Integration News
Tyco resolves patent case

In December 2013, the complaint was filed jointly by Tyco Fire & Security GmbH and its Sensormatic Electronics, LLC and Tyco Integrated Security, LLC (herein together Tyco) businesses against Ningbo in both the International Trade Commission (ITC) and the U.S. District Court for the Southern District of Florida to prohibit the importation into the United States of certain Ningbo acousto-magnetic (AM) electronic article surveillance systems (EAS) labels. The complaint was aimed at promoting the U.S. public interest by protecting Tyco’s intellectual property rights and the associated domestic industry. Furthermore, the complaint was intended to help protect the value of its leading Sensormatic brand, since infringing products may not perform to the quality standards of authentic Sensormatic AM labels.

Under a settlement agreement resolving both the ITC and District Court actions, the parties have agreed that Ningbo will withdraw from the United States certain EAS label models that use these patents, and make an unspecified payment to Tyco.

Consent agreements memorializing the resolution will be filed in both the ITC and District Court actions, and both actions will be terminated. All other terms of the settlement are confidential.

“We are pleased with the outcome of this U.S. patent infringement litigation,” said Nancy Chisholm, President, Tyco Retail Solutions. “Protecting our intellectual property is central to our ability to continue investing in innovative solutions that help retailers deter theft and improve profitability. We are committed to helping retailers drive sales and navigate an increasingly competitive and dynamic global marketplace. The design quality and manufacturing consistency of our AM labels is critical to the overall performance of genuine Sensormatic anti-shoplifting systems retailers have relied on for nearly 50 years. A growing number of companies are selling non-Sensormatic brand AM tags and labels. Retailers should ask these companies if they employ the same quality and regulatory safeguards as Tyco, as variable quality and inconsistent performance may put retailers at risk, leaving them vulnerable to lost revenue in the short term and loss of customer confidence in the long term.”

Tyco pioneered the EAS anti-shoplifting industry through its Sensormatic brand and continues to invest significant research and development resources to innovate this family of products. Tyco also provides a complete portfolio of high-technology Sensormatic security and store performance systems that allow retailers to better manage their inventories, shopper activity, employees and facilities.

Read more about Tyco and its Sensormatic EAS portfolio.