Speculative Prods. v. Mattson - Complaint

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    COMPLAINT FOR DAMAGES

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    JOHNSON & PHAM, LLPChristopher D. Johnson, SBN: 222698

    E-mail: [email protected] Q. Pham, SBN: 206697

    E-mail: [email protected] Q. Pham, SBN: 276613

    E-mail:[email protected]

    6355 Topanga Canyon Boulevard, Suite 326Woodland Hills, California 91367Telephone: (818) 888-7540Facsimile: (818) 888-7544

    Attorneys for PlaintiffSPECULATIVE PRODUCT DESIGN, LLC, dba

    SPECK PRODUCTS

    UNITED STATES DISTRICT COURT

    CENTRAL DISTRICT OF CALIFORNIA

    SPECULATIVE PRODUCT DESIGN,LLC, dba SPECK PRODUCTS, aCalifornia Limited Liability Company,

    Plaintiff,

    vs.

    PATRICK MATTSON, an Individual;STU DISTRIBUTION SERVICES,LLC, a Texas Limited LiabilityCompany; MD5 TECHNOLOGIES, a

    business entity of unknown status; and

    DOES 1-10, Inclusive,

    Defendants

    Case No.:

    COMPLAINT FOR DAMAGES

    AND DECLARATORY RELIEF:

    (1)FEDERAL TRADEMARK

    INFRINGEMENT [15 U.S.C.

    1114/Lanham Act 43(a)]

    (2)FALSE DESIGNATION OF

    ORIGIN/UNFAIR

    COMPETITION/FALSE OR

    MISLEADING ADVERTISING

    [15 U.S.C. 1125(a)];

    (3)

    TRADEMARK DILUTION [15U.S.C. 1125(c)];

    (4)UNFAIR BUSINESS

    PRACTICES [CALIFORNIA

    BUSINESS & PROFESSIONS

    CODE 17200];

    (5)FEDERAL COPYRIGHT

    INFRINGEMENT [17 U.S.C.

    Case 2:14-cv-06465-ODW-PLA Document 1 Filed 08/18/14 Page 1 of 23 Page ID #:1

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    COMPLAINT FOR DAMAGES

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    501(a)];

    (6)COMMON LAW COPYRIGHT

    INFRINGEMENT

    [CALIFORNIA CIVIL CODE

    980 ET SEQ., AND

    CALIFORNIA COMMONLAW]

    (7)FEDERAL DESIGN PATENT

    INFRINGEMENT [35 U.S.C.

    271]

    DEMAND FOR JURY TRIAL

    COMES NOW, Plaintiff SPECULATIVE PRODUCT DESIGN, LLC, dba

    SPECK PRODUCTS (hereinafter Plaintiff and/or SPECK), hereby alleges as

    follows:

    PARTIES

    1. Plaintiff, is now, and was at the time of the filing of this Complaint,

    and at all intervening times, a California Limited Liability Company, duly

    authorized and licensed to conduct business in the State of California, with its

    principal place of business located in San Mateo, California.

    2. Plaintiff alleges, on information and belief, that Defendant PATRICK

    MATTSON (Defendant MATTSON), is now and was at the time of the filing of

    this Complaint, an individual doing business in McKinney, Texas. Plaintiff

    further alleges, on information and belief, that Defendant MATTSON is the owner

    and operator of STU DISTRIBUTION SERVICES, LLC, and the business ofunknown status MD5 TECHNOLOGIES.

    3. Plaintiff alleges, on information and belief, that Defendant STU

    DISTRIBUTION SERVICES, LLC (Defendant STU), is now and was at the

    time of the filing of this Complaint, a Texas Limited Liability Company owned by

    Defendant MATTSON, doing business at the address of 194 Industrial Boulevard,

    Case 2:14-cv-06465-ODW-PLA Document 1 Filed 08/18/14 Page 2 of 23 Page ID #:2

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    COMPLAINT FOR DAMAGES

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    Suite 102, McKinney, Texas.

    4. Plaintiff alleges, on information and belief, that Defendant MD5

    TECHNOLOGIES (Defendant MD5, collectively Defendants), is now and

    was at the time of the filing of this Complaint, a business entity of unknown statusthat is a subsidiary of Defendant STU and is also owned by Defendant

    MATTSON, doing business at the address of 194 Industrial Boulevard, Suite 102,

    McKinney, Texas.

    5. Defendants conduct business in the jurisdiction of the United States

    District Court for the Central District of California by offering counterfeits goods

    for sale in Los Angeles, California, that infringes on Plaintiffs registered

    trademarks, copyright, and patent.

    6. The true names and capacities, whether individual, corporate,

    associate or otherwise, of Defendants herein named as DOES 1-10, inclusive, are

    unknown to Plaintiff. Plaintiff therefore sues said Defendants by such fictitious

    names. When the true names and capacities of said Defendants have been

    ascertained, Plaintiff will amend this pleading accordingly.

    7.

    Plaintiff further alleges that Defendants, and DOES 1-10, inclusive,

    sued herein by fictitious names are jointly, severally and concurrently liable and

    responsible with the named Defendant upon the causes of action hereinafter set

    forth.

    8. Plaintiff is informed and believes and thereon alleges that at all times

    mentioned herein Defendants, and DOES 1-10, inclusive, and each of them, were

    the agents, servants and employees of every other Defendant and the acts of eachdefendant, as alleged herein, were performed within the course and scope of that

    agency, service or employment.

