Johnson Outdoors Files Suit in Federal Court

[fishwater]

Quote:

Johnson Outdoors Files Suit in Federal Court Against Maker of Lowrance

Navico 'Willfully Infringed' on Side Imaging® Patent

Press Release Source: Johnson Outdoors Inc. On Wednesday January 27, 2010, 9:00 am

RACINE, Wisc., Jan. 27, 2010 (GLOBE NEWSWIRE) -- Johnson Outdoors Inc. (Nasdaq:JOUT

- News) today announced it has filed a patent infringement lawsuit against Navico,

Inc. for infringement of U.S. Patent No. 7,652,952 by Navico's sale of the Lowrance

LSS-1 StructureScan Imaging System. Johnson Outdoors' patent protects the

Humminbird® Side Imaging® sonar technology. The complaint was filed in the U.S.

District Court in Alabama, the home of Humminbird® products for over 50 years.

Johnson Outdoors' Side Imaging® sonar produces detailed and recognizable images of

underwater objects and waterbeds enabling anglers to pinpoint habitat, structure and

drop-offs which are prime holding areas for fish. The patent application process

began in 2004 prior to the Company's introduction of Side Imaging® sonar in

Humminbird® 900 series fishfinder models the following year.

Consumer demand prompted Johnson Outdoors to expand utilization of Side Imaging®

sonar technology across a broad range of its Humminbird® portfolio and was a key

driver behind the brand's growth over the past four years. Following a

comprehensive and methodical review process, on January 26, 2010, the U.S. Patent

and Trademark Office granted the Company's patent for "Side Imaging® sonar."

"Our intellectual property policy is very simple: we will respect the property of

others and fiercely protect that of our own. We were diligent throughout the Side

Imaging® sonar technology patent application process to ensure we achieved both

because real innovation brings real value which our customers and consumers expect

and demand. By taking steps to protect our ideas and inventions, we help ensure our

ability to continue to bring forward meaningful advances and innovative products

that excite consumers and build our customers' business," said Kelly Grindle, Group

Vice President Marine Electronics & Watercraft.

The Company's complaint says Navico, Inc. expended substantial resources to inform

the trade and relevant purchasers of fish finding products, that it too would use

side scan technology to compete directly with Humminbird® Side Imaging® sonar

products with knowledge that the U.S. Patent & Trademark Office had approved the

Company's patent. The complaint further says Navico actively induced infringement of

the patent by resellers.

The Company is asking the Court to enjoin Navico from further infringement of the

patented Side Imaging® sonar technology.

[harvey lee]

More and more good news for Navico. First Linda Colt and now this.

I thought it was kind of strange that Lowrance came out with this technology a few months after Humminbird.

I guess we will see how this plays out.

[river rat316]

More like a few years afterwards, my opinion of Navco is dropping fast, and it wasn't good to begin with

[CJH]

Not good!!!! Not a big Lowrance fan and this doesn't help......

[jwmiller33]

i'm hoping this works out well for humminbird... just in the past two years i have bought a new humminbird depth finder/gps combo for my boat, and a ICE 35 for the winter months... i am a FULL supporter of humminbird products and i like where the company is going in progress over the past couple years. this would be a huge plus to humminbird if they can get the patent rights to the side imaging

[harvey lee]

jwmiller33

I believe they have the patent rights and thats why the lawsuit has been filed.

[jwmiller33]

i see.. thats what i kind of figured but i didn't understand how navco came out with basically the same thing, so i figured humminbird was in the process of getting the patent rights. if they already have the patent rights, then navco is SOL, aren't they? shouldn't it be a pretty simple and straight forward lawsuit?

[jabug]

not a suporter either way but dont all locaters use primarily the sae technology for 2d sonar so whats the big deal if more then one company has side imageing. also didn't lowrance have the down scan first. i believe it was out for some last summer already. humminbird is just getting there's out so did they take that fro lowrance.

[TSchultz]

The reason why down scan isn't an issue is because it is data that is used from the side imaging software. In essence Hbirds already collected downscan information previous to Lowrance introducing it, Bird just added the view of it when thier customers asked for it.

[FishGUY]

Here is the response from Lowrance.

LOWRANCE AFFIRMS CONTINUED COMMITMENT FOR DISTRIBUTION AND SUPPORT OF STRUCTURESCAN™ SONAR IMAGING TECHNOLOGY

Side-scanning and DownScan Imaging™ software and module add-on solution for HDS displays offers anglers and boaters a unique full-picture view of the underwater world.

Tulsa, Okla. – Lowrance, a world-leading brand in marine electronics since 1957 and GPS navigational systems since 1992, re-affirmed today that the LSS-1 StructureScan™ sonar imaging module option – compatible with HDS fishfinder/chartplotter multifunction displays – will continue to be sold, distributed and fully supported worldwide.

The announcement is a direct response to today’s patent infringement lawsuit filed against Navico, Inc., by Johnson Outdoors.

Lowrance publicly announced the 2009 availability of LSS-1 StructureScan™ sonar imaging on February 20, 2009, at the Bassmaster® Classic Expo, held in Shreveport, La. Additional details – including the DownScan Imaging™ feature of StructureScan™ sonar imaging for Lowrance HDS displays – were revealed publicly on July 15, 2009, at the International Convention of Sportfishing Trades (ICAST), held in Orlando, Fla.

Following the on-time shipment of LSS-1 StructureScan™ sonar imaging in November 2009, excitement of LSS-1 StructureScan™ sonar imaging continues to grow as media and dealer demonstrations at marine-industry events have revealed the unique “full picture” view and other unique features that this add-on module provides for owners of Lowrance HDS multifunction displays.

