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Liown Files Counterclaim in Luminara Lawsuit

MINNEAPOLIS - Liown Electronics Co. Ltd., in cooperation with Boston Warehouse Trading Corp., filed a counterclaim in U.S. District Court for the District of Minnesota to invalidate U.S. Patents currently licensed to Candella, LLC and sold under the name Dreamcandles by Luminara Worldwide, LLC and through their distributors, GKI/Bethlehem Lights and Enesco. This is a counterclaim against a recent patent infringment lawsuit filed by Candella/Luminara in November.

The counterclaim states that Luminara/Candella signed an exclusive manufacturing agreement with Liown, a supplier and manufacturer of electronic candles and LED lighting products in China and, according to court documents, Liown designed, engineered, and developed technology for Luminara/Candella and developed certain flameless candle designs, including a single stage and single pendulum candle design, which they disclosed to Candella.

The documents also state that Luminara/Candella improperly claimed to have patent rights to Liown's designs, and patents directed to those designs failed to list Liown's Li Xiao Feng as the inventor. Court documents further state that Candella used Luminara's manufacturing capabilities in China and breached the agreement, in essence, stealing Liown's technology.

According to court documents, the first patent at issue in the suit (7,837,355) was applied for in 2008, well before Mr. Li applied for his Chinese Patent in 2010.

Candella, in cooperation with Luminara Worldwide LLC, recently filed a lawsuit in the U.S. District Court for the District of Minnesota to stop the infringement of U.S. Patents held by Candella LLC. which represent the technology used to create Luminara's collection of flame-replicating designer candles that are practically indistinguishable from traditional candles.

Candella, the exclusive licensee of the patents, contends that three companies, Liown Electronics Co. Ltd., Shenzhen Liown Electronics Co. Ltd., and Liown Technologies/Beauty Electronics LLC, have infringed and continue to infringe these patents in products sold under the names "Dazzler," "Forever Light" flameless flickering candles, "Flameless LED Candle with Lanalool Mosquito Repellent, 2-pk.," "Flameless Pillar," and "Forever Flame."

In the counterclaim, Liown is also pursuing legal actions against Candella, Luminara, their distributors and key customers in China and has received acceptance and approval of a Chinese customs protection filing by the General Administration of Customs for China Central Government. Liown holds a Chinese patent, which predates any enabling disclosure of the single stage, single pendulum in the United States. Liown is actively pursuing all alleged infringers, whether they are manufacturers or U.S. retailers intent on exporting the product.



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