The Nike footwear uses the words "milk crate" and designs based on milk crate grids that could "cause confusion and deceive customers" and dilute the value of Milkcrate's trademark, said a lawsuit filed by Milkcrate in Manhattan federal court.

Nike, the world's largest athletic shoe and apparel maker, uses milk crate designs on its Nike Zoom LeBron V sneakers and other products, said the lawsuit.

The lawsuit, which alleges trademark infringement, seeks unspecified damages and asks that Nike be ordered to recall all products using the milk crate term.

Milkcrate uses images of a milk crate in its logo and depicts milk crates on many of its products.

A spokesman for Nike said the case was without merit and the company would defend itself "vigorously."