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A lawsuit over Costco golf balls

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Re: A lawsuit over Costco golf balls

#11
Costco sued J&J Vision Care a few years ago over anti-consumer behavior in the contact lenses industry (I characterize it as anti-consumer. The Vision Care industry characterizes it as pro-consumer). They dropped the lawsuit in 2016, probably because Johnson and Johnson discontinued the practice: https://www.law360.com/articles/800034/costco-drops-antitrus...

Costco did support a different lawsuit by state of Utah against Contact Lens Manufacturers. The Manufacturers lost their first appeal in December 2016: http://www.sltrib.com/news/4731439-155/contact-lens-makers-l...

Hopefully this will begin reducing the prices of contact lenses. Kudos to Costco for sticking up for its customers.

Here is one manufacturer's opinion on this matter: https://www.alcon.com/content/unilateral-pricing-policy

Re: A lawsuit over Costco golf balls

#12
This article is very sparse on details. For one, the factory that makes the Costco balls primarily makes Taylor Made balls. The manufacturer is a Korean company that used its excess capacity to make Costco's balls. Taylor Made sells premium balls so they're pressuring the manufacturer to not do this in the future.

Also i haven't seen any details about Costco having a golf ball design team. Where did this design come from? Did they contract it out to one of the small manufacturers that he article refers to? That's mainly the thing I want to know, since if it's truly their design that they own, then they'll be able to find someone to make it for them.

Also Aschunet isn't that deep pocketed. Their annual revenues are $1.5B with ~$70M shares outstanding and an EPS of about 6, so about $400M in profit, and operating income is in the range of $150M. https://forum.mygolfspy.com/topic/14841-acushnet-losing-sale...

Unlike the small ball companies they sued, Costco is a much bigger company than Acushnet and can afford to fight them off, especially since Costco has the distribution scale, hype, and demographic fit perfectly suited to really move the needle with this product (The upper middle class family with disposable income that is budget conscious, which is Costco's main market, is perfect for a budget high performance golf ball, which is a perishable sporting good that you need to buy hundreds of if you play regularly).

(Fwiw it is very common in the sport to have small upstart club makers. Basically all you need is a milling machine to make a perfectly reasonable iron or putter, and every now and then you'll see a random small manufacturers club in a tour player's bag - ex: the Yes! Golf putter when Retief Goosen won both his US Opens)

Re: A lawsuit over Costco golf balls

#13
American courts should have a "Loser pays" rule, and stricter standards for determining what is a frivolous lawsuit warranting additional penalties for the filer.

American jurisprudence has always favored making sure "everyone gets their day in Court" to the point where trolls and professional litigants are ruining things.

Re: A lawsuit over Costco golf balls

#14

I would have appreciated some more information about these patents. Like instead of telling me the lawsuit is all hot air, show me? I feel they deliberately omitted any facts which might allow me to form any opinion other than the one I'm supposed to have. (I'm happy to believe the lawsuit is bullshit, but not based on nothing but say so.)

the author probably understands it's just a quick google away for anyone interested.

Re: A lawsuit over Costco golf balls

#15

This article is very sparse on details. For one, the factory that makes the Costco balls primarily makes Taylor Made balls. The manufacturer is a Korean company that used its excess capacity to make Costco's balls. Taylor Made sells premium balls so they're pressuring the manufacturer to not do this in the future. Also i haven't seen any details about Costco having a golf ball design team. Where did this design come…

> Unlike the small ball companies they sued

Maybe I'm mis-reading, but I think the article said that Acushnet was the first one to send a threatening letter claiming IP infringement.

Re: A lawsuit over Costco golf balls

#16
post #4

I don't understand how "“We laughed when we got the lawsuit. We knew we made it.”" and "his company settled the 2015 claims with Acushnet by agreeing to get out of the golf-ball business altogether; it received no payment from Acushnet, nor did it pay." are compatible statements.

I think at some point in your life, if you're creating or performing, you'll reach a point where your critics have a significant audience. At that point, you can give yourself a small pat on the back, you've managed to make a splash in the status quo.

Re: A lawsuit over Costco golf balls

#17

This article is very sparse on details. For one, the factory that makes the Costco balls primarily makes Taylor Made balls. The manufacturer is a Korean company that used its excess capacity to make Costco's balls. Taylor Made sells premium balls so they're pressuring the manufacturer to not do this in the future. Also i haven't seen any details about Costco having a golf ball design team. Where did this design come…

> Unlike the small ball companies they sued Maybe I'm mis-reading, but I think the article said that Acushnet was the first one to send a threatening letter claiming IP infringement.

Acushnet has sued small ball companies into oblivion in the past.

Acushnet took the initiative in suing Costco this time.

Costco, unlike the small ball companies, have the funds to fight back, Acushnet isn't that big of a company. It's defeinitly a small cap company whereas Costco is definitely a large cap.

Apologies if my post structure was not clear.

Re: A lawsuit over Costco golf balls

#18

This article is very sparse on details. For one, the factory that makes the Costco balls primarily makes Taylor Made balls. The manufacturer is a Korean company that used its excess capacity to make Costco's balls. Taylor Made sells premium balls so they're pressuring the manufacturer to not do this in the future. Also i haven't seen any details about Costco having a golf ball design team. Where did this design come…

> Unlike the small ball companies they sued Maybe I'm mis-reading, but I think the article said that Acushnet was the first one to send a threatening letter claiming IP infringement.

The "they" in the first clause of that sentence is referring to Acushnet, not Costco.

Re: A lawsuit over Costco golf balls

#19

American courts should have a "Loser pays" rule, and stricter standards for determining what is a frivolous lawsuit warranting additional penalties for the filer. American jurisprudence has always favored making sure "everyone gets their day in Court" to the point where trolls and professional litigants are ruining things.

That sounds great on paper, but in reality, all that does is prevent legitimate cases from advancing. It's already expensive as it is to take legal action against an offending party. You are assuming that every lawsuit is a money grab; it's quite the opposite.

Re: A lawsuit over Costco golf balls

#20

I would have appreciated some more information about these patents. Like instead of telling me the lawsuit is all hot air, show me? I feel they deliberately omitted any facts which might allow me to form any opinion other than the one I'm supposed to have. (I'm happy to believe the lawsuit is bullshit, but not based on nothing but say so.)

The following patent numbers cited in this[1]: 6994638 8123632 8444507 9320944 8025593 8257201 7331878 6358161 7887439 7641572 7163472 [1] http://golf-patents.com/wp-content/uploads/2017/03/20170317-...

> because, at the least, dimples on the KS golf ball do not cover more than 80% of the outer surface.

Haha. Do I believe that? Even the legal filing is short on facts, just assertions. Like who counted the dimples and how many are there in reality?

Thanks for the link. I think I fall somewhere between "willing to believe what I'm told" and "willing to do extensive research". "Willing to not particularly care" is about right.

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