    JURISDICTION/VENUE

    9. This Court has Federal subject matter jurisdiction over this matter

    pursuant to 28 U.S.C. 1331 and 1338(a) and (b), in that the case arises out of

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    COMPLAINT FOR DAMAGES

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    claims for trademark infringement, false designation of origin, unfair competition

    and dilution under the Lanham Act (15 U.S.C. 1051 et seq.), and copyright

    infringement under the Copyright Act (17 U.S.C. 501(a)); and this Court has

    supplemental jurisdiction pursuant to 28 U.S.C. 1367(a) and 1338 (a)(b).10. This Court has personal jurisdiction over Defendants since

    Defendants have committed the tortious and illegal activities of trademark

    infringement, copyright infringement, patent infringement, and unfair competition

    in this district and/or Defendants have sufficient minimum contacts with this

    district such that the exercise of jurisdiction over Defendants by this Court does

    not offend traditional notions of fair play and substantial justice. Among other

    things, Defendants have advertised, offered to sell and have sold products that

    infringe the trademarks of Plaintiff to consumers within this judicial district.

    Defendants have also offered to sell and actually sold counterfeit products

    (described more fully below) using an interactive internet website and knowing or

    having reason to know that consumers throughout the United States, including

    within this judicial district, would purchase said counterfeit goods from

    Defendants, believing that they were authentic goods manufactured and

    distributed by Plaintiff or its authorized manufacturers.

    11. Additionally, supplemental jurisdiction exists over Defendants

    because, on information and belief, Defendants conduct business in California and

    in this judicial district, have purposefully directed action to California and this

    district, or have otherwise availed themselves of the privileges and protections of

    the laws of the State of California, such that this Courts assertion of jurisdictionover Defendants does not offend traditional notions of fair play and due process.

    12. Venue is proper, inter alia, pursuant to 28 U.S.C. 1391(b) because

    on information and belief, a substantial part of the events or omissions giving rise

    to the claim occurred in this judicial district, and has caused damages to Plaintiff

    in this district. The counterfeit Speck-branded products were purchased from

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    COMPLAINT FOR DAMAGES

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    California and Defendants purposefully shipped these counterfeit products into

    California. Defendants actions within this district directly interfere with and

    damage Plaintiffs commercial efforts and endeavors and harms Plaintiffs

    goodwill within this venue. Additionally, Plaintiff conducts a substantial businesswithin this venue.

    GENERAL ALLEGATIONS

    Plaintiff and its Famous Speck-Branded Products

    13. Plaintiff is a privately held U.S. corporation founded in Palo Alto

    California in 2001 as a form fit cellular telephone case company. Plaintiff creates

    cases for the mobile accessories market.

    14.

    Plaintiff is one of the leading companies in their industry and has

    gained numerous awards and recognition for its innovative products and designs.

    15. Plaintiff is one of the worlds leading manufacturers of protective

    carrying cases for electronic devices, including but not limited to, portable

    electronic listening devices and music players, namely, mp3 players, and for

    portable computers, global positioning systems (GPS devices), mobile and cellular

    telephones, portable media players, and personal digital assistants.

    16. Plaintiff develops and manufactures protective carrying cases for

    products such as the Apple iPhone, Apple iPad, Apple iPod, Apple

    MacBook, Notebook bags and sleeves, Smartphones including Blackberry,

    HTC, Sharp, Samsung, and Motorola models, TomTom GPS navigation

    devices, portable hard drives such as WD My Passport Elite/Essential, and the

    Kindle 3.17. Plaintiff is continually striving to discover and develop new,

    advanced technologies and designs to meet the needs of the ever-advancing

    consumer electronics industry. Plaintiff offers over 250 products and is sold in

    over 75 countries worldwide.

    / / /

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    COMPLAINT FOR DAMAGES

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    18. Plaintiff has spent substantial time, money and effort in developing

    consumer recognition and awareness of its marks. Through the extensive use of

    the Plaintiffs marks, Plaintiff has built up and developed significant goodwill in

    its entire product line. A wide array of newspapers, magazines and televisionnetworks has included advertising of Plaintiffs products, which are immediately

    identified by Plaintiffs marks.

    19. Plaintiff is the exclusive owner of federally-registered and Common

    law trademarks. The following is a partial (non-exhaustive) list of the registered

    trademarks owned by Plaintiff:

    A. SPECK, registered trademark number 3,663,010, registered on

    August 4, 2009, for use on or in connection with protective carrying cases for

    portable electronic listening devices and music players, namely, mp3 players, and

    for portable computers, global positioning systems (GPS devices), mobile and

    cellular telephones, portable media players, and personal digital assistants, in

    Class 9 (U.S. CLS. 21, 23, 26, 36 and 38);

    B. [Design Mark], registered trademark number 3,666,082,

    registered on August 11, 2009, consisting of an asterisk between parentheses

    followed by the word SPECK in stylized letters; for use on or in connection

    with protective carrying cases for portable electronic listening devices and music

    players, namely, mp3 players, and for portable computers, global positioning

    systems (GPS devices), mobile and cellular telephones, portable media players,

    and personal digital assistants, in Class 9 (U.S. CLS. 21, 23, 26, 36 and 38);

    C.

    [Design Mark], registered trademark number 3,666,072,registered on August 11, 2009, consisting of an asterisk between parentheses; for

    use on or in connection with protective carrying cases for portable electronic

    listening devices and music players, namely, mp3 players, and for portable

    computers, global positioning systems (GPS devices), mobile and cellular

    telephones, portable media players, and personal digital assistants, in Class 9 (U.S.

