When is a Samsung TV not a Samsung TV?

When it's a Kogan.

That might sound obvious, but Samsung's so concerned about any confusion it will today launch proceedings to stop Australian online retailer Kogan from airing a Brand Power ad showing the inner workings of its cut-price televisions.

News.com.au has obtained "cease and desist" correspondence from the electronics giant ordering Kogan to pull the ad and stop giving consumers the impression that Kogan TVs are essentially the same as Samsung TVs.

What's really annoying Samsung is a moment when the ad shows the LCD component of a Kogan TV to prove it uses Samsung displays.

If you want to check the ad out for yourself, get in quick, because Samsung's not happy about their logo being used by Kogan.

They claim this implies Kogan TVs are "effectively the same as televisions sold by Samsung" and that "Kogan has the sponsorship or approval of, or an affiliation with, Samsung".

When contacted for comment about the order, Ruslan Kogan said he was happy to let the matter go to court.

He says it's a David and Goliath case and that Samsung simply don't want consumers to know the truth that hundreds of other brands use Samsung panels, which means that many TVs have the same display.

According to Kogan, basically "four companies" supply screens for all TV manufacturers.

"The truth is that we do use big brand components in our TVs and Samsung should not be trying the hide the truth of what has been happening in our industry," he told news.com.au.

"Samsung actively supplies hundreds or even thousands of other brands with their components.

"Just as brands like Apple and Bang & Olufsen buy panels from Samsung and use them in their products, so does Kogan."

Samsung's grievance is a two-part complaint.

The first part claims Kogan is infringing on Samsung's trademark by displaying it in Kogan ads.

Kogan says anyone who opens the back of their Kogan TV will see the same logo displayed in the ad.

"We use Samsung's logo solely to refer to the panel inside our TV and this is not a breach of their trademark, it is a statement of fact – we use Samsung panels in TVs," he said.

Kogan said when he negotiated the deal to use Samsung LCDs, he was never required to sign any contract agreeing not to advertise the fact his products would carry them.

Even if that was a requirement, Kogan said he "would never agree to conceal the truth from the public".

The second part of Samsung's complaint is purely over the use of the word "components" as opposed to "component".

"The commercial's use of the word 'components' represents that it is more than just one part of Kogan's televisions that is the same as in Samsung televisions," it reads.

The company has given Kogan until 4pm today to pull the ad offline and replace it with another pointing out that Kogan TVs are not the same as Samsung TVs.

Kogan says he's a huge fan of Samsung "and the innovative products they create". "Unfortunately," he said, "some of the big brands are always trying to find ways to combat our growth."

So far this year, Kogan has sold 200,000 products online, doubling its entire output for the four previous years since launching in 2006.

Kogan himself says that the screen component of TVs makes up "90 per cent" of the cost of the product. Selling them direct from factory to customer online allows Kogan to pass on savings that bigger brands - which rely on retail stores - can't factor in.

Samsung is yet to reply to a request for comment on the ad from news.com.au.



