Kinekt Design v. Vagts

ANGELA VIDAL, ESQ. A t t o r n e y a t Law 201 S t r y k e r s Road S u i t e 19-155 P h i l l i p s b u r g , New Jersey 08865 (908)884-1841 t e l e p h o n e (908)859-3201 f a c s i m i l e A t t o r n e y f o r P l a i n t i f f , K i n e k t Design, LLC

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

KINEKT DESIGN, LLC,

P l a i n t i f f ,

vs.

ARNOLD VAGTS,

Defendants.

CIVIL CASE NO.

VERIFIED COMPLAINT

COMPLAINT FOR PATENT, TRADEMARK AND COPYRIGHT INFRINGEMENT

P l a i n t i f f , K i n e k t Design, LLC, a New Jersey l i m i t e d

l i a b i l i t y c o r p o r a t i o n , by and t h r o u g h i t s a t t o r n e y , by way o f

V e r i f i e d Complaint a g a i n s t t h e Defendant, A r n o l d Vagts, says as

f o l l o w s :

JURISDICTION AND VENUE

1. T h i s i s an a c t i o n f o r p a t e n t , trademark and c o p y r i g h t

i n f r i n g e m e n t , i n j u n c t i v e r e l i e f and damages p u r s u a n t t o 15

U.S.C. §1114, 15 U.S.C. §1125, 35 U.S.C. §271, e t seq. and 17

U.S.C. 501, e t seq. Su b j e c t m a t t e r j u r i s d i c t i o n i s t h e r e f o r e

c o n f e r r e d upon t h i s Court p u r s u a n t t o t h e p r o v i s i o n s o f 28

U.S.C. §1331 and 28 U.S.C. §1338.

2. T h i s Court has p e r s o n a l j u r i s d i c t i o n over t h e Defendant

because Defendant d i r e c t s h i s business a c t i v i t i e s t o w a r d s , and

conduct business w i t h , consumers w i t h i n t h i s j u d i c i a l d i s t r i c t

and t h e p r o d u c t s t h a t are t h e s u b j e c t o f t h i s a c t i o n were, and

c o n t i n u e t o be, s o l d t o consumers i n t h e S t a t e o f New Jersey.

3. Venue i s p r o p e r i n t h i s j u d i c i a l d i s t r i c t under 28

U.S.C. §1391, as a s u b s t a n t i a l p a r t o f t h e events g i v i n g r i s e t o

th e c l a i m s o c c u r r e d i n t h i s d i s t r i c t , Defendant has s o l d , and

c o n t i n u e s t o s e l l , p r o d u c t s t h a t i n f r i n g e upon P l a i n t i f f ' s

p a t e n t and trademark w i t h i n t h i s d i s t r i c t , Defendant conducts

i n f r i n g i n g a c t i v i t i e s and causes harm w i t h i n t h i s d i s t r i c t and

the p r o p e r t y t h a t i s t h e s u b j e c t o f t h i s a c t i o n , t h e p a t e n t , t h e

trademark and t h e c o p y r i g h t , are s i t u a t e d i n t h i s d i s t r i c t .

THE PATENT, TRADEMARK AND COPYRIGHT

4. On June 7, 2011, t h e U n i t e d S t a t e s Patent and Trademark

O f f i c e d u l y and l e g a l l y i s s u e d U n i t e d S t a t e s Patent No. D639,199

( h e r e i n a f t e r r e f e r r e d t o as t h e " P a t e n t " ) t o Glen Liberman and

Ben Hopson f o r t h e d e s i g n o f an ornamental gear r i n g

( h e r e i n a f t e r r e f e r r e d t o as t h e "Gear Ring®"). Mr. Hopson

assig n e d a l l r i g h t , t i t l e and i n t e r e s t t o t h e Patent t o K i n e k t

Design, LLC. A p h o t o g r a p h i c exemplar o f t h e Gear Ring® i s

a t t a c h e d h e r e t o as " E x h i b i t A" and t h e Patent i s a t t a c h e d h e r e t o

as " E x h i b i t B."

5. P l a i n t i f f has p l a c e d a n o t i c e o f s a i d Patent on

m a r k e t i n g and o t h e r i n f o r m a t i o n a l m a t e r i a l r e l a t e d t o t h e Gear

Ring®.

6. P l a i n t i f f has an a d d i t i o n a l u t i l i t y p a t e n t pending f o r

th e Gear Ring® ( R o t a t i o n a l e d u c a t i o n e n t e r t a i n m e n t and

t h e r a p e u t i c d e v i c e ) , which has r e c e i v e d n o t i c e o f p u b l i c a t i o n o f

a p p l i c a t i o n f r o m t h e U n i t e d S t a t e s Patent and Trademark O f f i c e .

7. On June 12, 2011, t h e U n i t e d S t a t e s Patent and

Trademark O f f i c e d u l y and l e g a l l y i s s u e d trademark R e g i s t r a t i o n

Number 4157820 t o K i n e k t Design, LLC f o r t h e Gear Ring®

( h e r e i n a f t e r r e f e r r e d t o as t h e "Trademark") . On May 1, 2012,

th e U n i t e d S t a t e s Patent and Trademark O f f i c e a l s o d u l y and

l e g a l l y i s s u e d trademark R e g i s t r a t i o n Number 4134362 t o K i n e k t

Design, LLC f o r "Kinekt®". " K i n e k t " has a l s o been s u b m i t t e d f o r

Customs and Border P a t r o l p r o t e c t i o n under CBP R e c o r d a t i o n

Number TMK 12-00693.

8. P l a i n t i f f has a l s o s u b m i t t e d t h e Gear Ring® r e g i s t e r e d

trademark t o t h e U n i t e d S t a t e s Customs and Border P r o t e c t i o n

("CBP"), I n t e l l e c t u a l P r o p e r t y R i g h t s Branch, and was as s i g n e d

CBP R e c o r d a t i o n Number TMK-12-00687 e f f e c t i v e J u l y 6, 2012, as

3

w e l l as s u b m i t t e d t h e Gear Ring® mark and t h e Kinekt® mark

pur s u a n t t o t h e WIPO Ma d r i d P r o t o c o l .

9. On August 31, 2012, P l a i n t i f f o b t a i n e d a r e g i s t e r e d

c o p y r i g h t , R e g i s t r a t i o n Number TX0007566733, t h r o u g h t h e U n i t e d

S t a t e s C o p y r i g h t O f f i c e o f a l l t h e c o n t e n t c o n t a i n e d on

Kinektdesign.com ( h e r e i n a f t e r r e f e r r e d t o as t h e " C o p y r i g h t " ) ,

which i n c l u d e s images o f t h e Gear Ring®.

10. P l a i n t i f f has f o l l o w e d each and eve r y l e g a l avenue

a v a i l a b l e t o i t t o p r o t e c t i t s i n t e l l e c t u a l p r o p e r t y r i g h t s .

THE PARTIES

11. P l a i n t i f f , K i n e k t Design, LLC ( h e r e i n a f t e r r e f e r r e d t o

as " K i n e k t " o r t h e " P l a i n t i f f " ) i s a l i m i t e d l i a b i l i t y company

o f t h e S t a t e o f New Jersey w i t h i t s p r i n c i p a l p l a c e o f business

l o c a t e d a t 184 South L i v i n g s t o n Avenue, S u i t e 9-239, L i v i n g s t o n ,

New Jersey 07039.

12. Defendant, A r n o l d Vagts, i s an i n d i v i d u a l t h a t has

been p u r c h a s i n g c o u n t e r f e i t "gear r i n g " p r o d u c t s f r o m a f a c t o r y

i n China and t h e n a d v e r t i s i n g , m a r k e t i n g , o f f e r i n g f o r s a l e ,

s e l l i n g and d i s t r i b u t i n g t h e s e c o u n t e r f e i t p r o d u c t s i n t h e U n i t e d

S t a t e s and i n t h i s j u d i c i a l d i s t r i c t , i n v i o l a t i o n o f K i n e k t ' s

P a t e n t , Trademark and C o p y r i g h t .

FACTS COMMON TO ALL COUNTS

13. P l a i n t i f f has expended a s i g n i f i c a n t amount o f t i m e ,

money and o t h e r r e s o u r c e s t o develop, produce, a d v e r t i s e and

o t h e r w i s e promote t h e Gear Ring® and has t a k e n any and a l l

steps necessary t o p r o t e c t i t s r i g h t s and i n t e r e s t s i n and t o

th e Gear Ring®, b o t h i n t h i s c o u n t r y and i n t e r n a t i o n a l l y .

P l a i n t i f f has e x t e n s i v e l y marketed and promoted t h e Gear Ring®

f o r many years and each and every Gear Ring® p r o d u c t , as w e l l as

a l l p r o m o t i o n a l m a t e r i a l s , advise- o f t h e f a c t t h a t t h e Gear Ring

i s p r o t e c t e d by t h e Patent and Trademark, and P l a i n t i f f ' s

w e b s i t e c l e a r l y i n d i c a t e s t h a t a l l Gear Ring® images are

p r o t e c t e d by t h e C o p y r i g h t .

