Harman Hits Voxx Int’l & Klipsch Group with Major 13-Count Lawsuit

Something tells me these companies – Harman International Industries, Inc. and Voxx International Corp/Klipsch Group, Inc. aren’t going to be friends…or even friendly. I have learned that Harman has filed a significant 13-count patent infringement lawsuit against Voxx/Klipsch for copying its patented JBL PartyBox line in the creation of the Klipsch Gig XXL party speaker line.

Harman says Voxx/Klipsch continued its allegedly unlawful actions even after being notified of the infringement by Harman back in the fall of 2023.

Learn all about Harman v. Voxx et al…

There are some interesting similarities between the parties. Both are small parts of much bigger organizations – Harman is part of the global electronics brand Samsung…and Voxx/Klipsch is part of auto parts maker Gentex Corp.

Similarities Between the Parties

Both have also pursued a similar strategy of growth through acquisition, ultimately acquiring a stable of brands. Although, to an outsider, it certainly appears as though Harman has been better at the acquisition game than Voxx – which recently was forced to divest many of its brands it had previously acquired.

Ironically, both of these acquirers were – ultimately – themselves acquired.

But while they may be similar structurally, the relative scale of each group is much, much different. Voxx/Klipsch is a $469 million (fiscal 2024, its last full fiscal year) division of Gentex, a $2.3 billion auto parts maker. While on the other side, Harman is a $10.2 billion division of Samsung, a $219.2 billion global electronics powerhouse.

One of these groups is the much bigger dog in this fight.

What is the Lawsuit All About?

For several years now, Harman has been designing, manufacturing, and selling a line of portable Bluetooth party speakers that offer both a sound and a light show called PartyBox under the JBL brand. From the lawsuit, Harman says this: “JBL’s PartyBox speakers are transportable and splashproof and pack a high-quality, powerful loudspeaker into an aesthetically pleasing outer shell with an accompanying illuminated light show.”

We also learn from the lawsuit, that they have these speakers covered with patents.

In June of 2023, Klipsch began introducing their own line of party speakers called Gig XXL that very much mirror PartyBox – portable Bluetooth speakers that look and act a lot like the JBL versions. Not only that, but Harman’s lawsuit notes that a Klipsch Gig party speaker “…retails for substantially less than the comparable JBL PartyBox products at national retailers.”

Houston, we have a problem.

‘A Deceptive Imitation’ That Looks ‘Substantially the Same’ to an ‘Ordinary Observer’

The design of the Accused Product [Klipsch party speaker] is a deceptive imitation of the designs claimed in the [Harman] Asserted Patents and is substantially the same in overall appearance through the eye of an ordinary observer. Specifically, the ordinary observer seeking to purchase a portable powered speaker would be so deceived as to purchase the Accused Product rather than certain of the JBL Party Box Speakers, believing the Accused Product to be substantially the same as the claimed designs of the Asserted Patents.

Harman International v. Voxx International and Klipsch Group, Complaint for Patent Infringement

So after researching the matter, Harman satisfied itself that the Klipsch Gig XXL party speakers did, in fact, copy the JBL PartyBox. And it did so by infringing on several Harman patents. In fact, they infringed on a total of thirteen patents, according to the lawsuit. Most of these patents are design patents covering the action of the dynamic light display that accompanies the music.

Harman Reaches Out to Paul Jacobs of Klipsch

In September 2023, Harman reached out by email to Paul Jacobs, the president and CEO of Klipsch, asking the company “…to immediately stop manufacturing, importing, distributing, and selling the Accused Products” and specifically identified several of the patents Klipsch was infringing. In a few days, the matter was escalated up the food chain to Pat Lavelle, President and CEO of Voxx International.

That escalation to both Jacobs and Lavelle specifically named five patents that Harman had determined the Klipsch Gig XXL party speaker violated. At this point, “The matter was referred to counsel.” In early October, Harman lawyers took over, making a third official, legal notification that the Klipsch Gig XXL Party Speakers were infringing on five Harman patents.

Voxx Offers to Redesign the Product

I’m pretty sure that Voxx/Klipsch could see where this was heading…Harman was not going away.

In late October, Voxx took the initiative and sent a communication to Harman proposing a redesign of the offending products in light of the Asserted Patents. Harman was apparently open to that, but says that “Voxx never implemented this redesign.”

That brings us to now… Summarizing the arguments, Harman told the court that “Defendants knew of and/or were willfully blind to the Asserted Patents”…”Klipsch and Voxx have continued to manufacture and sell the Accused product”…and…”Defendants’ actions are causing and are likely to continue causing monetary damages, including lost profits.”

A Lucky 13 Causes of Action

With that, the company laid out thirteen causes of action, centered around each of the thirteen Harman design patents upon which they allege Voxx/Klipsch have infringed. They included lots of exhibits including, among other things, photos showing the JBL PartyBox…next to the illustration from the legally granted Harman patent…next to a photo of the Klipsch Gig XXL displaying the same light feature.

It was pretty compelling evidence.

Not Much to See in Response from Voxx & Klipsch

I anxiously turned to the response from Voxx and Klipsch, but discovered that there wasn’t much to see there. Although the defendants had requested more time to produce their response to the Harman lawsuit – leading me to think maybe there would be a robust pushback to the allegations – actually, most of the pages look like the one below.

In fact, there was really no attempt to push back with a strong response in an effort to try and dissuade Harman from continuing. This could be because either Voxx/Klipsch does not have a strong defense to this suit, or they strategically decided to keep their powder dry until they get in front of the judge and jury. Either way, it is a tacit acknowledgment that this matter is going forward.

Voxx/Klipsch Makes One Point on Page 13 of 14; A Failure to Communicate

Out of the 14 pages of Voxx/Klipsch’s response, it wasn’t until the bottom of page 13, that we saw any effort from the Voxx/Klipsch legal team to push back. Remember above, when Harman told the court that after Voxx/Klipsch offered to redesign the product, they never implemented a redesign? Well, Voxx/Klipsch had a different version of this story.

On October 27, 2023, Klipsch (through counsel) disclosed the redesign details, in particular various redesigned light modes, providing a video file to Plaintiff. Klipsch, in reliance on Plaintiff’s confirmation of an amicable resolution through redesign, incurred the costs to develop and implement the redesign for those products yet to be manufactured. Plaintiff, after receiving the details of the redesign, never contacted either of the Defendants until it filed suit more than a year later. The assertion of this suit, seeking damages, harms Defendants and is contrary to Plaintiff’s prior representations.

Harman International v. Voxx International & Klipsch Group, Defendants’ Answer and Affirmative Defenses to Complaint

To quote the warden in the 1967 movie Cool Hand Luke, “What we’ve got here is a failure to communicate.”

What Harman Wants

Harman is asking the court for the following points of “relief”…

1. A judgment of infringement of each of the Asserted Patents by Voxx/Klipsch
2. A judgment against Voxx/Klipsch for its total profits generated by the sale of any item that infringed on the Asserted Patents in an amount to be determined at trial. Also, for money damages sustained as a result of Voxx/Klipsch’s infringement
3. A full accounting of Voxx/Klipsch’s profit, as provided by law
4. A finding of this case as “exceptional” under law, and an award of costs and attorneys’ fees
5. An award of pre- and post-judgment interest on the damages caused by this infringement
6. Finally, any other relief as the Court may deem just and proper

For More Information

See more on the JBL PartyBox line at this link…

See the current Klipsch lineup at klipsch.com. Let me know if you find the Klipsch Gig XL party speakers, I didn’t see them. Maybe this lawsuit is already having an impact.