The Origins of the Dispute: Old Speakers, New Controversy
The lawsuit stems from Crown Cell’s 2016 and 2017 purchases of two speaker models bearing the Altec Lansing name. The units were bought from Westview Industries, which in turn sourced them from Fenda in China. But the speakers raised red flags: AL Infinity sent a cease-and-desist letter in May 2017, prompting Crown Cell to remove the products from at least one online retailer’s website.
AL Infinity subsequently filed a 2020 lawsuit, alleging trademark infringement and counterfeiting. Crown Cell fired back with a third-party claim against Westview, citing indemnity and breach of implied warranty.
The Licensing Tangle: What Fenda Could and Couldn’t Do
Westview and Fenda claimed they once had a right to make and sell Altec Lansing products. But the panel pointed to a 2004 memorandum of understanding between Fenda and Altec Lansing Technologies Inc., the former trademark owner. The agreement authorized Fenda only as a supplier, and explicitly prohibited it from selling Altec products unless licensed.
“The agreements suggest Fenda was once authorized—but not to manufacture and sell on its own account,” the judges wrote.
That contractual distinction, the court said, was critical and enough to defeat summary judgment.
