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American DJ Sues Wal-Mart

American DJ has filed suit in the United States District Court Central District of California against five companies, including Wal-Mart and DBL Distributing, a division of Ingram Micro, for violating the Lanham Act, which covers federal trademark law, and the California Business and Professions Code.

The suit alleges that five companies used the American Audio trademark in advertising and promoting audio products that were not made by or affiliated with either American DJ or its American Audio brand. According to a statement from American DJ, the five firms “intentionally, continuously and wrongfully advertised, distributed and/or sold audio equipment … using the American Audio mark since 2009.”

In addition to Wal-Mart and DBL Distributing, the companies named in the suit include V2GO Technology, American Audio Laboratory and Laser Karaoke (also known as Karaoke Jukebox and Karaoke Warehouse).

American DJ brought the suit against the five companies after they failed to comply with a request made in January to stop using the American Audio trademark.

“We intend to protect our client’s positive image with consumers by vigorously challenging not only those who make products that infringe on American DJ’s brands but on the distributors who handle these products and the retailers who sell them,” said Kenneth Sherman of Myers Andras Sherman, counsel for American DJ. “They are all wrongfully trading on American DJ’s goodwill. This is why Wal-Mart stores and DBL Distributing are included in this suit. American DJ wants to send a clear message to distributors and retailers that if you sell products bearing American DJ’s trademarks, those products must come from the American DJ group of companies.”

Along with seeking a “monetary reward in the amount of the defendants’ profits due to their unjust enrichment” as a result of the trademark infringement, American DJ is asking the court to award it statutory damages, monetary rewards to cover attorney fees and other compensation. American DJ is also requesting that the court restrain the five companies from using the American Audio trademark and compel them to destroy all products, labels, literature and advertising bearing the American Audio trademark.