14. P l a i n t i f f i s a s m a l l , s t a r t - u p company se e k i n g t o grow

i t s b u s i n e s s based on i t s i n g e n u i t y i n i n v e n t i n g t h e Gear Ring®,

as w e l l as i t s e x p e n d i t u r e o f s i g n i f i c a n t r e s o u r c e s t o p r o t e c t

i t s i n v e n t i o n , b u t has t h u s f a r , f a i l e d t o reach i t s f u l l

b u s i n e s s p r o f i t p o t e n t i a l because o f c o n s t a n t u n l a w f u l c o p y i n g

o f P l a i n t i f f ' s d e s i g n and name, m a n u f a c t u r i n g o f c o u n t e r f e i t

p r o d u c t s which d u p l i c a t e P l a i n t i f f s p a t e n t e d d e s i g n , and s a l e s

o f c o u n t e r f e i t p r o d u c t s .

15. P l a i n t i f f has been u s i n g t h e Gear Ring® mark i n

i n t e r s t a t e commerce t o i d e n t i f y and d i s t i n g u i s h P l a i n t i f f s

p r o d u c t and t h e mark has never been as s i g n e d o r l i c e n s e d t o any

t h i r d p a r t y . P l a i n t i f f p r i d e s i t s e l f on i t s use o f h i g h q u a l i t y

m a t e r i a l s and a t t e n t i o n t o d e t a i l i n t h e manufacture o f t h e Gear

Ring®, and because o f i t s uniqueness and t h e s u p e r i o r q u a l i t y o f

the m a t e r i a l s used t o c o n s t r u c t t h e Gear Ring®, P l a i n t i f f s e l l s

t h e Gear Ring® a t a p r i c e o f One Hundred S i x t y - F i v e D o l l a r s

($165.00) per r i n g .

16. U n f o r t u n a t e l y , o t h e r i n d i v i d u a l s and e n t i t i e s have

d i s c o v e r e d what a unique and i n t e r e s t i n g p r o d u c t t h e Gear Ring®

i s and how much o f a demand t h e r e i s f o r t h e p r o d u c t and have

d e c i d e d t o c a p i t a l i z e on P l a i n t i f f ' s e f f o r t s i n i n v e n t i n g and

d e v e l o p i n g t h e Gear Ring®. I n p a r t i c u l a r , t h e r e are s e v e r a l

f a c t o r i e s i n China t h a t have found a way t o d u p l i c a t e

P l a i n t i f f ' s p a t e n t e d Gear Ring®, u s i n g i n f e r i o r m a t e r i a l s and

shoddy c o n s t r u c t i o n . These f a c t o r i e s s e l l t h ese c o u n t e r f e i t

"gear r i n g " p r o d u c t s on t h e I n t e r n e t , o f t e n t i m e s i n batches, f o r

o n e - t e n t h (1/10) t h e c o s t o f a genuine Gear Ring®. The m a j o r i t y

o f these s a l e s t a k e p l a c e t h r o u g h t h e w e b s i t e s known as

A l i e x p r e s s . c o m and/or Alibaba.com, which are o n l i n e m a r k e t p l a c e

o r e-commerce s i t e s c a t e r i n g t o p r e d o m i n a n t l y Chinese

m a n u f a c t u r e r s . T h i r d p a r t i e s , i n t h i s case, t h e Chinese

f a c t o r i e s , p o s t and a d v e r t i s e t h e i r p r o d u c t s on A l i e x p r e s s o r

A l i b a b a , and t h e s a l e s a r e processed by t h e o p e r a t o r s o f

A l i e x p r e s s o r A l i b a b a and/or t h e i r payment p r o c e s s o r , known as

A l i p a y . The o r d e r s are t h e n f u l f i l l e d and t h e p r o d u c t s

d e l i v e r e d by t h e t h i r d p a r t i e s a d v e r t i s i n g t h e p r o d u c t s .

17. Purchasers o f these c o u n t e r f e i t "gear r i n g " p r o d u c t s ,

which were manufactured by t h e Chinese f a c t o r i e s and a d v e r t i s e d

on, and purchased from, A l i e x p r e s s and A l i b a b a , t h e n r e - s e l l t h e

c o u n t e r f e i t p r o d u c t s on U n i t e d States-based o n l i n e m a r k e t p l a c e

or e-commerce s i t e s , such as eBay, Google, C r a i g ' s L i s t , Amazon,

e t c . , f o r h a l f t h e p r i c e o f a genuine Gear Ring®. T h i s i s what

Defendant has done i n t h i s case.

18. Because o f t h e p r e v a l e n c e o f i n f r i n g e m e n t o f

P l a i n t i f f ' s p r o d u c t and t h e r e s u l t a n t damage b e i n g s u f f e r e d by

P l a i n t i f f , P l a i n t i f f i s v i g i l a n t i n s e a r c h i n g f o r u n l a w f u l

c o p y i n g o f i t s p r o d u c t d e s i g n and s a l e s o f these c o u n t e r f e i t

p r o d u c t s . P l a i n t i f f ' s f i r s t l i n e o f defense i n each i n s t a n c e i s

t o c o n t a c t t h e w e b s i t e where t h e a d v e r t i s e m e n t s o f these

c o u n t e r f e i t p r o d u c t s are l o c a t e d , prove i t i s t h e l a w f u l and

r i g h t f u l owner o f t h e P a t e n t , Trademark and C o p y r i g h t and

r e q u e s t removal o f t h e a d v e r t i s e m e n t s o f f e r i n g t h e i n f r i n g i n g

p r o d u c t s f o r s a l e . With each such r e q u e s t , P l a i n t i f f submits

p r o o f o f i t s P a t e n t , Trademark and/or C o p y r i g h t , as a p p l i c a b l e ,

and t h e w e b s i t e t y p i c a l l y i n v e s t i g a t e s t h e m a t t e r .

19. At t h e t i m e t h e w e b s i t e r e c e i v e s t h e i n f r i n g e m e n t

c o m p l a i n t f r o m P l a i n t i f f , t y p i c a l l y s u b m i t t e d t h r o u g h t h e

w e b s i t e ' s DMCA form, t h e w e b s i t e i n f o r m s t h e p a r t y t h a t i s

a l l e g e d l y c o m m i t t i n g t h e i n f r i n g e m e n t o f t h e c o m p l a i n t , t h e

b a s i s o f t h e c o m p l a i n t and by whom t h e c o m p l a i n t has been made.

The w e b s i t e g i v e s t h e o f f e n d i n g p a r t y t h e a b i l i t y t o defend

a g a i n s t t h e c l a i m e d i n f r i n g e m e n t and/or c o n t r i b u t e i n some o t h e r

manner t o t h e w e b s i t e ' s i n v e s t i g a t i o n o f t h e c o m p l a i n t .

20. The w e b s i t e w i l l t h e n v e r i f y t h a t P l a i n t i f f i s , i n

f a c t , t h e l a w f u l and r i g h t f u l owner o f t h e i n t e l l e c t u a l p r o p e r t y

a t i s s u e and n o t i f i e s t h e user c o m m i t t i n g t h e i n f r i n g e m e n t t h a t

a f t e r c o n d u c t i n g i t s i n v e s t i g a t i o n , i t has d e t e r m i n e d t h a t

P l a i n t i f f ' s i n f r i n g e m e n t c l a i m i s v a l i d and t h a t t h e

a d v e r t i s e m e n t i s b e i n g removed because o f t h e user's v i o l a t i o n

o f P l a i n t i f f ' s i n t e l l e c t u a l p r o p e r t y r i g h t s . As such, on each

and every o c c a s i o n where P l a i n t i f f has s u b m i t t e d a c o m p l a i n t and

r e q u e s t e d removal o f an a d v e r t i s e m e n t , t h e i n f r i n g i n g p a r t y , i n

t h i s case, t h e Defendant, i s a d v i s e d o f t h e i n f r i n g e m e n t

c o m p l a i n t , t h e b a s i s f o r t h e i n f r i n g e m e n t c o m p l a i n t and t h e name

o f t h e p a r t y i n s t i t u t i n g t h e i n f r i n g e m e n t c o m p l a i n t .

21. There are t i m e s , however, when t h e w e b s i t e s r e f u s e t o

t a k e any a c t i o n w i t h r e s p e c t t o P l a i n t i f f s c o m p l a i n t s and/or

th e user d i s r e g a r d s P l a i n t i f f ' s r i g h t s and s i m p l y moves i t s

a d v e r t i s e m e n t t o a d i f f e r e n t w e b s i t e o r d i f f e r e n t URL on t h e

same w e b s i t e . On these o c c a s i o n s , P l a i n t i f f has been f o r c e d t o

f i l e l i t i g a t i o n t o e n f o r c e i t s r i g h t s . The f i r s t such a c t i o n

was f i l e d by P l a i n t i f f i n t h e summer o f 2011 and was c a p t i o n e d

" K i n e k t Design, LLC and Glen Liberman v. V e r l y n K e l l y Mason,"

Case No. 2 : l l - c v - 0 4 6 5 8 . P l a i n t i f f was g r a n t e d permanent

i n j u n c t i v e r e l i e f i n t h a t m a t t e r . The second case was f i l e d i n

J u l y 2012 and i s c a p t i o n e d " K i n e k t Design, LLC v. John Doe 1

a/k/a Kimber M. , e t a l s " , Case No. 2:12-cv-04549. That case i s

8

c u r r e n t l y pending and has named t h e Chinese f a c t o r i e s r e f e r e n c e d

above as Defendants. The t h i r d case was f i l e d i n August 2012

and i s c a p t i o n e d " K i n e k t Design, LLC v. Kevin A i z i c , e t a l s . " ,

Case No. 2:12-cv-05942. That case i s a l s o c u r r e n t l y pending.

