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This article led me to search specifically for Australian Merino Sheepskin and I discovered Koolaburra. I've heard of this brand, but frankly, I had just figured that they were another UGG knock-off. As it turns out, they are the "real thing" - made in Australia with Australian Merino Sheepskin. I went to the UGG website to see if I they mentioned the type of sheepskin they use or the country of origin - and, sure enough, they don't say where they are made or what kind of sheepskin they use (http://www.uggaustralia.com/About/sheepskin.aspx). In contrast, when I went to Koolaburra's website, I didn't have to go past the homepage to find out where they are made and see links to pages that discuss their sheepskin. Click here for their website http://www.koolaburra.com, you also might want to view their FAQ page, which discusses why Koolaburra can't use the term "ugg" to describe their boots.
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For a more in depth account of the battle of the uggs, look at this New Zealand site http://www.nznature.co.nz/uggboots-article.htm.
"Uggs, they argue, have always been called Uggs, originally an abbreviation of Ugly. No one bothered with trademarks because Ugg was a 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.'"
After all of this research, I decided to place my order for a pair of Koolaburra's and was delighted to discover that they come in grey, a unique color that UGG doesn't carry. I've just placed my order and can't wait to get my boots! I'll post an update with pictures when I receive them.
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