FBI seizes 20,000 CyberHome DVD players and recorders

[sammy]

Hi
FBI seizes 20,000 CyberHome DVD players and recorders
16 June 2006 - 21:04 - Source: Inside Bay Area
After CyberHome kept failing to pay royalty charges to Philips for use of its patents, Philips eventually filed a complaint, which has now resulted in US officials seizing some 20,000 DVD players and recorders from CyberHome's Californian warehouse. According to Philips, CyberHome has not paid any royalties in a very long, which accumulates to some $22 million dollars in debt. Not only is this illegal, but also gave them unfair competition in the market against those who are licensed.
Philips had revoked CyberHome the right to manufacture or sell devices using Philips components back in March and complained to the authorities late May. The raid resulted in eight truck loads of devices being taken from the warehouse worth over $2 million in retail value. The company can face up to three years in jail and up to $500,000 in fines for the use of a counterfeit mark.
FREMONT — More than 20,000 DVD recorders and players have been seized from a local business that is the nation's top importer and supplier to major retail stores of such machines, a prosecutor said Tuesday.
Federal and local authorities have taken more than $2 million worth of the devices from CyberHome Entertainment USA, a Fremont-based affiliate of CyberHome Taiwan, after the company failed to pay a $22 million licensing bill owed to Philips Electronics Co., which owns the trademark to some technology used in the machines, Santa Clara County Deputy District Attorney James Sibley said.
No one has been arrested, but the investigation — which could involve other trademark infringements — is ongoing, Sibley said.
Some further info can be read on Engadget here:

This raid gives a clear sign that selling unlicensed DVD players and recorders can be just as risky as selling bootleg DVDs. For the retail stores, this means that they will have to turn to ordering extra stock from competing players.
Sammy