Counterfeit product is hindering the economic growth-Analysis of the court verdict in a recent case on counterfeit

Speck Design was established by designers and engineers in 2001to provide technically sound unique designed devices to the customer. The main business of the company is to manufacture the innovative, elegant designed and stylish case of smart phones and other similar products. The company is now one of the top manufacturers of smart phone case. The company sells their smart phone cases under the “SPECK” and “CANDYSHELL” trademarks in California. “CANDYSHELL” is the most popular brand of i-Phone case of Speck.

With the growing popularity of these trade mark products, Speck Design is now facing the problems of counterfeiting. The” “CANDYSHELL” design of the company was copied and sold in the state of California by the counterfeiter. However, Speck Design is very much alert in the counterfeit issue and relentlessly fighting against the counterfeit products.  On 22^nd August 2011, the company filed a case in the United States Federal District Court for the Central District of California against Tsai and Shaw. Their main allegations were that the defendant were offering the counterfeit goods for sale in Los Angeles, California, that infringes on the “CANDYSHELL” and “SPECK” trademark of Speck Design. The defendants also offered to sell or sold those counterfeit products from the internet. The customers will be lured by the false propaganda and purchase the counterfeit products from the defendants assuming that it is the original product from Speck Design. It will hamper the reputation and the credibility of the plaintiff. The court investigated the matter and found that Tsai & Shaw was selling copied smart phone cases bearing the unauthorized “CANDYSHELL” symbol from an Amazon storefront, “Twinmore” in California.  

On 2^nd November 2012, California District Judge delivered his final verdict in favor of Speck Design. In his verdict, the judge ordered to cease any importing, exporting, marketing, selling, offering for sale, distributing or dealing in any product that is confusingly or substantially similar to, or that constitutes a colorable imitation of, any of Plaintiff’s “SPECK” and “CANDYSHELL” trademarks and copyrights. The court also ordered to compensate the damage.

CEO of Speck Products, Irene Baran said that the counterfeit products are stalling the economic development of the country. Now, it is creating a huge problem to the business all over the world. The ruling against Tsai & Shaw is just a tip of the iceberg. In the last year, the US courts ordered fined the counterfeiters an amount of $1.2 million for copying the original product. Therefore, the genuine companies are taking various measures to protect their inventions. As for example, Speck Design started an awareness campaign wearing a badge “Watch out for Fakes” in their sites. Unfortunately, the reputable companies have to spend money and time to protect their inventions. 

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