The LSS-1 StructureScan™ sonar imaging is based on Navico’s known and reliable sonar technology, yet it also features additional new technology not available from others, in a unique add-on module configuration.

“We are confident,” said Louis Chemi, COO for Navico Americas, “in the uniqueness and value of Lowrance LSS-1 StructureScan™ sonar imaging. We also wish to assure our customers that the worldwide sale and distribution of StructureScan™ sonar imaging will absolutely continue as planned with full Lowrance support for years to come. Navico will vigorously defend the recent legal proceedings initiated by Johnson Outdoors.”

For more information on Lowrance StructureScan™ sonar imaging, Lowrance HDS multifunction displays, or the entire Lowrance line of marine electronics.

-30-

About Lowrance:

The Lowrance® brand is wholly owned by Navico, Inc., a privately held, international marine electronics company. Navico is currently the world’s largest marine electronics company, and is the parent company to five well-established marine electronics brands: B&G®, Eagle®, Lowrance, Northstar and Simrad®.

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[hhguide]

Im sorry but I dont think anything will happen its just a bunch of hoopla. I'm a huge supporter of Lowrance vs H-bird or Versus any other product for that matter, I know that it doesnt look good but I doubt anything will happen. Each and everyday this happens around the world and most get tossed out! Thats just my opinion, who knows. There is a reason that lowrance got to where they are.

[snoozebutton]

More and more good news for Navico. First Linda Colt and now this.

What's the deal with Linda? Did I miss something? I've contacted her several times in the past and have gotten excellent results from her. I hope she's still with them.

[harvey lee]

I was told by a Lowrance rep that they are going to try and hire Linda back.

For whats that worth.

[TR21HP]

Linda has already told Navico she is not coming back and is seeking a severence package that is being challenged by management. She is not in good health presently and won't be working for awhile according to her daughter.

[BobbyK]

I have worked on patent infringement issues at my job a bit (although I am not a lawyer) and this will likely take a long, long time to sort out.

Sounds like Humminbird is going for the home run, charging "willful infringement" which if they can prove (very difficult) they can demand that Lowrance stop selling their units and get triple damages awarded as well. Damages in this case could be something like Lowrance having to pay Humminbird three times the value of every structure scan unit they sold since these sales legitimately could have gone to Humminbird.

This is very difficult to prove however as Humminbird will basically have to find the "smoking gun" like a Lowrance email or report that says "We know our stuff is the same but let's just sell it anyway".

I would expect Lowrance to actually counter sue defending their DownScan technology. While it is likely true that the side scan provides the data to the unit to construct the down scan image, Lowrance could claim that they invented some unique way to analyze that data and construct the image and that Humminbird is copying them. That would be a very common court tactic to force Humminbird to negotiate a settlement - something like you license me your stuff and I will license you my stuff and we will all just go on competing in the market place. In fact, when all is said and done that will be the most likely outcome of all the lawyering that will start now and continue for years.

For the short term, Humminbird will try and get a court to stop Lowrance from producing and selling their units - get a temporary injuction. If they succeed in getting a judge to issue an injuction, that will be the first public indication of the strength of their arguements. Until then, it all just saber rattling, bluff and bluster.

Like Harvey Lee, I was wondering if there would be some courtroom drama when Lowrance came out with their "me too" technology - even going so far as to preannounce that it was coming so far in advance.

This could provide some winter entertainment while we wait for the ice to melt and the calendar to tick over in May.

Bob K

[Sonicrunch]

ooooooo!!! Patent infringement. I too deal with patents on a limited basis. I will watch this play out with great interest.

[JohnMickish]

One has to think that Johnson Outdoors isn't going to spend this kind of money in this economy if they don't think they have a better than average chance.

If this goes in Humminbirds favor, it could very well put the nail in Lowrances freshwater sonar cofin.

[snoozebutton]

Linda has already told Navico she is not coming back and is seeking a severence package that is being challenged by management. She is not in good health presently and won't be working for awhile according to her daughter.

That's a shame, she was the best thing Lowrance had going for them.

[harvey lee]

One has to think that Johnson Outdoors isn't going to spend this kind of money in this economy if they don't think they have a better than average chance.

If this goes in Humminbirds favor, it could very well put the nail in Lowrances freshwater sonar cofin.

I agree Jon.

[PierBridge]

In fairness to Lowrance they certainly aren't going out of business anytime soon over Linda or this lawsuit. They have 100's of thousands of satisfied customers and all they really need to do is improve the product and their customer service a tad bit.

[harvey lee]

I agree Pier but these lawsuits, if won, can really put a financail strain on them if they do not prevail.

[jwmiller33]

I agree Pier but these lawsuits, if won, can really put a financail strain on them if they do not prevail.

that is soooo true harvey... sometimes losing a lawsuit is the tipping point for a company to be on its way to bankruptcy

[CJH]

In fairness to Lowrance they certainly aren't going out of business anytime soon over Linda or this lawsuit. They have 100's of thousands of satisfied customers and all they really need to do is improve the product and their customer service a tad bit.

Satisfied customers don't pay the bills against a triple penalty, doesn't matter how good the product is.

[jwmiller33]

customer service is what makes or breaks a company in a highly competitive field, such as the fishing industry. customer service can and will set a company apart from its competitors, and that competitive advantage is what a company needs to set themselves apart from everyone else... especially in todays economy.

needing to "improve their customer service a TAD BIT" would probably be considered an understatement considering how mad everyone is that that one lady left.

[PierBridge]

A few dozen complaining Inter-netters hardly translates to EVERYBODY and the 1,000's upon 1,000's of satisfied Lowrance customers.

Yes a tad bit would work nicely.

I think sometimes on the Internet we get a TAD bit overly dramatic at times.