Gillette To Sue Upstart Dollar Shave Club?: Attempt To Slow Dollar's Growth May Fail
Leading razor company Gillette, is suing Dollar Shave Club for alleged patent violations, according to CNN Money.
The suit claims that certain materials that coats the upstart company's blades which in turn keeps it sharp, violates a 2004 patent held by Gillette.
"We invest significantly in developing the best shaving technology in the world, so we don't take it lightly when competitors illegally use our patented technology," said Gillette spokeswoman Kara Buckley. "This lawsuit seeks to stop this violation of our intellectual property immediately."
The suit is asking the court to halt the sale of razors by Dollar Shave Club and was filed this week in Delaware's federal court, revealed Fox 40.
Gillette started in 1901 when King C. Gillette invented the first safety razor. The company's lawsuit details more than a century of the company's other invented shaving innovations.
Currently, the razor company has two dedicated research and development facilities in Reading, United Kingdom and in Boston.
On the other hand, Dollar Shave Club was launched in 2012 and is known for sending customers razors for subscriptions as little as a dollar per month.
Michael Dublin, who is the company's founder, announced the offer on YouTube. The video has been viewed over 21 million times.
"Our blades are f--ing great," is Dublin's famous line.
Gillette's lawsuit mentions that Dollar Shave Club has 10 percent of the market in the United States when it comes to men's razor cartridges and has two million members.
It is estimated that 70 percent of the razor market belong to Gillette, however, the company's attempt to slow the growth of upstart Dollar Shave Club could fail, according to a financial firm that analyzed patents and intellectual property, reported CNBC.
The Gillette patent is "highly subject to invalidation if proper information is brought to light," said David Pratt, President of MCAM International, a Virginia-based company.
13 existing patents with a high level of overlap was found by MCAM, which Gillette is using as a basis for the suit against Dollar Shave Club.
"Amazingly, at least seven are patents owned by Gillette," Pratt said.
Anyone who files for patent has a responsibilty to cite "prior art," or previous patents for science and technology that is closely related to what the new patent will protect.
Gillette's '513 has cited more than 25 other patents as prior art, but a judge could invalidate the patent if the company fails to mention others.