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Sunday, July 6, 2008

Ask Before you Take: Apple sues iPod Mechanic Website for Illegal Use of Name and Fraud

            The iPod is so popular that everyone wants a piece of the pie.  Too bad the name is trademarked.  Nicholas Woodhams of Michigan ventured into a home-run business to “repair” iPods, using the name iPod Mechanic for his company and website, without Apple’s permission, which is in clear violation of trademark laws.  Apple found Woodhams iPod Mechanic website business in 2006 and asked him to discontinue the use of the trademarked name.  Woodhams apparently struck a deal with Apple and would discontinue using the name by January of 2007.  While Woodhams adhered to changing the website domain from iPodmechanic.com to imechanic.com the business’s name is still the same.  Upon my own research, I see the sight is still in full operation under the domain imechanic.com with the opening page reading “iPod Mechanic.”  Whoops…this hardly seems like a step in the right direction Mr. Woodhams.

            Beyond the unauthorized use of the trademarked name, Apple further claims that Woodhams manipulated the computer giant into sending Woodhams free replacement units as well as having Apple repair out-of-warranty iPods. 

            Apple has filed claims of fraud and breach of contract.  In their first claim for fraud, Apple claims Woodhams abused the iPod shuffle Advance Replacement Program last year when Woodhams himself filled out several online repair forms, failing to send in the broken iPods and declining the charges to his credit card for the new shuffles, which were sent to him.  He then turned around and sold the shuffles at a reduced cost to Woodhams’ online customers.  Apple claims this scheme cost them over $75,000.00-that’s a lot of iPod shuffles.

            Further, in Apple’s second claim for fraud, Apple stated that Woodhams sent in out-of-warranty iPods for repair by switching the back-plates with in-date warranty iPods.  Clearly another loss of money for Apple, because the parts for the repairs were at Apple’s cost rather than the consumer’s. 

            It is clear that Apple attempted to originally settle the dispute out-of-court back in 2006.  Woodhams had the chance then to redeem himself and make good on his end of the bargain.  Considering that Apple originally only wanted Woodhams to change the name of his website and company, the further implications of fraud will mean Apple will look for considerable damages.  The complaint looks for relief in the form of triple damages considering the alleged fraud and continued illegal use of the iPod name.  Word to the wise, as my teacher told me in kindergarten-if you’d like to borrow something that is not yours, ask before you take it.  Oh and remember to say “please and thank you.”

 

This blog is based on information from an appleinsider.com article

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