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Frank W. Compagni (USB 7174) Bretton L. Crockett (USB 8573) MORRISS OBRYAT COMPAGI, P.C. 734 East 200 South Salt Lake City, Utah 84102 Telephone No. (801) 478-0071 Facsimile No. (801) 478-0076 Email: compagni@utahpatents.com, crockett@utahpatents.com
Attorneys for Plaintiffs
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF UTAH, CENTRAL DIVISION
WORLDCONNECT AG (a Corporation of
Switzerland) and MCRUFF AG (a
Corporation of Switzerland),
Plaintiffs
vs.
E&B GIFTWARE, LLC (a Delaware Limited
Liability Company), E&B GIFTWARE, INC.
(a Delaware Corporation)WAL-MART
STORES, INC., (a Delaware Corporation) and
WAL-MART.COM USA, LLC, (a Delaware
Limited Liability Company)
Defendants
COMPLAIT
Civil No.: 2:13-cv-00423-PMW
Honorable Magistrate Judge Paul M. Warner
JURY TRIAL DEMADED
Plaintiffs, WorldConnect AG (hereinafter WorldConnect) and McRuff AG (hereinafter
McRuff), by and through its attorneys, complains of the Defendants E&B Giftware, LLC, E&B
Giftware, Inc. (collectively hereinafter E&B), Wal-mart Stores Inc. (hereinafter Wal-mart
Stores), and Wal-mart.com USA, LLC (hereinafter Wal-mart USA) (collectively hereinafter
Walmart Parties) as follows:
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STATUS OF PARTIES
1. Plaintiff WorldConnect AG (hereinafter WorldConnect) is corporation organized and
existing under the laws of Switzerland and has a principal place of business at Werkstrasse 12a,
9444 Diepoldsau, Switzerland.
2. Plaintiff McRuff AG (hereinafter McRuff) is corporation organized and existing under
the laws of Switzerland and has a principal place of business at Industriesstrasse 7, 6300 Zug,
Switzerland.
3. On information and belief, Defendant, E&B Giftware, LLC is a limited liability company
organized and existing under the laws of the State of Delaware with a principal place of business at
4 Executive Plaza, Yonkers, New York 10701.
4. On information and belief, Defendant, E&B Giftware, Inc. is a corporation organized and
existing under the laws of the State of Delaware with a principal place of business at 4 Executive
Plaza, Yonkers, New York 10701.
5. On information and belief, defendant Wal-mart Stores is a corporation organized and
existing under the laws of the State of Delaware with a place of business at 702 SW 8th Street,
Bentonville, Arkansas 72716.
6. On information and belief, defendant Wal-mart USA is a limited liability company
organized and existing under the laws of the State of California with a place of business at 7000
Marina Blvd., Brisbane, California 94005.
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JURISDICTIO AD VEUE
7. This action arises under the patent and trademark laws of the United States, Titles 35 and
15, United States Code, including but not limited to 35 USC 271 and 15 USC 1114 and 1125.
This Court has original jurisdiction pursuant to 28 U.S.C. 1331 and 1338. This Court also has
supplemental jurisdiction under 28 U.S.C. 1367.
8. Venue is proper in this District because at least one act of infringement took place within
this jurisdiction, Defendants transact or are doing business in this District, including soliciting
business in, shipping goods into this district and derives substantial revenue from intrastate and
interstate commerce which has an effect in this district, and because Defendants are subject to
personal jurisdiction in this District.
GEERAL ALLEGATIOS
9. WorldConnect is in the business of selling products for use in the travel industry.
10. WorldConnect markets and sells a travel adapter marketed and sold as the WORLD
ADAPTER CLASSIC and/or THE ORIGINAL (hereinafter WorldConnect travel adapter as
depicted in Exhibit A attached hereto).
11. On October 7, 2003, U.S. Patent D480,358 S (hereinafter the 358 Patent) issued to
McRuff for the invention entitled TRAVEL ADAPTER. A copy of the 358 Patent is attached
hereto as Exhibit B.
12. WorldConnect is the exclusive licensee of the 358 Patent and has the right to enforce the
358 Patent on behalf of McRuff AG.
13. The exclusive license from McRuff AG grants to WorldConnect an exclusive license to
make, manufacture, use, sell, and otherwise practice the invention described in the 358 Patent.
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14. Each WorldConnect travel adapter is marked with the 358 Patent number.
15. Three WorldConnect patent numbers, including the 358 Patent number, are molded into
the base of each WorldConnect travel adapter and are clearly visible when the top adapter part is
removed.
16. Defendants All-in-One Adapter includes a similar molded-in rectangular box in the same
location as WorldConnects travel adapter where Plaintiffs patent numbers appear.
