Checkpoint Systems and PolyGram reach settlement in antitrust lawsuit over source tagging of compact discs.THOROFARE, N.J.--(BUSINESS WIRE)--Aug. 28, 1996--Checkpoint Systems Inc. (NYSE NYSE See: New York Stock Exchange : CKP CKP Checkpoint CKP Crankshaft Position CKP Chandraseniya Kayastha Prabhu (caste of Maharastra, India) CKP Chris Key Players (band) CKP Concept Knowledge Processing ) and PolyGram Records have reached a settlement in an antitrust lawsuit that Checkpoint filed in July. As part of the settlement, PolyGram Records has agreed to suspend its current practice of source tagging with a single EAS (Electronic Article Surveillance) A security system for preventing theft in retail stores that uses disposable label tags or reusable hard tags attached to the merchandise. (electronic article surveillance See EAS. ) technology. Checkpoint's currently pending antitrust lawsuit against the National Association of Recording Merchandisers National Association of Recording Merchandisers (NARM) is a U.S. not-for-profit trade association based in Marlton, New Jersey that serves music retailing businesses in lobbying and trade promotion. Inc., challenging NARM's efforts to designate and implement a single manufacturer's EAS technology for source tagging of recorded music recorded music n → música grabada products, is unaffected by the settlement. According to Kevin Dowd, Checkpoint's president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , the settlement addresses Checkpoint's concerns that its retail customers have the same opportunity as their competitors to receive source tagged music products. "Source tagging offers retailers a tremendous competitive advantage in the marketplace because of the benefits it offers relative to cost-savings and increased sales. We believe that the music manufacturers and distributors have the ability, as many other product manufacturers have already demonstrated, to supply their customers with source tagged merchandise that is both compatible with their EAS systems and at a cost 0ssociated directly with the technology selected," said Dowd. He added that Checkpoint believes that its radio frequency technology for source tagging is more cost-effective than competing technologies and offers the marketplace more competitive solutions. Nearly 300 consumer product manufacturers have been source tagging such product categories as health and beauty care, home electronics, hardware, jewelry, liquor, personal care, and sporting goods for Checkpoint's customers by embedding paper-thin radio frequency (RF) labels into products or packaging. Checkpoint Systems Inc., located in Thorofare, is a leading provider of integrated security solutions for retailers worldwide. The company is also the leading provider of radio frequency source tagging, which allows its paper-thin RF tags to be embedded into products or product packaging. CONTACT: Checkpoint Systems Inc. Glenda Laudisio, 800/257-5540 ext. 2411 or Mallory Factor Inc. Steven Gaynes, 212/242-0000 |
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