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Walgreen’s Drugstore.com Accused of Selling Knockoff Sex Toys

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from www.businessweek.com – Walgreen Co.’s Drugstore.com was named in a U.S. trade agency complaint by a Canadian company that said it’s seeking to halt imports of knockoff sex toys.

Standard Innovation Corp., based in Ottawa, filed a complaint Dec. 2 with the U.S. International Trade Commission in Washington, seeking an order that would halt competitors from shipping the rival products into the U.S.

The dispute centers on competitors to the We-Vibe, described by Standard Innovation as a “couple device” worn by women during sex and presented in gift bags at the 2009 and 2010 Oscars, and the 2010 Superbowl. The company said it has sold more than 1 million of the devices, including about 400,000 in the U.S.

The competing products, several of which are sold on Bellevue, Washington-based Drugstore.com, are infringing two patents, including one for the design of the device, according to the complaint.

Among the companies named in the complaint were four manufacturers, four distributors and 11 retailers. Standard Innovation also filed a civil suit against one of the manufacturers, Leloi AB of Sweden, in federal court in Houston.

The ITC is a quasi-judicial agency that has the power to block imports of products that violate U.S. patent rights. If it agrees to investigate the complaint, it typically completes its work in 16 to 19 months.

The ITC case is In the Matter of Kinesiotherapy Devices, Complaint No. 2862, U.S. International Trade Commission (Washington). The civil suit is Standard Innovation Corp. v. Leloi AB, 22cv4172, U.S. District Court for the Southern District of Texas (Houston).

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