Crown sought protection for its designs and distinctive colour scheme.

Crown Equipment Corp has dropped its lawsuit against Hangzhou Zheli Forklift Group Co Ltd after the manufacturer in Fuyang, China changed selling and advertising practices and altered the colour of its machines.

Crown sued Zheli in December 2008 in the US District Court in Dayton (Forkliftaction.com News #393), seeking to protect the sanctity of Crown patents, designs and registered trademarks. The dismissal became official on 16 February. The case was assigned to Judge Thomas M. Rose.

Crown and Zheli officials discussed the issues through an interpreter in face-to-face meetings.

Subsequently, Zheli opted to use a light-green paint for its forklifts rather than Crown-registered beige. Further, Zheli took steps to discontinue dealer, distributor and direct-customer use of Crown trademarks and copyrighted marketing materials.

Zheli has been co-operative and made changes voluntarily, says Jim Moran, Crown senior vice president.

The court filing says: "Defendant not having appeared in this action, plaintiff Crown Equipment Corp gives notice of dismissal of all of its claims in this action without prejudice."

Efforts to reach Zheli for an on-the-record comment were unsuccessful.

New Bremen, Ohio-based Crown manufactures materials handling equipment from small hand pallet trucks to high-elevation lifting turret trucks.

The Zheli line includes models powered with diesel, petrol, liquefied petroleum gas or electricity. The Zheli forklift operation is one of five subsidiaries within the Zheli Group.

The Dayton law firm of Faruki Ireland & Cox PLL represented Crown in the litigation.