Klipsch Files Lawsuit Against Brandnamez.com

INDIANAPOLIS (December 29, 2004) - Klipsch Audio Technologies, a leading manufacturer of loudspeakers, today announced it has filed suit in the U.S. District Court for the Southern District of Indiana against Brandnamez, LLC dba brandnamez.com. Klipsch is seeking recovery of damages as well as an injunction to prevent brandnamez.com from inducing authorized dealers to transship Klipsch products, interfering with the contractual relationships between Klipsch and its authorized dealers, infringing on Klipsch trademarks, illegally using Klipsch's copyrighted materials, and otherwise competing unfairly with Klipsch.

Executive Vice President and Chief Operating Officer Mike Klipsch said that the lawsuit filed against brandnamez.com is nearly identical to the lawsuit Klipsch filed in January 2004 against five unauthorized resellers and their parent companies. He explained that Klipsch accomplished everything it set out to do with the previous lawsuit including securing a lifetime ban that prevents the web sites, their owners and any future businesses they own from ever selling Klipsch brand products.

"The web sites we sued and others we had not yet sued removed any trace of Klipsch from their web sites just days after we filed the first lawsuit in January," Mike Klipsch said. "Unfortunately, there are still some hold-outs trying to capitalize on the hard work and substantial investment that Klipsch and its authorized dealers have made in our brand identity. Our solid resolve in this matter simply will not allow free-riders and their unscrupulous, corrupt business practices to damage the quality, integrity and value of the authorized Klipsch dealer network."

Mike Klipsch said brandnamez.com illegally uses Klipsch's trademarks and copyrighted materials - critical pieces of the positive image Klipsch has projected since 1946. He said the Klipsch brand is registered in over 30 countries and that the Indianapolis-based company would not permit this relative newcomer to damage the global brand image Klipsch has spent 60 years building.

Klipsch is continuing its relationship with NetEnforcers.com, a brand protection company that assists Klipsch with shutting down auctions by unauthorized dealers using third party web sites such as Ebay and Yahoo. Klipsch officials said NetEnforcers.com has the bandwidth to continuously and tirelessly investigate Internet sales violations, file the appropriate paperwork with the third party web sites, and remove illegal auctions the same day they are found.