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Philips Says Salton Violated Intellectual Property Rights
Sep 29, 2003
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Salton Inc. said that Philips Domestic Appliances & Personal Care BV, a unit of Philips Electronics,
has accused it of "misappropriating trade secrets" and violating intellectual property rights.

Salton, a Lake Forest, IL, U.S., consumer products company, said in a Securities and Exchange Commission filing that Philips' charges are related to the development and marketing of Salton's Melitta One: One single-serve
coffeemaker.

Philips, based in Amsterdam, makes consumer electronics including coffeemakers and other household appliances.

In response to Philips' claims, Salton said that it filed a complaint in August in the U.S. District Court for the Northern District of Illinois, U.S., seeking a declaratory judgment that the company hadn't violated Philips'
intellectual property rights.

Philips also has accused Salton of interfering in a contractual relationship between Philips and Electrical & Electronics, according to Salton's financial statement for the year ended Jne 28. Electrical & Electronics is one of Salton's manufacturing sources, the filing said.

The filing didn't say whether Philips has filed a lawsuit, or what actions or damages Philips is seeking against Salton.

This isn't the first dispute between Salton and Philips. In 2002, Philips Oral Healthcare Inc. sued Salton for allegedly making false claims in
advertisements for its Ultrasonex electric toothbrush. I August 2002, a federal court in the state of Washington issued an injunction prohibiting Salton from airing the toothbrush ads, according to previous SEC filings. The order didn't bar Salton from selling the electric
toothbrush.

Salton said in February that it settled the toothbrush lawsuit with Philips. Salton recorded U.S. $2 million in charges related to the litigation, according to a subsequent SEC filing.

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