P&G sues razor rival

Procter & Gamble filed a lawsuit Thursday against digital rival Dollar Shave Club, claiming it was using patented Gillette technology.

The suit filed in U.S. District Court in Delaware accuses Dollar Shave Club of violating P&G subsidiary Gillette’s intellectual property by selling its infringing razors and unauthorized use of patented technology.

Gillette has invested millions and "has been a clear innovation leader in the shaving category for over 100 years," P&G said in the lawsuit. The company said it is seeking to "protect Gillette’s significant investment in razor technology."

The lawsuit seeks unspecified damages and an injunction to prevent Dollar Shave Club from selling any products infringing Gillette’s patented technology. Specifically, P&G said Dollar Shave Club is selling razors with an overcoat of chromium that keeps blades sharp longer through repeated shaves.

P&G uses the patented technology in its Gillette Mach 3, Fusion and Venus razors. P&G says it is entitled to a reasonable royalty from Dollar Shave Club as well as interest and legal costs. P&G's grooming business generates $7.4 billion in annual sales, accounting for more than 10 percent of total company revenue.

While P&G controls more than 65 percent of the global blades and razors market, total sales declined 7 percent in the last fiscal year ended June 30.

“We have long invested heavily in innovation, and our talented scientists have dedicated their careers to delivering the best shaving experience possible for men and women around the world,” said Deborah P. Majoras, chief legal officer of P&G, in a statement. “Our patents help protect the many technical advancements we’ve made through the years – and when it becomes necessary, we take action to protect these important assets.”

Officials of Dollar Shave Club, based in Santa Monica, California, said they were "looking into" the dispute, but otherwise declined to comment.

Dollar Shave Club says it now has 2 million subscribers and ships 44 million razor catridges, giving it 10 percent of the U.S. market.