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    COMPLAINT FOR DAMAGES

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    CLS. 21, 23, 26, 36 and 38);

    D. CANDYSHELL, registered trademark number 3,817,709,

    registered on July 13, 2010, for use on or in connection with protective carrying

    cases for mp3 players, mobile and cellular telephones, portable media players, andpersonal digital assistants in Class 9 (U.S. CLS. 21, 23, 26, 36 and 38);

    Attached hereto as Exhibits A-D are true and correct copies of the

    certificates of registration for each of the Marks that are federally-registered

    (hereinafter Plaintiffs Marks).

    20. Plaintiff is also the owner of several international trademarks in the

    following locations: Canada, New Zealand, Republic of Korea, Malaysia,

    European Community, Hong Kong, Intl Registration Madrid Protocol, Taiwan,

    Australia, Singapore, Japan, Russian Federation, Thailand, and the Peoples

    Republic of China.

    21. Plaintiff is also the exclusive owner of federally-registered and

    common law copyrights related to and used in connection with the distribution of

    its SPECKbranded products, with the following (non-exhaustive) copyright

    names, registration numbers, and registration dates: (hereinafter Plaintiffs

    Copyright)

    A. Fitted Arts Projekt iPhone 3 Core, VA1778313 (Registered

    May 27, 2011);

    B. PixelSkin iPhone 4 Apple, VA1778433 (Registered May 27,

    2011);

    C.

    GeoMetric iPhone 4 Apple, VA1778429 (Registered May 272011);

    D. Fitted iPhone 4 Core, VA 1778411 (Registered May 27,

    2011);

    E. Fitted iPhone 3 Core, VA1778403 (Registered June 3, 2011)

    Case 2:14-cv-06465-ODW-PLA Document 1 Filed 08/18/14 Page 7 of 23 Page ID #:7

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    COMPLAINT FOR DAMAGES

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    F. ToughSkin iPhone 3 Core, VA1778414 (Registered June 3,

    2011);

    G. SeeThru iPhone 3 Core, VA1778421 (Registered June 3,

    2011);H. CandyShell iPhone 3 Core, VA1778406 (Registered June 3,

    2011);

    I. SeeThru Satin iPhone 4 Core, VA1778423 (Registered June

    3, 2011);

    J. SeeThru Satin iPhone 3 Core, VA1791177 (Registered May

    27, 2011);

    K.

    SeeThru iPhone 4 Core, VA1778418 (Registered June 3,

    2011);

    L. Fitted Burton iPhone 4, VA1778646 (Registered June 3,

    2011);

    M. Fitted iPhone 4 Apple, VA1778642 (Registered June 3,

    2011);

    N.

    ToughSkin iPhone 4 Core, VA1791169 (Registered May 27,

    2011);

    O. PixelSkin iPhone 4 Core, VA1791185 (Registered May 27,

    2011);

    P. Fitted Flex iPhone 4 Core, VA1791188 (Registered May 27,

    2011);

    Q.

    SeeThru Satin iPhone 4 Apple, VA1791189 (RegisteredMay 27, 2011);

    R. CANDYSHELL FOR iPHONE 4, VA1772394 (Registered

    May 6, 2011);

    S. Fitted Flex iPhone 4 Apple, VA1791186 (Registered May 27

    2011);

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    COMPLAINT FOR DAMAGES

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    T. ToughSkin iPhone 4 Apple, VA1791180 (Registered May

    27, 2011);

    U. GeoMetric iPhone 4 Core, VA1791182 (Registered May 27,

    2011);V. ToughShell iPhone 4 Core, VA1791178 (Registered May 27

    2011);

    W. iPhone 5 ShieldView Envelope, VA1879078 (Registered

    November 20, 2012);

    X. iPhone 5 GemShell Core 2 Wedge 2- Cardstock, VA1879027

    (Registered November 20, 2012);

    Y.

    iPhone 5 CandyShell Core2 Wedge2- Cardstock, VA1879028

    (Registered November 20, 2012);

    Z. iPhone 5 SmartFlex CARD Core2 Wedge2- Cardstock,

    VA1879029 (Registered November 20, 2012);

    AA. iPhone 5 CandyShell FLIP Core2 Wedge2- Cardstock,

    VA1879012 (Registered November 20, 2012);

    BB.

    iPhone 5 CandyShell GRIP Core2 Wedge2- Cardstock,

    VA1879031 (Registered November 20, 2012);

    CC. iPhone 5 CandyShell SATIN Core2 Wedge2- Cardstock,

    VA1879076 (Registered November 20, 2012);

    DD. iPhone 5 SmartFlex View Core2 Wedge2- Cardstock,

    VA1879010 (Registered November 20, 2012);

    EE.

    iPhone 5 FabShell Core2 Wedge2 - Cardstock, VA1879074(Registered November 20, 2012);

    FF. iPhone 5 PixelSkin Core2 Wedge2 - Cardstock, VA1879056

    (Registered November 20, 2012);

    GG. iPhone 5 PixelSkin HD Core2 Wedge2 - Cardstock,

    VA1879051 (Registered November 20, 2012);

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    COMPLAINT FOR DAMAGES

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    HH. iPhone 5 FabShell Burton Core2 Wedge2 - Cardstock,

