Global Market Data
Global News Journal
Pakistan: Now or Never?
Front Row Washington
The Great Debate
Personal Finance Video
Life & Culture
Brad Pitt says thoughts on Aniston misunderstood
Scarlett Johansson naked pictures leaked on Web
14 Sep 2011
Nude Scarlett Johansson Photos Pop Up Online -- FBI's Hot on the Trail
14 Sep 2011
Netflix's Ted Sarandos takes stage as share prices plummet
15 Sep 2011
RIM results, outlook stun investors even after warning
15 Sep 2011
Al Gore in 24-hour broadcast to convert climate skeptics
Number of poor hit record 46 million in 2010
Egyptians demolish Israel embassy wall at protest
Scarlett's naked pics, Tyler Perry is highest paid
Wed, Sep 14 2011
Lessons with Lego: the EU crisis
Thu, Sep 15 2011
Buenos Aires Fashion week sizzles
Mon, Aug 22 2011
Apple settles with Queens stores over knockoffs
Developers get early taste of Windows 8
Tue, Sep 13 2011
Apple wins German court ruling on Samsung tablets
Fri, Sep 9 2011
Dell and Baidu team up for tablets, mobiles
Tue, Sep 6 2011
Sony tablets fail to impress on price, hardware
Wed, Aug 31 2011
Openwave alleges Apple, RIM infringed patents
Wed, Aug 31 2011
Analysis & Opinion
Windows 8: Worth the wait, but is it too late?
It’s even more magical than I remembered!
Steve Jobs »
The Apple logo is pictured outside the Apple store in Santa Monica, California August 24, 2011.
Credit: Reuters/Mario Anzuoni
Thu Sep 15, 2011 5:05pm EDT
(Reuters) - Two stores in Queens, New York, accused of peddling unauthorized Apple Inc accessories have agreed to hand over all products in their inventories bearing the word "Apple" or any of the company's ubiquitous trademarks.
The proposed settlement, lodged in Brooklyn federal court on Thursday, would resolve a trademark-infringement lawsuit filed last July against Apple Story Inc and Fun Zone Inc, two stores in the Chinatown section of Flushing, Queens, that sell cases, headsets and other accessories for Apple products such as the iPhone, iPad and iPod. The two stores maintain they have not violated any Apple trademarks.
If U.S. District Judge Kiyo Matsumoto approves the settlement, the stores will have five days to turn over any counterfeit products in their inventories, as well as any products, labels, packaging, promotional materials and other items that bear any Apple trademarks, including the well-known image of an apple and proprietary phrases such as "iPod" and "iPad."
According to a court filing from Apple, the design of the unauthorized iPhone and iPod cases sold by the two stores mimics the trademarked iPhone and iPod designs and includes the phrase: "Designed by Apple in California. Assembled in China."
As part of the proposed settlement, Apple Story has agreed to change its name, which Apple contends is too similar to its "Apple Store" trademark. It has also agreed to remove an oversize iPhone-shaped window display.
The defendants -- who include Apple Story owner Janice Po Chiang and Fun Zone manager Jimmy Kwok -- are also prohibited from destroying any records pertaining to the manufacture, distribution, sale or receipt of the cases or headsets identified as fakes by Apple.
TIDE OF COUNTERFEITING
Apple filed the suit under seal on July 25. Under U.S. trademark counterfeiting law, a company may file a trademark infringement action under seal so as not to tip off the accused before seizure orders are executed. The record was unsealed following a request from Reuters.
Apple said in court filings it sent private investigators to buy hundreds of dollars' worth of the alleged fakes from both stores multiple times over several weeks earlier this year.
On July 27, Apple seized goods bearing the Apple trademarks from both stores. It has also won a court order requiring the defendants to turn over access to their business email accounts, which could yield clues about their suppliers, distributors or customers.
The lawsuit comes as the California company tries to stem a tide of counterfeit products and even whole counterfeit Apple stores, in China.
A spokesperson for Apple declined to comment on the settlement.
Attorneys for both parties did not immediately return requests for comment.
The case is Apple Inc. v. Apple Story Inc et al., in the U.S. District Court for the Eastern District of New York, no. 11-3550.
For Apple: Mark Mutterperl and Todd Hambidge of Fulbright & Jaworski.
For the defendants: Samuel Chuang of the Law Offices of Samuel Chuang.
(Reporting by Jessica Dye in New York; editing by Andre Grenon)
Related Quotes and News
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Be the first to comment on reuters.com.
Add yours using the box above.
Social Stream (What's this?)
Back to top
New York Legal
Support & Contact
Advertise With Us
Connect with Reuters
Our Flagship financial information platform incorporating Reuters Insider
An ultra-low latency infrastructure for electronic trading and data distribution
A connected approach to governance, risk and compliance
Our next generation legal research platform
Our global tax workstation
About Thomson Reuters
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.