KO Gadget posted up on their Facebook page this morning that they have received a cease and desist order from Apple over their glowing light mods. The order states what you would assume about trademark infringement -
The website, http://store.kogadget.com/, is offering for sale and selling merchandise bearing counterfeit Apple trademark(s). Such illegal use of Apple Trademark(s) is a violation of federal and State trademark laws.
There are tons of third party manufacturers out there that distribute colored and custom backs for the iPhone (I order many of them for color swaps). I don't think that Apple issued this order on the basis of infringing on the Apple logo alone. I believe it's due to safety concerns as well. I personally don't feel these modifications are safe from a technical standpoint.
KO Gadgets is claiming all orders have shipped but that they won't be selling any additional units. If you've ordered one of these light mods recently, has your shipping status changed or has your order been cancelled?
Source: KO Gadget Facebook