CAVS sues Sound Choice


 CAVS Newsletter 11/17/2011

After a fruitless attempt to resolve the matter short of litigation, CAVS USA Inc. has sued Slep-Tone Entertainment dba Sound Choice for trade libel and unfair competition in federal district court in Los Angeles, case no. 11-cv-5574 DDP (JEMx). The Complaint alleges that earlier this year, Sound Choice commenced a campaign of mass electronic mailings to CAVS customers and potential customers warning them that CAVS products were "illegal" and that Sound Choice was suing users of "illegal karaoke CAVS...units."  Sound Choice also offered that those who purchased their "illegal...CAVS unit" from selected sellers and who contacted Sound Choice by a certain date would be exempt.  The Complaint alleges that Sound Choice also encouraged recipients to forward the email to others.
The Complaint alleges that these statements were false, misleading, and libelous, and unfairly disparaged the quality of CAVS products as "illegal," and threatened the purchasers of Plaintiff's products with potential lawsuits. CAVS also alleges that these acts by Sound Choice constituted unlawful, unfair, and/or fraudulent business practices in violation of Section 17200 et seq. of the California Business and Professions Code.  The complaint seeks in excess of $15 million in damages and injunctive relief against Sound Choice, as well as attorney's fees, costs, and an order that Sound Choice undertake corrective notices.  
CAVS has brought this suit to protect its good name and to seek compensation for the damage done to its business by these false and misleading accusations.  CAVS also wants to reassure its customers that CAVS and its products are of the highest quality and comply with the law, and that any assertion by Sound Choice to the contrary is without basis.  In this connection, it may be noted that summary judgment was granted October 25, 2011 against Sound Choice in a recent case it brought against a vendor and others in federal court in Ohio, Slep-Tone Entertainment Corporation v. Karaoke Kandy Store, Inc. et al., 
case no. 1:10 CV 00990, making claims that various defendants had "counterfeited" Sound Choice's karaoke CD recordings and infringed the Sound Choice trademark.  The federal judge noted that Sound Choice had presented no admissible evidence of any such counterfeiting or unauthorized use, and that "no reasonable jury could find" for Sound Choice on its claims.

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