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|Ubiquiti Wins Legal Victory In China; Counterfeiter Faces Long Jail Term|
|Posted: Tue Aug 27, 2013 02:59:09 PM|
SAN JOSE, Calif. -- August 27, 2013 -- Ubiquiti Networks, Inc. (NASDAQ: UBNT) ("Ubiquiti") today announced a significant milestone in the company's global brand protection efforts. The Shenzhen court in China sentenced Kenny Kai Deng, a major counterfeiter of Ubiquiti products, to five years imprisonment and a fine of RMB1,000,000. The Shenzhen court convicted Deng of criminal trademark infringement for manufacturing and selling counterfeit Ubiquiti products.
The Shenzhen Public Security Bureau had raided Deng's factory and seized counterfeit products and other evidence of the counterfeiting operation. In August 2012, Deng was arrested and subsequently taken into custody by the Chinese authorities.
In May 2012, the company filed a lawsuit in the U.S. District Court for the Northern District of California against Florida-based Kozumi USA Corp. and its owner for trademark infringement and sale of counterfeiting products. In June and July 2012, the federal court issued a temporary restraining order, followed by a preliminary injunction prohibiting Kozumi USA Corp., its owner, and anyone in active concert or participation with them from counterfeiting Ubiquiti products and infringing Ubiquiti trademarks. Moreover, the court ordered a freeze of the defendants' real estate assets. In parallel, the Company scored a number of legal victories in South America against counterfeiters affiliated with Deng, Kozumi, and other infringers of Ubiquiti trademarks and copyrights.
Additionally, the company has recently won a court order in Dubai, the United Arab Emirates, against Asim Sajwani, a previously terminated distributor who had supported Deng and created a website with false allegations to tarnish Ubiquiti's reputation. The court order froze more than $2 million in Sajwani's bank account for past due balances owed to Ubiquiti. The company had also filed a criminal action charge against Sajwani for defamation, and the Dubai authorities are conducting a criminal investigation on the case.
"Ubiquiti has a history of overcoming adversity, and I am very pleased with how we responded to the various external factors that attacked the well-being of this company last year," said Robert J. Pera, CEO and Chairman of the Company. "We view the court decision in China as a major victory in our worldwide campaign to protect our intellectual property and our customers. We will continue to vigorously exercise our legal rights to protect our fast growth and to safeguard our brand name and business reputation."