Schutt temporarily allowed to sell infringing helmets

Schutt Sports Inc., the Illinois football-helmet maker, can continue selling DNA and ION helmets through Dec. 31 despite a district court judgment in August that the products infringe a patent owned by competitor Riddell Inc., the bankruptcy judge ruled in a Sept. 29 order.

Schutt filed under Chapter 11 on Sept. 6 to halt collection of the $29 million infringement judgment. Unless Schutt decides to proceed in some aspect of the lawsuit, the bankruptcy judge this week declined to allow Riddell to continue the patent suit that's pending in U.S. District Court in Wisconsin. The bankruptcy judge told Riddell it could return to bankruptcy court for permission to proceed with the suit if conditions change.

In the meantime, the bankruptcy judge is permitting Schutt to continue selling the infringing helmets through yearend so long as 6 percent of the sale price is placed into special escrow account.

Schutt said in the Chapter 11 petition that assets and debt both exceed $50 million.

The case is In re Schutt Sports Inc., 10- 12795, U.S. Bankruptcy Court, District of Delaware (Wilmington).