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Non-Tech : Callaway Golf -- it's a buy -- Ignore unavailable to you. Want to Upgrade?

To: Don Dorsey who wrote (173)	7/21/1998 8:37:00 PM
From: Don Dorsey	Read Replies (1) \| Respond to of 307

Court Rules Callaway Golf May Press Legal Action Against Spalding CARLSBAD, Calif., July 21 /PRNewswire/ -- Callaway Golf Company (NYSE: ELY) today announced that the Federal District Court in Santa Ana, California, has denied Spalding & Evenflo Companies' motion to dismiss Callaway Golf's lawsuit against Spalding for violating federal and state trademark and false advertising laws in connection with the sale of the so called "System C" golf balls. The ruling by the Court permits Callaway Golf to go forward with all of its claims against Spalding, and to seek access to Spalding's records through discovery. In the suit, Callaway Golf alleges that Spalding's packaging and advertising for its "System C" golf ball -- which contains an unauthorized image of a Callaway Great Big Bertha(R) Driver -- misleads consumers into believing that the Spalding balls are endorsed by Callaway Golf. The suit also asserts that Spalding falsely claims that the ball is the "longest/most accurate" ball one can use with a Great Big Bertha(R) Driver. The Court also ruled that Callaway Golf Ball Company, which plans to introduce a golf ball in late 1999, has the right to sue Spalding, stating that Spalding's arguments against Callaway Golf Ball Company's participation in the suit "amount to assertions without authority and analysis and, for that reason, are not persuasive." "We are very pleased that the Court has emphatically rejected Spalding's attempt to escape liability for free riding on the popularity of our golf clubs. Now we can proceed with all of our claims," said Ely Callaway, Founder and Chairman of Callaway Golf Company. Summing up the views of the Callaway Golf legal team, Steve McCracken, Executive Vice President and Chief Legal Officer added: "We recently submitted evidence to the Court demonstrating that, in our opinion, Spalding's conduct is unlawful, including submission of an expert survey which shows that many consumers are confused about the source of the System C golf ball, and test results which show that Spalding's advertising is false. In our view, the real battle begins with our victory today, and we look forward to proving our case in court." For more information about Callaway Golf Company, please visit the company's website on the Internet at www.callawaygolf.com