Callaway has settled with another group of defendants in the “Big Easy” knock-off scam. The action came as the result of a court-ordered seizure of the suspected product from Newport Golf in Anaheim, CA in May 2002 that netted 28,000 knockoff club heads and other components, as well as over 100,000 golf club medallions.
Last weeks settlements with Jimmy Lin, Wendy Peng, Shirley Lin, Wayne Chang, USA Besco and Newport Golf will result in $800,000 in cash payments to the company. The settlement brings the total cash settlement in the case to more than $1 million, Callaway said. The defendants agreed to forfeit remaining inventory, which has an estimated retail value of about $1 million.
The deal comes on the heels of a June settlement with other “minor” players in the scam that have agreed to a permanent injunction prohibiting them from selling “Big Easy” golf clubs or any other clubs that infringe Callaway's intellectual property rights.
A trial for two other defendants in the case is expected in January.