Vanguard Products Group v. Merchandising Technologies

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Timothy S.DeJong, OSBNo. 940662Email: [email protected] S. Gill, OSB No. 033238Email: [email protected] STOLL BERNE LOKTING & SHLACHTER P.C.209 S.W. Oak Street, Fifth FloorPortland, Oregon 97204Telephone: (503) 227-1600Facsimile: (503) 227-6840Attorneys for Plaintiff

FILED02DEC*il li:iOUSDC-Oi?P

IN THE UNITED STATES DISTRICT COURTFOR THE DISTRICT OF OREGON

PORTLAND ^.^VANGUARD PRODUCTS GROUP, Case No.INC., an Illinois corporation, doingbusiness as Vanguard Protex Global, COMPLAINT FOR PATENTPlaintiff, INFRINGEMENT

v. DEMAND FOR JURY TRIAL

MERCHANDISING TECHNOLOGIES,INC., an Oregon corporation,Defendant.

PlaintiffVanguard Products Group, Inc. ("Vanguard") alleges thatdefendantMerchandising Technologies, Inc. ("MTI") infringes U.S. Patent No. 5,726,627 andU.S. PatentNo.6,278,365, andin support thereofstatesas follows:

PARTIES. JURISDICTION AND VENUE1. PlaintiffVanguard isan Illinois corporation doing business asVanguard Protex

Global, with itsprincipal place of business inOldsmar, Florida.{SSBLSMain Documents\7748\005\00325629-1 }Page 1- COMPLAINT FORPATENT INFRINGEMENT

STOLL STOLL BERNELOKTING & SHLACHTER P.C.209 S .W . OA K S T R E E T

PORTLAND, OREGON 97204TEL. (503) 227-1600 FAX (503) 227-6840


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2. Defendant MTI is an Oregon corporation with its principal place of business inHillsboro, Oregon.

3. This action arises under the patent laws of the United States, 35 U.S.C. 1 etseq. This Court has jurisdiction under 28 U.S.C. 1331 and 1338(a). Venue is appropriatepursuant to 28 U.S.C. 1391(b) and (c) and 1400(b).

CLA IM FOR REL IEF ( PATENT INFR INGEMENT )

4. Vanguard is the owner, as assignee, ofU.S. Patent No. 5,726,627 (the "'627Patent"), a copy ofwhich is attached as Exhibit A.

5. Vanguard is the owner, as assignee, ofU.S. Patent No. 6,278,365 (the " '365Patent"), a copy ofwhich is attached as Exhibit B.

6. MTI has infringed and is infringing the '627 Patent and the '365 Patent bymanufacturing, using, selling, offering to sell within the United States security systemsincorporating the MTI Freedom 1.0 and MTI Freedom 2.0 alarm modules.

7. MTI has actively induced the infringement of the '627 Patent and the '365 Patentby other persons:

a. At all material times MTI had actual knowledge of the '627 Patent and the'365 Patent.

b. MTI has sold and provided security systems incorporating the MTIFreedom 1.0 and MTI Freedom 2.0 alarm modules and material components thereof to otherpersons for use in a manner that infringes the '627 Patent and the '365 Patent.

c. At all material times, MTI either (i) knew that the use of security systemsincorporatingtheMTI Freedom 1.0 and MTI Freedom 2.0 alarmmodules in the manner directedbyMTI would infringethe '627 Patentand the '365 Patent; or (ii) believed that there was a high{SSBLS Main Documents\7748\005\00325629-1 }Page 2 - COMPLAINT FORPATENT INFRINGEMENT

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P O R T L A ND , O R E G O N 97204TE L (503) 227-1600 FAX (503) 227-6840


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probability that such conduct would infringe the '627Patent and the '365 Patent and tookdeliberate actions to avoid confirming that fact.

8. MTIhas contributed to the infringement of the '627 Patentand the '365 Patentbyother persons by selling andoffering to sellmaterial components of security systemsincorporating theMTI Freedom 1.0 and MTI Freedom 2.0alarm modules, knowing the same tobeespecially made or especially adapted for use in security systems incorporating theMTIFreedom 1.0 andMTI Freedom 2.0 alarmmodules and not a staple article or commodityofcommerce suitablefor anyother substantial usewithintheUnitedStates.

9. MTI's acts of infringementhave been willful and deliberate:a. At all material times, MTI had actual knowledge of the '627 Patentand

th e '365 Patent.

b. At all materialtimes,MTI either (i) engagedin the conduct describedinParagraphs 6-8 of this Complaint knowing that such conduct would infringe, directly orindirectly, the '627 Patent and the '365 Patent; or (ii) engaged in such conduct knowing thatthere was a substantial risk that such conduct would infringe, directly or indirectly, the '627Patent and the '365 Patent.

10. Vanguard has suffered, and will continue to suffer, substantial harm due toMTI'sinfringing acts, and is entitled to recover damages from MTI inanamount adequate tocompensate Vanguard for the infringement that has occurred, but inno event less than areasonable royalty forthe usemadebyMTIof the inventions.

11. Vanguard has suffered, and will continue to suffer, permanent and irreparableinjury, for which Vanguard has no adequate remedy at law. Vanguard isentitled to injunctivereliefenjoining MTI from infringing the '627 Patent andthe '365 Patent.{SSBLSMainDocuments\7748\005\00325629-1 }Page 3 - COMPLAINT FORPATENT INFRINGEMENT

S T O LL S T O LL B E RN E L O K T I N G& S H L A CH T E R P . C209 S .W . OA K S TREET

PORTLAND, OREGON 97204TEL (503)227-1600' FAX (503) 227-6840


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12. Vanguard is entitled to the relief provided by 35 U.S.C. 281,283,284, and285.

WHEREFORE, Vanguard requests the following relief:A. An order enjoiningMTI from making, using, offering tosell, orselling within the

United States, or importing into the United States, any product that infringes the '627 Patent orthe '365 Patent orany product whose use infringes the '627 Patent or the '365 Patent;

B. An order enjoiningMTI from contributing tooractively inducing theinfringement byothers ofthe'627Patent orthe'365Patent;

C. An order awarding Vanguard damages for MTI's acts of infringement, inanamount not less than a reasonable royalty, including prejudgment interest thereon pursuant to35U.S.C. 284;

D. An order awarding Vanguard itscosts pursuant to 35 U.S.C. 284;E. An order awarding Vanguard its reasonable attorney fees pursuant to 35 U.S.C.

285;andF. Suchotherrelief as the Courtmaydeemjust and reasonable.

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STOLL STOLL BERNE LOKTING & SHLACHTERP.C.209 S. W . OA K S T R E E T

PORTLAND, OREGON 97204TEL (503) 227-1600 FAX(503) 227-4840


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JURY DEMAND

Plaintiffhereby demands a trial by jury.DATED this 2nd day ofDecember, 2011.

STOLL STOLL

20/SW Oak Street, 5th FloorPortland, OR 97204Telephone: (503) 227-1600Facsimile: (503) 227-6840Email: [email protected]@stollberne.comAttorneys for Plaintiff

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S T O L L S T O L L B E R N E L O K T I N G & S H L A C H TE R P . C20 9 S . W . OAK S T R E E T

P O R T L A N D, O R E G ON 97204TEL.(503)227-1600 FAX (503)227-6840

CHTERP .C .