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Teknek banned from conducting

September 7, 2005

In December 2004, a United States court awarded $3 million to Systems Division Inc. (SDI) in its patent infringement lawsuit against Teknek Electronics Ltd. and Teknek LLC. In its suit, SDI said that in May 1999 Teknek was infringing on the company’s patents, which governed the manufacture of sheet cleaning machines and paper rollers. SDI asked Teknek to cease and desist selling those products but, according to SDI, Teknek continued to manufacture and sell knock-offs.
On April 18, 2005, a Federal Court Order banned Teknek Electronics, of Inchinnan, Scotland, and its entities from engaging in any commercial activities in the USA. Teknek America LLC, however, of Elk Grove Village, IL, continued to conduct business.
On June 2, the Federal Court of Illinois issued an order finding Sheila Hamilton, Jonathan Kennett, and Teknek America to be guilty of multiple violations of the April 18 order to cease doing business in the US. They were found guilty of contempt of court and were ordered to account to the court for any and all business activities that had been conducted since April 18. Teknek America LLC was ordered to pay SDI “an amount equal to any and all monies received by any of them as a result of any business activities in the United States after April 18, 2005.”
The company was also ordered to “close its doors immediately” and to “advise all customers and distributors in writing” that they may not do further business in the United States until further notice, according to the court order.
If noncompliance continues, the court said it is prepared to implement “substantial civil contempt remedies”, including the issuing of a