Ubiquiti Wins Preliminary Injunction Against Principal Of Counterfeiting Operation

Ubiquiti Networks, Inc. (Nasdaq: UBNT), a next-generation communications technology company, announced a major legal victory when a federal judge at the U.S. federal court for the Northern District of California last week granted a preliminary injunction enjoining Kozumi USA Corp. and its owner Shao Wei (William) Hsu from:

• using in any manner any registered trademark owned by Ubiquiti, the UBIQUITI, UBIQUITI NETWORKS, and Ubiquiti logo mark, or any name or mark that wholly incorporates or is confusingly similar to these trademarks;
• moving, destroying, or otherwise disposing of any items confusingly or deceptively similar to Ubiquiti’s products and that bear any of Ubiquiti’s trademarks;
• moving, destroying, or otherwise disposing of any records or documents containing information related to the manufacturing, distributing, delivering, shipping, importing, exporting, marketing, promoting, selling, or otherwise offering for sale of items that bear any of Ubiquiti’s trademarks; and
• assisting, aiding, or abetting any other person or business entity in engaging in or performing any of the above activities.

The court’s order arises out of a lawsuit that Ubiquiti filed with the federal court charging that Hsu had masterminded an international counterfeiting scheme and had counterfeit products manufactured by Hoky Technology in China. The Chinese authorities had raided Hoky’s factory and seized evidence of Hsu’s counterfeiting operation.

Ubiquiti also charged that Hsu had engaged in intellectual property theft, illegal manufacturing and sale of counterfeit Ubiquiti Networks products, fraudulent registration of Ubiquiti trademarks overseas and attempted extortion. The complaint said Hsu, along with the owner of a counterfeit factory in China, spread malicious and false rumors about Ubiquiti in an attempt to obstruct Ubiquiti’s brand protection efforts.

The preliminary injunction is a continuation of a temporary restraining order that the federal court issued earlier. The court denied defendants’ request to modify the terms of such temporary restraining order. Moreover, the court ordered that all of defendants’ real estate assets be frozen and cannot be sold or disposed of without permission from Ubiquiti or the court. In addition, the court granted Ubiquiti’s request to seek expedited discovery regarding the source of certain defamatory rumors against Ubiquiti.

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