Pico Products Wins Suit, Faces 2nd Court Action

Pico Products Inc. said it won one legal fight but faces new allegations in a second lawsuit against the Lake View Terrace maker of cable television security devices.

The company said the U.S. 2nd Circuit Court of Appeals upheld a lower court’s ruling in favor of Pico Products in a suit brought by the labor union of Pico Korea Ltd., a former subsidiary in Seoul. The union had claimed that Pico Korea’s shutdown in 1989 did not conform to a collective bargaining agreement between the company and the union.

Meanwhile, Pico Products said Arrow Communications Laboratories Inc. (Arcom) of Syracuse, N.Y., has amended its lawsuit against Pico Products to claim $3.5 million in damages for alleged interference in Arcom’s business, and libel.

Pico claims Arcom was licensed to make products covered by a Pico patent, but that Arcom stopped paying royalties and still owes Pico in excess of $100,000. But Arcom contends it is a paid-up licensee and it sued Pico in November, 1991, in New York Supreme Court.

Last April, Pico terminated the license agreement and issued a public announcement to that effect.

However, Arcom still considers itself a valid licensee and says it was libeled by Pico’s announcement, said Peter J. Moerbeek, Pico’s chief financial officer.

Pico said it intends to vigorously defend itself against the suit.