Rental firm ordered to pay $5m over counterfeit speakers

L-Acoustics has won a historic $5m court judgment against a rental company for trademark infringement, counterfeiting and unfair competition.

The ruling follows the unprecedented seizure of more than 100 counterfeit speakers from Se7ven Sound Music in Tampa, Florida.

An investigation led by L-Acoustics late last year resulted in the seizure of 136 counterfeit products from Se7ven Sounds. Along with the seizure, L-Acoustics filed a legal action against Se7ven Sounds.

This month, the United States District Court, Middle District of Florida, Tampa Division ordered Se7ven Sounds Music to pay damages of $5m to L-Acoustics. L-Acoustics also won the right to destroy the 136 counterfeit products confiscated during the investigation.

The final judgment holds that the “defendants infringed the L-Acoustics Trademarks by intentionally and willfully engaging in the unauthorised manufacturing, importation, offering for sale and/or rental, and sale and/or rental of goods in interstate commerce imitating the design of L-Acoustics products and bearing counterfeit L-Acoustics Trademarks.”

A judgment of this size is a first in the professional audio industry. Confirming the importance L-Acoustics places on deterring the manufacture, sale, and rental of fake L-Acoustics products, it also serves as a warning to those who contemplate infringing the company’s IP rights.

L-Acoustics has led industry campaigns against counterfeiting for a number of years.

“Our customers and clients must have confidence in the L-Acoustics name and the integrity of our products and of our worldwide network of certified partners,” said Laurent Ostojski, senior legal counsel at L-Acoustics. “We have zero tolerance for counterfeiting and this judgment makes it clear that not only manufacturing counterfeit equipment but also renting and selling fakes is illegal and punishable by law. It sends a strong message to service providers who profit by deceiving end users and promoters by providing inferior and unsafe counterfeit equipment.”

This final judgment comes on the heels of the seizure of counterfeit L-Acoustics loudspeakers in China in December 2022. In partnership with Chinese authorities, L-Acoustics tracked down five counterfeiters who were subsequently found guilty and sentenced to jail for producing and selling counterfeit L‑Acoustics loudspeakers in China. The counterfeit loudspeakers were destroyed.

The safety risks associated with counterfeit loudspeakers are not limited to suboptimal audio performance; fake products also expose operators and the public to hazardous safety risks and severe legal liabilities if an accident occurs.

L-Acoustics points out that counterfeit loudspeakers do not provide the same ultimate performance, ruggedness, and safety of operation as their true counterparts. The company offers free serial number verification to clients and will roll out an online version to certified providers by year’s end.

To learn more about the L-Acoustics Counterfeit Task Force, how to spot a fake, and report any suspected counterfeits, visit the L-Acoustics Anti-Counterfeiting page.

To help L-Acoustics fight counterfeiting, report fake products by sending an email to: stopcounterfeits@l-acoustics.com.