The Founder of CHI Wins Against Counterfeiting
October 13, 2011

Farouk Systems Wins Against Counterfeiting

Federal Court Decides in favor of

Farouk Systems, Inc vs. Costco Wholesale Corporation

Immediate release—Houston-based Farouk Systems, manufacturer of CHI® and BioSilk® brands filed a lawsuit on October 27, 2009 charging the Seattle-based Costco Wholesale Corporation for violating the Lanhm Act which prohibits the selling of counterfeit, non-genuine goods. 

After nearly two years of litigation, the jury agreed and found that Costco had indeed sold counterfeit CHI-branded merchandise consistent with the charges made by Farouk Systems.

“We are pleased that the jury returned a verdict in our favor and found Costco liable for selling counterfeit merchandise bearing the CHI trademark,” says General Counsel Wisam Ghuneim representing Farouk Systems. “This verdict is a significant milestone in the ongoing fight against buyers, distributors, and sellers of counterfeit and fake goods.  It is of paramount importance that retailers employ better and prudent practices to ensure that the products they sell the public are genuine.  Not only do counterfeit and fake goods infringe on intellectual property rights of brand owners, but they also take much needed jobs away from the American economy”.

Farouk Shami, founder and chairman of Farouk Systems adds, “I’m very pleased with the verdict and this shows that Farouk Systems will fight known counterfeiting and will preserve the integrity and authenticity of CHI products consumers purchase.”   

This win comes nearly a year after Farouk Systems had secured a judgment against multiple Chinese entities for selling and distributing counterfeit CHI irons over the internet.  In that case, a federal judge awarded Farouk Systems a monetary judgment in the amount of $304 million dollars against the defendants. 

About Farouk Systems, Inc.

Farouk Systems, Inc. is a Houston-based company that manufactures the world-renowned brands CHI and BioSilk with a mission statement of: Education, Environment and Ethics.  With more than 2,500 employees, the company sells its products in over 100 countries.  The company was founded in 1986 when Farouk Shami invented the first ammonia-free lightening system. Following benchmarks include incorporating silk into hair care, originating CHI thermal tool technology and continuous innovation through research to create better, safer products. For more information, go to