TodayVendor says he's innocent
Owner has hired attorney, plans to fight counterfeiting charges for car parts.
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North Middleton police became ensnared earlier this month in a long-running dispute between Big Three automaker Chrysler and a small independent auto parts dealer.
While the immediate result was an arrest on charges of counterfeiting, the background on the saga stretches across the country and spans four years of investigation.
Meanwhile, the man charged continues to deny any wrongdoing following his arrest July 12 at the All-Chrysler Nationals at Carlisle Fairgrounds.
Dave Layson, owner of Layson’s Restorations of Lakewood, Wash., said in an e-mailed statement to The Sentinel that his company is completely justified in manufacturing and selling reproduction parts without Chrysler’s trademark Pentastar logo.
“The investigation comes as the culmination of a long-running dispute between Layson’s and the Chrysler Corp., and is the result of competitor’s complaints about the market share Layson’s has been able to capture manufacturing long-discontinued parts for the collector car hobby,” Layson wrote. “Competitors have long been frustrated by Layson’s ability to bring these parts to market and sell them at fair prices.”
What happened
North Middleton Township police arrested Layson on charges of running a corrupt organization, trademark counterfeiting and theft by deception after receiving a tip from Chrysler. He was released two days later from Cumberland County Prison after posting $150,000 bail.
“We’ve been working on this particular matter to protect our brand for nearly four years — and been relying on assurances that there be no further Mopar infringements,” said Patti Georgevich, a spokeswoman for Chrysler’s Mopar division.
North Middleton police initiated the undercover operation at the behest of Chrysler, Georgevich explained. The automaker’s Brand Protection Office and Mopar Parts Division contacted police in May to alert them to be on the lookout for Layson at the Chrysler show.
Undercover officers purchased six allegedly counterfeit items at the car show for $350, which Chrysler has said are worth $19. Authorities seized about 1,000 parts, most of them for headlights.
Authorities claim Layson’s has sold phony parts and overcharged customers hundreds of dollars over the past three years.
Police in Lakewood also raided Layson’s warehouse and found several boxes that they say contained $20,000 worth of fake parts.
Licensing question
Layson maintains that his parts and sales are legitimate.
“The suggestion that excess or ill-gotten profits have been generated is totally without merit. The costs associated with engineering, producing, marketing and shipping these long forgotten pieces is substantial,” he said about the parts. “Layson’s has always sought to produce the best part at the lowest cost for the consumer and has done extensive legal research to support its position in this.”
The company argues that Chrysler has yet to roll-out a “meaningful” licensing program to include manufacturing standards, exclusivity agreements, marketing agreements or a uniform royalty structure.
Because of that, plus years of turnover and indecision at Chrysler, Layson’s, like many other similar vendors, has opted not to participate in its licensure program, Layson says.
In addition, parts that carry the Pentastar logo seized from Layson’s were all purchased from “licensed” vendors, and are not so-called “forged auto parts,” as the authorities acting at Chrysler’s behest allege, Layson said. He said the company has records and purchase orders to document the acquisition of these parts and is confident that a more careful investigation will prove these facts.
Court date
Layson has hired attorney Matthew Gover to represent him in his Cumberland County legal battle. A preliminary hearing was scheduled for Wednesday at 10:30 a.m., according to court documents, but that has been moved until Aug. 20 at 1:30 p.m.
Lakewood Assistant Police Chief Mike Zaro said investigators are still in the process of filing charges against Layson in Pierce County, Wash.
A Carlisle Events spokesman was unavailable for comment on the matter.
