LoJack Wins Arbitration Case against Tracker do Brasil
The International Centre for Dispute Resolution of the American Arbitration Association has not only rejected claims against LoJack made by Tracker do Brasil but has also upheld counterclaims made by LoJack against the Brazilian company that had licensed LoJack’s anti-theft products for the Brazilian market.
Tracker had charged LoJack with intentional misrepresentation, negligent misrepresentation and breach of contract in papers filed in 2011. They had asked for a $55 million award plus legal fees. The arbitration panel would have had the option to triple the award, as well. LoJack filed aggressive counterclaims of breach of contract and breach of implied duty of good faith and fair dealing against Tracker.
The arbitration panel ruled that Tracker had used LoJack’s trademarks, copyrights and technology without authorization to sell non-LoJack products to the Brazilian market using the LoJack name. Additionally, it found that Tracker did not purchase the minimum units from LoJack it was contractually obligated to purchase, essentially using the LoJack name to sell off-brand units instead.
The arbitration decision did not include an award number; a further hearing will be conducted by the panel to determine the appropriate award number from Tracker.