17. The rectangular box on the Defendants adapter does not include any patent numbers.
18. There is no functional purpose for the rectangular box on Defendants adapter.
19. On information and belief, Plaintiffs patent numbers were known when the mold for
Defendants travel adapter was created.
20. On information and belief, E&B knew of Plaintiffs U.S. and foreign patent rights when it
copied the design and configuration of Plaintiffs travel adapter.
21. Removal of Plaintiffs patent numbers by E&B further indicates that E&B has known of
the 358 Patent from the time when the E&B travel adapter was first manufactured.
22. WorldConnect has invested substantial resources in marketing and promoting the travel
adapters covered by the 358 Patent and has developed substantial good will in its travel adapters as
a result.
23. WorldConnects travel adapters are very distinctive in their design, color and
configuration.
24. In addition to their distinctive design, color and configuration, WorldConnects travel
adapters have acquired a secondary meaning due to the sales volume of the travel adapters,
advertising undertaken by WorldConnect, and publication in various catalogs.
25. WorldConnects travel adapters are recognized as a significant improvement over the prior
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art in both ease of use and quality of the product.
26. Due to these improvements, the Plaintiffs travel adapters have been highly successful.
27. Consumers and industry experts are well aware of the WorldConnects trade dress and its
association with quality, and rely on it when making purchasing decisions.
28. Consumers recognize WorldConnects travel adapters and the quality, which is associated
therewith by their distinctive configuration.
29. Defendants are engaged in marketing and selling various items including travel adapters.
30. As part of it product offering, Defendants offer for sale travel adapters sold under the
American Toursiter name that infringe the 358 Patent and the trade dress belonging to Plaintiffs.
31. Defendants travel adapters are identified on the product packaging as All-in-One
Adapter Plug with USB Charger.
32. Defendants have offered for sale and have sold travel adapters that infringe the 358 Patent.
33. Defendants have offered for sale and have sold travel adapters that simulate the trade dress
embodied in WorldConnects travel adapters.
34. Defendants have offered for sale and have sold their All-in-One Adapter Plug with USB
Charger in this jurisdiction.
FIRST CLAIM FOR RELIEF
(Infringement of U.S. Patent D480,358 S)
35. Plaintiffs incorporate the allegations of preceding paragraphs of this Complaint as if fully
set forth herein.
36. Subsequent to the issuance of the U.S. Patent D480,356 S (the 356 Patent), Defendant,
with full knowledge thereof, has infringed said patent by the unauthorized manufacture, use and
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sale of a travel adapter which embodies substantially the same ornamental design as that set forth
in the 356 Patent.
37. The resemblance between the designs of the Plaintiffs and the Defendant is such as to
deceive the ordinary observer, and to induce him or her to purchase the Defendants product
thinking it was the Plaintiffs.
38. Upon information and belief, Defendant has by its aforementioned infringement of the
Plaintiffs design patent, unlawfully derived substantial profits and gains that Plaintiffs would
otherwise have received.
39. Defendants infringement of the 356 Patent has been willful and in disregard for the
exclusive rights of the Plaintiff set forth in its patent.
40. The amount of money damages that the Plaintiff have suffered due to Defendants acts of
infringement cannot be determined without an accounting, and it is thus subject to proof at trial.
41. The Plaintiff is entitled to a complete accounting of all revenue derived by Defendants
from the unlawful conduct alleged herein.
42. The harm to the Plaintiff arising from Defendants acts of infringement of the 356 Patent is
not fully compensable by money damages. Rather, the Plaintiff has suffered and continues to
suffer irreparable harm which has no adequate remedy at law and which will continue unless
Defendants conduct is enjoined.
43. The Plaintiff is therefore also entitled to a preliminary injunction, to be made permanent on
entry of the judgment, preventing Defendant from further infringement.
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SECOD CLAIM FOR RELIEF
(Trade Dress Infringement)
44. Plaintiffs incorporate the allegations of the preceding paragraphs of this Complaint as if set
forth herein.
45. The Plaintiff has continued uninterruptedly to market its unique travel adapters and has
expended a great deal of money and effort in advertising and otherwise marketing its travel
adapters.
46. The great effort and expense on the part of the Plaintiff in marketing its travel adapters, the
unique design of its travel adapters, and the high quality of its travel adapters, has caused the
Plaintiffs travel adapters to become associated in the minds of the public with the Plaintiff.
47. In this manner, the trade dress of the Plaintiffs travel adapters has acquired secondary
meaning among the relevant trade and public as a symbol identifying the Plaintiff as the source of
the Plaintiffs goods.
48. Defendant, in the design of its product, has simulated Plaintiffs trade dress by copying the
appearance and color of the Plaintiffs travel adapters.
