Pacific Display & Packaging Company of Thailand has denied it had infringed on Ovadia Corporation’s U.S. patent on a lightweight honeycomb-structured stacking tray used to carry and store jewelry. Ovadia Corp. president Joseph Ovadia charges that the infringement has cost him millions of dollars in damages each year, and says he will seek those damages.

            In an interview, Pacific Display’s general manager Kitti Daenkaiwannapha said his company’s so called cellular “Slimline” stackable trays “looked the same” as Ovadia’s honeycomb-like trays, “but the function and usage were different.” The space-saving cellular line was discontinued in spring this year and was replaced with better fitting models that are cheaper and easier to make, said Kitti.

            The cellular trays did have similarities to the honeycomb and nesting arrangement, Kitti said, but added that the stacking concept—pioneered by King of West Germany—has been in use for two decades. Pacific Display’s locally-assembled trays provided Thai and Bangkok-based manufacturers with a convenient and cheap alternative to expensive imports, holding jewelry in half the stacking height and weight, he added.

            Last year, Pacific Display sold less than 100,000 U.S. dollars of the cellular mode, Kitti said. “Most of our customers come and ask for custom design. They bring copies of available trays and ask us to modify them and we, in turn, manufacture on specification. Basically, people don’t care what the bottom of the tray looks like.”

            Reacting to a strongly-worded news release which Ovadia Corp. freely distributed at the J&W Fair in Hong Kong in September, Pacific Display’s Kitti said in a prepared statement: “The Ovadia Corporation falsely claims (1) worldwide patent on stackable trays exhibited by Pacific Display & Packaging Co. Ltd. NOT TRUE. And (2) Pacific Display & Packaging Co, Ltd. is exhibition “honeycomb” constructed trays. NOT TRUE.

            “Mr. Ovadia should have investigated the matter first before circulation the releases,” Kitti said. “I invite buyers to come to our booth in an environment that is free from intimidation and falsehood. We have been able to sell to buyers from Australia, Hong Kong and Europe.”

            Ovadia Corp.’s press release reads in part: “We would like to bring to your immediate attention that, as an exhibitor at the Hong Kong Jewelry & Watch Fair 90…, we must vehemently protest the actions of another exhibitor, Pacific Display & Packaging Company … at the current show.

            “We are the holder of U.S. Patent No. 4,282,975 for stacking trays. In the marketplace these trays are commonly known as the Honeycomb stacking and nesting system. These trays have been patented in many countries. We know for a fact that our patented tray has been copied and is being sold at your show by Pacific Display & Packaging Company.

            “The fact that Pacific Display sells an unknowing customer an infringing tray may hurt the credibility and image that your show wishes to project. It may expose the uninformed customer to future legal action by our company. …”

            In a separate interview in Hong Kong with JewelSiam, Joseph Ovadia said he is unable to take action against the Thai company because he does not have a patent in Thailand. However, he said he will take action against buyers of pacific Display’s products.

            “Obviously, we’re not selling plastics, we’re selling ideas. It’s easy to copy, and you can do it in one day. I’m going to make big money suing these individuals,” Ovadia said. “I don’t believe in taking people to courts in business and I certainly don’t want to make money this way.”

            He said he worked three years on the honeycomb trays. “To create a complicated thing is very simple. To create a simple thing is very complicated. And every time I come close to simplicity, it’s hell.”

            Engineer-inventor Ovadia went on: “I want to be respected in the business. I would be more happy if Pacific (Display) uses its own ideas and contribute to the market. We will seek damages. I want to see people make things work. Inventions are very deep creations. They take a long time to do, a lifetime even. They’re something you take a long time to do. Those who copy don’t know how much we worry. I have to protect my rights.”

Editor’s note : Below is a text, in part made available to JewelSiam by Pacific Display & Packaging Co, Ltd.’s lawyer Daniel L. Dawes of Beehler & Pavitt in Los Angeles, California.

            Ovadia Corporation has published contentions that Pacific Display & Packaging Company is infringing its U.S. patent 4,282,975.

            The product of Pacific Display and Packaging Company sold under the brand, Slimline, is virtually identical in design to the product previously found to no infringing of that patent by an United States District Court for the Southern District of New York in Joseph Ovadia v. International Packaging Corp., B4 Civ. 3588 (BN) (JMW), in that action the Court held:

            “In sum, the court finds that the honeycomb cross-sectional construction between plaintiff’s (Ovadia’s) trays…is substantially lacing in defendant’s alleged infringing tray.”

            “Furthermore, the court finds from Ovadia’s patent … that the two piece nested rigid construction comprising complementary fitting interlocking upper and lower members of … (Ovadia’s) tray is a critical element in his invention …”

            “Defendant’s alleged infringing tray does not comprise upper and lower members that are interlocked and complementarily fitted together. Rather, defendant’s accused tray comprises a unitary or one piece injection molded construction.” …

            “Admittedly, both plaintiff’s tray and defendant’s accused tray serve to display rings and permit stacking of trays for storage and transit. Plainly, these display and storage concepts utilizing stackable trays are not the essence of … (Ovadia’s) invention, nor could they be, in light of the prior art references.” …

            “Moreover, the testimony … establishes beyond peradventure of doubt that the prior art teachers the concept of providing a tray having downwardly extending recesses in offsetting rows so that when successive trays are rotated 180 degrees respecting each other and stacked, downwardly extending recesses of one tray will be aligned with the upwardly extending recesses of the next above tray to provide compartments for receiving and protecting articles. … Further, in… (Ovadia’s) patent the concept of access openings overlying the upper member so that the items of jewelry passing through the openings will be accommodated in the downwardly extending recesses of the upper member is old in the art…”