22. I n l a t e J u l y 2012, P l a i n t i f f d i s c o v e r e d t h a t a user

known as " a v a g t s " was a d v e r t i s i n g a "Gear Ring" on t h e w e b s i t e

known as C r a i g s l i s t . c o m . The r i n g b e i n g o f f e r e d f o r s a l e was an

exact d u p l i c a t e o f P l a i n t i f f s p a t e n t e d Gear Ring®, and t h e

image i n c l u d e d i n t h e a d v e r t i s e m e n t was t h e c o p y r i g h t e d image

from P l a i n t i f f s w e b s i t e . A copy o f t h e screen p r i n t o f t h i s

a d v e r t i s e m e n t i s a t t a c h e d h e r e t o as " E x h i b i t C."

23. The a d v e r t i s e m e n t was a t t e m p t i n g t o pass t h e p r o d u c t

o f f as a genuine Gear Ring®, d i r e c t e d t h e v i e w e r s t o "see

K i n e k t " and o f f e r e d two (2) d i f f e r e n t s i z e s f o r s a l e . The

r e f e r e n c e t o " K i n e k t " and use o f P l a i n t i f f s c o p y r i g h t e d image

from i t s w e b s i t e r e v e a l s t h a t t h e s e l l e r was w e l l aware o f

P l a i n t i f f s i n t e l l e c t u a l p r o p e r t y r i g h t s and h i s i n f r i n g e m e n t o f

such s i n c e P l a i n t i f f s w e b s i t e and a l l o t h e r m a r k e t i n g m a t e r i a l s

i n d i c a t e t h a t t h e Gear Ring® i s p r o t e c t e d by p a t e n t , trademark

and c o p y r i g h t .

24. P l a i n t i f f searched t h r o u g h i t s s a l e s r e c o r d s t o

d e t e r m i n e whether anyone w i t h t h e l a s t name "Avagts" o r "Vagts"

had ever purchased a Gear Ring® and c o u l d not f i n d any such

purchase.

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25. P l a i n t i f f t h e r e f o r e i n i t i a t e d a c o m p l a i n t w i t h

C r a i g s l i s t . c o m a d v i s i n g t h a t t h e a d v e r t i s e m e n t by " a v a g t s " was

i n f r i n g i n g upon P l a i n t i f f ' s P a t e n t , Trademark and C o p y r i g h t by

s e l l i n g a c o u n t e r f e i t p r o d u c t t h a t was an exact d u p l i c a t e o f

P l a i n t i f f ' s p a t e n t e d p r o d u c t , u s i n g P l a i n t i f f ' s trademarked name

t o s e l l t h e p r o d u c t , p a s s i n g t h e p r o d u c t o f f as a genuine K i n e k t

Gear Ring® and u s i n g P l a i n t i f f ' s c o p y r i g h t e d image t o do so. As

w i t h a l l such c o m p l a i n t s , C r a i g s l i s t n o t i f i e d " a v a g t s " t h a t a

c o m p l a i n t had been s u b m i t t e d by P l a i n t i f f a l l e g i n g t h a t " a v a g t s "

was i n f r i n g i n g upon P l a i n t i f f ' s P a t e n t , Trademark and C o p y r i g h t ,

and t h a t i t would be i n v e s t i g a t i n g t h e c l a i m . Upon i n f o r m a t i o n

and b e l i e f , " a v a g t s " d i d not respond i n any way t o C r a i g s l i s t ' s

n o t i f i c a t i o n .

26. C r a i g s l i s t . c o m i n v e s t i g a t e d P l a i n t i f f ' s c l a i m , found

i t t o be v a l i d and, as i s t h e p r o t o c o l when such c o m p l a i n t s are

f i l e d , a d v i s e d " a v a g t s " t h a t i t s i n v e s t i g a t i o n r e v e a l e d t h a t

" a v a g t s " was i n f r i n g i n g upon P l a i n t i f f ' s P a t e n t , Trademark

C o p y r i g h t and t h a t h i s a d v e r t i s e m e n t was b e i n g removed because

o f t h a t i n t e l l e c t u a l p r o p e r t y r i g h t s i n f r i n g e m e n t .

C r a i g s l i s t . c o m t h e n removed t h e a d v e r t i s e m e n t f r o m i t s w e b s i t e

and i n i t s p l a c e , p o s t e d a n o t i c e s t a t i n g t h a t " T h i s

a d v e r t i s e m e n t has been f l a g g e d f o r removal."

27. On o r about October 3, 2012, P l a i n t i f f d i s c o v e r e d

a n o t h e r a d v e r t i s e m e n t on C r a i g s l i s t . c o m f o r a " R o t a t i n g mech

10

r i n g " . The a d v e r t i s e m e n t s t a t e d t h a t t h e r i n g was " s i m i l a r t o

www.kinektdesign.com", i n d i c a t e d t h a t t h e s e l l e r was fro m

Anaheim and i n c l u d e d a t e l e p h o n e number. The a d v e r t i s e m e n t was

s e l l i n g t h e " R o t a t i n g mech r i n g " f o r E i g h t y D o l l a r s ($80.00),

which i s l e s s t h a n h a l f t h e p r i c e o f a genuine Gear Ring®. A

copy o f the, screen p r i n t o f t h i s a d v e r t i s e m e n t i s a t t a c h e d

h e r e t o as " E k h i b i t D."

28. P l a i n t i f f keeps a r e c o r d o f a l l i n f r i n g e m e n t s and

compared t h i s t e l e p h o n e number w i t h p a s t i n s t a n c e s o f

infringement^ and d e t e r m i n e d t h a t i t was t h e same s e l l e r f r o m

J u l y 2012 /whose a d v e r t i s e m e n t was removed as a r e s u l t o f t h e

i n f r i n g e m e n t . A search o f t h e t e l e p h o n e number r e v e a l e d t h a t i t

belonged t o Defendant, A r n o l d Vagts.

29. The a d v e r t i s e m e n t ' s r e f e r e n c e t o P l a i n t i f f ' s w e b s i t e

and use o f P l a i n t i f f ' s c o p y r i g h t e d image, i n a d d i t i o n t o t h e

f a c t t h a t t h e p r i o r a d v e r t i s e m e n t had been removed due t o t h e

i n f r i n g e m e n t , evidences t h a t t h i s i n s t a n c e o f i n f r i n g e m e n t was

c l e a r l y w i l l f u l and i n t e n t i o n a l , and made w i t h f u l l knowledge o f

t h e i n t e l l e c t u a l p r o p e r t y r i g h t p r o t e c t i o n s a f f o r d e d t o

P l a i n t i f f .

30. P l a i n t i f f once a g a i n i n i t i a t e d a c o m p l a i n t w i t h

C r a i g s l i s t . c o m , t h e s e l l e r was n o t i f i e d o f t h e c o m p l a i n t as per

C r a i g s l i s t . c o m ' s p o l i c y and, a f t e r i n v e s t i g a t i o n , t h e

a d v e r t i s e m e n t was removed f o r i n f r i n g e m e n t .

11

31. S h o r t l y t h e r e a f t e r , on o r about October 10, 2012,

P l a i n t i f f d i s c o v e r e d t h a t a user s e l l i n g under t h e name

"avagl427" was a d v e r t i s i n g a " R o t a t i n g Mechanical R i n g " on t h e

w e b s i t e known as Ebay.com. Ag a i n , t h e r i n g b e i n g o f f e r e d f o r

s a l e was an exact d u p l i c a t e o f P l a i n t i f f ' s p a t e n t e d Gear Ring®,

and t h e image i n c l u d e d i n t h e a d v e r t i s e m e n t was one o f t h e

c o p y r i g h t e d images f r o m P l a i n t i f f ' s w e b s i t e . A copy o f t h e

screen p r i n t o f t h i s a d v e r t i s e m e n t i s a t t a c h e d h e r e t o as

" E x h i b i t E."

32. P l a i n t i f f c o n t a c t e d Paypal, which i s eBay.com's

payment p r o c e s s o r and where i n f r i n g e m e n t r e p o r t s on eBay.com are

d i r e c t e d , and a d v i s e d t h a t t h e s e l l e r known as "avagl427" was

i n f r i n g i n g upon P l a i n t i f f ' s Patent and C o p y r i g h t by s e l l i n g a

p r o d u c t t h a t was an exact d u p l i c a t e o f P l a i n t i f f ' s p a t e n t e d

p r o d u c t and u s i n g an image t a k e n f r o m P l a i n t i f f ' s w e b s i t e t o do

so. Paypal/eBay.com n o t i f i e d "avagl427" t h a t a c o m p l a i n t had

been s u b m i t t e d by P l a i n t i f f a l l e g i n g t h a t he was i n f r i n g i n g upon

P l a i n t i f f ' s Patent and C o p y r i g h t , and t h a t i t would be

i n v e s t i g a t i n g t h e c l a i m . I n response t o t h e n o t i f i c a t i o n from

Paypal/ebay.com, "avagl427" removed t h e c o p y r i g h t e d image, b u t

c o n t i n u e d w i t h t h e a d v e r t i s e m e n t o f t h e i n f r i n g i n g p r o d u c t and

u l t i m a t e l y s o l d t h e i n f r i n g i n g p r o d u c t f o r Seventy-One D o l l a r s

($71.00), l e s s t h a n h a l f t h e p r i c e o f a genuine Gear Ring®.