49. Defendants use of confusingly similar trade dress as set forth above is likely to cause
members of the public mistakenly to believe that Defendants products originate with or are
rendered by or in affiliation with, or under license from, or with the approval of, the Plaintiff.
50. The Defendants use of confusingly similar trade dress as set forth above has, in fact,
caused actual customer confusion and confusion to the public.
51. The Defendants use of confusingly similar trade dress is likely to and does permit the
Defendant to misappropriate and unfairly trade on the valuable good will and reputation of the
Plaintiff and will subject the good will and reputation of the Plaintiff to irreparable injury by such
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false designation of origin.
52. Defendants infringement of the Plaintiffs trade dress has been willful and in disregard for
the exclusive rights of the Plaintiff.
53. The amount of money damages which the Plaintiff has suffered due to Defendants acts of
infringement cannot be determined without an accounting, and it is thus subject to proof at trial.
54. The Plaintiff is entitled to a complete accounting of all revenue derived by Defendant from
the unlawful conduct alleged herein.
55. The harm to the Plaintiff arising from Defendants acts of infringement of the Plaintiffs
trade dress is not fully compensable by money damages. Rather, the Plaintiff has suffered and
continues to suffer irreparable harm which has no adequate remedy at law and which will continue
unless Defendants conduct is enjoined.
56. The Plaintiff is therefore also entitled to a preliminary injunction, to be made permanent on
entry of the judgment, preventing Defendants from further infringement.
THIRD CLAIM FOR RELIEF
(False Designation of Origin)
57. Plaintiffs incorporate the allegations of the preceding paragraphs of this Complaint as if set
forth herein.
58. Plaintiffs have all right, title and interest in and to the design and the right to exploit the
design in its travel adapters.
59. Since prior to the acts of Defendants herein alleged, WorldConnect has continuously
marketed its travel adapters in interstate and intrastate commerce to and throughout the United
States.
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60. WorldConncet has expended great effort and large sums of money in developing,
promoting and advertising its travel adapter.
61. On information and belief, as a result of WorldConnects expenditure of money and skill in
the development and promotion of its travel adapter, WorldConnects travel adapter design has
acquired a substantial market value.
62. On information and belief, as a result of WorldConnects expenditure of money and skill in
the development and promotion of its travel adapter, WorldConnects travel adapter design has
become well known as identifying WorldConnect as the source of the travel adapter.
63. On information and belief, Defendants have copied WorldConnects travel adapter design
so that Defendants design embodied in their travel adaptor is very similar to WorldConnects
travel adapter design.
64. On information and belief, Defendants, by the aforementioned acts, have taken advantage
of WorldConnects knowledge, creative skill and expenditure of time, effort and money and have
capitalized upon the market created by WorldConnect for its unique travel adapter design.
65. The acts by Defendants in manufacturing or causing to be manufactured, selling and
marketing travel adapters having designs confusingly similar to WorldConnects travel adapter
design was all done without authority or license from WorldConnect.
66. On information and belief, these acts by Defendants were committed knowingly, willfully
and with the intent of depriving WorldConnect of the commercial benefit of its original design.
67. These acts of Defendants in manufacturing, causing to be manufactured, selling and
offering for sale travel adapters embodying a design copied from WorldConnects travel adapter
design is likely to create confusion in the trade in that Defendants travel adapter as depicted in
Exhibit C attached hereto will likely be confused as originating with WorldConnect, as being
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sponsored by WorldConnect, or as being endorsed by WorldConnect, which constitute a false
representation and false designation of origin.
68. Defendants activities have caused, and if allowed to continue, will continue to cause loss
of sales to WorldConnect and divert customers to Defendants, all to WorldConnects damage in an
as yet to be ascertained amount.
69. On information and belief, Defendants activities have resulted in substantial profits for
Defendants to which they are not entitled.
70. On information and belief, the difference in the selling price of travel adapters embodying
a design copied from WorldConnects travel adapter design is affecting WorldConnects
customers and reputation in the marketplace.
71. By reason of Defendants acts of false representation and false designation of origin,
WorldConnect has sustained and will continue to sustain serious and irreparable injury to its
reputation and a loss of sales and profits which WorldConnect would have made but for said acts
of Defendants.
72. On information and belief, Defendants acts are deliberate and willful and, unless the Court
enjoins Defendants from further commission of said acts, there is a substantial possibility and
threat of continued or additional false representation and false designation of origin by Defendants
for which WorldConnect is without an adequate remedy at law.
73. Defendants have been unjustly enriched and WorldConnect is entitled to an accounting of
the profits of Defendants. Defendants foregoing activities have damaged WorldConnect in an
amount to be determined at trial.
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FOURTH CLAIM FOR RELIEF
(Unjust Enrichment)
74. Plaintiff incorporates the allegations of the preceding paragraphs of this Complaint as if set
forth herein.
