Klipsch Settles Suits, Bans Defendants

From Klipsch’s press release:

AuthorizedElectronics.com, TheBestPriceStore.com, and HomeTheaterPhiles.com.

According to Mike Klipsch, executive vice president and chief operating officer, Klipsch accomplished everything it set out to do with the lawsuit including securing a lifetime ban that prevents web sites, their owners and any future businesses they own from ever selling Klipsch brand products. He said that this lawsuit combined with the company’s zero tolerance policy on transshipping should significantly reduce any unauthorized sales of Klipsch brand products.

“Going after people whose business practices include deceiving unsuspecting consumers and illegally capitalizing on the Klipsch image is not easy and it is very, very costly,” Mike Klipsch said. “We spent over six figures without even stepping into a courtroom, and even that doesn’t come close to the millions of dollars worth of revenue we chose to give up by terminating dealers that transshipped Klipsch products.”

In January, Klipsch reported it had terminated 16 dealers that represented $5 million in business executing its zero tolerance transshipping policy throughout 2003. The company recently terminated two more dealers for transshipping violations bringing the loss of business to a grand total of $6 million dollars. Mike Klipsch said that Klipsch would continue to enforce its zero tolerance policy and “give up millions more in revenue if that is what it takes to stop the transshipping and prevent the unscrupulous procurement, promotion and sale of Klipsch-branded loudspeakers by unauthorized resellers.”

Klipsch first announced that it was filing suit on January 5 seeking an injunction to prevent the defendants from inducing authorized dealers to transship Klipsch products, interfering with the contractual relationships between Klipsch and its authorized dealers, infringing on Klipsch trademarks, illegally using Klipsch’s copyrighted materials, and otherwise competing unfairly with Klipsch. Klipsch alleged that all of the defendants removed the official Klipsch serial number labels from the products and went as far as to attach counterfeit labels.

Mike Klipsch said that within two weeks of filing the lawsuit, crazyeddie.com had closed its doors and the other four web sites had completely removed Klipsch products from their offerings. He also said that about 20 other web sites that were infringing on Klipsch’s copyrights and trademarks voluntarily removed the brand from their pages, presumably to avoid being named as defendants in a future lawsuit.

Specifically, Klipsch obtained a consent decree from Syris Holding Corporation, the parent company of the web site HomeTheaterPhiles.com, that not only enjoins the company, its owners and any associated parties from now or in the future engaging in any of the activities identified in the original complaint, but Syris must disclose the name and contacts of the dealer or dealers that supplied them with Klipsch products.

In a second settlement, the web sites 50TopSellers.com, AuthorizedElectronics.com, and TheBestPriceStore.com agreed not to sell Klipsch brand products or otherwise use Klipsch trademarks and copyrights in connection with their businesses.

The default judgment against Crazyeddie.com will include the same general provisions as the other settlements. Crazyeddie.com, its owners and any associated parties will be enjoined from now or in the future engaging in any of the activities identified in the original complaint.

In concert with filing the lawsuit, Klipsch retained the services of NetEnforcers.com, a brand protection company that assisted Klipsch with shutting down more than 125 auctions by unauthorized dealers using third party web sites such as Ebay and Yahoo. Mike Klipsch said Klipsch plans to continue its relationship with NetEnforcers.com for as long as it is needed and he indicated that more lawsuits would be filed if necessary.

Emerging Tech

A.I.-generated text is supercharging fake news. This is how we fight back

A new A.I. tool is reportedly able to spot passages of text written by algorithm. Here's why similar systems might prove essential in a world of fake news created by smart machines.

The best of the last generation: Our 50 favorite Xbox 360 games

The Xbox 360 thrived during a generation where games were plentiful. Here's our list of the best Xbox 360 games of all time, including all game genres and even a few special indie hits.

Confused about RSS? Don't be. Here's what it is and how to use it

What is an RSS feed, anyway? This traditional method of following online news is still plenty useful. Let's take a look at what RSS means, and what advantages it has in today's busy world.

Rooting your Android device is risky. Do it right with our handy guide

Wondering whether to root your Android smartphone or stick with stock Android? Perhaps you’ve decided to do it and you just need to know how? Here, you'll find an explanation and a quick guide on how to root Android devices.

Amazon slashes prices on UE Boom and MegaBoom 3 Bluetooth speakers

With just the right combination of great sound, a rugged design, and an overall sleek aesthetic, the UE MegaBoom 3 is our favorite Bluetooth speaker. And Amazon is offering a rare discount on it right now.
Home Theater

There isn’t a single good reason to buy Apple’s new AirPods

After nearly a three-year wait, Apple has finally announced a new version of its popular true wireless headphones, the AirPods. We had high hopes for vast improvements, but that's not what we got.
Home Theater

Tipping point? Streaming subscribers outnumbered cable in 2018 for first time

2018 was a very good year for the entertainment business as a whole, but it was especially good for streaming companies like Netflix and Amazon, says a new report by the Motion Picture Association of America.
Movies & TV

Stranger Things season 3 is coming! Here’s everything we know so far

With a sophomore season as strong as its first, Stranger Things is now moving on to season 3. Here's everything we've learned so far about the Netflix series' upcoming third season, premiering in July 2019.
Home Theater

Here’s what’s new on HBO and what’s leaving in April 2019

Whether you're a cable lifer or a staunch cord cutter, there's never been a better time to get down with premium TV. April 2019 brings Game of Thrones season 8, BlacKkKlansman, and Crazy Rich Asians to HBO.
Home Theater

TCL drops the price of its 75-inch 6-Series 4K Roku TV to $1,500

March is a great time for TV deals, and we've got a whopper: TCL has taken $300 off the price of its superb 75-inch 6-Series 4K HDR Roku TV, making it $1,500. That's the lowest price ever on this affordable TV.
Movies & TV

Comcast launches Xfinity Flex, a $5-a-month service aimed at cord cutters

For $5 a month, Xfinity Flex gives existing Xfinity internet subscribers a 4K- and HDR-ready set-top box that can stream video from YouTube, Netflix, Hulu, as well as free TV from apps like Cheddar and ESPN3.
Home Theater

Here’s how to watch Apple’s March 25 product reveal event live

It's almost here: Apple's much anticipated March 25 event, where it is widely expected to announce several streaming services, including on-demand and live TV with original programming. Here's how to watch it live.
Movies & TV

HBO’s Deadwood movie rustles up a trailer and a release date

This spring, HBO's long-awaited Deadwood movie will explore what happened 10 years after the events of HBO's award-winning drama, giving the series a finale 13 years after the show was canceled.
Movies & TV

Apple’s next big event is set for March 25: Here’s what you can expect

Apple's next big event takes place on March 25 in Cupertino, California. The company is expected to make several announcements related to its services, including Apple TV, so follow our guide to get ready for the big event.