US court upholds injunction against Titleist

selling certain models of Pro VI golf balls

FROM THE GOLF WEEK.COM WEBSITE
A United States federal appellate court ruled December 23 to uphold an injunction issued in November that prevents Titleist from selling certain models of its Pro V1 golf balls.
The injunction stems from Callaway’s patent infringement suit against Acushnet Co., Titleist’s parent company.
At the crux of the litigation is Callaway’s argument that Titleist infringed upon four Callaway patents during creation of Titleist’s Pro V1 franchise.
A lower court has already ruled in Callaway’s favor, but Acushnet appealed and that legal motion is pending. Acushnet requested a stay of the injunction but was denied.]
The sales ban, which takes effect from January 1, 2009, only applies to Pro V1s using the patents in question. But its impact on the marketplace remains unclear, in part, because the two parties have differing legal interpretations of the scope of the injunction.
Callaway maintains Pro V1s made with the patents in question can’t be sold to consumers; Acushnet argues it simply means that the company can no longer sell such products to retailers.
In September, Titleist converted production of current Pro V1s so that they are outside of the patents in question, according to Acushnet officials. That leaves a limited supply of non-converted Pro V1s remaining at retail.
In a statement, Steve McCracken, Callaway’s senior executive vice president and chief administrative officer, said: “Callaway Golf believes it is time for Acushnet to accept its losses in court and get on with the task of helping retailers clean up their inventories over the next week.”
Acushnet countered with its own statement. Said Joe Nauman, the company’s executive vice president, corporate and legal: “Acushnet does not believe that the injunction order requires Acushnet to recall any Pro V1 golf balls from retailers, or that retailers are required to return any golf balls to Acushnet.”
The company, however, will accept any Pro V1s that are returned.
It remains uncertain when, or if, the courts will address this point of contention. Meanwhile, the appeals process regarding Callaway’s assertions of infringement continues. Acushnet disputes the validity of the patents that Callaway alleges Titleist infringed.
Don't hold your breath. A decision isn’t expected until late 2009.