Legislators Ask CPSC and Others to Investigate Counterfeiter

CPSC was one of three agencies contacted in late September by three legislators about intellectual property violations against a Wisconsin company. The CPSC angle was reporting violations. Background is a June decision (18-CV-1765) in eastern Wisconsin U.S. district court that awarded $100 million to Raffel Systems from Man Wah USA due to sales of lighted cup holders that violated the former's intellectual property.

The letter to CPSC explained (bit.ly/3RCpVLP):

"Evidence was presented at trial that the then-chief executive of Man Wah USA was aware that, due to his company’s efforts to infringe upon Raffel’s intellectual property, Raffel was receiving consumer safety complaints linked to the defective knockoff cup holders. These complaints included electrical faults that could have exposed consumers to potential safety risks. Additionally, the jury reviewed materials that proved Man Wah knowingly distributed a misleading letter to its customers that failed to mention customer complaints about its knockoff cup holders, the possible safety risks associated with those cup holders, or any proactive actions the company planned to undertake to protect its customers from the potential dangers of its defective product."

In that letter, Sen. Tammy Baldwin (D-Wis.) and Reps. Scott Fitzgerald (R-Wis.) and Glenn Grothman (R-Wis.) called on CPSC to open reporting violations investigation. Also getting letters on other issues were the Federal Trade Commission and U.S. International Trade Commission.