EBay.com i s an a u c t i o n - t y p e w e b s i t e and t h e a d v e r t i s e m e n t s

12

c o n t a i n e d t h e r e o n e x p i r e when t h e a u c t i o n e x p i r e s . "Avagl427"'s

a u c t i o n e x p i r e d on October 16, 2012.

33. Because eBay.com a l l o w s users t o i d e n t i f y t h e person

t o whom an account i s r e g i s t e r e d , P l a i n t i f f d i s c o v e r e d t h a t

"avagl427" was r e g i s t e r e d t o Defendant A r n o l d Vagts. P l a i n t i f f

once a g a i n r e s e a r c h e d whether any member o f t h e Vagts f a m i l y had

ever bought a Gear Ring®. P l a i n t i f f r e v i e w e d a l l i t s s a l e s

r e c o r d s s i n c e i t began s e l l i n g t h e Gear Ring® and found no

r e c o r d o f any purchase o f a Gear Ring® by A r n o l d Vagts o r anyone

e l s e w i t h t h e l a s t name o f Vagts. As such, t h e items b e i n g s o l d

i n t h e two (2) C r a i g s l i s t . c o m a d v e r t i s e m e n t s and t h e eBay.com

a d v e r t i s e m e n t were c o u n t e r f e i t "gear r i n g " p r o d u c t s .

34. At t h a t p o i n t , Defendant had been a d v i s e d on a t l e a s t

t h r e e (3) s e p a r a t e o c c a s i o n s t h a t he was i n f r i n g i n g upon

P l a i n t i f f ' s P a t e n t , Trademark and/or C o p y r i g h t , each o f h i s

C r a i g s l i s t . c o m a d v e r t i s e m e n t s had been removed as a r e s u l t o f

t h a t i n f r i n g e m e n t , he v o l u n t a r i l y removed t h e c o p y r i g h t e d image

as a r e s u l t o f t h e n o t i f i c a t i o n f r o m Paypal, b u t n e v e r t h e l e s s

c o n t i n u e d w i t h t h e s a l e o f t h e c o u n t e r f e i t p r o d u c t i n v i o l a t i o n

o f t h e P a t e n t . Defendant was v e r y o b v i o u s l y aware o f P l a n t i f f ' s

i n t e l l e c t u a l p r o p e r t y r i g h t p r o t e c t i o n s by v i r t u e o f h i s

r e f e r e n c e s t o P l a i n t i f f ' s w e b s i t e . Yet Defendant c o n t i n u e d t o

s e l l , o f f e r t o s e l l , d i s t r i b u t e , market and a d v e r t i s e h i s

13

i n f r i n g i n g p r o d u c t s i n b l a t a n t d i s r e g a r d o f t h e law and

P l a i n t i f f ' s i n t e l l e c t u a l p r o p e r t y r i g h t s .

35. As a r e s u l t , on October 12, 2012, P l a i n t i f f ' s a t t o r n e y

sent a l e t t e r t o Defendant demanding t h a t he i m m e d i a t e l y cease

and d e s i s t h i s i n f r i n g i n g a c t i v i t i e s , p r o v i d e P l a i n t i f f w i t h an

a c c o u n t i n g o f any and a l l s a l e s o f t h e c o u n t e r f e i t "gear r i n g s " ,

p r o v i d e P l a i n t i f f w i t h a l l t h e "gear r i n g s " i n h i s po s s e s s i o n ,

remove a l l p o s t i n g s a d v e r t i s i n g any "gear r i n g " p r o d u c t s ,

c o n f i r m t h a t he would never a g a i n market, a d v e r t i s e , o f f e r f o r

s a l e o r o t h e r w i s e c o m m e r c i a l l y promote any "gear r i n g " p r o d u c t s

and p r o v i d e P l a i n t i f f w i t h t h e name and c o n t a c t i n f o r m a t i o n o f

th e i n d i v i d u a l o r e n t i t y f r o m whom he was p u r c h a s i n g t h e

c o u n t e r f e i t p r o d u c t s .

36. Defendant responded by s t a t i n g t h a t he was never made

aware o f any i n t e l l e c t u a l p r o p e r t y r i g h t s v i o l a t i o n s u n t i l eBay

c o n t a c t e d him and t h a t he was, i n f a c t , s e l l i n g genuine Gear

Rings®. He m a i n t a i n e d t h a t C r a i g s l i s t . c o m d i d n o t remove h i s

a d v e r t i s e m e n t , he s i m p l y f a i l e d t o r e - p o s t i t and, as f o r t h e

eBay a d v e r t i s e m e n t , r e i t e r a t e d t h a t he was a t t e m p t i n g t o s e l l

h i s own p e r s o n a l genuine Gear Ring® j e w e l r y .

37. Since P l a i n t i f f had res e a r c h e d on two (2) s e p a r a t e

occasions whether anyone w i t h t h e l a s t name "Vagts" had ever

purchased a Gear Ring® and c o u l d f i n d no such purchase,

Defendant's c l a i m t h a t he was s e l l i n g genuine Gear Ring® j e w e l r y

14

was o b v i o u s l y f a l s e . Furthermore, Defendant's c l a i m t h a t

C r a i g s l i s t . c o m had not i n f o r m e d him o f t h e i n t e l l e c t u a l p r o p e r t y

r i g h t s v i o l a t i o n and t h a t he had s i m p l y n o t r e p o s t e d h i s

a d v e r t i s e m e n t was a l s o f a l s e s i n c e h i s a d v e r t i s e m e n t was removed

by C r a i g s l i s t . c o m and r e p l a c e d w i t h a n o t i c e t h a t " T h i s

a d v e r t i s e m e n t i s f l a g g e d f o r removal".

38. I t appeared t h a t Defendant had a l a r g e q u a n t i t y o f

c o u n t e r f e i t gear r i n g p r o d u c t s , and t h e r e f o r e , P l a i n t i f f assumed

t h a t he was e i t h e r m a n u f a c t u r i n g t h e r i n g s o r p u r c h a s i n g them

from somewhere i n b u l k . Knowing t h a t most r e - s e l l e r s o f

c o u n t e r f e i t "gear r i n g " p r o d u c t s purchase them f r o m t h e Chinese

f a c t o r i e s a d v e r t i s i n g on A l i e x p r e s s . c o m , P l a i n t i f f r e s e a r c h e d

whether Defendant had a p r o f i l e on A l i e x p r e s s . c o m o r Alibaba.com

and whether he had ever purchased a n y t h i n g f r o m those s i t e s .

P l a i n t i f f ' s "buyer s e a r c h " f o r A r n o l d Vagts on A l i e x p r e s s . c o m

r e v e a l e d t h a t a user known as " A r n o l d V" had made s e v e r a l

purchases f r o m one o f t h e Chinese f a c t o r i e s t h a t manufactures

c o u n t e r f e i t "gear r i n g " p r o d u c t s . S p e c i f i c a l l y , on June 6,

2012, " A r n o l d V." purchased one " s t a i n l e s s s t e e l gear r i n g

r o t a t a b l e " f r o m Hui J e w e l r y House, a f a c t o r y i n China, f o r

S i x t e e n D o l l a r s and Sixty-Seven Cents ($16.67), on June 27, 2012

" A r n o l d V." purchased f o u r (4) more r i n g s f r o m Hui J e w e l r y House

f o r t h e same p r i c e p er i t e m , and on September 22, 2012, " A r n o l d

V." purchased t e n (10) more r i n g s f o r F i f t e e n D o l l a r s and

15

E i g h t y - F o u r Cents ($15.84) a p i e c e . As s t a t e d above,

Defendant's f i r s t a d v e r t i s e m e n t ( s ) f o r t h e "gear r i n g " p r o d u c t s

was on o r about J u l y 17, 2012, a l i t t l e more t h a n two (2) weeks

a f t e r " A r n o l d V." purchased f i v e (5) c o u n t e r f e i t r i n g s f r o m

A l i e x p r e s s . c o m , and Defendant's second C r a i g s l i s t . c o m

a d v e r t i s e m e n t and h i s eBay.com a d v e r t i s e m e n t f o r t h e "gear

r i n g s " were i n t h e b e g i n n i n g o f October 2012, a g a i n

a p p r o x i m a t e l y two (2) weeks a f t e r " A r n o l d V." had purchased t e n

(10) c o u n t e r f e i t "gear r i n g s " f r o m A l i e x p r e s s . c o m .

