Achushnet Seeks Mulligan on Injunction

2008-11-25

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By Steve Pike
 
In a rare public statement regarding ongoing litigation, Acushnet Company (Titleist, FootJoy, Cobra) Chairman Wally Uihlein defended his company's patents in its legal battle with Callaway Golf Co. (NYSE: ELY) and said Acushnet will ask the Federal Circuit Court of Appeals to put on hold a U.S. District Court permanent injunction that will stop sales of Titleist Pro V1 golf balls beginning Jan. 1, 2009.
 
"We believe we have a very strong basis for that request, including the fact that the appeals court will consider the patent office decisions rejecting the four patents. If our request is granted, the injunction will not come into effect," Uihlein said.
 
The District Court in Wilmington, Del., on Nov. 10 also rejected Acushnet's request to overturn a jury's December 2007 verdict that found that Callaway Golf's golf ball patents were valid and infringed by the Titleist Pro V1 family of balls, which includes the Pro V1 and Pro V1x.
 
Uihlein cited the jury’s "split decision'' in the original trial, the U.S. Patent and Trademark Office’s actions that all four of the patents in question (obtained when Callaway acquired Spalding Sports Worldwide) are invalid, Callaway’s long delay in bringing suit, and the fact that Callaway does not use the patents in question, as reasons he believes the Federal Court should put a hold on the permanent injunction.
 
The question is, can Acushnet's lawyers get on the Federal Court docket to get their case heard before Jan. 1?
 
Even if it can't, Uihlein said Acushnet will continue selling modified versions of the 2008 Pro V1 family of balls (Pro V1 and Pro V1x) as well as new generations of the Pro V1 balls that will be introduced in the first quarter of '09.
 
Uihlein said players on the worldwide professional tours can put the new 2009 Pro V1 models into play when the Tours resume their schedules in January of '09.
 
"The new 2009 models will feature different side stamps and packaging and appear as different listings on the USGA Conforming Ball List," Uihlein said.
 
In addition, Uihlein said the District Court's order won't impact Acushnet's ability to supply golf shops with Pro V1 golf balls.
 
"In September 2008, we converted production of the existing Pro V1 models so that they are outside the scope of the patents in question," Uihlein said. "Golf shops can continue to order and take delivery of Pro V1 golf balls now and after January 1, 2009 and golfers can continue to play with and purchase Pro V1 with confidence."