Settlement Reached in Mad Rock vs. Climb X Lawsuit

posted by dpm on 11/30/2011

 

A little over a year ago an interesting story came to light regarding a lawsuit that Mad Rock (Nelson Sports) brought against the company Climb X.  Read the full story here.  Allegedly, Mad Rock employee Joe Garland, left the company and took with him trade secrets and manufacturing protocols.  He then started his own company under the name Climb X and began to produce and sell products that were remarkably similar, if not identical to, the Mad Rock line-up.  Garland claimed that he was the designer and patent holder for the products he was manufacturing.  Mad Rock claimed otherwise and brought a lawsuit against Climb X.  Since then, to avoid a lengthy legal battle, the two companies have reached a settlement that is outlined in the following press release that was sent out yesterday. 

Climb X
Settlement Reached

                Santa Fe Springs, CA November 29, 2011: To avoid the trouble and costs of a long trial, Nelson Sports and Climb X have reached an agreement.  As with any settlement, compromises were made, but prior untrue statements of the Defendants, for the most part have been exposed and the public can now understand that Climb X and its products were never affiliated in any way with Mad Rock or Nelson Sports.  To cover the highlights of the agreement, both parties have agreed to the following terms:

- Defendants Garland, Climb X Gear, and Climb X have paid a total sum of $150,000 as a Settlement Payment.
- Defendants are prohibited from using Nelson’s Trade Marks.
- Defendants are prohibited from representing in any manner or by any method 
Whatsoever that Climb X products are sponsored, approved, authorized by
Nelson/Mad Rock
- Defendants are prohibited from representing in any manner that Defendants are in any way affiliated, owned, or owned by, Nelson/Mad Rock.
- Defendants shall implement changes in advertisement and future print media regarding product names that have been copied.
- Both parties agree not to disparage the other party.
- Defendants must publish for 6 months, under the heading “About Us” on the Climb X website the following:

A) Garland was never an officer, shareholder or director of Nelson Sports
B) Climb X, a Nevada Corporation, nor Climb X Gear, LLC has never been affiliated in any way to Nelson or Mad Rock
C) Young Chu was the primary designer of the products
D) Garland has never been to the “Mad Rock” factory and has no knowledge of any problems relating to the factory.
E) No “Climb X” branded product won any awards prior to Jan, 2010.

 

We are still in the process of working with our legal team to update the “About Us” page on the Climb X website.  Please be aware that these prohibitions and restrictions are only for products, advertisements, etc. in the United States of America.  Be on alert for advertisers and distributors that do not adhere to these restrictions outside the United States.