75. Defendants have no right, title or interest in or to the Plaintiffs patent or trade dress.
76. On information and belief, Defendants have benefitted, at the expense of the Plaintiffs due
to Defendants exploitation, marketing, manufacture, sale and/or offering to sell devices revealed
or claimed in the Plaintiffs patent, and has benefitted from advertising conducted by the Plaintiffs
to sell travel adapters falling within the scope of the Plaintiffs patent and covered by Plaintiffs
trade dress.
77. On information and belief, Defendants have obtained and continue to obtain considerable
profits and market share by the unauthorized manufacturing, use and exploitation of the devices
covered by the Plaintiffs patent and trade dress.
78. On information and belief, Defendants have known of the Plaintiffs patent and trade dress
and have known of the benefit they have derived from the unauthorized manufacturing, use and
exploitation of travel adapters that fall within the scope of Plaintiffs patent and trade dress.
79. Defendants are not entitled to any profits or market share by way of the exploitation,
marketing, manufacture, sale or offering to sell of travel adapters that fall within the scope of
Plaintiffs patent and trade dress.
80. It is unjust and inequitable for Defendants to retain the profits and market share derived
from their unauthorized manufacturing, use, sell, marketing and exploitation of the Plaintiffs
intellectual property embodied in its patent and trade dress without payment to the Plaintiffs of the
fair market value thereof.
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FIFTH CLAIM FOR RELIEF
(Federal Unfair Competition)
81. Plaintiff incorporates the allegations of the preceding paragraphs of this Complaint as if set
forth herein.
82. The foregoing acts of Defendants constitute unfair competition in passing off their travel
adapters as those of WorldConnect.
83. By reason of Defendants acts of passing off their travel adapters as WorldConnects travel
adapters, WorldConnect has sustained and will continue to sustain serious and irreparable injury to
its reputation and a loss of sales and profits which WorldConnect would have made but for said
acts of Defendants.
84. On information and belief, Defendants acts are deliberate and willful and, unless the Court
enjoins Defendants from further commission of said acts, there is a substantial possibility and
threat of their continued or additional passing off of WorldConnects travel adapter for which
WorldConnect is without an adequate remedy at law.
85. Defendants have been unjustly enriched and WorldConnect is entitled to an accounting of
the profits Defendants.
86. Defendants foregoing activities have damaged WorldConnect in an amount to be
determined at trial.
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PRAYER FOR RELIEF
WHEREFORE, the Plaintiffs demand judgment against the Defendant as follows:
A. Finding the patent in suit valid and infringed by each Defendant;
B. Preliminarily and permanently enjoining each Defendant, its employees, officers,
directors, agents, servants and all others in privity with it from infringing the patent in suit as
provided for in 35 U.S.C. Section 283;
C. Preliminarily and permanently enjoining each Defendant, its employees, officers,
directors, agents, servants and all others in privity with them from interfering with
WorldConnects business relationships, unfairly competing with WorldConnect and passing off of
WorldConnects travel adapters in any manner and from reproducing and causing, contributing to
or participating in, the unauthorized reproduction and distribution to the public by sale or other
transfer, unauthorized reproductions of travel adapters incorporating the design of
WorldConnects travel adapter;
D. Ordering an accounting of all of each Defendants profits and WorldConnects damages
sustained as a consequence of patent infringement, trade dress infringement, unfair competition,
unjust enrichment and false designation of origin, and increasing the damages awarded to
WorldConnect to three times the amount found by reason Defendants willful continuing
patent infringement, trade dress infringement, unfair competition and false designation of origin,
as provided for in 35 U.S.C. 284 and 289 and 15 U.S.C. 1117, respectively;
E. Requiring each Defendant to deliver up to be impounded during the pendency of
this action, all infringing copies of WorldConnects travel adapter in their possession or under their
control, and to withdraw all materials, including advertising and promotional materials, carton and
container and, thereafter, to deliver up for destruction all such copies as well as molds and any
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other material for making such design;
F. Awarding WorldConnect its costs;
G. Declaring this case exceptional by reason of each Defendants willful infringement and
awarding WorldConnect its attorneys fees incurred in prosecuting this action as provided for in 35
U.S.C. 285 and 15 U.S.C. 1117;
H. Granting WorldConnect such other and further relief as the Court may deem just and
proper.
DEMAD FOR JURY TRIAL
Trial by jury is hereby demanded as to all issues in this action so triable.
DATED this 7th day of June, 2013.
Respectfully submitted,
MORRIS, OBRYANT COMPAGNI, PC
By: /s/ Frank W. Compagni
Frank W. Compagni
EXHIBIT A
EXHIBIT B
EXHIBIT C