Emerson and LVS Reach Agreement on Labeling of Reconditioned Equipment
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LVS to clearly communicate nature of product repairs and reconditioning for purchasers and end users
MARSHALLTOWN, IOWA (November 7, 2006) - Emerson Process Management has entered into an agreement with Louisiana Valve Source, Inc. (LVS) requiring LVS to clearly mark all products that it repairs or reconditions in a manner that makes the repaired and reconditioned nature clear to purchasers and end-users, and to clearly indicate in the paperwork provided with such products that the specifications, standards, and certification marks applied to the original products are not necessarily applicable to the repaired or reconditioned products. The parties believe that the agreement will further both Emerson's and LVS's objectives of ensuring that the nature of LVS's reconditioned products are understood by purchasers and end-users of such products.
In late 2005, Fisher Controls International, Inc. ("Fisher"), a division of Emerson, filed a lawsuit in the United States District Court for the Southern District of Texas. The lawsuit alleged, among other things, that LVS's offering and sale of repaired or reconditioned Fisher products originally sold or provided by Emerson was a violation of the United States Trademark laws, and other laws. LVS has denied the allegations and asserts that its customers are fully informed of the character and quality of equipment purchased from LVS.
The underlying premise of the action was to ensure that end-users and purchasers of repaired or reconditioned equipment or products from LVS were not confused about the source, quality and/or nature of the LVS products. In response to Emerson's action, LVS indicated that, like Emerson, it was interested in ensuring that its products were properly marked such that purchasers and end-users of its repaired or reconditioned products would be aware of the repaired nature of the products.
In an effort to ensure that LVS's products are properly marked, Emerson and LVS have reached an agreement concerning LVS's offering of repaired or reconditioned Fisher products. As part of the agreement, LVS has agreed, among other things, to mark all repaired or reconditioned products in such a manner that the repaired or reconditioned nature of the products will be clear to purchasers and end-users of the products. LVS has also agreed to include language in its order, invoice, quotation and shipment materials clearly indicating that the repaired or reconditioned Fisher products are not approved, sponsored by, or affiliated with Emerson's Fisher division and that the specification, standards, and certification marks applied to the equipment originally by Emerson's Fisher division are not necessarily applicable to the LVS repaired or reconditioned products.
The parties believe that the agreement will further both Emerson and LVS's objectives in ensuring that the nature of LVS's products is understood by purchasers and end-users of such products.
As part of the agreement, Emerson's Fisher division agreed to withdraw its lawsuit against LVS.
Emerson's actions in this matter are part of its ongoing efforts to protect the integrity of products that may bear its trademarks and are related to Emerson's efforts to educate the industry on the risks and issues associated with salvaged, remanufactured and surplus equipment.
About Emerson Process Management
Emerson Process Management, an Emerson business, is a leader in helping businesses automate their production, processing and distribution in the chemical, oil and gas, refining, pulp and paper, power, water and wastewater treatment, food and beverage, life sciences and other industries. The company combines superior products and technology with industry-specific engineering, consulting, project management and maintenance services. Emerson brands include PlantWeb®, DeltaV(TM), Ovation®, Fisher®, Micro Motion®, Rosemount®, Mobrey®, Daniel®, Bristol®, and AMS(TM) Suite.
About Emerson
Emerson (NYSE: EMR), based in St. Louis, is a global leader in bringing technology and engineering together to provide innovative solutions to customers through its network power, process management, industrial automation, climate technologies, and appliance and tools businesses. Sales in fiscal 2005 were $17.3 billion. For more information, visit www.GoToEmerson.com.
PlantWeb, DeltaV, Fisher, Micro Motion, Rosemount, Mobrey, Bristol, Daniel, Ovation, and AMS are marks of Emerson Process Management. Other marks are property of their respective owners.
