A task force led by the Federal Bureau of Investigation (FBI) has seized more than 20,000 CyberHome-brand DVD Recorders alleging that they use Philips' patented technology without a license. The task force (known as REACT) obtained a search warrant for the warehouse after being tipped off by Philips. CyberHome markets DVD players and recorders and also portable devices that can be found in some of the biggest chains in the U.S., including Best Buy, Circuit City, Fry's, Target and Wal-Mart.
The task force said that the raid was "part of an ongoing investigation into the illegal manufacture and sale of products bearing counterfeit trademark." Under California laws, punishments for the manufacture, possession, or sale of more than 1,000 items bearing a counterfeit mark include up to three years imprisonment or fines up to $500,000.
The recorders were brought away in eight loads with an estimated retail value of more than $2 million. "CyberHome has been using Philips DVD technology in its DVD players and recorders for a very long time now without paying royalties," said a spokesman for Philips Electronics North America.
"Their debts currently are a multimillion amount of dollars. At this moment, CyberHome is not licensed at all, so they infringe upon our patents. This is illegal, and it also creates unfair competition in the market, as many other companies are licensed. We always want to find solutions in a peaceful way, but if companies do not respect our IP, we are forced to take legal steps." the spokesman added.
Source:
Twice
The recorders were brought away in eight loads with an estimated retail value of more than $2 million. "CyberHome has been using Philips DVD technology in its DVD players and recorders for a very long time now without paying royalties," said a spokesman for Philips Electronics North America.
"Their debts currently are a multimillion amount of dollars. At this moment, CyberHome is not licensed at all, so they infringe upon our patents. This is illegal, and it also creates unfair competition in the market, as many other companies are licensed. We always want to find solutions in a peaceful way, but if companies do not respect our IP, we are forced to take legal steps." the spokesman added.
Source:
Twice
