A jury found in favor of ICON Health and Fitness in a court battle against Nautilus that has been on-going since August 2002. The unanimous verdict finds that Nautilus engaged in false advertising when it made three separate statements regarding its Bowflex home gyms and Trimline treadmills. First, the statement that the “Bowflex Power Rods are patented,” was found to be false; second, the statement, “precisely manufactured with patented technology” was false; and third, the statement, “Nautilus developed and is the exclusive supplier of Poly-Hexamethaline-Adipamide,” was false. The jury found Nautilus must pay ICON roughly $7.5 million for false advertising and $368,000 for trademark infringement.
Following the verdict announcement, Nautilus said it believes that the jury verdict is not consistent with the evidence presented in the case and intends to “vigorously” contest this case in the District Court and the Court of Appeals. Nautilus also said that it intends to continue its trademark case against ICON in U.S. District Court in Seattle, and a patent case that is before the U.S. Circuit Court of Appeals that involves damage claims “well above the amounts discussed in this case.”
In other ICON Health and fitness news, the company has landed a revolving credit facility from Bank of America for $250 million. The financing was used to refinance existing debt and provide working capital. Bank of America is also providing letters of credit as well as treasury management products and services. In addition, a $40 million junior term loan was provided by Back Bay Capital, an affiliate of Bank of America.
