There are two separate patent infringement lawsuits going on in the modular tool box space right now.
Meridian, which produces tool storage products for Home Depot, Lowe’s, and others, has brought a legal complaint against ToughBuilt, alleging that the StackTech system infringes upon Meridian’s patents.
Milwaukee Tool has also brought a legal complaint against Klein Tools, alleging that ModBox infringes upon patented Packout features.
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Meridian vs ToughBuilt
The bulk of the lawsuit argues that the ToughBuilt StackTech tool box system is infringing upon Meridian’s patented technologies.
Defendant offers for sale certain modular stackable storage boxes that infringe Meridian’s rights including by way of example, but not limited to, at least the following StackTech line of products…
This excerpt summarizes the other major part of the lawsuit:
Upon information and belief, ToughBuilt directly or through its agents contracted with a third party to provide products under the third-party brand “Kobalt” having “CaseStack” capability. CaseStack products are designed to interconnect with other CaseStack products. The products provided by ToughBuilt that have the CaseStack capability are configured to interconnect with other CaseStack products sold under the Kobalt brand, including those originating from Meridian.
In ToughBuilt’s response to the lawsuit brought against them by Meridian, they say:
As part of the MSBA [Master Standard Buying Agreement], Meridian agreed not to sue and/or provided a license to Lowe’s and its vendors under Meridian’s patents (collectively “license or sublicense”).
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Essentially, Meridian is suing ToughBuilt over StackTech, and also ToughBuilt’s involvement with Lowe’s Kobalt CaseStack-compatible tool bags.
Case no. 8:24-CV-01840
Milwaukee Tool vs Klein Tools
Klein Tool’s MODbox universe of products includes various sized modular storage and toolboxes, component boxes, coolers, and accessories used therewith, which, as set forth below, infringe directly or indirectly, literally or under the doctrine of equivalents, at least one claim of each of the Asserted Patents.
Milwaukee accuses Klein of infringing upon 3 separate patents related to key features and how everything connects together.
Case no. 1:24-cv-04928
What Could Happen?
There has been a lot of sensationalist coverage surrounding the Milwaukee vs Klein lawsuit.
Some of the headlines I’ve been seeing are just fear-mongering. This isn’t going to “end Klein Tools,” but it’s still a big deal for the brands involved.
Companies license tech to other brands fairly regularly. My Bosch L-Boxx tool boxes, for example, have language explicitly saying they’re licensing tech from Festool’s parent company.
But also, there are consequences, such as when SawStop succeeding in blocking the Bosch Reaxx table saw from the US market.
These lawsuits can play out in different ways. In my opinion, I see 3 potential outcomes:
i) courts find against infringement
ii) courts find for infringement and block sale of related products
iii) courts find for infringement and a licensing arrangement is made
There’s also the potential for private settlement.
We’ll have to wait and see what happens.
Is it 100% safe to buy ToughBuilt StackTech or Klein ModBox until the courts find for or against infringement and we see what happens? Frankly, I don’t think so.* In my understanding, if either are found to be infringing, and licensing agreements or other resolutions cannot be reached, either or both systems could potentially be blocked from the US market.
* ToughBuilt is highly confident about their products – see ToughBuilt Provided a Statement About the Tool Box Lawsuit.
Old Suburban Dad
FWIW, I think your three potential outcomes list is spot on.
My money is on : ii
Scott K
Having no expertise- I agree. It seems logical that Milwaukee would want to continue to dominate this market and not simply accept a payout which would just be a short term gain. They also have an incentive to slow down a competitor’s growth in this area.
Saulac
I can understand the case against ModBox as I can see some similarities. But I am lost on the case other case. Is it against ToughBuilt or Stacktech? Sound like it about CaseStack or CaseStack capability. ToughBuilt makes CaseStack under Kobal name? ToughBuilt makes Stacktech compatible to CaseStack?
Stuart
Meridian’s complaint is about ToughBuilt StackTeck AND also products made by ToughBuilt for Kobalt CaseStack.
Doug N
Apparently some CaseStack boxes are manufactured by Meridian, and others by ToughBuilt? How can one tell the difference?
Stuart
Looks like ToughBuilt made the tool *bags*.
