LG sues counterfeit manufacturers and wins $168 million

Could be a warning for all tech counterfeiters, but LG isn’t playing around.

On Thursday, it was announced that for counterfeit products – things could get a lot harsher. LG was awarded more than $168 million in damages by a U.S. federal court after the US subsidiary sued 17 companies for manufacturing, distributing, trafficking and selling counterfeit and knockoff LG TONE headsets.

In a press release, LG 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.”

Chang Ma, president of LG Electronics Mobile USA and head of the LG Electronics North American mobile business commented his frustration, noting the time and effort put in for sales and distribution through a dedicated network of authorized dealers and retailers.

“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.” Ma said.

While for LG, it’s about slamming shut some doors for cheap knockoffs and counterfeiters, and protecting businesses; many other companies would have greater concerns regarding safety of their customers.

In fact, many companies have been taking action and lawsuits are ongoing. At least when it concerns Apple and Amazon, according to CNET. Just earlier this week, Dell was under scrutiny regarding exploding laptops. However it soon emerged that the batteries that burst into flames…was a fake. Or rather, not manufactured by Dell in any case.

With LG’s victory in US, it can be expected that more crackdowns will happen. While companies can’t exactly control user behaviours of saving their pockets and wallets from more holes, most come with the same warning label to ensure customer safety.

LG is certainly not slowing down in their fight, promising 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.

Ma warned “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.”

 

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