Adidas had claimed that Thom Browne's four stripes were too similar to its three stripes, according to a report in the BBC.
Browne has argued that its brand had a distinct number of stripes and consumers were unlikely to mix the two brands.
Adidas had intended to seek more than $7.8 million (Rs 63 crore) in damages but a New York jury decided in favour of Browne.
The three stripes are a common feature in Adidas designs while Browne's creations feature four horizontal, parallel stripes that round the sleeve of a garment.
Thom Browne Inc. produces high-end clothing for wealthy customers and sportswear does not predominate the company's designs, as per the BBC.
Additionally, the fashion brand's attorneys asserted that stripes constitute a typical pattern.