LE
That was my thoughts after reading it too. So toughbuilt is/was atleast partially an OEM for Kobalt Casestack? That could explain why the casestack line became somewhat stagnant after it’s release.
Fowler
It sounds like Meridian patented some aspect of the Casestack system when they designed it for Kobalt, then Kobalt contracted Toughbilt to make bags compatible with Casestack, which Toughbilt did without getting proper licensing to use the patented system.
Not positive, but that’s my impression
Jared
I was trying to figure that out too. If I read those quotes correctly, is it some aspect of the locking/connecting system that Toughbilt is supposed to have pilfered from Meridian?
E.g. Meridian makes, or made, some products under Kobalt branding, which is compatible with CaseStack. Toughbilt later also make some stuff for the same Kobalt line that connects with CaseStack.
Then Toughbilt made Stacktech modular tool boxes, which can also connect with the Casestack-compatible Kobalt stuff.
Stuart
ToughBuilt’s argument there is that “Lowe’s, not Meridian, is the rightful owner of the ‘689 patent,” and not Meridian.
The patent is held by Meridian – https://patents.google.com/patent/US11192689B2/
ToughBuilt also says: “Indeed, Meridian previously accused Lowe’s of infringement of the ‘689 patent based on Lowe’s sale of the Kobalt tool bag that is the basis for Meridian’s claim of infringement of the ‘689 patent in the instant case. In response, Lowe’s explained that it and its vendors had a license to sell the tool bag pursuant to the MSBA.”
TB’s argument seems to be that permission was implicit.
Saulac
This is what Department of Defense wants to do. They want to own the IP/designs so if they need more of something years later, they can contract with anyone to make more. Contractors hate it.
JR Ramos
Don’t forget about the suit with the SK boxes. I’ve forgotten already but I think that was Meridian v. as well. But as relevant as the SK models are, I’d forgive anyone for forgetting about that suit. 🙂
The bad part about these IP suits is that if a licensing agreement isn’t reached then the offending party pays treble damages plus other potential penalties and they stack up high and fast. The space is so competitive and pricing so similar that I can see licensing being a probable outcome especially if brands aren’t sharing the same floor space/competition (e.g. HD vs Lowe’s, etc), but one never knows what brews behind closed doors.
Stuart
I did forget about that one! And you’re right, it’s less impactful than the others, given SK’s low consumer interest and market share.
It will be interesting to see, not to mention consequential, how things are resolved.
Plain+grainy
I noticed toughbuilts tool belts , knee pads ect, have been removed from my local Menards.
Kyle
They were clearanced out last summer with some amazing deals to bed had. I tried to contact Stuart about it twice but never got a response.
Stuart
Sorry, I never got a straight answer. Based on other tips and comments, it seemed to be more of a liquidation arrangement.
Doresoom
They clearanced them all out last year and replaced them with a nearly identical Master Force “Prolock” system.
I ended up buying one of almost every variety ToughBuilt pouch sold by Menards for $5-7 each, and got two of their medium tool bags for $15 each.
Nate
It’s insane that any of these “features” are patentable in the first place, they’re all just variations of clips and slots and latches that go back centuries. The only rational outcome would be to void all the patents and tell them to piss up a rope.
There’s no reason for the market to support 217 incompatible toolbox latch systems anyway. When the 218th shows up, do us all a favor and don’t buy it.
Michael F
As someone who is an inventor on at least one patent, I completely agree. This is gross misuse of the patent system and simply anti-competitive. The patent system is designed to protect investments in research and development, but let’s be honest – the investment to invent a latching system is extremely low. This isn’t a quantum computer or the next type of rocket booster we’re talking about here. These companies simply want to create an arbitrary barrier to entry into the space when the organic one is so low.
Mike
I think the issue with ToughBuilt StackTech is that it will interlock with the Meridian CaseStack boxes. I can see that being a no-no. In fact, it sounds like that is one of the “features” being promoted about the ToughBuilt boxes.
‘ToughBuilt…contracted with a third party to provide products under the third-party brand “Kobalt” having “CaseStack” capability. CaseStack products are designed to interconnect with other CaseStack products. The products provided by ToughBuilt that have the CaseStack capability are configured to interconnect with other CaseStack products sold under the Kobalt brand, including those originating from Meridian.’