    VA1879040 (Registered November 20, 2012);

    II. iPhone 5 CandyShell Apple Packaging Milk Carton,

    VA1879009 (Registered November 20, 2012);JJ. iPhone 5 GemShell Apple Packaging Milk Carton,

    VA1879038 (Registered November 20, 2012);

    KK. iPhone 5 CandyShell Card Apple Packaging Milk Carton,

    VA1879036 (Registered November 20, 2012);

    LL. iPhone 5 ToughSkin Apple 2 Carton- Cardstock, VA1879035

    (Registered November 20, 2012);

    MM.

    iPhone 5 SmartFlex Apple Packaging Milk Carton,

    VA1879034 (Registered November 20, 2012); and

    NN. iPhone 5 SmartFlex Shine Apple Packaging Milk Carton,

    VA1879013 (Registered November 20, 2012);

    22. Additionally, Plaintiff owns a valid and lawfully issued United States

    Design Patent, patent no. US 8,204,561 B2, for its one piece co-formed exterior

    hard shell case with an elastomeric liner for mobile electronic devices (Design

    Patent). Attached hereto as Exhibit E is a true and correct copy of the

    registration certificate and design drawing.

    Defendants Wrongful and Infringing Conduct

    23. Defendants use, amongst other things, the Internet auction website

    known as www.ebay.com (eBay) to sell and distribute products, including

    counterfeit hard goods bearing Plaintiffs Marks, Copyrights, and Design Patentdescribed above, to consumers. At any given time, there are millions of items

    listed on eBay.com for purchase by its more than 200 million registered users.

    24. Beginning on a date that is currently unknown to Plaintiff and

    continuing to the present, Defendants have, without the consent of Plaintiff,

    offered to sell and sold within the United States (including within this judicial

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    COMPLAINT FOR DAMAGES

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    district) goods that were neither made by Plaintiff nor by a manufacturer

    authorized by Plaintiff (such goods are hereafter referred to as Counterfeit

    Good(s)) using reproductions, counterfeits, copies and/or colorable imitations of

    one or more of the subject Marks, Federally-Registered Copyrights, Common-Law Copyrights, and/or Design Patent. On information and belief, Plaintiff

    further alleges that Defendants imported said Counterfeit Goods into the United

    States, or encouraged others to import said Counterfeit Goods into the United

    States, for the purpose of reselling the Counterfeit Goods in the United States.

    25. Defendants own and operate web stores on eBay using the seller IDs

    drsmartphonesgroup and md5technologies. Through these web stores,

    Defendants regularly and systematically advertised, marketed, distributed and sold

    products bearing unauthorized Speck registered trademarks.

    26. On or about January 29, 2013, Plaintiff purchased a purported

    IPHONE 5 SPECK CANDYSHELL WHITE / BLUE COLOR. NEW, USA

    SELLER (Item #300852917445) from Defendants eBay seller ID

    drsmartphonesgroup, for a cost of $13.53, shipping inclusive, charged to the

    PayPal electronic payment account of Plaintiff. Plaintiffs PayPal electronic

    payment receipt clearly identifies Plaintiffs payment was made to STU

    Distribution Services (Defendant STU), with a Customer Service URL of

    http://www.md5tech.com (Defendant MD5), and PayPal ID

    [email protected]. The Counterfeit Good was shipped into Los

    Angeles, California within this Courts jurisdiction and was received with

    shipping label identifying the seller as Patrick Mattson (Defendant MATTSON)in the return address. A true and correct copy of the PayPal electronic payment

    receipt is attached hereto as Exhibit F. A true and correct copy of the shipping

    label identifying the seller Defendant MATTSON in the return address is attached

    hereto as Exhibit G.

    / / /

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    COMPLAINT FOR DAMAGES

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    27. The purported IPHONE 5 SPECK CANDYSHELL WHITE / BLUE

    COLOR. NEW, USA SELLER (Item #300852917445) purchased from

    Defendants was inspected by Plaintiff to determine authenticity. Plaintiffs

    inspection of the purchased item using security measures confirmed that the itemDefendants sold to Plaintiff was in fact a counterfeit Speck-branded product.

    28. On or about January 29, 2013, Plaintiff purchased a purported

    IPHONE 5 SPECK CANDYSHELL DEEP VIOLET / AQUA COLOR. NEW,

    USA SELLER (Item #271164615042) from Defendants eBay seller ID

    md5technologies, for a cost of $18.75, shipping inclusive, charged to the PayPal

    electronic payment account of Plaintiff. Plaintiffs PayPal electronic payment

    receipt clearly identifies Plaintiffs payment was made to STU Distribution

    Services (Defendant STU), with a Customer Service URL of

    http://www.md5tech.com (Defendant MD5), and PayPal ID

    [email protected]. The Counterfeit Good was shipped into Los

    Angeles, California within this Courts jurisdiction and was received with

    shipping label identifying the seller as MD5 TECHNOLOGIES (Defendant

    MD5) in the return address. A true and correct copy of the PayPal electronic

    payment receipt is attached hereto as Exhibit H. A true and correct copy of the

    shipping label identifying the seller Defendant MD5 in the return address is

    attached hereto as Exhibit I.

    29. The purported IPHONE 5 SPECK CANDYSHELL DEEP VIOLET

    / AQUA COLOR. NEW, USA SELLER (Item #271164615042) purchased from

    Defendants was inspected by Plaintiff to determine authenticity. Plaintiffsinspection of the purchased item using security measures confirmed that the item

    Defendants sold to Plaintiff was in fact a counterfeit Speck-branded product.

