Gemex Systems, Inc. of Mequon, Wisconsin (www.gemex.com) the manufacturer of the “Brilliancescope” light spectrophotometer which measures and display a diamonds optical light performance has sued Zales, Inc. for false advertising and breach of contract on Dec. 8 in the U.S. District Court for the Eastern District of Wisconsin, naming Zale Corp., Zale Delaware Inc. and GemEx rival company, GS Laboratories of America (GSL), of Irving, Texas, as defendants.
Gemex Light Performance Report
Gemex claims in the lawsuit that it was involved from the start with the development of Zales new branded diamond, but was left out of the project just before Zale launched the diamond this fall.
GemEx began working with Zales on the Celebration Diamond project in 2006. Over the next two years, GemEx claims that Zales agreed to purchase GemEx trademarked grading reports, which measure a diamond’s “light performance,” for the launch of its branded Celebration diamond.
Between 2006-2008, GemEx trained Zale’s staff on the sale of the branded diamond, trained suppliers on the cutting and testing methods necessary to produce a Celebration diamond and provided the Cutters with its patented Brilliancescope light-performance-measuring device.
In January 2008, Zale requested that GemEx be prepared to deliver an additional 758 BrillianceScope Viewers, an in-store sales aid, to Zale stores, requiring GemEx to manufacture the units.
In July 2008, Zale asked GemEx to hold shipment of all previously ordered BrillianceScope Viewers and repeatedly failed to answer repeated requests by Gemex to discuss the situation.
Zales instead retained the services of a GemEx competitor, GSL, that provided Zales with substitute diamond analysis reports (OGI Firetrace reports) which Gemex claims does not measure light performance and thus misleads consumers.