Nautilus, Inc. expressed its disappointment with a jury verdict in a case pending in U.S. District Court in Salt Lake City. The verdict is subject to review by the Court and will not become final until the Court has received additional briefing from the parties and issued additional rulings.
The jury found for Icon Health and Fitness in the amount of $7.8 million, which the Court will review. The awards was given becaues the jury found Nautilus liable for using certain language in the Company's advertising and promotion that began in 1987 and ceased in early 2004. The case, which began in 2002, involved the way the company described portions of its Bowflex® home gyms in advertising, and a name it used to describe a belt on 1,100 Trimline® treadmills manufactured in 2002.
“Nautilus has consistently taken the position that the jury verdict is advisory in nature,” said Gregg Hammann, Chairman and CEO of Nautilus, Inc. “We are disappointed with the jury verdict and look forward to the next steps in this process where the Court will decide if the jury verdict is advisory, and then whether the findings are fair and reasonable.”
The court requested additional briefing to be submitted by the parties by December 12, and Nautilus expects a ruling from the Court early in 2006.
Mr. Hammann continued, “Nautilus believes that the jury verdict is not consistent with the evidence presented in the case. We intend to vigorously contest this case in the District Court and, if necessary, the Court of Appeals. Among other things, Nautilus firmly believes there was no evidence that the statements in question played a role in any purchase decision.
“The developments in this case do not change our prosecution of a trademark case against Icon Health and Fitness in U.S. District Court in Seattle, and a patent case that is before the U.S. Circuit Court of Appeals that involves substantial damage claims well above the amounts discussed in this case,” stated Mr. Hammann.
