Costco, which "improbably caused a frenzy in the golf world when it started selling low-priced but well-reviewed balls last year," on Friday "filed a lawsuit" against Acushnet Holdings, the parent company for Titleist, according to Brian Costa of the WALL STREET JOURNAL. In a complaint filed in U.S. District Court in Seattle, Costco "preemptively asked the court for a declaratory judgment defending its business practices." The retailer said that the lawsuit was necessary because Acushnet "accused Costco in a 'threatening letter' of violating its patent rights and engaging in false advertising." Titleist is the "self-proclaimed 'number one golf ball,'" but Costco began selling balls under its Kirkland Signature brand in '16 at $29.99 for two dozen, making them "among the cheapest on the market." Costco said that the infringement accusations by Acushnet are "based on 11 patents related to the design of Titleist golf balls." The false advertising claim is "based on Costco’s guarantee that all Kirkland Signature products 'meet or exceed the quality standards of leading national brands.'" Costco, which has "no history of making golf balls, bought the Kirkland Signature balls from a company called Nassau Golf, which also manufactures balls for TaylorMade." Costco’s argument against the alleged patent infringements is "twofold: that no such infringements occurred, and that the 11 patents are invalid." The patents are "not necessarily in relation to actual Titleist balls for sale" (WALL STREET JOURNAL, 3/21).