    30. Defendants intentionally and knowingly accepted Plaintiffs money

    from a financial institution located in the State of California.

    / / /

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    COMPLAINT FOR DAMAGES

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    31. Defendants also intentionally and knowingly delivered the

    counterfeit products into the State of California.

    32. Through such business activities, Defendants purposely derived

    benefit from their interstate commerce activities by expressly targetingforeseeable purchasers in the State of California. But for Defendants advertising,

    soliciting and selling of counterfeit Speck-branded products, Plaintiff would not

    have been able to make a purchase of the subject products.

    33. Defendants use images and names confusingly similar or identical to

    Plaintiffs Marks to confuse consumers and aid in the promotion and sales of its

    unauthorized and counterfeit product. Defendants use of Plaintiffs Marks,

    Copyright, and Design Patent include importing, advertising, displaying,

    distributing, selling and/or offering to sell Counterfeit Goods.

    34. Defendants use began long after Plaintiffs adoption and use of its

    trademarks, and after Plaintiff obtained the trademark and copyright registrations

    alleged above. Neither Plaintiff nor any authorized agents have consented to

    Defendants use of Plaintiffs Marks, Federally-Registered Copyrights, Common-

    Law Copyrights, and/or Design Patent.

    35. Defendants actions have confused and deceived, or threatened to

    confuse and deceive, the consuming public concerning the source and sponsorship

    of the counterfeit Speck products sold and distributed by Defendants. By their

    wrongful conduct, Defendants have traded upon and diminished Plaintiffs

    goodwill. Furthermore, the sale and distribution of Counterfeit Goods by

    Defendants have infringed upon Plaintiffs Marks, Federally-RegisteredCopyrights, Common-Law Copyrights, and/or Design Patent.

    36. Defendants offering to sell, selling, importing and encouraging

    others to import Counterfeit Goods in this manner was and is likely to cause

    confusion or to cause mistake and/or to deceive consumers who purchase the

    Counterfeit Goods. Defendants also offered to sell, sold, imported, and/or

    Case 2:14-cv-06465-ODW-PLA Document 1 Filed 08/18/14 Page 13 of 23 Page ID #:13

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    COMPLAINT FOR DAMAGES

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    encouraged others to import for purpose of resale within the United States

    Counterfeit Goods consisting of reproductions and/or copies of products bearing

    Plaintiffs Marks, Federally-Registered Copyrights, Common-Law Copyrights,

    and Design Patent. Defendants use of such Marks, Federally-RegisteredCopyrights, Common-Law Copyrights, and Design Patent was done without

    Plaintiffs authorization.

    FIRST CAUSE OF ACTION

    (Trademark Infringement Against Defendant PATRICK MATTSON,

    Defendant STU DISTRIBUTION SERVICES, LLC, Defendant MD5

    TECHNOLOGIES, and DOES 1-10, Inclusive)

    [15 U.S.C. 1114/Lanham Act 43(a)]

    37. Plaintiff hereby incorporates by reference each of the other

    allegations set forth elsewhere in this Complaint as though fully set forth in this

    cause of action.

    38. Defendants actions as described herein constitute direct and/or

    contributory trademark infringement in violation of 15 U.S.C. 1114(1)(a).

    39.

    As a proximate result of Defendants trademark infringement,

    Plaintiff has been damaged in an amount to be proven at trial. Further, Plaintiff

    alleges on information and belief that, as a proximate result of Defendants

    trademark infringement, Defendants have unlawfully profited in an amount to be

    proven at trial.

    40. At all relevant times, Defendants acted intentionally and/or willfully

    in using the Marks on the Counterfeit Goods, knowing that said Marks belongedto Plaintiff, that the Counterfeit Goods were in fact counterfeit, and that

    Defendants were not authorized to use said Marks on the Counterfeit Goods.

    Plaintiff is therefore entitled to recovery of treble damages pursuant to 15 U.S.C.

    1117(a). Further, Defendants knowing, intentional and/or willful actions make

    this an exceptional case, entitling Plaintiff to an award of reasonable attorney fees

    Case 2:14-cv-06465-ODW-PLA Document 1 Filed 08/18/14 Page 14 of 23 Page ID #:14

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    COMPLAINT FOR DAMAGES

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    pursuant to 15 U.S.C. 1117(a).

    41. Defendants actions also constitute the use by Defendants of one or

    more counterfeit mark as defined in 15 U.S.C. 1116(d)(1)(B). Plaintiff

    therefore reserves the right to elect, at any time before final judgment is entered inthis case, an award of statutory damages pursuant to 15 U.S.C. 1117(c)(1)

    and/or (2).

    42. The acts of direct and/or contributory trademark infringement

    committed by Defendants have caused, and will continue to cause, Plaintiff

    irreparable harm unless they are enjoined by this Court.

    SECOND CAUSE OF ACTION

    (False Designation of Origin, False or Misleading Advertising Against

    Defendant PATRICK MATTSON, Defendant STU DISTRIBUTION

    SERVICES, LLC, Defendant MD5 TECHNOLOGIES, and DOES 1-10,

    Inclusive)

    [15 U.S.C. 1125 (a)]

    43. Plaintiff hereby incorporates by reference each of the other

    allegations set forth elsewhere in this Complaint as thought fully set forth in this

    cause of action.

