Friday, August 27, 2010

Denny Mfg. and Backdrop Outlet Reach Agreement in Ongoing Lawsuit Against Backdrop Outlet

The Denny Manufacturing Company announces today that it has reached a settlement with Drops & Props, Inc., doing business as Backdrop Outlet, and its President Jay Gupta, ending litigation between the parties. In 2009, Denny Mfg. Co. sued Backdrop Outlet and Gupta in the United States District Court for the Southern District of Alabama for copyright and trademark infringement. Denny Mfg. Co. accused the defendants of copying several certain artistic backdrops and using a trademark (Fautex) that was confusingly similar to Denny Manufacturing Company’s federally registered FlexTex trademark. In its complaint, Denny Mfg. Co. sought an injunction to stop the alleged infringement and unspecified money damages. While denying wrongdoing, Backdrop Outlet and Gupta agreed to a Permanent Injunction prohibiting sales of certain artistic backdrops subject to Denny Manufacturing Company’s registered copyrights and prohibiting continued use of the trademark at issue. The settlement also included an undisclosed monetary payment to Denny Mfg. Company, Inc.

Denny Manufacturing Company Founder and CEO, Denny Variali, stated: “The Denny Manufacturing Company takes its intellectual property rights seriously and is willing to enforce them where necessary. This allows us to continue to provide creative and innovative designs to our customers, which has been a hallmark of The Denny Manufacturing Company since its founding in 1971.”

For more information, contact: Denny Mfg. Company at 800-844-5616

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