39. S h o r t l y a f t e r Defendant's a u c t i o n on eBay.com had ended

and t h e c o u n t e r f e i t p r o d u c t shipped t o t h e s u c c e s s f u l b i d d e r ,

P l a i n t i f f r e c e i v e d an e - m a i l f r o m t h a t b i d d e r . She had r e c e i v e d

t h e r i n g f r o m Defendant and w i t h i n a few days t h e r i n g b r o k e .

B e l i e v i n g i t t o be a genuine Gear Ring®, she e-mailed K i n e k t and

r e q u e s t e d r e p a i r o r replacement o f t h e r i n g i n accordance w i t h

P l a i n t i f f ' s w a r r a n t y p o l i c y . Since t h e r e was no r e c o r d o f t h e

b i d d e r ever p u r c h a s i n g a r i n g f r o m t h e P l a i n t i f f , P l a i n t i f f

asked where she g o t t h e r i n g f r o m and she s t a t e d she won an

a u c t i o n on eBay h e l d by "avagl427." She a l s o p r o v i d e d P l a i n t i f f

w i t h an e - m a i l t h a t had been sent t o her f r o m Defendant, a/k/a

"avagl427." The b i d d e r had i n q u i r e d as t o payment and d e l i v e r y ,

and t h e response sent by Defendant s t a t e d , i n p e r t i n e n t p a r t , as

f o l l o w s : " I am h a v i n g some problems w i t h PayPal so I hope t h i s

w i l l go t h r u . The co. t h a t s e l l s t h e gear r i n g i s c o m p l a i n i n g

16

about my l i s t i n g ( I d i d not purchase them f r o m www, k i n e k t d e s i g n )

--my p r i c e i s over $100 l e s s ( c o u n t i n g t a x ) t h a n t h e i r s ! To t h e

b e s t o f my knowledge i t i s t h e i r r i n g . J u s t want t o be u p f r o n t

w i t h you on t h i s s i n c e PayPal may not accept payment."

40. Defendant t h e r e f o r e acknowledged t h a t he was s e l l i n g

t h e r i n g w i t h o u t P l a i n t i f f s a u t h o r i z a t i o n and consent and, i n

f a c t , d e s p i t e P l a i n t i f f s c o m p l a i n t r e g a r d i n g h i s i n f r i n g e m e n t .

Defendant a l s o f a l s e l y c l a i m e d t h a t " t o t h e b e s t o f h i s

knowledge", t h e r i n g was a genuine Gear Ring®, even though he

had purchased t h e r i n g f o r l e s s t h a n Twenty D o l l a r s ($20.00)

from a f a c t o r y i n China.

41. The s u c c e s s f u l b i d d e r f r o m Defendant's a u c t i o n i s a

r e s i d e n t o f t h e S t a t e o f New J e r s e y and t h e c o u n t e r f e i t "gear

r i n g " was s h i p p e d t o t h e b i d d e r i n New Jersey. Upon i n f o r m a t i o n

and b e l i e f , Defendant has s i n c e s o l d a t l e a s t one (1) more

c o u n t e r f e i t "gear r i n g " t o a buyer i n New Jersey.

42. Defendant has been i n f r i n g i n g , and i s c o n t i n u i n g t o

i n f r i n g e , upon P l a i n t i f f ' s P atent by p u r c h a s i n g c o u n t e r f e i t

"gear r i n g " p r o d u c t s f r o m China t h r o u g h A l i e x p r e s s . c o m f o r one-

t e n t h (1/10) t h e c o s t o f P l a i n t i f f ' s genuine Gear Ring® p r o d u c t ,

and t h e n m a r k e t i n g , a d v e r t i s i n g , o f f e r i n g f o r s a l e , s e l l i n g and

d i s t r i b u t i n g t h ese c o u n t e r f e i t p r o d u c t s t h r o u g h v a r i o u s shopping

or o n l i n e m a r k e t p l a c e w e b s i t e s t o customers i n t h e U n i t e d

S t a t e s . These c o u n t e r f e i t p r o d u c t s a r e exact d u p l i c a t e s o f

17

P l a i n t i f f s p a t e n t e d Gear Ring®, and are b e i n g manufactured,

a d v e r t i s e d , marketed, s o l d and d i s t r i b u t e d w i t h o u t P l a i n t i f f s

a u t h o r i z a t i o n o r consent.

43. Defendant has a l s o been i n f r i n g i n g upon P l a i n t i f f s

Trademark by s e l l i n g , o f f e r i n g f o r s a l e , d i s t r i b u t i n g , m a r k e t i n g

and/or a d v e r t i s i n g "gear r i n g " p r o d u c t s u s i n g t h e r e g i s t e r e d

"Gear Ring®" name.

44. Defendant has a l s o been i n f r i n g i n g upon P l a i n t i f f s

C o p y r i g h t by s e l l i n g , o f f e r i n g f o r s a l e , d i s t r i b u t i n g , m a r k e t i n g

and/or a d v e r t i s i n g "gear r i n g " p r o d u c t s u s i n g c o p y r i g h t e d images

t a k e n f r o m P l a i n t i f f s w e b s i t e .

45. Defendant has engaged i n these i n f r i n g i n g a c t i v i t i e s

w i l l f u l l y , i n t e n t i o n a l l y and w i t h knowledge o f t h e e x i s t e n c e o f

P l a i n t i f f s P a t e n t , Trademark and C o p y r i g h t and t h e f a c t t h a t he

was c o m m i t t i n g i l l e g a l a c t s .

46. Defendant has r e c e i v e d r e p e a t e d w r i t t e n n o t i c e o f h i s

i n f r i n g e m e n t , t w i c e f r o m C r a i g ' s l i s t . c o m , once f r o m eBay.com and

once f r o m P l a i n t i f f s a t t o r n e y , and two (2) o f h i s

a d v e r t i s e m e n t s have been removed by t h e w e b s i t e s where t h e y were

p o s t e d because o f s a i d i n f r i n g e m e n t , y e t Defendant r e - p o s t e d h i s

a d v e r t i s e m e n t s and even completed a t l e a s t two (2) a d d i t i o n a l

s a l e s o f t h e c o u n t e r f e i t "gear r i n g " p r o d u c t s a f t e r h a v i n g

r e c e i v e d t h e cease and d e s i s t l e t t e r and f i n a l n o t i c e o f

i n f r i n g e m e n t f r o m P l a i n t i f f s a t t o r n e y . Defendant has

18

r e p e a t e d l y i g n o r e d t h e c l a i m s o f i n f r i n g e m e n t and t h e

i n f r i n g e m e n t i s v e r y o b v i o u s l y w i l l f u l and i n t e n t i o n a l .

47. Defendant's i n f r i n g e m e n t o f t h e Patent i s i n v i o l a t i o n

o f 35 U.S.C. §271, i s w i l l f u l and d e l i b e r a t e , and upon

i n f o r m a t i o n and b e l i e f , Defendant w i l l c o n t i n u e t o i n f r i n g e on

s a i d Patent and c o n t i n u e t o cause P l a i n t i f f immediate,

c o n t i n u i n g and i r r e p a r a b l e harm u n l e s s permanently e n j o i n e d by

t h i s Court.

48. Defendant's i n f r i n g e m e n t o f t h e Trademark i s i n

v i o l a t i o n o f 15 U.S.C. §1114, i s w i l l f u l and d e l i b e r a t e , and

upon i n f o r m a t i o n and b e l i e f , Defendant w i l l c o n t i n u e t o i n f r i n g e

on s a i d Trademark and c o n t i n u e t o cause P l a i n t i f f immediate,


t h i s C o u r t .

49. Defendant's i n f r i n g e m e n t o f t h e C o p y r i g h t i s i n

v i o l a t i o n o f 17U.S.C. §501, i s w i l l f u l and d e l i b e r a t e , and upon

i n f o r m a t i o n and b e l i e f , Defendant w i l l c o n t i n u e t o i n f r i n g e on

s a i d C o p y r i g h t and c o n t i n u e t o cause P l a i n t i f f immediate,


t h i s C o u r t .

50. P l a i n t i f f has s u f f e r e d i n j u r y and damages t h a t have

been d i r e c t l y and p r o x i m a t e l y caused by Defendant's w r o n g f u l

s a l e , o f f e r o f s a l e , d i s t r i b u t i o n , m a r k e t i n g and a d v e r t i s e m e n t

19

o f goods t h a t i n f r i n g e upon P l a i n t i f f ' s P a t e n t , Trademark and

C o p y r i g h t .

51. P l a i n t i f f has no adequate remedy a t law.

52. P l a i n t i f f has r e t a i n e d u n d e r s i g n e d counsel t o r e p r e s e n t

i t i n t h i s m a t t e r and i s o b l i g a t e d t o pay s a i d c o u n s e l a

reasonable f e e f o r such r e p r e s e n t a t i o n .

COUNT I

Patent Infringement

53. P l a i n t i f f r e p e a t s and r e a l l e g e s t h e a l l e g a t i o n s

c o n t a i n e d i n paragraphs 1 t h r o u g h 52 above and i n c o r p o r a t e s them

as i f f u l l y s e t f o r t h a t l e n g t h h e r e i n .

