Apple sues makers of inferior quality accessories
According to Kaufman Brothers analyst Shawn Wu, Apple currently has a program that gives accessory makers a license to manufacture official products in exchange for a 20% to 25% royalty from each sale. The lawsuit claims that at least 10 firms are infringing on Apple patents while trademarks are being violated. Mark Kesslen is chairman of the intellectualproperty group at New York-based law firm Lowenstein Sandler PC. He has represented companies that applied for a license with Apple to sell officially authorized accessories. Kesslen said, "They are trying to control all aspects of theirdevices,” he said, "They are using the various licensing agreements, partneragreements and brand management to make sure that it stayswithin their high standard."
The suit was filed in the U.S. District Court for the Northern District of California on July 22nd and names 6 defendants in California and 1 in Washington. Apple says it could name 20 more companies that made the unlicensed products. However, as Mr. Kesslen points out, when keeping control over your products or acting in an anti-competitive manner, "There is a very fine line," he says,"You have to be very careful."
source: Bloomberg via AppleInsider