Late last month, Century Arms successfully defended against a motion to dismiss filed its XTech Tactical lawsuit. The order means that Century’s lawsuit against XTech can continue. The matter involves a waffle patterned AK47 magazine design that Century alleges was infringed upon by XTech Tactical.
In September of 2018, Century Arms announced the purchase of US Palm. with the intent on manufacturing and selling AK products previously designed but had never made it to market.
Details on the recent developments in the XTech Tactical lawsuit can be found below.
Century Arms Wins Motion To Dismiss In XTech Tactical Lawsuit
Plaintiff Century International Arms, Inc. (“Century”) is a firearms manufacturer that recently purchased another arms manufacturer, US Palm, LLC (“Palm”). Before it was purchased by Century, US Palm sold two products at issue here: a 30-round ammunition storage and feeding device (“the Magazine”), and a grip configured to mount on AK-47 rifles (“the Grip.”). To produce these items, US Palm contracted with Molded Devices, Inc. (“Molded Devices”) to manufacture the Magazine and Grip according to US Palm’s design.
Defendant XTech Tactical, LLC (“XTech”) is another arms manufacturer and sales company. Defendant Jeremy Deadman is the principal owner and Director of Sales and Marketing at XTech, as well as the Director of Business Development at Modeled Devices. (Doc. 24 at 5-6).
According to Century’s complaint, XTech—without US Palm’s consent—offered nearly identical products to the Magazine and Grip for sale at a wholesale show labeled as XTech Products. In a spreadsheet, these two products are described as “MAG47 – (Revised former US Palm AK30)” and “Grip 37 – (Former US Palm AKBG).” (Doc. 25, Ex.A). Afterdiscoveringthis,CenturyfiledthislawsuitallegingviolationsoftheLanham Act and Arizona Unfair Competition Laws.
Century has sufficiently pled its trade dress claim under the Lanham Act. Defendants’ remaining arguments lack merit.
IT IS THEREFORE ORDERED that Defendants’ Motion to Dismiss (Doc. 28) is DENIED.
Century Arms Press Release – Fall 2018
Century Arms Files Lawsuit Against XTech Tactical
Delray Beach, Fla. –– In response to numerous consumer inquiries, Century Arms, North America’s premier AK manufacturer, confirms it has filed a lawsuit in West Palm Beach, Florida, asking the federal court to stop Arizona-based XTech Tactical from selling AK-47 magazines that are confusingly similar to the well-known US Palm magazine configuration. Century Arms recently acquired US Palm and is continuing the US Palm brand, including its iconic AK-47 magazine.
Century Arms alleges that consumers recognize the “waffle and tread pattern” on the US Palm magazine as a trademark indicating the magazine is a genuine US Palm product. XTech Tactical recently began selling an AK-47 magazine having a strikingly similar waffle and tread pattern that, according to the complaint, will confuse customers into thinking they are buying the US Palm magazine. US Palm has established a favorable position among consumers for AK-47 magazines and welcomes fair competition in the marketplace. By mimicking the appearance of the US Palm magazine, Century Arms alleges XTech Tactical has sought to bypass fair practices and intentionally mislead consumers.
Century Arms is asking the federal court to enjoin XTech Tactical from selling the accused AK-47 magazine, and to award damages, attorney fees and costs to Century Arms. Should XTech offer additional products that may cause confusion with US Palm products, Century Arms will vigorously enforce its rights in order to put a halt to XTech illegal activities.
To learn more about Century Arms and their products, visit www.centuryarms.com