54. Defendant has marketed, a d v e r t i s e d , used, o f f e r e d t o

s e l l and s o l d P l a i n t i f f ' s p a t e n t e d i n v e n t i o n w i t h i n t h e U n i t e d

S t a t e s d u r i n g t h e t e r m o f t h e Patent w i t h o u t P l a i n t i f f s

a u t h o r i t y o r consent i n v i o l a t i o n o f 35 U.S.C. §271.

55. Defendant has been made aware o f h i s i n f r i n g e m e n t by

w r i t t e n n o t i c e , y e t c o n t i n u e s t o i n f r i n g e upon P l a i n t i f f ' s

P atent by p u r c h a s i n g c o u n t e r f e i t "gear r i n g s " f r o m China,

t h r o u g h t h e A l i e x p r e s s . c o m w e b s i t e , which are exact d u p l i c a t e s

o f P l a i n t i f f ' s p a t e n t e d i n v e n t i o n , and th e n m a r k e t i n g ,

a d v e r t i s i n g , u s i n g , o f f e r i n g f o r s a l e and s e l l i n g these

c o u n t e r f e i t p r o d u c t s i n t h e U n i t e d S t a t e s and i n t h i s j u d i c i a l

d i s t r i c t , w h i l e a t t e m p t i n g t o pass them o f f as genuine Gear

Ring® p r o d u c t s .

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56. Defendant's r e p e a t e d and c o n t i n u o u s v i o l a t i o n o f

P l a i n t i f f ' s P a t e n t , d e s p i t e n o t i c e o f t h e i n f r i n g e m e n t , i s

w i l l f u l and i n t e n t i o n a l .

57. Defendant's u n l a w f u l a c t i o n s have caused and are

c o n t i n u i n g t o cause u n q u a n t i f i a b l e damages t o P l a i n t i f f .

58. P l a i n t i f f has s u f f e r e d and w i l l c o n t i n u e t o s u f f e r

i r r e p a r a b l e i n j u r y due t o Defendant's i n f r i n g e m e n t o f

P l a i n t i f f s Patent i f t h e Defendant i s not p r e l i m i n a r i l y and

permanently e n j o i n e d f r o m such conduct.

COUNT I I

Trademark Infringement




60. P l a i n t i f f ' s Trademarksare f e d e r a l l y r e g i s t e r e d marks.

61. Defendant has used t h e name Gear Ring® t o d e s i g n a t e

h i s p r o d u c t i n c o n n e c t i o n w i t h t h e s a l e , o f f e r f o r s a l e ,

d i s t r i b u t i o n , m a r k e t i n g and a d v e r t i s i n g o f c o u n t e r f e i t goods f o r

h i s own f i n a n c i a l g a i n .

62. P l a i n t i f f has not a u t h o r i z e d Defendant's use o f

P l a i n t i f f ' s Trademark.

63. Defendant's u n a u t h o r i z e d use o f P l a i n t i f f ' s Trademark

i n c o n n e c t i o n w i t h t h e s a l e , o f f e r f o r s a l e , d i s t r i b u t i o n ,

21

m a r k e t i n g and a d v e r t i s i n g o f c o u n t e r f e i t goods c o n s t i t u t e s

Defendant's use o f P l a i n t i f f ' s r e g i s t e r e d trademark i n commerce.


i s l i k e l y t o cause and a c t u a l l y i s c a u s i n g c o n f u s i o n , m i s t a k e

and d e c e p t i o n among consumers and/or i s c a u s i n g consumers t o

b e l i e v e t h a t Defendant's c o u n t e r f e i t goods o r i g i n a t e from

P l a i n t i f f o r t h a t P l a i n t i f f has a u t h o r i z e d , approved o r

o t h e r w i s e a s s o c i a t e d i t s e l f w i t h Defendant's c o u n t e r f e i t goods

t h a t bear P l a i n t i f f ' s Trademarks.

65. The c o n f u s i o n among consumers as t o t h e o r i g i n o f

Defendant's c o u n t e r f e i t goods i s e v i d e n t as a purchaser o f these

c o u n t e r f e i t goods has a c t u a l l y c o n t a c t e d P l a i n t i f f f o r r e p a i r o r

replacement o f t h e c o u n t e r f e i t "gear r i n g " she had purchased

from Defendant because she b e l i e v e d she had purchased a genuine

Gear Ring® and t h a t t h e s a l e had been a u t h o r i z e d by P l a i n t i f f .


has r e s u l t e d i n Defendant u n f a i r l y , i l l e g a l l y and i m p r o p e r l y

b e n e f i t t i n g f r o m P l a i n t i f f ' s name and g o o d w i l l .

67. Defendant has t h e r e f o r e i n f r i n g e d P l a i n t i f f ' s

Trademark i n v i o l a t i o n o f 15 U.S.C. §1114.

68. Defendant's r e p e a t e d and c o n t i n u o u s v i o l a t i o n o f

P l a i n t i f f ' s Trademark, d e s p i t e n o t i c e o f t h e i n f r i n g e m e n t , i s

w i l l f u l and i n t e n t i o n a l and t h e r e f o r e , t h i s c o n s t i t u t e s and

e x c e p t i o n a l case.

22





P l a i n t i f f ' s Trademark i f Defendant i s not p r e l i m i n a r i l y and


COUNT I I I

Copyright Infringement


c o n t a i n e d i n paragraphs 1 t h r o u g h 7 0 above and i n c o r p o r a t e s them


72. P l a i n t i f f ' s C o p y r i g h t i s a f e d e r a l l y r e g i s t e r e d mark.

73. Defendant has t a k e n a c o p y r i g h t e d image from

P l a i n t i f f ' s w e b s i t e and used i t t o a d v e r t i s e , market and promote

h i s c o u n t e r f e i t p r o d u c t s . Defendant has m i s a p p r o p r i a t e d t h i s

c o p y r i g h t e d c o n t e n t and i n t e r f e r e d w i t h P l a i n t i f f s e x c l u s i v e

r i g h t t o use t h e c o p y r i g h t e d c o n t e n t f o r i h i s own commercial

advantage and f i n a n c i a l g a i n .

74. P l a i n t i f f has not a u t h o r i z e d o r consented t o

Defendant's use o f P l a i n t i f f ' s C o p y r i g h t .

75. Defendant has t h e r e f o r e i n f r i n g e d P l a i n t i f f ' s

C o p y r i g h t i n v i o l a t i o n o f 17 U.S.C. §501, e t . seq.

23

76. Defendant's r e p e a t e d and co n t i n u o u s v i o l a t i o n o f

P l a i n t i f f ' s C o p y r i g h t , d e s p i t e n o t i c e o f t h e i n f r i n g e m e n t , i s

w i l l f u l and i n t e n t i o n a l .





P l a i n t i f f s C o p y r i g h t i f D e f e n d a n t i s n o t p r e l i m i n a r i l y and


COUNT IV

F a l s e Designation of O r i g i n




80. Defendant's u n a u t h o r i z e d use i n i n t e r s t a t e commerce o f

P l a i n t i f f s Trademark c o n s t i t u t e s i n f r i n g e m e n t , as w e l l as t h e

use o f f a l s e d e s c r i p t i o n s and r e p r e s e n t a t i o n s and f a l s e

d e s i g n a t i o n o f o r i g i n i n v i o l a t i o n o f 15 U.S.C. §1125(a).

81. Defendant's use i n commerce o f such f a l s e d e s i g n a t i o n s

o f o r i g i n and f a l s e o r m i s l e a d i n g d e s c r i p t i o n s and

r e p r e s e n t a t i o n s i s l i k e l y t o cause c o n f u s i o n i n consumers as t o

th e c o n n e c t i o n o f Defendant w i t h P l a i n t i f f and t h e o r i g i n o f

Defendant's goods, and a c t u a l l y i s cau s i n g such c o n f u s i o n among

consumers.

24

82. Defendant's r e p e a t e d and c o n t i n u o u s s a l e o f i n f r i n g i n g

and c o u n t e r f e i t g o o d s , d e s p i t e t h e f a c t t h a t he has been n o t i f i e d

o f t h e i n f r i n g e m e n t and h i s a d v e r t i s e m e n t s have been removed as

a r e s u l t o f t h e i n f r i n g e m e n t , i s w i l l f u l and i n t e n t i o n a l .




i r r e p a r a b l e i n j u r y due t o t h e Defendant's f a l s e d e s i g n a t i o n o f

o r i g i n and h i s f a l s e d e s c r i p t i o n s and r e p r e s e n t a t i o n s i f

Defendant i s not p r e l i m i n a r i l y and permanently e n j o i n e d f r o m

such conduct.

COUNT V

Deceptive Trade P r a c t i c e s




86. Defendant's use o f t h e "Gear Ring®" name i n c o n n e c t i o n

w i t h t h e s a l e , o f f e r f o r s a l e , d i s t r i b u t i o n , m a r k e t i n g and

a d v e r t i s i n g o f h i s i n f r i n g i n g and c o u n t e r f e i t p r o d u c t s i s

f r a u d u l e n t , m i s l e a d i n g and d e c e p t i v e , and made w i t h t h e

i n t e n t i o n t h a t consumers r e l y on such m i s r e p r e s e n t a t i o n and

b e l i e v e t h a t t h e p r o d u c t b e i n g o f f e r e d f o r s a l e i s a t r u e "Gear

Ring®" p r o d u c t .

