Samson Manufacturing Files for Bankruptcy After Losing Copyright Dispute
Samson and Troy both design gun accessories such as rails, mounts, and sights. The two companies recently butted heads in the courtroom over copyright complaints. Both Samson and Troy filed a patent, but Samson beat Troy to the punch. Troy filed suit against its rival and won in federal court in Boston. The Massachusetts-based victors may have had a home court advantage against Samson, which is based in New Hampshire.
The federal judge ruled that Samson pay $933,000 in damages and attorney fees to Troy. You can find a full explanation of the ruling here.
Samson executives requested that they pay the sum over a period of time, but Troy refused to negotiate and filed a motion in New Hampshire's Cheshire County Superior Court to seize the company’s property.
To counter this move, Samson filed for chapter 11 bankruptcy. Peter Tamposi, an attorney for Samson, explained that Samson still plans to pay all of their creditors – just not Troy. Tamposi also reported that the company has received “overwhelming support” from their creditors. He dismissed Troy and their attempts to seize Samson property: “This is very much just a result of an overaggressive competitor. I don't expect any long term ramifications from the filing.”
Meanwhile, it’s business as usual at the factory. The Samson website promises, “Samson's business remains strong and the company continues to grow. We do not anticipate any delay in filling orders or slowing down of our production lines… Please bear with us while we deliver a quick and well-deserved smackdown.”
Samson executives might be able to chalk up the Troy rivalry as unavoidable growing pains. The company recently moved from Massachusetts to New Hampshire, which has more lenient taxes and a more gun-friendly culture. They also upgraded the size of their facility from 12,000 square-feet to 20,000 square-feet. Whether Samson flourishes or withers in their new home, however, will depend largely on whether or not filing for bankruptcy stops their corporate arch-enemies.
Source: Union Leader