NPS* has filed a suit against Procaps Distributors. Apparently, on two separate accounts, NPS claims that Procaps infringed on their copyrights with the Pulse and broke a non-disclosure agreement that they had signed.
Essentially, the copyright / patent infringement appears to be on the RF Chip and trigger activation sensor, being as how it is based around a magnetic system. However, also included in the suit documents is some pretty vague language about the general operating system. The Pulse internals are fairly similar to a Halo’s.
The non-disclosure agreement that NPS claims Procaps broke is a big deal too. This agreement means that NPS* showed Procaps some blueprints for technology that they were developing and Procaps took the technology, added to it, and produced it, without crediting NPS or paying NPS.
This is a claim of intellectual property theft.
The courts will decide in about 2 weeks who wins. Until then, Pulse sale, distribution, and promotion in the US is to cease. If NPS is correct in that Procaps did indeed break these laws, then they’ll probably go for a settlement, and prices on Pulses will jump to $200++. Under a more strict ruling, Procaps may even be prohibited from selling the Pulse at all. All you Pulse owners don’t worry though, because you’ll still be covered for tech support, etc, as long as DXS remains afloat. If Procaps successfully defends itself, then all is well with DXS and its Pulse loaders, and the world will keep on turning, except with a few richer lawyers.
*NPS is now merged with PMI under the name KEE Action Sports, however, for this post, I’m saying NPS because it is a more recognizable name.
NEW YORK – February 2, 2007 – The following Temporary Restraining Orders were issued today by the United States District Court for the District of New Jersey in the case AJ INTERMEDIATE HOLDINGS LLC; and, AJ ACQUISITION I LLC d/b/a NATIONAL PAINTBALL SUPPLY, v. PROCAPS L.P.; PROCAPS DIRECT, INC.; STRATEGIC SPORTS, INC. d/b/a PEV’S PAINTBALL; COUSINS PAINTBALL MT. KISCO, LLC; IMPERIAL CAPITAL CORPORATION; MICHAEL SPURLOCK; WU CHUN MIN; and, MARCASITE INDUSTRIAL CO., LTD, CIVIL DOCKET FOR CASE #: 1:07-cv-00192-JHR-AMD, in connection with the manufacturing, sale, distribution, or advertising of the PULSE paintball loader.
Official files can be found HERE and HERE.