Primax: Of Mice and Mysteries

Yesterday, Microsoft filed with the International Trade Commission a patent infringement complaint against Primax Electronics of Taiwan. This company does exist, right?

Microsoft claims 20 other companies have licensed mouse patents for Magnifier, Tilt Wheel and U2 technologies, but not Primax.

"Microsoft has filed an action today with the ITC after making repeated attempts during the past several years to engage in meaningful licensing discussions with Primax," Horacio Gutierrez, Microsoft's deputy general counsel for Intellectual Property and Licensing, said in a statement.

"Microsoft has an open intellectual property licensing policy, but in situations such as this, in which a reasonable licensing agreement cannot be reached despite our best efforts, we have no choice but to pursue legal action to protect our innovations," Horacio emphasized.

I count seven disputed patents in the 27-page complaint, which is dated July 28 but not disclosed by Microsoft until late yesterday.

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"Primax's practice of using our innovations without taking a patent license is unfair to the many companies that have already licensed our technology, so we are taking action to protect both our partners and our innovations," Horacio asserted.

Right, but does Primax even exist? The company has a Web site that apparently hasn't been updated since the Consumer Electronics Show in January and quite possibly not before. Primax issued its last press release in December 2007.

Primax has a stock ticker, but it's no longer listed on the Taiwan Stock Exchange. So, I have to wonder: Has Microsoft sued a phantom?

Primax was founded in 1984, and I can find business information from third parties through 2006, the same year as the copyright on the Web site. The main address is the same as listed in Microsoft's complaint, so I'm confident of not confusing one Primax for another.

The Primax Web site lists four subsidiaries in three countries, one being the United States. I called the branch office in California, Polaris Electronics, and got a working number. But nobody on the phone, since it was after hours. Well, damn. Bloomberg reporter Susan Decker started calling before I did, and she actually got somebody on the phone who said requests for comments would be forwarded to Taiwan.

Update: Early Thursday afternoon, I spoke with unnamed person at Primax—meaning he answered the phone. He described the Polaris operation as a "sales office." When I asked if Polaris was affiliated with Primax, he said, "Yes." But he didn't know about any Microsoft lawsuit. "Maybe my boss knows. But he's not here yet."

This office is not the same as Polaris Electronics of Olathe, Kan., which makes hermetic welders.

Google Finance lists Primax as "inactive," with the last financial information from June 2007. More Google searching led to a dead link for a Goliath profile on Primax. The manufacturer is no longer listed in Goliath's business information database.

I'll admit that I'm no expert on reading patent complaints, but I wonder if even Microsoft is uncertain who is the infringer. From Page 3: "On information and belief, Primax, or others on its behalf, manufactures the accused products in China and then imports them into the United States, and/or sells them after importation into the United States."

The legal filing had a bunch of exhibits, No. 11 being a Hoover's report. I searched Hoover's for Primax Electronics and got two matches: Dongguan Primax Electronics in China and the aforementioned Polaris Electronics in Pleasanton, Calif. Both companies are listed as subsidiaries on the Primax Web site.

According to Hoover's the Guangdong, China, operation had $182 million in sales last year and employs 3,000 people. The Pleasanton, Calif., location employs 15 people and had $3.1 million in sales last year. I'm not a Hoover's subscriber, otherwise I would have even more information to share.

Clearly, Microsoft has filed an infringement complaint against somebody. The real question: Is that somebody going to be in Taiwan or somewhere else? For whatever it's worth, I searched for Primax products early this morning. I found a few HDTVs listed here and there but none in stock. I came up with nothing for mice and scanners, the latter for which Primax is better known.

There are reasons why Microsoft filed its complaint with the ITC. Uncertainty about who, what or where is Primax is perhaps reason enough.

If you live in Taiwan and can confirm Primax exists, please educate everybody in the comments.

[Please send your tips or rumors to watchtips at gmail.com].