Nautilus, Inc. Makes Headway Against Counterfeiters

“Fitness company Nautilus, Inc. (NYSE:NLS), on being alerted that counterfeit goods entered Canada, filed suit against the importer/distributor, SC Excel Technology, Inc. (dba Duro Fitness) of Montreal, Canada and obtained an Anton Piller order to enter its premises and seize counterfeit goods and relevant records. Facing overwhelming and incontrovertible evidence of intentional importation of counterfeit goods, SC Excel Technology admitted its actions to Federal Court Judge Simon Noël and was permanently enjoined from trading in Nautilus® and Bowflex® products and the seized goods were delivered to Nautilus. In connection with this action, Nautilus also filed suit against Fitness Nutrition on April 15, 2009 alleging trademark, patent, and copyright infringement for knowingly selling counterfeit goods and refusing to cease such sales after notice from Nautilus. Counterfeit goods are a significant problem for consumers and businesses. Consumers who buy counterfeit goods find poor quality and dangerous goods that can break and injure people or damage property. In addition to lost sales, Nautilus must tell upset customers that the poor quality goods they seek to return are counterfeit. Concerned customers are asked to ensure that the store or website selling Nautilus® and Bowflex® products is an authorized dealer. Nautilus' IP Counsel, Mark Porter, states, ‘Faced with an increasing counterfeit problem, Nautilus is adopting more aggressive steps to stop the importation of these products. Counterfeit products hurt customers, our authorized dealers and Nautilus.’”

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