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Newegg Inc. Sues Kohl's for Trademark Infringement

5/18/2009 Press Release

Newegg Inc. Seeks a Temporary Injunction Against Kohl's for Infringement of the "Once You Know, You Newegg"® Trademark in Kohl's New Marketing Campaign

CITY OF INDUSTRY, Calif. - Newegg Inc., the second-largest online-only retailer in North America, today announced that it has filed a complaint in the United States District Court for the Central District of California against Kohl's Corporation for trademark infringement and unfair competition.

The lawsuit alleges that Kohl's recent use of the slogan "The More You Know, The More You Kohl's" misappropriates Newegg's trademark rights in its registered mark, ONCE YOU KNOW, YOU NEWEGG®, in an effort to trade on the good will associated with the well-known Newegg slogan. Newegg received a certificate of registration for its mark from the United States Patent and Trademark Office on September 5, 2006, but the company has been extensively using the mark since July 2004.

Lee Cheng, general counsel of Newegg Inc., noted: "Newegg's name and our registered trademarks are all carefully considered in order to reflect and reinforce our core values and create a unique 'persona' for our company. Most importantly, they reflect the proposition that intelligent and savvy customers -- those people who are 'in the know' will shop at Newegg and tell their friends about us, because they understand and appreciate the value of our broad product selection, lightning-fast fulfillment and 'customer is always right' service philosophy. We have spent millions building up this reputation, and we would be remiss if we did not vigorously protect our trademarks and do everything in our power to prevent other companies from attempting to capitalize on our success in launching or bolstering their own competitive businesses. An organization such as Kohl's should fully understand the value of an excellent brand and the necessity of protecting trademarks, and if Kohl's expects others to respect its trademark rights, then it should respect Newegg's rights as well."

"Newegg's dedication to customers has been recognized consistently in numerous leading national surveys,"
said Bernard Luthi, Newegg's vice president of merchandising and marketing. "For instance, we were ranked #1 in the latest University of Michigan/Foresee customer satisfaction survey of internet retailers, and we placed #6 in the National Retail Federation/American Express 2008 Awards for customer service among all national retailers, including many with legendary reputations for customer service."

Newegg is seeking injunctive relief to prevent Kohl's from continuing its advertising campaign and to immediately cease all use of the infringing slogan, as well as monetary damages for lost revenue, corrective advertising, and damage to Newegg's trademark.

About Newegg Inc.
Founded in 2001, Newegg Inc. is the second-largest online-only retailer in the United States with gross sales of more than $2 billion annually. The award-winning website, www.newegg.com, boasts more than 12 million registered users and regularly earns industry-leading customer service ratings. Newegg offers customers a comprehensive selection of the latest high-tech products, detailed product descriptions and images, links to manufacturer websites and related products. The website also provides how-to information and over 1.3 million customer product reviews. For further information, please contact the Newegg Legal Department at 626-271-9700 x. 22015.

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