25

87. Defendant's use o f t h e "Gear Ring®" name, as w e l l as

h i s m i s a p p r o p r i a t i o n o f P l a i n t i f f ' s c o p y r i g h t e d image, i n

c o n n e c t i o n w i t h t h e s a l e , o f f e r f o r s a l e , d i s t r i b u t i o n ,

m a r k e t i n g and a d v e r t i s i n g o f h i s i n f r i n g i n g and c o u n t e r f e i t

p r o d u c t c o n s t i t u t e s f r a u d i n c o n n e c t i o n w i t h t h e s a l e o r

a d v e r t i s e m e n t o f goods i n v i o l a t i o n o f N.J.S.A. 56:8-2.

88. Defendant's u n l a w f u l f r a u d and d e c e p t i o n has caused

and i s c o n t i n u i n g t o cause u n q u a n t i f i a b l e damages t o P l a i n t i f f .


i r r e p a r a b l e i n j u r y due t o t h e Defendant's d e c e p t i v e t r a d e

p r a c t i c e s i f Defendant i s not p r e l i m i n a r i l y and permanently

e n j o i n e d f r o m such conduct.

COUNT V I

U n f a i r Competition




91. Defendant has engaged i n f r a u d u l e n t , m i s l e a d i n g and

u n l a w f u l conduct i n a t t e m p t i n g t o pass o f f h i s c o u n t e r f e i t gear

r i n g p r o d u c t s as P l a i n t i f f ' s p r o d u c t s .

92. Defendant has committed these a c t s w i l l f u l l y and w i t h

conscious d i s r e g a r d o f P l a i n t i f f ' s r i g h t s .

93. Defendant has t h e r e f o r e engaged i n u n f a i r c o m p e t i t i o n

i n v i o l a t i o n o f t h e common law o f t h e S t a t e o f New Jersey.

26

94. Defendant's u n l a w f u l f r a u d and d e c e p t i o n has caused

and i s c o n t i n u i n g t o cause u n q u a n t i f i a b l e damages t o P l a i n t i f f .


i r r e p a r a b l e i n j u r y due t o t h e Defendant's u n f a i r c o m p e t i t i o n i f

Defendant i s n o t p r e l i m i n a r i l y and p ermanently e n j o i n e d f r o m

such conduct.

COUNT V I I

I n t e r f e r e n c e With P r o s p e c t i v e Economic Advantage




97. P l a i n t i f f has expended a s i g n i f i c a n t amount o f t i m e ,

money and o t h e r r e s o u r c e s i n d e v e l o p i n g , p a t e n t i n g ,

t r a d e m a r k i n g , c o p y r i g h t i n g , a d v e r t i s i n g and m a r k e t i n g t h e Gear

Ring® and expects t o g a i n a s i g n i f i c a n t economic advantage fr o m

i t s e f f o r t s .

98. Defendant has i n t e r f e r e d w i t h t h i s economic advantage

by s e l l i n g , o f f e r i n g t o s e l l , d i s t r i b u t i n g , m a r k e t i n g and

a d v e r t i s i n g c o u n t e r f e i t gear r i n g p r o d u c t s t h a t he has purchased

f r o m China.

99. Defendant's s a l e and a d v e r t i s i n g o f c o u n t e r f e i t gear

r i n g p r o d u c t s and h i s i n t e r f e r e n c e w i t h P l a i n t i f f s p r o s p e c t i v e

economic advantage has been done w i t h o u t j u s t i f i c a t i o n o r

excuse.

27

100. Defendant has purchased these c o u n t e r f e i t "gear r i n g "

p r o d u c t s f r o m a f a c t o r y i n China f o r l e s s t h a n o n e - t e n t h (1/10)

t h e c o s t o f an a c t u a l Gear Ring® and i s r e - s e l l i n g these

c o u n t e r f e i t p r o d u c t s t o consumers i n t h e U n i t e d S t a t e s f o r l e s s

t h a n h a l f t h e p r i c e o f a genuine Gear Ring®.

101. I f Defendant was n o t s e l l i n g c o u n t e r f e i t gear r i n g

p r o d u c t s , a l l consumers w i s h i n g t o purchase a Gear Ring® would

do so f r o m P l a i n t i f f , t h e r i g h t f u l and t r u e owner o f t h e Gear

Ring® Patent and Trademark, and P l a i n t i f f would t h e r e b y g a i n a l l

these customers and an economic advantage.

102. As a r e s u l t o f Defendant's i n t e r f e r e n c e w i t h

P l a i n t i f f ' s p r o s p e c t i v e economic advantage, P l a i n t i f f has

s u f f e r e d and w i l l c o n t i n u e t o s u f f e r u n q u a n t i f i a b l e damages.


i r r e p a r a b l e i n j u r y due t o t h e Defendant's i n t e r f e r e n c e w i t h

p r o s p e c t i v e economic advantage i f Defendant i s not p r e l i m i n a r i l y

and permanently e n j o i n e d f r o m such conduct.

COUNT V I I I

U n j u st Enrichment


c o n t a i n e d i n paragraphs 1 t h r o u g h 103 above and i n c o r p o r a t e s

them as i f f u l l y s e t f o r t h a t l e n g t h h e r e i n .

105. Defendant p r o f i t s f r o m t h e s a l e , o f f e r f o r s a l e ,

d i s t r i b u t i o n , m a r k e t i n g and a d v e r t i s i n g o f c o u n t e r f e i t gear r i n g

28

p r o d u c t s t h a t a r e e x a c t d u p l i c a t e s o f P l a i n t i f f s p a t e n t e d Gear

Ring®.

106. Defendant t h e r e f o r e r e c e i v e s a b e n e f i t f r o m t h e

d u p l i c a t i o n and s a l e o f P l a i n t i f f s p a t e n t e d p r o d u c t , use o f t h e

trademarked "Gear Ring®" name and m i s a p p r o p r i a t i o n o f

P l a i n t i f f s c o p y r i g h t e d images.

107. Defendant has been u n j u s t l y e n r i c h e d by h i s s a l e o f

c o u n t e r f e i t p r o d u c t s , use o f t h e Gear Ring® name and use o f

P l a i n t i f f s images, a l l t o t h e d e t r i m e n t o f P l a i n t i f f .

108. I t would be u n j u s t f o r Defendant t o r e t a i n t h i s

b e n e f i t and Defendant s h o u l d not be p e r m i t t e d t o reap t h e

b e n e f i t s o f t h i s w r o n g f u l conduct.

109. As a r e s u l t o f Defendant's conduct, P l a i n t i f f has

s u f f e r e d and w i l l c o n t i n u e t o s u f f e r u n q u a n t i f i a b l e damages.

PRAYER FOR RELIEF ON ALL COUNTS

WHEREFORE, P l a i n t i f f p r a y s f o r judgment and r e l i e f a g a i n s t

Defendant as f o l l o w s :

a. A d j u d g i n g t h e P l a i n t i f f ' s P a t e n t , Trademark and

C o p y r i g h t t o be v a l i d and e n f o r c e a b l e ;

b. A d j u d g i n g t h a t t h e Defendant has i n f r i n g e d P l a i n t i f f ' s

P a t e n t , Trademark and C o p y r i g h t and engaged i n t h e o t h e r

w r o n g f u l conduct s e t f o r t h above;

c. A d j u d g i n g t h a t Defendant's conduct was w i l l f u l and

i n t e n t i o n a l ;

29

d. That Defendant, and a l l persons o r e n t i t i e s a c t i n g i n

p r i v i t y , c o n c e r t o r p a r t i c i p a t i o n w i t h Defendant, e i t h e r

d i r e c t l y o r i n d i r e c t l y , be permanently e n j o i n e d f r o m i n f r i n g i n g ,

c o n t r i b u t i n g t o t h e i n f r i n g e m e n t o f , and/or i n d u c i n g t h e

i n f r i n g e m e n t o f t h e P a t e n t , Trademark and C o p y r i g h t , and

s p e c i f i c a l l y f r o m d i r e c t l y o r i n d i r e c t l y m a n u f a c t u r i n g , making,

u s i n g , m a r k e t i n g , d i s t r i b u t i n g , s e l l i n g o r o f f e r i n g f o r s a l e any

p r o d u c t embodying t h e d e s i g n o f t h e Patent d u r i n g t h e l i f e o f

th e P a t e n t , r e g a r d l e s s o f t h e name b e i n g used f o r such p r o d u c t ,

w i t h o u t t h e express w r i t t e n a u t h o r i t y o f t h e P l a i n t i f f and from

u s i n g t h e name "Gear Ring," o r any s i m i l a r name, o r any o f

P l a i n t i f f ' s c o p y r i g h t e d images i n c o n n e c t i o n w i t h t h e

manufacture, s a l e , o f f e r f o r s a l e , m a r k e t i n g and/or a d v e r t i s i n g ;

e. That Defendant, and a l l persons o r e n t i t i e s a c t i n g i n

p r i v i t y , c o n c e r t o r p a r t i c i p a t i o n w i t h Defendant, e i t h e r

d i r e c t l y o r i n d i r e c t l y , be r e q u i r e d t o i m m e d i a t e l y remove a l l

uses o f , r e f e r e n c e s t o , d e p i c t i o n s o f , o f f e r s f o r s a l e and

a d v e r t i s i n g o f t h e Gear Ring® p r o d u c t , r e g a r d l e s s o f t h e name by

which i t i s c a l l e d , and a l l uses o f t h e Gear Ring®name fr o m any

and a l l w e b s i t e s and/or URLs where such may appear i n c l u d i n g ,

b u t n ot l i m i t e d t o , A l i e x p r e s s . c o m , Alibaba.com, C r a i g s l i s t . c o m

and eBay.com;

f . That any I n t e r n e t s e r v i c e p r o v i d e r s , merchant account

p r o v i d e r s , o n l i n e m a r k e t p l a c e and shopping search engines and