    44. Defendants actions as described herein constitute direct and/or

    contributory violation of 15 U.S.C. 1125(a)(1)(A), as such actions are likely to

    cause confusion, or to cause mistake, or to deceive as to the affiliation,

    connection, or association of Defendants with Plaintiff and/or as to the origin,

    sponsorship, and/or approval of such Counterfeit Goods by Plaintiff.45. As a proximate result of Defendants violation as described herein,

    Plaintiff has been damaged in an amount to be proven at trial. Further, Plaintiff

    alleges on information and belief that, as a proximate result of defendants direct

    and/or contributory trademark infringement, Defendants have unlawfully profited,

    in an amount to be proven at trial.

    Case 2:14-cv-06465-ODW-PLA Document 1 Filed 08/18/14 Page 15 of 23 Page ID #:15

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    COMPLAINT FOR DAMAGES

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    46. Defendants acts of violating, directly and/or contributorily, Section

    1125 have caused, and will continue to cause, Plaintiff irreparable harm unless

    they are enjoined by this Court.

    THIRD CAUSE OF ACTION

    (Trademark Dilution Against Defendant PATRICK MATTSON, Defendant

    STU DISTRIBUTION SERVICES, LLC, Defendant MD5

    TECHNOLOGIES, and DOES 1-10, Inclusive)

    [15 U.S.C. 1125(c)]

    47. Plaintiff hereby incorporates by reference each of the other

    allegations set forth elsewhere in this Complaint as though fully set forth in this

    cause of action.

    48. Plaintiffs Marks are distinctive and famous within the meaning of

    theLanham Act.

    49. Upon information and belief, Defendants unlawful actions began

    long after Plaintiffs Marks became famous, and Defendants acted knowingly,

    deliberately and willfully with the intent to trade on Plaintiffs reputation and to

    dilute Plaintiffs Marks. Defendants conduct is willful, wanton and egregious.

    50. Defendants intentional sale of fake, pirated and counterfeit items

    bearing Plaintiffs Marks is likely to cause confusion, mistake, or to deceive,

    mislead, betray, and defraud consumers to believe that the substandard imitations

    are genuine products manufactured by Plaintiff. The actions of Defendants

    complained of herein have diluted and will continue to dilute Plaintiffs Marks,

    and are likely to impair the distinctiveness, strength and value of PlaintiffsMarks, and injure the business reputation of Plaintiff and its marks.

    51. Defendants acts have caused and will continue to cause Plaintiff

    irreparable harm. Plaintiff has no adequate remedy at law to compensate it fully

    for the damages that have been caused and which will continue to be caused by

    Defendants unlawful acts, unless they are enjoined by this Court.

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    COMPLAINT FOR DAMAGES

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    52. As the acts alleged herein constitute a willful violation of section

    43(c) of the Lanham Act, 15 U.S.C. 1125(c), Plaintiff is entitled to injunctive

    relief as well as monetary damages and other remedies provided by 15 U.S.C.

    1116, 1117, 1118, and 1125(c), including Defendants profits, treble damages,reasonable attorneys fees, costs and prejudgment interest.

    FOURTH CAUSE OF ACTION

    (Unfair Competition Against Defendant PATRICK MATTSON, Defendant

    STU DISTRIBUTION SERVICES, LLC, Defendant MD5

    TECHNOLOGIES, and DOES 1-10, Inclusive)

    California Business & Professions Code 17200 et seq.

    53.

    Plaintiff hereby incorporates by reference each of the other

    allegations set forth elsewhere in this Complaint as thought fully set forth in this

    cause of action.

    54. Defendants actions described herein constitute unlawful, unfair

    and/or fraudulent business acts or practices. Defendants actions thus constitute

    unfair competition pursuant to California Business & Professions Code

    17200.

    55. As a proximate result of Defendants actions, Plaintiff has suffered

    an injury in fact, including without limitation, damages in an amount to be proven

    at trial, loss of money or property, and diminution in the value of its trademarks.

    Plaintiff therefore has standing to assert this claim pursuant to California Business

    & Professions Code 17204.

    56.

    Defendants actions have caused, and will continue to cause Plaintiffto suffer irreparable harm unless enjoined by this Court pursuant to California

    Business & Professions Code 17203. In addition, Plaintiff requests that the

    Court order that Defendants disgorges all profits wrongfully obtained as a result of

    Defendants unfair competition, and order that defendant pay restitution to

    Plaintiff in an amount to be proven at trial.

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    COMPLAINT FOR DAMAGES

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    FIFTH CAUSE OF ACTION

    (Federal Copyright Infringement Against Defendant PATRICK MATTSON,

    Defendant STU DISTRIBUTION SERVICES, LLC, Defendant MD5

    TECHNOLOGIES, and DOES 1-10, Inclusive)

    [17 U.S.C. 501(a)]

    57. Plaintiff hereby incorporates by reference each of the other

    allegationsset forth elsewhere in this Complaint as thought fully set forth in this

    cause of action.

    58. Plaintiff is the exclusive owner of copyrights in and related to its

    Speckbranded products packaging, having numerous applications relating to

    the same pending with the United States Copyright Office and possessing

    copyright registrations with the United States Copyright Office.

    59. Defendants did not seek and failed to obtain Plaintiffs consent or

    authorization to utilize, manufacture, reproduce, copy, display, prepare derivative

    works, distribute, sell, transfer, rent, perform, and/or market Plaintiffs copyright-

    protected materials.

