New Hampshire-based Sig Sauer is suing Cybergun, a French company that sells airsoft guns. According to Sig Sauer’s lawsuit, Cybergun violated a 2014 agreement between the two companies. The agreement gave Cybergun the ability to use Sig Sauer’s trademarked products in exchange for quarterly royalty payments and sales data regarding Sig-branded airsoft guns in Europe, the United States and Walmart stores worldwide.
According to the gun manufacturer, Cybergun violated the agreement by providing only one sales report during 2015, despite numerous requests for more. Sig also claims Cybergun has not made a royalty payment since October 2015. In December 2016, Sig voided their agreement with Cybergun after more than five quarters without payment.
The federal lawsuit claims the Cybergun products are marked to indicate they were made in New Hampshire, when they were “made elsewhere.” Sig alleges there are “inaccurate and insufficient warning statements” on some of the replica guns with its brand, and that Cybergun has failed to mark products with “licensed trademark” information.
The lawsuit includes three counts of trademark infringement and one count of unfair competition. According to the lawsuit, Cybergun has used Sig’s logo on products that are not up to Sig’s company-wide standards.
Sig is asking a judge to officially terminate the agreement between the two companies, order Cybergun to pay royalties to Sig and to pull all Sig-branded products from third-party retailers and return them to the gun manufacturer.