The Spyderco "Grasshopper" folding knife, with the knifemaker's round-hole mark in the blade and "bug mark," which Spyderco claimed were on counterfeit knives and sold at Kittery Trading Post. A lawsuit over the knives has been settled out of court. Credit: Rich Beauchesne | Portsmouth Herald

KITTERY, Maine — A federal lawsuit alleging Kittery Trading Post sold counterfeit Spyderco knives has been settled out of court and the case is permanently dismissed.

The suit was initially brought against KTP in the U. S. District Court of Colorado but was dismissed without prejudice in July 2017 when a judge ruled it was the improper legal venue. One month later, the Colorado knife-maker made the same claims in a new suit filed in the U. S. District Court of Maine.

Both suits alleged KTP sold knockoffs of Spyderco Military and Para-Military brand folding knives from a Chinese distributor that sold them for $10 each. The Spyderco Military knife has a suggested manufacturer’s retail price of $259.95 to $279.95 and the Para-Military retail price is suggested at $259.95, according to the lawsuit. Spyderco claimed the knives were of inferior quality and were made and sold to “generate an obscene” profit.

Earlier this month, Manchester attorney Edward Sackman notified the New Hampshire federal court that a settlement had been mutually agreed upon. A subsequent court order states that due to that agreement, the lawsuit is dismissed by the court with prejudice, meaning the allegations can never be made again. Terms of the settlement were not provided to the court and Spyderco’s attorney, Robert Brunelli, could not immediately be reached for comment.

Kittery Trading Post spokesman Jim Merrill previously told the Portsmouth Herald the allegations against KTP were “not only false, but outrageous.”

“We are proud of our heritage as a third-generation family-run outdoor business that has been in continuous operation at the same Maine location for 79 years,” he said. “During that time, we have provided quality products at reasonable prices for our thousands of loyal customers, working with over 2,000 vendors who have trusted us with their business over the past eight decades. We have worked hard to earn a reputation for integrity and honesty, and we always will.”

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