ELY-Callaway Golf upgraded by Ryan, Beck & Co
WEB STREET GOLF REPORT
BREAKING NEWS
Monday, January 10, 2005
CASE CLOSED:
Callaway Golf Company (ELY:NYSE) has resolved its legal dispute with the founders of Perfect Putter Company whereby Callaway Golf will be purchasing four U.S. patents from the company. The patents, according to Callaway Golf, relate to certain putter designs, including a unique method of orienting the shaft in relation to the putter head. The lawsuit, which will now be dismissed by the parties with no admission of any wrongdoing, was filed in November 2002 by Perfect Putter and its owners. The terms are to remain confidential and all parties are said to be satisfied with the resolution.
The lawsuit, first filed in November 2002, claimed that Callaway Golf had misappropriated Perfect Putters trade secrets and incorporated them into new products, including the company’s best selling Odyssey White Hot 2-Ball Putter.
That claim was voluntarily dismissed by plaintiffs in October 2004 when discovery demonstrated that Callaway Golf did not use any information from Perfect Putter.
The lawsuit also had alleged that Callaway Golf had failed to complete the acquisition of Perfect Putter based upon discussions that occurred in 1997. In a joint statement, the parties said: “We are pleased that Callaway Golf has completed the acquisition of the Perfect Putter designs. Whether these patents will assist in the development of new products remains to be seen, but the potential opportunity for use of these rights should be greater now that they are owned by the market leader in putters.”
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