Unilin received many complaints from licensed manufacturers, importers and distributors that certain manufacturers of licensed products were not complying with the contractual obligations of their license contracts. These non-complying manufacturers seriously damaged the competitiveness of compliant manufacturers.
The labels will help to identify those non-compliant licensees and products infringing the Unilin patents.
L2C is a numerically-controlled identification label program, by which certain producers with manufacturing plants in China, India, Taiwan, New Zealand, Japan, Philippines, Latvia and Kazakhstan are asked to attach a unique, numbered, holographic label to their boxes of licensed products. The license agreements with these manufacturers now state that products without labels are considered as unlicensed products. Importers and distributors dealing in unlabeled glueless products can then also be found to infringe the specific patent rights of Unilin.
Products without labels are considered as unlicensed, even if they are made by a licensee, and will imply the same legal issues as products made by unlicensed manufacturers.