Milwaukee et al v. Klein Tools - what we know so far

It's the big US legal action that everyone's talking about. But what really is the story behind the Milwaukee versus Klein saga? Here's what we know so far about the Milwaukee lawsuit.

The Milwaukee lawsuit

It was June this year that Milwaukee Electric Tool Corporation along with Keter Home and Garden Products Ltd filed their lawsuit against fellow tool brand Klein Tools inc. 

Milwaukee et al filed with the US District Court for the Northern District of Illinois, requesting a trial by jury in a case that, whichever way the outcome falls, looks likely to leave one of the parties with a mighty legal bill. So far we know an remote initial status hearing was planned for 15.08.24. But not much has been known about the outcome of that, as the process continues.

The alleged patent infringement

The Milwaukee lawsuit claims that Klein with their Modbox modular stacking system have "committed and continues to commit acts of infringement without license or authorisation". Adding the corporation "continue to be consciously and purposefully wrongful" and therefore entitling the patent owners, Milwaukee and Keter significant damages.

Their complaint seems to be focused around three patent infringements in relation to the modular system's locking catches. US Patent #11,365,026, US Patent #11,794,952 and US Patent #11,952,167.

U.S. Patent No. 11,365,026

= A coupling mechanism for detachably attaching two or more utility modules to one another. Utility assembles, mobile carriers and other attachable modules and articles.

Patented by Milwaukee back in 2018 under parent company TTI and isn't set to expire until 2037.

U.S. Patent No. 11,794,952

= (in brief.) A portable container which has a top facing upwards in a first container alignment. A movable carrying handle. Also formed on the top is an immovable additional carrying handle.

This was filed by TTS back in 2008.

U.S. Patent No. 11,952,167

= (again a very abridged version.) A locking assembly having a substantially joined bracket with a top slot and a side slot. Positioned within side slot is a pivoting release lever having an upper leg and lower leg movable about a pivot. When a force is applied to the pivoting release lever, the lower leg of the pivoting release lever acts to dislodge the plate and collar.

Current assignee of this patent is Control Dynamics Inc since 1994, so this one interestingly, is set to expire in November this year.

We own both sets of cases since we produce custom foam inserts for both ranges. and whilst it's fair to say the mechanisms do look and act really similar, can the same potentially be said for other modular systems on the market? And where is the line between systems being inspired by each other and overstepping that mark into infringement?

The timeline

Clearly Milwaukee were first to the market with their Packout system, launched in 2017. Keter, a global manufacturer of plastic products and now toolboxes in their own right, then began producing Packout storage solutions for Milwaukee in 2020. So by this time, the Packout's catch mechanism's had widely been in use for around 3 years already.

The Klein MODbox was then launched much later in 2023. This was clearly a system designed to compete with other tool storage solutions like Milwaukee's Packout and marketed to a very similar audience so it was possibly always likely to tread on the US giant's toes anyway. But the big question is, did they go to far with the similarities of their system. Milwaukee certainly seem to think they did.

What happens now?

Ultimately this is over to judge Andrea R Wood in the Northern District of Illinois. And whatever verdict the jury reach in the upcoming hearing. But the big question on thousand's of ModBox owners lips is what about all the people who are already heavily invested in the Klein system? In the year or so since it's launch, ModBox gained significant traction within the market. While we don't know at this point how many units have been sold, fair to say, it'll be a lot.

Of course, this matters little if Klein are successful in defending their case against the Milwaukee lawsuit. However, if Milwaukee win, would that stop future production of ModBox modules compatible with the existing units? It's a fair assumption that winning the case could mean Klein potentially lose the right to use the mechanisms. Or is it more a a financial challenge? Therefore one that Klein might have to pay heavily for to continue using the technology and keep supplying the system in it's current format? Another thought is that some sort of connectivity plates could be devised. We've seen this done by other brands. That could be a way to make new iterations of the boxes that could be backwards compatible to their controversial originals.

It's unlikely that the financial burden of the lawsuit, expensive as it will be, could be the end for either company. One thing's for sure, someone will come out of the other side all the poorer for it. It remains to be seen what that could mean for ModBox users. And that, not least, is what makes this a hotly anticipated showdown.