Apple files, dismisses suit against teenager who sold white iPhone 4 kits
The teenage boy who runs an online business selling white iPhone 4 conversion kits has been hit with a trademark infringement lawsuit from Apple, though the company also filed a simultaneous request for dismissal.
Filed this week in U.S. District Court for the Eastern District of New York, Apple's complaint comes against Fei Lik "Phillip" Lam and his parents, Yuk Lam and Dunwah Lam. Their son created the website "whiteiphone4now.com," where he sold tools and materials that allowed customers to modify a black iPhone 4 and make it white.
The site has been offline since Apple issued a cease-and-desist letter on Dec. 1, 2010. Prior to that, Lam's service served a niche of enthusiasts who wanted to have Apple's long-delayed white iPhone 4 but could not yet buy it. The need for such extraordinary measures became largely negated last month when, after months of delays due to production issues, Apple finally began to sell the white iPhone 4.
But as noted by MacRumors, Apple also filed for a voluntary dismissal at the same time. That has led to speculation that Apple and the Lam family may have reached a settlement out of court. Apple's dismissal gives the company the right to refile the claim if it so chooses, leaving Lam potentially on the hook again.
The complaint accuses Lam of "infringing and diluting Apple's famous trademarks" through the sale of his conversion kits, which included parts obtained from Apple's overseas manufacturing partners. The kits included white front and black panels branded with the Apple logo and iPhone trademarks.
Apple's lawsuit states that Lam obtained the parts from an "unauthorized supplier in Shenzhen Province int he People's Republic of China." This "supplier" bought the white panels from shops on the streets of Shenzhen, and Apple argues that Lam "knew" where the parts came from.
Lam is alleged to have contacted Alan Yang of Shenzhen, who operates the business "Focusupply." Apple claims to have obtained an instant message conversation between Yang and Lam, in which Yang said his company had a "friend" at manufacturing company Foxconn.
"Defendant at all times knew that Apple has never authorized the sale of white panels for its iPhone 4 mobile devices, and that he obtained these parts from sources that were not authorized by Apple or any of its suppliers to sell them," the complaint reads.
Lam's parents are included in the complaint, as Apple believes they "aided and abetted" their son, who was a minor when the alleged trademark infringement occurred. Apple seeks to recover damages, including the "illegal profits" Lam obtained from his online business, which were reportedly more than $130,000 as of November 2010.
It was last fall when Lam first gained attention for making six figures from buying white iPhone 4 replacement parts from overseas, and building his own models of Apple's smartphone. Apple co-founder Steve Wozniak also built his own white iPhone 4 using parts obtained from overseas, though he did not make a business out of selling them like Lam.
Filed this week in U.S. District Court for the Eastern District of New York, Apple's complaint comes against Fei Lik "Phillip" Lam and his parents, Yuk Lam and Dunwah Lam. Their son created the website "whiteiphone4now.com," where he sold tools and materials that allowed customers to modify a black iPhone 4 and make it white.
The site has been offline since Apple issued a cease-and-desist letter on Dec. 1, 2010. Prior to that, Lam's service served a niche of enthusiasts who wanted to have Apple's long-delayed white iPhone 4 but could not yet buy it. The need for such extraordinary measures became largely negated last month when, after months of delays due to production issues, Apple finally began to sell the white iPhone 4.
But as noted by MacRumors, Apple also filed for a voluntary dismissal at the same time. That has led to speculation that Apple and the Lam family may have reached a settlement out of court. Apple's dismissal gives the company the right to refile the claim if it so chooses, leaving Lam potentially on the hook again.
The complaint accuses Lam of "infringing and diluting Apple's famous trademarks" through the sale of his conversion kits, which included parts obtained from Apple's overseas manufacturing partners. The kits included white front and black panels branded with the Apple logo and iPhone trademarks.
Apple's lawsuit states that Lam obtained the parts from an "unauthorized supplier in Shenzhen Province int he People's Republic of China." This "supplier" bought the white panels from shops on the streets of Shenzhen, and Apple argues that Lam "knew" where the parts came from.
Lam is alleged to have contacted Alan Yang of Shenzhen, who operates the business "Focusupply." Apple claims to have obtained an instant message conversation between Yang and Lam, in which Yang said his company had a "friend" at manufacturing company Foxconn.
"Defendant at all times knew that Apple has never authorized the sale of white panels for its iPhone 4 mobile devices, and that he obtained these parts from sources that were not authorized by Apple or any of its suppliers to sell them," the complaint reads.
Lam's parents are included in the complaint, as Apple believes they "aided and abetted" their son, who was a minor when the alleged trademark infringement occurred. Apple seeks to recover damages, including the "illegal profits" Lam obtained from his online business, which were reportedly more than $130,000 as of November 2010.
