Align Tech files suit against Israeli competitor Strauss & Co

Align Technology (NSDQ:ALGN) has filed a suit against competitor Strauss Diamond Instruments, a subsidiary of Israel-based Strauss & Co, claiming that Strauss’s MagicSleeve product infringes upon Align’s own iTero Element sleeves, and that the company has engaged in “false and misleading advertising” of the product.

The suit was filed in the US District Court for the Northern District of California, San Jose Division and includes claims of unfair competition and false designation, patent infringement, federal trademark infringement, trademark counterfeiting, federal trademark dilution and other business code violations, according to court documents.

Strauss Diamond’s MagicSleeve is intended to cover the wand portion of Align Tech’s iTero Element scanner, a device designed to produce a computer-based 3D model of a patient’s teeth as an alternative to traditional teeth impressions.

Align produces its own sleeve for the iTero scanner which incorporates specific design elements the company said are made to allow the device to operate at maximum efficiency, and to prevent cross-contamination.

Align Tech said that the MagicSleeve “is a direct knock-off of Align’s own iTero Element scanner sleeve, except that [Strauss’s] MagicSleeve is significantly inferior in quality to Align’s genuine product,” according to court documents.

The suit goes on to claim that Strauss markets the sleeve across multiple platforms, and in its advertisements it “implies to consumers an association with Align and Align’s iTero Element scanner system.” Strauss also claims the sleeve will result in a “25% faster scanning time,” which Align claims is false.

Align lays out a number of ways in which it believes the MagicSleeve differs from its official product, and claims that use of the product could result in less-than-standard outcomes. Align also claims that the product infringes on the patents related to the official sleeve.

The suit seeks to stop Strauss from using any of Align’s trademarked products in their advertisements and to suspend and recall products sold “with the use of the Invisalign and/or iTero marks, or any other confusingly similar mark,” according to court documents. The company is also seeking reimbursement for profits from the sale or distribution of the system.

Last month, Align Technology saw shares tumble over 20% after the orthodontic device maker posted downbeat guidance alongside third quarter earnings that beat The Street.

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