Callaway raid knock-off comapnies

Callaway Golf Company announced today that its investigators have just completed the final phase of a three-month long, four-state enforcement effort against importers, wholesalers, and retailers of illegal “knockoff” golf clubs.

In late January, just prior to the PGA Merchandise Show in Orlando, Florida, Callaway Golf investigators visited over a dozen businesses in Florida believed to be selling illegal copies -- often called “knockoffs” -- of the Company’s popular golf clubs. As a result of the visits, Callaway Golf investigators recovered more than 650 golf clubs and components believed to infringe Callaway Golf’s proprietary rights, including 250 counterfeit Big Bertha Blade Putters.

Most of the Florida businesses were identified from records seized during court-ordered raids of Fairway to Heaven, a New Jersey component wholesaler, and the Beta Company, a Houston, Texas, component wholesaler, last summer. Investigators also recovered a quantity of counterfeit “Hawk Eye” and “Steelhead” golf clubs that were being marketed on Internet auction sites.

The Florida enforcement visits came in the wake of a similar sweep by Callaway Golf investigators in Illinois, Tennessee, and Texas. Those operations, which took place in November and December 1999, involved visits to ten businesses in those three states. The targeted businesses voluntarily forfeited more than 5800 golf clubs and golf club heads.

Forfeited products included the Lincoln III metal woods and irons, Lincoln Concave metal woods, Lincoln Jumbo metal woods, Big Brother metal woods, Lincoln Professional irons, Canterbury Big Bursar V-17 irons, Connection Golf Big Bernard Steelclad metal woods, Rident Wide Body metal woods, Stealth Wide Body metal woods, and Canterbury Big Bursar irons.

“We believe the voluntary forfeiture of almost 6500 knockoff golf clubs, from businesses operating across four states, helps protect our Company, its employees and shareholders, and is good for the game of golf,” said Steve McCracken, Executive Vice President and General Counsel of Callaway Golf.