$30K Worth of Multimeters Must Be Destroyed Because They're Yellow
An anonymous reader points out a post at the blog of Sparkfun, a hobbyist electronics retailer. They recently received a letter from U.S. Customs saying a shipment of 2,000 multimeters was being barred from entry into the country. The reason? Trademark law. A company named Fluke holds a trademark on multimeters that have a 'contrasting yellow border.' Sparkfun's multimeters are a yellowish orange, but it was enough for Customs to stop the shipment. Returning the shipment is not an option because of import taxes in China, so the multimeters must now be destroyed. At $15 per item, it'll cost Sparkfun $30,000, plus the $150/hr fee for destroying them. Sparkfun had no idea about the trademark, and doesn't mind changing the color, but they say restrictions like these are a flaw in the trademark system. "Small business does not have the resources to stay abreast of all trademarks for all the products they don't carry. If you’re going to put the onus on the little guy to avoid infringing IP then you shouldn't need an army of consultants or attorneys to find this information."
The thing is, allowing trademark violations to go unchallenged for no particular reason at all (in law, being kind is not a reason) will dilute the mark just as if they did nothing, or even worse. So, there is heavy incentive for them not to allow it, and they probably wouldn't.
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