It was last fall when Lam first gained attention for making six figures from buying white iPhone 4 replacement parts from overseas, and building his own models of Apple's smartphone. Apple co-founder Steve Wozniak also built his own white iPhone 4 using parts obtained from overseas, though he did not make a business out of selling them like Lam.
Comments
Perhaps Steve Jobs has been spending too much time hanging out with music execs?
Suing little kids and their parents for doing the job you couldn't figure out how to do?
Perhaps Steve Jobs has been spending too much time hanging out with music execs?
First off, that post is funny as hell.
Secondly, you need to "protect" your intellectual property, or risk losing you trademarks and patents, so they sort of had to sue, even if they always intended on dropping the suit.
That said, I can’t help but give this kid some cheers for his entrepreneurship and do hope that he got to keep some of the money he made.
PS: DIdn’t Steve Wozniak buy such a kit? Was it not from this seller?
PPS: Please don’t feed the trolls.
Apple wasn't selling the cases for a reason: they negatively effected performance.
You?ll best clarify that before you get a rush of people claiming that a different piece of glass doesn?t change how fast the processor runs.
First off, that post is funny as hell.
Secondly, you need to "protect" your intellectual property, or risk losing you trademarks and patents, so they sort of had to sue, even if they always intended on dropping the suit.
The kid complied already with the letter to stop selling this is just creepy corporate thuggery, i hope apple's bad karma comes back on them.
The kid complied already with the letter to stop selling this is just creepy corporate thuggery, i hope apple's bad karma comes back on them.
Actually, it’s not. 1) The lawsuit and dismissal is to protect Apple in case Lam decides to use his Chinese contacts to sell such items in the future. 2) It’s "par for the course” to expect Apple gets a large portion of his profits to prevent others who think they can make a quick buck flying under the radar and then get off scott free simply by closing shop.
Time to move on, also done.
Lam is clearly in the wrong even if we ignore the potential of Philip and his parents knowing these parts were illegally obtained from someone working at Foxconn. Imagine if Apple let anyone in any country sell stolen or trademark infringing products. Their business and name would be severely hindered. I think they could even lose their right to their trademark if they didn?t try to protect it.
That said, I can?t help but give this kid some cheers for his entrepreneurship and do hope that he got to keep some of the money he made.
PS: DIdn?t Steve Wozniak buy such a kit? Was it not from this seller?
PPS: Please don?t feed the trolls.
Whether it's a teenager, or a full-blown operation like Psystar, you let one person pass through the door, next thing you have is everyone is doing it. Apple has to do this otherwise they risk a floodgate opening. Gotta give the kid credit where due, but he pushed his luck.
I do believe the Woz did buy his white kit that way, and even he admitted that the camera-quality sucked due to light leakage. Which means Apple had to do something to stop this. Next thing you know, those that did decide to do it would b!tch to Apple about their camera not working right.
As far as trolls go, looks like Techstud or one of his lapdogs is back at it again.
You?ll best clarify that before you get a rush of people claiming that a different piece of glass doesn?t change how fast the processor runs.
Wasn't the rumor that the white glass somehow effected the performance of the camera so that it didn't work? The rumor was the white glass was letting light bleed through the body of phone. Makes sense if true.
That rumor seemed to be valid. Further evidence is that a teardown photo of the white iPhone also showed the camera being set in deeper as well.
The kid complied already with the letter to stop selling this is just creepy corporate thuggery, i hope apple's bad karma comes back on them.
Stop being reactionary and use your brain for two seconds.
You protect or lose your trademark. This legally protects Apple and simultaneously holds the kid [and his parents] liable for future violations without prosecuting him for the current violation.
If this ``kid'' were a small corporation Apple wouldn't be giving them a break, nor should they as they are adults and ignorance of the law is not a defense.
If Apple ignored this they would face precedence of inaction and corporations would leverage that inaction ultimately resulting in damaging the Apple brand.
Grow up and think before you react as if someone's sending the Military against a kid with a water pistol.
Wasn't the rumor that the white glass somehow effected the performance of the camera so that it didn't work? The rumor was the white glass was letting light bleed through the body of phone. Makes sense if true.
affected
Suing little kids and their parents for doing the job you couldn't figure out how to do?
Perhaps Steve Jobs has been spending too much time hanging out with music execs?
That is such a stupid comment founded on misinterpretation of facts and I hope not to many try explaining the truth that you probably well know.
Do you view your senseless trolling as playful mischief? Is it entertaining to you?
Do you view your senseless trolling as playful mischief? Is it entertaining to you?
Do you expect him to say no?
That was quite an effort to swat a fly.
Flies don't make $130,000 by getting their hands on illicitly obtained parts.
It seems like a good balance. They want to stop the activity but not been seen as bullying a kid. However I find it hard to believe a kid was able to contact suppliers in Asia and organise the whole thing. Surely it was his dad and he was just a front man?
Of course. It was only to see if Apple would actually sue. That's why they filed and dismissed the suit so it wouldn't be a PR nightmare.