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339-It's actually from the DELIBERATE export of jobs to China. Ask FoMoCo., Eaton, Dell, H-P, GM, GE.....

[notebob] - note that no red chinese companies are being sued in the lists below.

http://www.magnequench.com/mag_news/releases/mag_new_lawsuit.html

MAGNEQUENCH INTERNATIONAL FILES
PATENT INFRINGEMENT SUITS IN U. S. DISTRICT COURTS
AGAINST MAJOR ELECTRONIC AND COMPUTER FIRMS

New York, May 8 - Magnequench International, Inc., the patent holder and a world leader in the manufacturing of specialized magnetic powders and magnets, filed suit today in the United States District Court for the Southern District of New York as well as Indianapolis against 10 major electronic and computer firms in the United States, Asia and Europe for infringement of four of its patents.

The firms named as defendants in the infringement suit are Acer America Corp.; Acer Inc.; Best Buy Co. Inc.; Circuit City Stores, Inc.; CompUSA Inc. and its parent, Grupo Sanborns SA de CV; Philips Business Electronics North America Corp., Philips Business Electronics International B.V.; Koninklijke Philips Electronics N.V.; Samsung Electronics America, Inc.; Samsung Electronics Co., Ltd.; Sony Computer Entertainment America, Inc.; Sony Computer Entertainment, Inc.; Toshiba America Electronic Components, Inc.; Toshiba America, Inc.; and Toshiba Corporation.

A similar suit was filed in Indianapolis against Compaq Computer Corporation and Hewlett-Packard Company.

The subject matter of the lawsuits involves neodymium-iron-boron (Nd-Fe-B) magnets and magnetic materials used for small motors in most computers and many popular consumer electronic products, as well as automotive and industrial applications. For instance, the magnetic material is used in CD and DVD-ROM drive spindle motors found in computers and home entertainment systems and in the motors that operate the zoom lenses of camcorders.

The global permanent magnet market is about $6 billion. Nd-Fe-B magnets and magnetic materials, the materials involved in the present suit, account for about $2.4 billion of the dollar share of the industry.

Archibald Cox, Jr., president and CEO of Magnequench, commented, "We did not want to file these suits but we were forced to in order to protect our intellectual property investments and the interests of our customers who play by the legal rules. Many of our customers have strongly encouraged us to take this action, and we previously sent warning letters to suspect companies." He added, "Our patent position is strong. Our proof of infringement is indisputable, and our patents have been validated previously by the International Trade Commission. We intend to prosecute infringers vigorously."

Assistant Majority Whip Mike Pence (R-Ind.), who serves on the House Science Committee and whose Indiana district includes the Magnequench world headquarters, stated that "America's technological leadership is its future. We need to make sure that those who steal intellectual property are brought to the bar of justice."

Magnequench used the services of an outside independent testing laboratory to verify that products produced and sold by those named in the complaint used infringing material.

The suits charge that the named companies have infringed on four patents covering Nd-Fe-B magnets and magnetic materials.

Magnequench asks the court for past damages measured by no less than a reasonable royalty, treble damages, a recall of all existing products of the defendants that infringe and the destruction or reconfiguration to non-infringing embodiments of all infringing products.

Since their invention in 1982 and subsequent introduction, Nd-Fe-B magnets have been recognized as being a significant advance over prior materials because of their strength and flexibility in manufacturing.

The high magnetic strength of the Nd-Fe-B magnets permits the miniaturization of many products that use permanent magnets. Indeed, the magnetic properties of Nd-Fe-B magnets have contributed to the development of new electronic devices that would have been impossible or impracticable to make using other types of magnets.

The two largest markets for the patented products are computer data storage and automotive, which together account for 55 percent of the overall Nd-Fe-B market. Nd-Fe-B magnets are also essential components in consumer electronics, medical equipment, and industrial automation products.

Mr. Cox noted, "Our patents extend to 2007 and beyond. But, we are not hiding behind our patents. We understand how important costs are to our customers. We have promised and delivered price reductions of more than 7.5 percent a year for the past three years and we plan to continue on the same path through at least 2005."

Magnequench, with headquarters in Anderson, Indiana, has annual revenues of more than $250 million. It has more than 1,500 employees in seven countries and nine production facilities. In addition to Indiana, the company has operations in North Carolina, New Jersey, Germany, Switzerland, England, Singapore, Japan and the People's Republic of China.

For more information contact:
The Dilenschneider Group
Jonathan Dedmon (Chicago)
312-553-0700
Bill Smith (New York)
212-922-0900

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