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Lawsuit Filed Against Sakar

Monster Cracking Down on ‘Knock Offs’ of Dr. Dre Headphones

Monster is suing Sakar International for patent infringement as it cracks down on what it claims are “knock offs” of the Beats by Dr. Dre Studio headphones.

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Sakar’s Swagger headphones, sold through retailer TJ Maxx, infringe a patent issued in 2007 to inventors Robert Brunner and Francois Nguyen covering an ornamental design, Monster alleges in a suit filed in U.S. District Court, Chicago. Monster’s Studio headphones ($349), which are part of Monster’s Beats by Dr. Dre line, were introduced in 2008 and have “enjoyed tremendous sales,” the lawsuit said. The line has grown to include other models including on-ear Beats Solo headphones ($219) and Lady Gaga’s Heartbeats models.

The Sakar headphones “constitute deceptive trade practices” and may cause “confusion and misunderstanding” as to the source of the product, Monster said in the complaint. The trade dress of the Swagger product is “confusingly similar” to that of the Studio headphones, the suit said. TJ Maxx and Sakar officials weren’t available for comment.

The lawsuit, filed in March, comes as Monster finds the design of Dr. Dre headphones being copied more and more, Rodney Esponilla, a marketing and merchandise specialist, told us at the Brand Source Summit last week. During a recent sweep of China factories, Monster investigators found a blue version of the Lady Gaga headphones, when only a red model has been released so far, he said. Monster’s Web site for the Dr. Dre products also warns consumers to be aware of counterfeits. “Our headphones are now in the tier of Louis Vuitton and some are being copied,” said Esponilla, referring to a handbag brand that also experience extensive knock offs. As a result, Monster is limiting which retailers can sell the Dr. Dre headphones on line to authorized dealers, Esponilla said.

Monster is working with law enforcement officials in the U.S., Europe, China and Australia to “stop the manufacture and trade of counterfeit Monster products globally,” David Tognotti, Monster general manager and vice president of operations, said in a statement. Monster has been “successful” with “several recent raids of counterfeiters” including one in Shenzhen, China and “there are more in the works,” Tognotti said. “Due to the popularity of our premium-branded product, Monster is seeing a significant increase in the number of counterfeit headphones and cables coming from China,” Tognotti said. “These counterfeits are poor quality replicas of our most popular products.”