He began selling Uggs and registered the name.Steadman was not the only Australian wave-rider with a sharp eye for a business opportunity. In 1979, so the story goes, Brian Smith arrived in New York with a few pairs of Uggs in his backpack. He set up a company, Ugg Holdings Inc, registered the Ugg trademark in 25 countries and in 1995 sold out to Deckers.For a long time, not a peep was heard from the new American owners of the iconic Australian boot. The company sent out a flurry of warning letters five years ago, but did not follow them up. According to Middletons, its Melbourne lawyers, it was only when Australian manufacturers began selling Uggs on the internet to meet soaring overseas demand that Deckers felt obliged to crack down.Not surprisingly, the Australian firms - most of them small family outfits with a handful of employees - are unimpressed with the Santa Barbara-based company's arguments. They say Brian Smith was awarded the trademarks in error and are planning court action to have them rescinded, at least in Australia.Their only other choice is to give up and go under - for without the name Ugg, they say, they cannot sell their boots. "People around the world know them as Ugg boots," says Tony Mortel. My family has been marketing them as Uggs for 45 years. For Deckers to say that we should give it all up, without compensation, is borderline monopolisation."The Australian traders have united under the banner of the Ugg Boot Footwear Association and set up a fighting fund to finance the forthcoming legal battle. Those waiting in limbo include Westhaven Industries, a disabled services charity that employs 65 people at its factory in Dubbo, a small town in New South Wales. Ugg boots are the charity's most profitable product and, without them, the business would not survive.

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