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Square D Files Lawsuit to Prevent Counterfeiting
Square D Files Lawsuit to Prevent Counterfeiting
23 May 2006 Square D, best known in the United States as the flagship brand for Schneider Electric's North American Operating Division, recently filed suit against Scott Electric Company of Greensburg, Pennsylvania, and a local retailer in the United States District Court located in Pittsburgh, Pennsylvania. Continuing efforts by Square D to track down potential counterfeiters and protect intellectual property rights revealed that Scott Electric had sold certain counterfeit electrical products. The lawsuit asserts that Scott Electric participated in false advertising, product disparagement, and trademark infringement in violation of federal and state law, and seeks monetary and injunctive relief to prevent Scott Electric from its false advertising and to stop both Scott Electric and the local retailer from selling or marketing counterfeit products. The suit specifically claims that Scott Electric sold counterfeit QO circuit breakers bearing the Square D trademarks and copying Square D designs. As alleged in the lawsuit, testing by Square D Company has shown that counterfeit electric distribution products pose serious health and safety hazards to innocent customers.
"Square D is committed to enforcing its trademark and property rights and to prevent the sale and importation of counterfeit products bearing its trademarks or designs," said Bill Snyder, vice president channel development for the Schneider Electric North American Operating Division. "Square D will also take appropriate action to prevent product disparagement and false advertising."
On April 28, 2006, Scott Electric agreed to promptly resolve the matter and prevent the sale of counterfeit products. In the short term, the consent order requires Scott Electric to submit to immediate inspection of its entire Square D inventory, including all allegedly counterfeit QO circuit breakers described in the suit. Square D representatives shall conduct the inspection, and identify and take possession of any counterfeit products. Scott Electric has also represented that it intends to recall any counterfeit Square D products. Scott Electric is permanently enjoined from knowingly marketing, selling, or distributing any counterfeit Square D product. Through April 12, 2008, Scott Electric has agreed to notify Square D if it suspects that it is in possession of counterfeit Square D product and fully cooperate with a Square D inspection. If Scott Electric complies with all of the terms of the consent order, Square D will dismiss its lawsuit against Scott Electric with prejudice.
According to Snyder, "The swift handling of this lawsuit demonstrates how determined and serious Square D is about putting an end to the counterfeiting of its products. There will be many more battles as part of the larger war Square D intends to wage on counterfeiters."
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