Part 1
For the
past two years we have been pointing out the deceit (some may call it
fraud)
indulged in and perpetuated by Theos Medical Systems, Inc. with respect
to
their Chummie products and also disparaging the reputation and facts
about
Theos's competitors and their products. This has been confirmed by an
order/decree from a U.S. Federal Judge for the Northern District of
California which validates and confirms (through Theos's consent to the
order/decree) much of what we have written about with
respect to Theos/Chummie and imposes controls on them. This further
confirms our claims of excessive hype and false claims by Theos about
their
Chummie products, and their abuse of Amazon Reviews to hype their
products and
degrade their competition, and the general lack of good ethics on the
part of
Theos Medical Systems. We continue to wonder why any moral, ethical and
sensible buyer would want to conduct any business with Theos or purchase their
Chummie products.
Now let us examine Theos/Chummie’s motives and methods further.
From the very beginning Theos/Chummie, through its owner Saket Bhatia
(“Bhatia"), who is also a defendant and to whom the afore-mentioned order applies, were intent
on disrupting the bed-wetting alarm industry for their personal gain. Why the
bed-wetting alarm industry? We can only surmise that Bhatia was looking for an
opportunity where the industry and competitors were small and dispersed, and it
might be relatively easy to become a “big fish in a small pond.” Bhatia had
identified a Chinese manufacturer Qingdao Bercon Medical Device Co. who made
several inexpensive medical products some of which appealed to Bhatia. One was
a bed-wetting alarm, the Model M300
, which
Quingdao Bercon had been attempting to sell, together with some other
medical
devices (such as an inexpensive ultrasound device) for which Bhatia
thought
that there would be some demand. He established Theos Medical Systems in
Mumbai, India, and opened a sales office in Santa Clara, California. The
M300
alarm used standard technology and was a typical alarm with nothing
innovative
and obsolete technology. But it was cheap. Nothing unique about its
old-fashioned technology and no development costs or related mental
acumen!
Bhatia’s modus operandi was to run a “no frills” business, focused on
building sales at a minimum cost. There is nothing wrong with this approach,
and it is legitimately used by many small start-up businesses. So Bhatia had a
web site developed, which would be his primary means of sales. On it he
attempted to sell the M300 bed-wetting alarm (now called Chummie) and also
mentioned some other devices including the ultrasound device. His initial
efforts were not successful. So he obtained the services of a marketing
“consultant” who put a “smile” on the face of the Chummie alarm box, made the
packaging more attractive, and helped in promoting the item(s). Again, not an
issue in and of itself, if everything Bhatia said and did, whether on the
website or elsewhere, was ethical and “above board.” However Bhatia’s approach
to developing his business was extremely unethical.
In this post (and the following one) we shall only examine the specific
orders from the Federal Judge towards Theos Medical Systems and Bhatia
(Defendants):
1. Bhatia obtained the U.S.
trademark for "Malem," a bedwetting alarm that has been on the market
since the last century. Bhatia also attempted to prevent the trademark for
"Bedwetting Store," a name that has been used by a competitor of
Bhatia for many years. We can only attribute this behavior of Bhatia to
mischief intended to harass a competitor. This mischievous attitude is further
validated by the fact that Bhatia got an insurer to pay any legal fees if his
trademark claim to Malem was legally challenged. The Judge ordered that the Defendants
cannot oppose the "Bedwetting Store" application of the Plaintiff,
and must also not use or attempt to trademark "Malem,"
"Bedwetting Store," and other names and trademarks, and remove such
items and copyrighted materials and meta materials from their website, and not
use such materials in the future.
Continued
in the next blog entry ...