Klipsch is mad as hell and they aren't going to take it anymore! The company just announced plans to take legal action against 23 parties, who are allegedly involved in counterfeiting Klipsch Image S4 and Klipsch Image S4i -- and using the Klipsch brand to boot.
All 23 of the identified parties reside in China and, according to the company, have been involved in manufacturing and selling the counterfeit products.
Klipsch Group, Inc. (KGI) delivered its first blow on December 16, 2011, when the U.S. District Court for the Southern District of New York suspended service to domains and sellers on trade boards selling counterfeit Klipsch headphones. The order also allows restraint on funds in the payment processing and bank accounts of those selling the items.
Klipsch claims that the counterfeiters have violated the Lanham Act, which governs U.S. trademark registration and prohibits trademark counterfeiting and infringement, among other activities. According to Klipsch, the identified counterfeiters are directly infringing on Klipsch trademarks.
"KGI has noticed a dramatic increase in counterfeit activities over the past six months, and as a result, has intensified its efforts to battle this very serious issue," said Mike Klipsch, president of global operations for KGI, whose role includes running KGI's headphone business. "Obviously, counterfeiting can have a negative impact on our sales, but more importantly, counterfeiters are selling inferior products that reflect very negatively on the Klipsch brand. Our intellectual property is one of our greatest assets and we will continue to protect it to the full extent of the law."
A total of 23 defendants are specifically named in the suit, including at least eight unique websites and 27 seller listings on trade boards, online marketplaces and business-to-business websites. Klipsch says that two suspected major manufacturers are on also on the list, which is expected to grow.
Amongst other things, KGI can seek up to $2 million per trademark, per defendant. They can also enforce injunctions to take down the relevant websites and seller listings. To date, KGI has restrained 20 of defendants' accounts, amounting to over $750,000 in funds from the sale of counterfeit merchandise.
"KGI has and will continue to invest significant resources in these efforts, with the largest investment to date being the pursuit of this legal action," said Klipsch. "The Klipsch brand has been cultivated for over a 65 year time period and we are not about to sit by and let counterfeiters tarnish what we have established."
Klipsch isn't the only company to find counterfeit versions of its products being sold overseas. Monster is seeing a problem with fake versions of its popular Beats by Dr. Dre line. For more information, the company has an online Counterfeit Awareness Center, with a running list of blacklisted websites.
Even more bizarre, authorities recently uncovered 22 fake Apple stores currently in operation in China. Each store was set up to look like the real thing, with products and even the Genius Bar and employees dressed to fit the bill. Check out The Atlantic for a fake Apple store tour, and be amazed.
In the meantime, know that when you buy a product -- tech or otherwise -- it should be from an authorized dealer.
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