Sarine Sues Rose Gems for Alleged Fraud

RAPAPORT… 
Sarine Technologies has filed a lawsuit against Indian
manufacturer Rose Gems, alleging breach of contract and fraud, the
diamond-technology company said Sunday. 


The suit, which also alleges copyright infringement, relates
to activities Sarine initially reported last month. By illegally hacking into
and manipulating Sarine’s Galaxy inclusion-mapping system, Rose Gems
deliberately underreported the weight of the rough stones it scanned in order
to underpay for use of the technology, Sarine said.



“The Sarine Group will continue to pursue any party that
attempts to violate our intellectual property or to abuse our systems,” CEO
David Block said in a statement. “We have adopted a zero-tolerance approach to
unlawful use of our technologies, and will continue to invest every resource
necessary to bring the full brunt of the law, as well as other channels, to
enforce Sarine’s rights.”



Sarine’s subsidiary, Galatea, first noticed there was a
problem when an internal audit showed a long-term discrepancy between the
weight of the stones being processed in the system and those Surat-based Rose
Gems was reporting, Sarine said.



“Piracy in India is indeed a broad concern, which we’ve been
dealing with for many years,” Block told Rapaport News. “To this end, we
have built a strategic plan, which we’ve been executing for the past year with
very good results.”



The plan includes developing advanced systems to help Sarine
monitor the market’s activity, enabling it to identify when different players
act in illegal ways. The Israel-based company is also cooperating with global
leaders in the industry to form a group against illegal activities.
Additionally, it has increased legal pressure against parties acting against it,
and is taking a no-compromise approach to such behaviour, Block added.



Sarine is seeking a permanent injunction preventing Rose
Gems from using its software pending the outcome of the case, as well as financial damages of more than
$750,000. It also wants the court to require Rose Gems to turn over its full accounts to the court or an independent expert for review.



Rose Gems did not respond to Rapaport News’ requests
for comment.