Source: Press Release 11/19/2010

Beachbody DVD Piracy Case Ends In Victory

Beachbody, the innovative health and fitness company behind the famous P90X Extreme Home Fitness product and other popular fitness programs, today announced it received a multi-million dollar judgment from the sale and distribution of counterfeit copies of its P90X product. As part of its ongoing enforcement, Beachbody investigated a resident of Uniondale, New York, and, based on his advertising and sale of multiple pirated copies of its widely-popular P90X fitness DVDs, filed a lawsuit in United States District Court, Central District of California.

On November 8, 2010, the Honorable John F. Walter ruled against Defendant, Wayne Batchelor, as a result of his alleged counterfeiting activities and intentional infringement of Beachbody's trademarks and copyrights. The judgment included an award of more than $2.15 million in damages, as well as injunctive relief, prohibiting Batchelor from any further counterfeiting activity of Beachbody products, and requiring him to turn over all remaining counterfeit goods to Beachbody for immediate destruction.

"We are extremely pleased by the judgment, as it validates the serious threat counterfeiting and piracy poses to legitimate, hard-working American companies, and to consumers who are ultimately duped into purchasing inferior and in most cases, defective products," said Jonathan Gelfand, Senior Vice President Business Development & General Counsel for Beachbody, LLC. "Considering the immense effort and expense undertaken to create the leading home fitness programs available, and the countless hours and dollars Beachbody and state and federal law enforcement invest in the ongoing battle against piracy, we hope this judgment sends a definitive message to counterfeiters that they will be discovered and prosecuted to the fullest extent of the law."

Beachbody investigates and takes action against literally hundreds of alleged counterfeit and pirated fitness DVDs on a daily basis. The efforts to combat the counterfeiting epidemic are critical to protect not only Beachbody's valuable intellectual property and ingenuity, but also more than 40,000 Independent Team Beachbody Coach distributors as well as consumers from the damage counterfeit goods can cause.

"Unfortunately, the general public has become somewhat desensitized to the seriousness of counterfeiting. Estimated as a $600-billion industry, counterfeiting serves as a significant revenue platform for organized crime, local gangs and even international terrorist cells," said Gelfand. "This judgment demonstrates that Beachbody is committed to protecting its consumers and its intellectual property from the threat of counterfeiting and piracy, and will stop at nothing to punish those who engage in these illegal activities."

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