    60.

    Without permission, Defendants intentionally and knowingly

    reproduced, counterfeited, copied, displayed, and/or manufactured Plaintiffs

    protected works by offering, advertising, promoting, retailing, selling, and

    distributing counterfeit Speck-branded products contained within product

    packaging which is at a minimum substantially similar to Plaintiffs copyright

    protected product packaging.

    61.

    Defendants acts as alleged herein, constitute infringement ofPlaintiffs copyright, including Plaintiffs exclusive rights to reproduce, distribute

    and/or sell such protected material.

    62. Defendants knowing and intentional copyright infringement as

    alleged herein has caused and will continue to cause substantial and irreparable

    harm to Plaintiff and has and will continue to cause damage to Plaintiff. Plaintiff

    Case 2:14-cv-06465-ODW-PLA Document 1 Filed 08/18/14 Page 18 of 23 Page ID #:18

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    COMPLAINT FOR DAMAGES

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    is therefore entitled to injunctive relief, damages, Defendants profits, increased

    damages, and reasonable attorneys fees and costs.

    SIXTH CAUSE OF ACTION

    (Common Law Copyright Infringement Against Defendant PATRICK

    MATTSON, Defendant STU DISTRIBUTION SERVICES, LLC, Defendant

    MD5 TECHNOLOGIES, and DOES 1-10, Inclusive)

    [California Civil Code980 et seq., and California Common Law]

    63. Plaintiff hereby incorporates by reference each of the other

    allegationsset forth elsewhere in this Complaint as thought fully set forth in this

    cause of action.

    64.

    At all times relevant herein, Plaintiff has held and still holds the

    exclusive rights under California law and common law to reproduce, distribute, or

    license the reproduction and distribution of the artwork, design, pictures,

    representation, model and patterns protected by Plaintiffs Common-Law

    Copyrights in any and all formats and mediums, throughout the United States.

    65. The artwork, design, pictures, representation, model and pattern of

    protected by Plaintiffs Common-Law Copyrights are original works in tangible

    form which have been widely disseminated and published since at least in or

    about September 2001.

    66. The conduct herein complained of was extreme, outrageous,

    fraudulent, and was inflicted on Plaintiff in reckless disregard of Plaintiffs

    rights. Defendants acts have irreparably harmed and continue to harm Plaintiffs

    exclusive proprietary rights and constitute common law copyright infringementand unfair competition. Defendants outrageous conduct supports an award of

    exemplary and punitive damages in an amount sufficient to punish and make an

    example of Defendants and to deter them from similar conduct in the future.

    67. Each infringing transfer, duplication, sale, rental, distribution, display

    and other exploitation of the artwork, design, pictures, representation, model and

    Case 2:14-cv-06465-ODW-PLA Document 1 Filed 08/18/14 Page 19 of 23 Page ID #:19

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    COMPLAINT FOR DAMAGES

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    patterns protected by Plaintiffs Common-Law Copyrights constitutes a separate

    claim against Defendants under common law copyright and California Civil Code

    980.

    SEVENTH CAUSE OF ACTION

    (Federal Design Patent Infringement Against Defendant PATRICK

    MATTSON, Defendant STU DISTRIBUTION SERVICES, LLC, Defendant

    MD5 TECHNOLOGIES, and DOES 1-10, Inclusive)

    [35 U.S.C. 71]

    68. Plaintiff hereby incorporates by reference each of the other

    allegations set forth elsewhere in this Complaint as though fully set forth in this

    cause of action.

    69. Plaintiff is the owner of the Design Patent with the USPTO

    Registration No.: US 8,204,561 B2. (SeeExhibit E, Design Patent hereto)

    70. Defendants have infringed and continue to infringe Plaintiffs Design

    Patent by using, selling and/or offering to sell, in the United States and/or

    importing into the United States, Counterfeit Goods which embody the designed

    covered by the Design Patent. Defendants infringing products include all of the

    ornamental designs in Plaintiffs Design Patent drawings. By its conduct,

    Defendants have violated 35 U.S.C. 271 by direct infringement of Plaintiffs

    Design Patent.

    71. On the basis allege, Defendants have gained profits by virtue of its

    infringement of the Design Patent.

    72.

    As a direct and legal result of Defendants wrongful conduct,Plaintiff has been and will be irreparably and permanently harmed; wherefore

    Plaintiff is without an adequate remedy at law. Accordingly, Plaintiff is entitled

    to, among other things, an order enjoining and restraining Defendants from further

    engaging in the infringement of the Design Patent.

    73. Defendants infringement of the Design Patent is and has been willful

    Case 2:14-cv-06465-ODW-PLA Document 1 Filed 08/18/14 Page 20 of 23 Page ID #:20

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    COMPLAINT FOR DAMAGES

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    Accordingly, Plaintiff is entitled to its monetary damages, in an amount to be

    proven at trial, and award of treble damages, and its reasonable attorneys fees and

    costs.

