Court Rules in Favor of Rust-Oleum in Unfair Competition Suit.

VERNON HILLS, Ill. -- A Federal District Court in San Francisco entered judgment in favor of Martin Mathys, S.A. and its exclusive U.S. distributor, Rust-Oleum Corporation, in a trademark infringement and unfair competition lawsuit. Rust-Oleum is a leading manufacturer of rust-preventive, general purpose, decorative, specialty, professional and industrial paints and coatings.

The suit arose last summer when Martin Mathys and Rust-Oleum learned that a competitor had falsely labeled its own paint product as Martin Mathys' NOXYDE(R) paint and sold the counterfeit paint to the State of California for use on the new Carquinez Bridge. Martin Mathys and Rust-Oleum accused defendant Maintenance Repair Technology Company, which does business under the names ACT-Martco and Advanced Coating Technology, of misleadingly referring to ACT's paint product as NOXYDE(R) paint. This paint had been specified by the state's Department of Transportation for the bridge project. ACT conceded liability by failing to offer any defense.

Finding ACT's infringement and sale of counterfeit paint willful, the court awarded Martin Mathys and Rust-Oleum $500,000 in damages and their attorneys' fees. The court also issued an injunction barring ACT and its directors, officers, employees and agents from using Martin Mathys' NOXYDE(R) mark on any counterfeit product, and from selling or offering for sale any paint products under a Martin Mathys trademark that do not conform to project specifications issued by the California Department of Transportation, or any other entity, on any public or private construction project.

"Obtaining this judgment is an important part of our ongoing efforts to protect our products and the goodwill associated with them, and will also help protect against the illegal sale of counterfeit products on public works projects where the public's investment is at stake," commented Mike Tellor, Rust-Oleum President.

Rust-Oleum Corporation, a subsidiary of RPM Inc. and manufacturer of rust-preventive, general purpose, decorative, specialty, professional and industrial paints and coatings, is committed to developing innovative and high-quality products that deliver superior protection and value. Rust-Oleum, one of America's most recognized and trusted names, is synonymous with quality and durability. Based in Vernon Hills, Ill., the company has been manufacturing rust-preventive coatings for more than 80 years.