In the suit, Leonard says he helped design the logo and that Nike filed for a formal copyright without first receiving his consent.
"Leonard traced his notably large hand, and, inside the hand, drew stylized versions of his initials 'KL' and the number that he had worn for much of his career, '2,'" his lawyers wrote. "The drawing Leonard authored was an extension and continuation of drawings he had been creating since early in his college career."
Leonard's representatives argue Nike "falsely represented" in its copyright application that the company had created the "Klaw" logo.
The three-time All-Star signed with New Balance last November, with ESPN.com's Nick DePaula reporting the deal was likely worth "significantly more than" $5 million annually.
In addition to this new legal drama, the "Klaw" logo could be a focus for one of the biggest free-agent pursuits of the summer.
The New York Times' Marc Stein reported May 29 the Los Angeles Clippers "are said to have quietly looked into the feasibility" of purchasing the rights to use the design. The Clippers would then use that as a selling point during a meeting with Leonard this offseason, assuming he opts out of his contract with the Raptors.