Stuart
No. I’ve never seen ToughBuilt advertise cross-compatibility between StackTech and Kobalt CaseStack. From TB’s reply to the lawsuit:
It seems like Meridian crammed 2 separate complaints into 1 lawsuit.
Jared
I read this after posting my reply above. So it’s not that Stacktech connects to Casestack, but that the bags Toughbilt made for Kobalt do connect to Casestack.
…but then what’s the nature of the Stacktech infringement?
Stuart
Allegedly, the way the tool boxes connect to each other.
Ryan L
What I can’t wrap my head around is that any of these modular systems aren’t already infringing on interlocking patents from Tupperware Newell Rubbermaid patents.
It always seemed to me like many of these systems were just beefed up or reinforced concepts taken from storage totes.
mizzourob
This makes me wonder who makes ModBox? I can’t imagine Klein Tool makes that themself, so they would likely find another OEM to make it for them?
On the CaseStack issue, I guess a lot will depend on if it was designed under contract (work for hire) to Lowe’s, making the patent holder Lowes, or it it was desinged by Merridian and then they shopped it to Lowes to rebrand/license the Kobalt name for it making Merridian the patent holder. Obviously right now it seems like Merridian is claiming the patent.
The ‘689 patent at issue appears to match Harbor Freight/Bauer, Menards Masterforce, Tactix, and the original Kobalt XTR 5 tool case from 2021.
Further complicating things, I thought CaseStack (and flex StackPack) were both covered by 20230202025 which is owned by Chervon (OEM for both Kobalt and Flex). Is Merridian a subsidary of Chervon?
Stuart
If ModBox is found to be infringing upon Milwaukee IP, then they’d have to pay licensing fees or discontinue use of the infringing designs.
To my knowledge, Meridian is NOT affiliated with Chervon. It’s possible that Chervon contracted with Meridian for design and production. Such arrangements are rarely public knowledge.
ElectroAtletico
Nuisance lawsuits without merit
ColeTrain
What is case stack and who is tough built? 😜
Joe
Well I hope Festool presents a lawsuit against Milwaukee seeing as though Festool has a case against them for infringement.
Matt
I have switched over to the Husky Build-out boxes.
– price can’t be beat
– 2 and 3 drawer options at the right price even when not on sale.
– have had them all (brands) and yhe Husky ones just make sense.
Stuart
Until Home Depot decides to switch systems again. They change Husky suppliers and designs far more frequently than other brands.
ColeTrain
You’ve had them all and ended up with husky boxes, really? I’m just curious but is there another reason why besides price, something useful to you in particular, what do you use them for? I had rigid boxes for a while but sold them because they never expanded. I looked at every toolbox system to the point where it was exhausting but I don’t recall the husky boxes even being on my radar. I ended up with tough built because of their promises and that was of course before the price hike. They are nice but at this point the only reason I still keep it is the tool tote because I use it everyday. I could care less about anything else except the drawers. They’re pretty heavy and now very expensive. Of course months after I sold my rigid boxes that came out with drawer boxes and I would switch back in a heartbeat if they had a tool tote. All the less expensive systems seemed to have a lot of options but they just felt cheap to me. Maybe I’m wrong but it feels like the only lower price box you could actually beat the hell out of what’s the rigid boxes but of course they don’t have what I use most.
Prunus
Husky Build-out is manufactured by Meridian
Meridian’s tool box brand is TACTIX
Matt
Will this affect the Hart stack system walmart sells? It seems like the same thing.
Stuart
I don’t believe so, but you never know.
Matt
👍
Michael
Considering Hart and Milwaukee are both under TTI’s umbrella, I don’t see how this would affect Hart.
MarkS
Seriously? It’s just a toolbox. Depends on what color you like. Does everything have to match? Make them all universal. Then I can have a rainbow tool kit for my pink tools. My got these cooperations are like children. If my Packout would fit a Klein that would be clutch.
Raven
Buy packout. Forget the others. Yeah it’s handing Milwaukee a big W. But they already have the W here. I spent a very long time in priority paralysis trying to see if anyone else does it better. The answer is maybe. But the answer “does anyone else keep pushing this product forward and have better availability” is no. If you need two cheap cases for your harbor freight drill and a box of screws, go buy the hf stuff. But if you are anywhere above semi amateur go buy Packout.