30

w e b s i t e s , as w e l l as t h i r d - p a r t y p r o c e s s o r s and search engines,

i n c l u d i n g , b u t not l i m i t e d t o , A l i e x p r e s s . c o m , Alibaba.com,

C r a i g s l i s t . c o m and eBay.com, must, upon r e q u e s t o f P l a i n t i f f ,

i m m e d i a t e l y remove any and a l l l i s t i n g s by Defendant and/or

l i n k s t o h i s l i s t i n g s where c o u n t e r f e i t "gear r i n g " p r o d u c t s

and/or use o f t h e Gear Ring® name are b e i n g used, o f f e r e d f o r

s a l e , marketed and/or a d v e r t i s e d and t h a t a l l such l i s t i n g s be

de-indexed so t h a t t h e y no l o n g e r appear on any search and/or

removed fr o m any search r e s u l t s page; and t h a t a l l such I n t e r n e t

s e r v i c e p r o v i d e r s , merchant account p r o v i d e r s , o n l i n e

m a r k e t p l a c e and shopping search engines and w e b s i t e s , as w e l l as

t h i r d - p a r t y p r o c e s s o r s and search engines, must, upon r e q u e s t o f

P l a i n t i f f , i m m e d i a t e l y remove any and a l l l i s t i n g s by f u t u r e

i n f r i n g e r s and/or l i n k s t o t h e i r s i t e s where c o u n t e r f e i t "gear

r i n g " p r o d u c t s and/or use o f t h e Gear Ring®name are b e i n g used,

o f f e r e d f o r s a l e , marketed and/or a d v e r t i s e d , upon p r o o f by

P l a i n t i f f t h a t t h e f u t u r e i n f r i n g e r i s u s i n g , o f f e r i n g f o r s a l e ,

m a r k e t i n g and/or a d v e r t i s i n g a p r o d u c t t h a t i s an exact

d u p l i c a t e o f P l a i n t i f f ' s Gear Ring® and/or u s i n g t h e Gear Ring®

name;

g. That Defendant p r o v i d e an a c c o u n t i n g o f a l l p r o f i t s

d e r i v e d f r o m h i s p a t e n t , trademark and c o p y r i g h t i n f r i n g e m e n t

and s a l e s o f gear r i n g j e w e l r y , and t h a t Defendant pay such

31

p r o f i t s t o P l a i n t i f f , a l o n g w i t h a c t u a l damages s u f f e r e d by-

P l a i n t i f f , t r e b l e d ;

h. A l t e r n a t i v e l y , t h a t P l a i n t i f f be awarded damages i n t h e

amount o f Two Hundred F i f t y Thousand D o l l a r s ($250,000.00);

i . That Defendant be p r o h i b i t e d f r o m d e s t r o y i n g , a l t e r i n g ,

removing, h i d i n g o r o t h e r w i s e t a m p e r i n g w i t h any books o r

r e c o r d s t h a t c o n t a i n any i n f o r m a t i o n r e l a t i n g t o t h e

i m p o r t a t i o n , d i s t r i b u t i o n , s a l e , m a r k e t i n g and/or a d v e r t i s i n g o f

a l l p r o d u c t s t h a t i n f r i n g e on P l a i n t i f f ' s P a t e n t , Trademark

and/or C o p y r i g h t ;

j . That any t h i r d p a r t y p r o v i d i n g payment and r e l a t e d

s e r v i c e s f o r Defendant's s a l e o f i n f r i n g i n g "gear r i n g "

p r o d u c t s , i n c l u d i n g merchant account p r o v i d e r s , c r e d i t c a r d

companies, payment p r o v i d e r s and/or t h i r d p a r t y payment

p r o c e s s o r s p r o v i d i n g such s e r v i c e s f o r eBay and A l i e x p r e s s , such

as Paypal, A l i p a y , V i s a , M a s t e r c a r d , moneybookers, Maestro,

Solo, Carte Bleue, C a r t a S i and PostePay, i m m e d i a t e l y cease

r e n d e r i n g such s e r v i c e s f o r purchase o r s a l e s o f gear r i n g

p r o d u c t s and s h a l l , upon r e c e i v i n g n o t i c e o f an a p p l i c a b l e

Order, d e l i v e r t o P l a i n t i f f , o r i t s r e p r e s e n t a t i v e , c o p i e s o f

a l l documents and r e c o r d s r e l a t i n g t o Defendant's purchase o r

s a l e o f "gear r i n g " p r o d u c t s ;

k. That Defendant pay P l a i n t i f f i t s reasonable a t t o r n e y s '

fees and c o s t s p u r s u a n t t o 15 U.S.C. §1117(a);

32

1. A d j u d g i n g t h a t t h i s case be deemed e x c e p t i o n a l ;

m. A d j u d g i n g t h a t Defendant be o r d e r e d t o d e l i v e r t o

P l a i n t i f f , f o r d e s t r u c t i o n a t P l a i n t i f f ' s o p t i o n , a l l p r o d u c t s

t h a t i n f r i n g e t h e P a t e n t ; and,

n. Such o t h e r r e l i e f as t h e c o u r t deems j u s t and p r o p e r .

Dated: November 9, 2012 Angela V i d a l , Esq. A t t o r n e y f o r P l a i n t i f f , K i n e k t Design, LLC

/s Angela V i d a l By: Angela V i d a l , Esq. 201 S t r y k e r s Road S u i t e 19-155 P h i l l i p s b u r g , New Jersey 08865 Telephone (908)884-1841 F a c s i m i l e (908)859-3201

33

LOCAL C I V I L RULE 11.2 CERTIFICATION

I c e r t i f y t h a t , t o t h e b e s t o f my knowledge, t h e m a t t e r i n

c o n t r o v e r s y i s not t h e s u b j e c t o f any o t h e r pending o r

a n t i c i p a t e d l i t i g a t i o n i n any c o u r t o r a r b i t r a t i o n p r o c e e d i n g ,

nor are t h e r e any n o n - p a r t i e s known t o P l a i n t i f f t h a t s h o u l d be

j o i n e d i n t h i s a c t i o n . I n a d d i t i o n , I r e c o g n i z e a c o n t i n u i n g

o b l i g a t i o n d u r i n g t h e course o f t h i s l i t i g a t i o n t o f i l e and t o

serve on a l l o t h e r p a r t i e s and w i t h t h e Court an amended

c e r t i f i c a t i o n i f t h e r e i s a change i n t h e f a c t s s t a t e d i n t h i s

o r i g i n a l c e r t i f i c a t i o n .


/s Angela V i d a l ____ By: Angela V i d a l , Esq.

LOCAL C I V I L RULE 201.1 CERTIFICATION

I hereby c e r t i f y t h a t t h e above-captioned m a t t e r i s not

s u b j e c t t o compulsory a r b i t r a t i o n i n t h a t d e c l a r a t o r y and

i n j u n c t i v e r e l i e f i s sought.


/s Angela V i d a l By: Angela V i d a l , Esq.

34

V E R I F I C A T I O N

1. I , Glen Liberman, o f f u l l age, hereby v e r i f y and s t a t e

t h a t I am the i n v e n t o r and h o l d e r o f U n i t e d S t a t e s Patent Number

D639,199 and the s o l e member o f P l a i n t i f f , K i n e k t Design, LLC.

2. I have f u l l knowledge o f a l l the f a c t s and circumstances

r e g a r d i n g t h i s m a t t e r .

3. I have read the f o r e g o i n g V e r i f i e d Complaint and v e r i f y

t h a t the cont e n t s t h e r e o f are t r u e based on my own pe r s o n a l

knowledge, except as t o any m a t t e r s s t a t e d upon i n f o r m a t i o n and

b e l i e f , and as t o those m a t t e r s , I b e l i e v e them t o be t r u e based

on t he i n f o r m a t i o n a v a i l a b l e t o me.

4. 1 hereby v e r i f y under p e n a l t y o f p e r j u r y t h a t t he

f o r e g o i n g statements made by me are t r u e and c o r r e c t and I am

aware t h a t i f any o f the f o r e g o i n g statements made by me are

found t o be w i l l f u l l y f a l s e , I am s u b j e c t t o punishment.

Glen Liberman

Sworn and sub s c r i b e d b e f o r e me on t h i s |2-y~4ay ofNovember, 2012

My commission expires

AlAN W. PERLBERG NOIARY PU8UC0P NEW JERSEY My Commissi Expires Feb. 15,2015

ID #2071681

35

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