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Optics manufacturer Navitar Inc. has won a legal battle against Chinese metrology machine makers over income tax evasion, smuggling crimes of evading import duties and value-added tax, along with false advertising, to combat the counterfeiting of their video microscope. 

 

“Instead of hitting them head on with counterfeiting claims, we used a tactic I call the ‘Five Fires Method,’” said Julian Goldstein, CEO of Navitar “We uncovered every illegal activity these companies were engaging in, setting small fires from every direction. We alerted and provided evidence to the Chinese government resulting in numerous fines and penalties for income tax evasion, import duty and value-added tax smuggling, and false advertising. As a result of our victories, I am pleased to say that the doors are open once again for our legitimate Chinese dealers and OEM customers to compete and prosper in this marketplace.” 

 

Navitar won its case with the help of Congresswoman Louise Slaughter, the International Trade Administration and the U.S. Embassy in China. 

 

“Navitar was targeted because of our global success in the automated inspection industry,” said Goldstein. “Our video microscope lenses are sold to multinational technology companies like Apple Inc. and used to ensure the quality of their components, sub-assemblies and finished products which are made at Foxconn manufacturing factories in China.” 

 

Navitar exports optical components from its Rochester, N.Y., manufacturing facility to over 45 countries. Exports to China have doubled this year. In addition to their New York headquarters, the company has manufacturing facilities in California, Massachusetts and New Jersey. 

 

“We have a long history of doing business in China,” Goldstein said. “I knew it would be too difficult to win a counterfeiting lawsuit against these Chinese companies, so we needed another way to expose their unlawful actions.”