The functionality depends upon the magnets in the case aligning with the sensor in the Libra. If the magnets aren't aligned properly, it doesn't trigger the sleeping or waking. Also be sure you have the option for automatic sleeping and waking enabled; if you turn it off, the Libra ignores the sleep cover.
If your cover is indeed defective, your options are to exchange it, buy the official cover, or live without automatic sleeping and waking.
I also have a kwmobile case, and the magnets work for me; however, I do notice sometimes that when I wake the device, the book cover image is upside down, which leads me to suspect that the device sometimes wakes and sleeps again while the cover is closed, likely due to poor magnet placement in the sleep cover. Sometimes you do get what you pay for.
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