OGIO announced that it has issued more than a dozen cease-and-desist letters to golf retailers and bag manufacturers throughout the U.S., citing patent infringement of its Woode organization technology. The letters have been issued throughout the past six weeks and forewarned U.S. retailers and manufacturers to discontinue the sale of bags incorporating the technology, specifically, the Golfmate Stand Bag; Golfmate Cart; Golfmate Caddie; and Golfmate Player Jr.
In an exclusive interview with Sports Executive Weekly, OGIO President David Wunderli said that branded golf sales account for approximately 40% of OGIOs business, making it the companys largest business segment. In addition to branded sales, OGIO also sells OEM bags to companies like Callaway Golf, which account for an additional 6% of sales. The segment has been a steady workhorse for the company, delivering a 20% growth rate over the past four years.
Though Wunderli would not reveal the names of the retailers and manufacturers in question, he hinted that the offenders were “Market Specific Retailers,” meaning those specialty stores that specialize in, and are seen as, authorities of the golf industry. Wunderli said it is both a branded and a private label issue.
Wunderli said that while the companys actions might be “irritating in the short-term, they are the right thing to do for the long-term.” He pointed to the end-consumers “perception of authority” with regards to industry-specific retailers and the fact that if these retailers are selling knock-off product, then these smaller shops begin to look more like the Big Box retailers they compete against. Should this happen, their perceived authority becomes diminished, they lose customers, and are left without a leg to stand on. In this vein, Wunderli said OGIOs actions are not only “focused on protecting their own technologies,” but also on “protecting the specialty distribution channels.”