DALLAS, Nov. 26 /PRNewswire/ -- Neutral Posture Ergonomics, Inc.
(Nasdaq: NTRL) filed counterclaims today against Ergobilt, Inc. (Nasdaq: ERGB)
and its whole owned subsidiary Bodybilt, Inc. for patent infringement,
infringement and dilution of trademark rights and breach of contract. The
counterclaims against Ergobilt, Inc./ Bodybilt, Inc. (collectively
"Ergobilt/Bodybilt") were filed in the United States District Court for the
Northern District of Texas in Dallas.
The patent infringement claim and certain related claims were originally
submitted to the American Arbitration Association pursuant to the terms of a
1996 Settlement Agreement. Because of the filing of multiple lawsuits by
Ergobilt/Bodybilt, the arbitration has not provided Neutral Posture
Ergonomics, Inc. ("NTRL") a feasible route to resolution of the issues
regarding patent infringement. NTRL withdrew from the arbitration on November
21, 1997 and today filed its action in federal court. As stated in NTRL's
registration statement, NTRL believes that substantially all of the chairs
sold by Ergobilt/Bodybilt infringe the patent owned by NTRL.
NTRL also claims Ergobilt/Bodybilt diluted NTRL's federal trademark and
materially breached a 1996 Settlement Agreement by using the term "neutral
posture" on Ergobilt/Bodybilt's web pages. The mark "Neutral Posture(R)" is
registered with the United States Patent and Trademark Office and is owned by
NTRL. NTRL's exclusive right to use this mark has become incontestable and
its federal registration is conclusive evidence of the validity of the mark.
"NTRL has diligently tried to adhere to the 1996 Settlement Agreement and
to resolve differences between these two companies through arbitration. We
felt that we had no other choice except to re-evaluate the situation and file
this action with the federal court," said Rebecca Boenigk, CEO of NTRL.
Neutral Posture Ergonomics, Inc. with headquarters in Bryan, TX
manufactures, markets, and distributes ergonomic chairs based on the patented
and/or patent pending designs of Jerome Congleton, Ph.D., P.E., C.P.E.
SOURCE Neutral Posture Ergonomics, Inc.
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CONTACT: Rebecca Boenigk, CEO of Neutral Posture Ergonomics, Inc., 409-778-0502 ext. 19, or, rebecca@neutralposture.com
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