U.S. Federal Court Stops 22 Defendants Manufacturing,
Selling Knock-Off LG TONE Headsets; LG Seeks USD 194 Million in Damages

ENGLEWOOD CLIFFS, N.J., June 9, 2016 — A federal court in the United States granted a restraining order against 22 defendants, barring them from manufacturing, distributing, and selling knock-offs of LG Electronics’ popular LG TONE Bluetooth headsets.

To protect unsuspecting consumers who may unknowingly buy what they think is the latest LG TONE Bluetooth stereo headset, LG sued nearly two dozen companies selling counterfeit versions of the product. LG’s suit seeks nearly USD 200 million in damages, a permanent injunction, attorneys’ fees, and other relief the court believes appropriate.

LG’s TONE Bluetooth headsets are the product category leader, having created the neckband Bluetooth headsets product space with its highly unique and distinctive looking design which is a stark departure from prior Bluetooth configured devices.

The court order prohibits all further sales of counterfeit and knock-off LG TONE headsets by the named defendants to unsuspecting shoppers. The infringing products at issue were largely sold by foreign companies through various digital online marketplaces and platforms.

“Thousands of shoppers simply looking to purchase an LG headset have been duped and victimized by companies cashing in on makeshift and second-rate headsets,” said Morris Lee, president of LG Electronics MobileComm USA and head of North America Mobile Business. “To prevent the further exploitation of consumers, LG is going after the companies attempting to take advantage of shoppers as well as the tremendous popularity of the TONE headsets.”

LG also plans to pursue legal actions against vendors advertising and selling “liquidated” LG TONE products without truthfully disclosing to consumers that such products are not “new,” are often damaged, marred, refurnished, or repaired, and not covered by LG’s warranties, product guaranties, and product return policies.

“Other lawsuits and actions are in the works as LG works to protect unassuming shoppers,” Lee said. “This includes both large-scale actions, such as the current suit, as well as targeted suits against those products that blatantly infringe our design patent rights and product configuration trademark rights.”

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