    REQUEST FOR RELIEF

    WHEREFORE, Plaintiff hereby respectfully requests the following relief

    against Defendant PATRICK MATTSON, Defendant STU DISTRIBUTION

    SERVICES, LLC, Defendant MD5 TECHNOLOGIES, and DOES 1-10,

    inclusive, and each of them as follows:

    1. An order and judgment preliminary and permanently enjoining

    Defendants and their officers, directors, agents, servants, employees,

    affiliates, attorneys, and all others acting in privity or in concert with

    them, and their parents, subsidiaries, divisions, successors and assigns

    from further acts of infringement of Plaintiffs asserted Design Patent;

    2. For an award of Plaintiffs damages and Defendants profits adequate to

    compensate Plaintiff for Defendants infringement of the Design Patent,

    and in no event less than a reasonable royalty for Defendants acts of

    infringement, including all pre-judgment and post-judgment interest as

    the maximum rate permitted by law;

    3. For an award of all damages, including treble damages, based on any

    infringement found to be willful, pursuant to 35 U.S.C. 284, together

    with prejudgment interest;

    4. For an award of all profits, pursuant to 35 U.S.C. 289 together with

    prejudgment interest;5. For an award of Defendants profits and Plaintiffs damages in an

    amount to be proven at trial for trademark infringement under 15 U.S.C.

    1114(a);

    6. For an award of Defendants profits and Plaintiffs damages in an

    amount to be proven at trial for false designation of origin and unfair

    Case 2:14-cv-06465-ODW-PLA Document 1 Filed 08/18/14 Page 21 of 23 Page ID #:21

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    COMPLAINT FOR DAMAGES

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    competition under 15 U.S.C. 1125(a);

    7. For $2,000,000.00 per counterfeit mark per type of goods sold, offered

    for sale, or distributed under 15 U.S.C. 1117(c);

    8.

    For an award of Defendants profits and Plaintiffs damages in anamount to be proven at trial for trademark dilution under 15 U.S.C.

    1125(c);

    9. In the alternative to actual damages and Defendants profits for the

    infringement and counterfeiting of Plaintiffs trademarks pursuant to the

    Lanham Act, for statutory damages pursuant to 15 U.S.C. 1117(c),

    which election Plaintiff will make prior to the rendering of final

    judgment;

    10.For restitution in an amount to be proven at trial for unfair, fraudulent

    and illegal business practices under Business and Professions Code

    17200;

    11.For damages to be proven at trial for common law unfair competition;

    12.For temporary, preliminary and permanent injunctive relief from this

    Court prohibiting Defendants from engaging or continuing to engage in

    the unlawful, unfair, or fraudulent business acts or practices described

    herein, including the advertising and/or dealing in any counterfeit

    product; the unauthorized use of any mark, copyright or other

    intellectual property right of Plaintiff; acts of trademark infringement or

    dilution; false designation of origin; unfair competition; and any other

    act in derogation of Plaintiffs rights;13.For an order from the Court requiring that Defendants provide complete

    accountings and for equitable relief, including that Defendants disgorge

    and return or pay their ill-gotten gains obtained from the illegal

    transactions entered into and or pay restitution, including the amount of

    monies that should have been paid if Defendants complied with their

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    legal obligations, or as equity requires;

    2 14.Fo r an order

    from th

    e Court

    th

    at an asset freeze or constructi

    ve tru

    st be

    3

    imposed over a ll monies and profits in Defendants possession which

    4

    rightfully belong

    to

    Pl

    aintiffs;

    5

    IS.For destruction

    of

    the in

    fr in

    ging articles

    in

    Defendants possessi

    on und

    er

    6 1

    5U.S.C.

    III 8;

    7 16. For treble damages s

    uff

    ered by Plaintiff as a result of the willful and

    8

    intentional infringements a

    nd

    acts of counterfeiting engaged in

    by

    9 Defendants, under 15 U.S.C. I I 17(b

    ;

    I 0

    17.For damages in an amount to be proven at

    tri

    al for unjust e

    nri

    chm ent;

    I I

    18.Fo r an awa

    rd of

    exemplary or puniti

    ve

    damages in an amount to be

    12

    determined by

    th

    e Court;

    13 19.for Plaintiff s reasonable attorney s fees;

    14 20.For a

    ll

    costs

    of

    suit; a

    nd

    15 2 1.Fo r such other and further rei ef as the Court may deem just and

    16 eq uitable.

    17

    Q ~ M N D

    FOR

    JURY

    TRI L

    18 Plaintiff SPECULATIVE PRODUCT DESIGN, LLC, dba SPECK

    19

    PRODUCTS, respectfully demand s a

    tri

    al by jury

    in thi

    s ac

    ti

    on.

    20

    21

    DATED: August 13,2014

    22

    23

    24

    25

    26

    27

    28

    JOHNSON

    &

    PHAM, LLP

    i

    C

    hri

    sto

    ph

    er Q. Ph am, Es

    q.

    Hung Q. Pham, Esq.

    Attorneys fo r Pla inti ff

    SPECULATIVE PRODUCT DESIGN,

    LLC dba SPECK PRODUCTS

    2 1

    CO

    MPL INT

    FOR

    D M GES

    Case 2:14-cv-06465-ODW-PLA Document 1 Filed 08/18/14 Page 23 of 23 Page ID #:23

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    EXHIBIT

    A

    Case 2:14-cv-06465-ODW-PLA Document 1-1 Filed 08/18/14 Page 1 of 28 Page ID #:24

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    nrf, C ,:

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    Case 2:14-cv-06465-ODW-PLA Document 1-1 Filed 08/18/14 Page 2 of 28 Page ID #:25

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    EXHIBIT B

    Case 2:14-cv-06465-ODW-PLA Document 1-1 Filed 08/18/14 Page 3 of 28 Page ID #:26

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    EXHIBIT F

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