LG Wins Major Victory In Federal Counterfeit Wearables Case

$168 Million in Damages, Other Judgments and Settlements Help Slam Door on Knockoff, Counterfeit LG TONE Devices Sold in U.S.

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LG Electronics USA

Feb 09, 2017, 10:05 ET

ENGLEWOOD CLIFFS, N.J., Feb. 9, 2017 /PRNewswire/ -- A U.S. federal court has awarded more than $168 million in damages, plus attorneys' fees and interest to LG Electronics MobileComm USA in a case against 17 defendants found liable for manufacturing, distributing, trafficking and selling counterfeit and knockoff LG TONE headsets.

With this ruling, along with other judgments against various other defendants, LG has successfully slammed shut a sizable portion of counterfeits and knockoffs of its popular LG TONE headset line being sold in the United States. LG's zero-tolerance stance against such infringing and counterfeiting activity is a key element of the company's commitment to protecting both its loyal consumers and its valued authorized retailers against such fraudulent and deceptive practices.

The ruling in the U.S. District Court for the Southern District of California shows that LG's ongoing targeted efforts against those engaging in such activities help assure they are brought to justice, according to Chang Ma, president of LG Electronics Mobile USA and head of the LG Electronics North American mobile business.

"Our customers must feel confident that they are purchasing genuine high-quality LG TONE headsets," said Ma. "The LG TONE Bluetooth neckband headsets created a new product category, and these products remain category leaders. With such hard-earned success came freeloading counterfeiters and knockoff artists, who seek to dupe and confuse potential consumers into buying poorly performing, shoddy products under the false pretense that such goods are made or authorized by us," he said.

Ma said LG spends great effort and time to ensure LG TONE headsets are sold and distributed through a dedicated network of authorized dealers and retailers. All genuine new LG products come with manufacturer product warranties and return policies.

"We strive to ensure that our customers have a favorable experience when buying LG TONE headsets through our trusted retailers and distributors," Ma said. "These fine stores and outlets are likewise deserving of protection from counterfeits and knockoffs, because such illicit goods harm the very bedrock of their businesses, too. We share their frustration and anger."

While LG does not disclose its specific policing plans, it promises to protect its consumers and retailers against illegal products. "While we can declare victory in this latest battle, we will remain vigilant. We will not let up; those who choose to make and peddle counterfeits, knockoffs and look-alikes can expect aggressive legal action," Ma said.

LG also promises increased litigation against those selling "liquidated" LG TONE products that fail to truthfully disclose to consumers that such products are not "new," are often damaged, refurnished or repaired, and not covered by LG's warranties, product guaranties, and product return policies.

About LG Electronics MobileComm USA

LG Electronics MobileComm USA, based in Englewood Cliffs, N.J., is the U.S. sales subsidiary of LG Electronics, Inc. a global innovator and trend leader in the global mobile communications industry. LG is driving the evolution of mobile forward with its highly competitive core technologies in the areas of display, battery and camera optics and strategic partnerships with noted industry leaders. LG's consumer-centric products – including the flagship premium V Series models – incorporate unique, ergonomic designs and intuitive UX features that enhance the user experience. The company remains committed to leading consumers into the era of convergence, maximizing inter-device connectivity between smartphones, tablets and a wide range of home and portable electronics products. For more information, please visit www.LG.com.

SOURCE LG Electronics USA