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
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.