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Best Buy, Wal-Mart named in patent dispute

Best Buy Co, Wal-Mart Stores Inc and other companies were sued over dashboard mounts for navigation devices in a rare case of a Chinese company seeking to enforce patent rights in a US court.

Changzhou Asian Endergonic Electronic Technology Co, based in Changzhou, claims the retailers are infringing its patent on a design for the dashboard mounts by selling products made by a competitor. The patent was issued in March.

The Chinese company wants cash and a court order to prevent further use of the design.

The closely held company intends to build a market in the United States and filed the complaint to deal with "the knockoff", said Chad Nydegger, a lawyer for Changzhou Asian.

The company also is suing the manufacturer in China, accusing it of infringing two Chinese patents, he said.

The complaint, filed July 2 in US District Court in Texarkana, Texas, reflects the rising use of the US patent system by Chinese companies.

US patent applications by residents of China surged 12-fold between fiscal years 2000 and 2008, according to the US Patent and Trademark Office.

"The Chinese are becoming sophisticated enough to take advantage of the patent system in the United States," said Brian Nester, a lawyer with Fish & Richardson in Washington, DC, who often represents South Korean companies in US patent fights.

"You will see more Chinese companies filing suit in the United States," Nester said.

Michelle Bradford, a spokesperson for Wal-Mart, said the company had not been served with the complaint, and that the company had no comment.

Kelly Groeler, a spokesperson for Best Buy, did not return messages seeking comment on the suit.
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