Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Anticompetitive claims shine light on lighting fixture company and industry membership group, (Feb 26, 2016)

By Michael Menzhuber, J.D., LL.M.

A lighting fixture company and an industry membership group unreasonably restrained trade and committed unlawful and/or unfair business practices, according to a complaint filed in the federal district court in Los Angeles (Elation Lighting Inc. v. A.C. Lighting Inc., February 24, 2016)

Elation Lighting Inc. designs, manufactures, advertises, and sells high-end lighting devices, which include the Elation Colour Chorus lighting fixture. Elation has been a member of both PLASA and Entertainment Services and Technology Association (ESTA), the lead international membership group for those who supply technologies and services to the event, entertainment, and installation industries, and has exhibited at the PLASA Show in the United States and Europe.

According to the complaint, A.C. Lighting Inc., filed a complaint with PLASA and ESTA that alleged that Elation violated the PLASA/ESTA Code of Conduct by exhibiting, advertising, marketing, and selling its Colour Chorus lighting fixture which infringed on A.C. Lighting’s Chroma-Q Color Force lighting fixture.

Elation refuted the charge and requested a copy of any utility patent (or application), design patent, copyright or trademark that it was allegedly infringing. To date, neither PLASA, ESTA nor A.C. Lighting have identified any intellectual property A.C. Lighting owns that is present in its Chroma-Q Color Force lighting fixture and to which Elation allegedly infringes, the complaint asserts.

The complaint further alleges that, despite the lack of any infringement of intellectual property belonging to A.C. Lighting, Elation was requested to attend a teleconference with members of the PLASA and ESTA ethics committee where it was informed that: (1) at a minimum, it would suspended from participating in PLASA and ESTA tradeshows; and (2) potentially could receive a lifetime membership ban from PLASA and ESTA.

Finally, the complaint alleges that the defendants: (1) are well aware that the Chroma-Q Color force lighting fixture contains no protectable intellectual property belonging to A.C. Lighting; and (2) are seeking a license from Elation relating to its continued sale of its Colour Chorus lighting fixture for the sole purpose of preventing Elation from competing fairly and maintaining its market share over its competitors, including A.C. Lighting.

The complaint assets claims for conspiracy in restraint of trade in violation of Section 1 of the Sherman Act and for unfair business practices in violation of California’s Unfair Competition law.

The complaint seeks injunctive relief, compensatory damages, an accounting and payment of the profits A.C. Lighting derived from the sale of its Chroma-Q Color force lighting fixture, treble damages, exemplary and punitive damages, costs of the suit, attorneys’ fees, and any other just and proper relief.

The case is No: 2:16-cv-01290-CAS-JC.

Attorneys: Kenneth L. Sherman and Joshua A. Schaul (Sherman IP LLP) for Elation Lighting, Inc.

Companies: Elation Lighting Inc.; A.C. Lighting Inc.

News: Antitrust CaliforniaNews