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.
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