Suit and Countersuit

Callaway Golf and their golf ball subsidiary have filed a countersuit against Bridgestone Sports in a US District Court in Atlanta, Georgia. In an earlier complaint filed by Bridgestone in the same court, it was alleged that Callaway Golf launched their 'Rule 35' ball earlier this year despite allegedly knowing it infringed certain patents owned by Bridgestone.

In support of that claim, Bridgestone referred to, but did not disclose,
communications sent by Callaway Golf to them last January suggesting that the
parties met and discussed the possibility of a patent licence. In their countersuit, Callaway Golf disclosed the contents of those communications and claimed they proved Bridgestone knew the patents were not infringed.

"Bridgestone knowingly made unfounded claims of patent infringement against
us in an effort to undermine the successful launch, both in the United States
and in Japan, of our 'Rule 35' golf ball", said Steve McCracken, senior
executive vice-president and chief legal officer of Callaway Golf. In one communication, sent by email on January 5, Callaway Golf advised Bridgestone that they had finalised their 'Rule 35' balls and planned to introduce them in less than a month, but that Callaway Golf might "want to use" some Bridgestone technology in subsequent ball designs and thus were interested in discussing a possible future licence.

In another communication, sent by letter dated January 19, Callaway Golf
specifically discussed the 'Rule 35' ball and advised Bridgestone that it had been
carefully designed so as to "avoid any possible conflicts with [Bridgestone's] patents".

Chuck Yash, president of Callaway Golf, said: "We had no reason to seek a
licence on the 'Rule 35' ball because it was designed to avoid infringing any
Bridgestone patents. In our opinion, Bridgestone's lawsuit has misrepresented
the intent of our earlier efforts to show respect for their technology. We
are now beginning to put the facts before the court so it can judge who is
acting in bad faith."

However, Bridgestone spokesman Stephen Graham said: "We're going to
vigorously defend our position and patents. We feel that we are 100 per cent
correct.''

*Callaway Golf are now officially supplying both their Rule 35 balls -
Firmfeel and Softfeel - to Japan, Bridgestone's home market.