SOURCE: Dorman Products

Dorman Products

March 17, 2011 08:00 ET

Dorman Products, Inc. Announces the Resolution of Its Dispute With Dayco Products, LLC

COLMAR, PA--(Marketwire - March 17, 2011) - Dorman Products, Inc. (NASDAQ: DORM) today announced that it has reached a negotiated business resolution of its dispute with Dayco Products, LLC. The dispute involved the appearance of Dorman's automatic belt tensioners and certain statements made by both Dorman and Dayco pertaining to Dorman's automatic belt tensioners. Under the terms of the resolution, Dorman will continue to market automatic belt tensioners, but agreed to:

  • Further modify the appearance of 5 SKUs out of a product line of 36 SKUs.
  • Use the symbol ® any time Dorman refers to a Dayco belt tensioner part number that is registered as a trademark with the federal registry.
  • With respect to Dorman's belt tensioners only, not use the phrases "OE" or "SAE" to describe its belt tensioners as Dorman is not an OE supplier.

Also under the resolution, Dorman agreed to pay Dayco the nominal amount of $37,500.

"Since our automatic belt tensioner program launch in 2009, Dorman has been very pleased with the customer acceptance and growth of this program. Even during litigation, these products are currently supported by over 100 Regional and National Distributors. In 2011, we are still experiencing significant growth which is attributable to Dorman providing a quality product solution at an aggressive price point. We look forward to continued success in 2011 and thank our current customers for their support during this litigation," said Jeff Darby, Senior Vice President Sales. 

Dorman's Chairman of the Board and CEO, Steven L. Berman, added, "This resolution ends the distraction of this litigation. We remain extremely committed to the continued expansion of our quality engineered automatic belt tensioner product line. Our customers are best served when we are focusing on new product development and not on litigation that offers no real value to them." 

Dorman Products, Inc. is a leading supplier of quality automotive replacement parts, automotive hardware, brake products, and household hardware to the Automotive Aftermarket and Mass Merchandise markets. Dorman products are marketed under the Dorman®, OE Solutions™, HELP!®, AutoGrade™, First Stop™, Conduct-Tite®, Symmetry® and Scan-Tech® brand names.

Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date hereof. Factors that could cause actual results to differ materially include, but are not limited to, those factors discussed in the Company's 2010 Annual Report on Form 10-K under Item 1A - Risk Factors.