INDIANAPOLIS, Ind., July 15 -- PRNewswire/ AsiaNet Magnequench International, Inc., the patent holder and a world leader in the manufacturing of specialized magnetic powders and magnets, today filed suit in U.S. District Court in Indianapolis against Microsoft and Philips, alleging patent infringement of its magnetic powders in their products. The suit is part of a major effort to eliminate patent infringement of magnets used throughout the electronics industry. The new lawsuit is in addition to lawsuits already filed by Magnequench against 14 other major electronic, office products, computer, and motor manufacturing firms in the United States and Asia and retailer Wal-Mart, which sells many of the products. Magnequench asks the court for an injunction to prohibit the importation of further infringing materials as well as treble damages. The subject matter of the lawsuits involves neodymium-iron-boron (Nd-Fe-B) magnets and magnetic materials used in most popular consumer electronics products, as well as in automotive and industrial applications. In this instance, the alleged patent infringement centers on Microsoft's XBOX and Philips products that include CD-ROMs and DVD-ROMs. "Since we filed our original suit, we have had many good and positive discussions with manufacturers and retailers who indicate they are taking steps to better police their supply chains. The defendants have told us they are opposed to infringing our patents and are willing to work with us. In fact, already many of our customers have told us they are regaining business they had once lost to infringing materials due in large part to pressure applied by some defendants," said Archibald Cox, Jr., President and Chief Executive Officer of Magnequench, which holds the patents to Nd-Fe-B magnets which were developed by General Motors in the early 1980s. However, while progress has been made, "The unfortunate fact is that illicit magnets and magnetic powders are still finding their way into popular electronics products in the U.S.," Cox said. The global permanent magnet market is about $6 billion. Nd-Fe-B magnets and magnetic materials, the materials involved in the present suit, account for about $2 billion of the dollar share of the industry. Magnequench estimates that as much as 15-20 percent of Nd-Fe-B powders and magnets are being made with patent infringing material. Magnequench used the services of an independent testing laboratory to verify that products produced and sold by those named in the complaint used infringing material. While it is possible manufacturers and retailers may not be aware they are selling products with illicit materials, "they have a legal obligation not to do so and need to police their supply chains better," Cox pointed out. "By sourcing from reputable vendors, we believe these defendants could avoid infringement." Since their invention in 1982 and subsequent introduction, Nd-Fe-B magnets are recognized as representing a significant advance over prior materials because of their strength and flexibility in manufacturing. The high magnetic strength of the Nd-Fe-B magnets permits the miniaturization of many products that use permanent magnets. Indeed, the magnetic properties of Nd-Fe-B magnets have contributed to the development of new electronics devices that would have been impossible or impractical to make using other types of magnets. Cox noted that Magnequench's patents extend to 2009 and beyond but that the company has been delivering price reductions of more than 7.5 percent a year for the past six years and plans to continue to do so. Magnequench, with headquarters in Indianapolis, Indiana, has annual revenues of more than $85 million. It has approximately 400 employees in seven countries and 6 locations in Europe, Asia and North America. More information can be found on the company's web site at http://www.magnequench.com CONTACT: Dick Kosmicki [email protected] Leo Murray +1-212-922-0900 (NY) Jonathan Dedmon (Chicago) [email protected] +1-312-553-0700 all of The Dilenschneider Group Web site: http://www.magnequench.com SOURCE: Magnequench International, Inc. --Distributed by AsiaNet (www.asianetnews.net)----InfoQuest (PP)--