JAT v. Wheel Supply - Complaint

8/12/2019 JAT v. Wheel Supply - Complaint

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Yang & Wang, P.C.Andrew J. Wei SBN: 293787Tommy SF Wang SBN: 272409355 S Grand Ave., Ste. 2450Los Angeles, C 90071Telephone: (888) 827-8880Fax: (888) 827-8880Email: [email protected]@yangwanglaw.com;Attorneys for PlaintiffJAT Wheels, Inc.

UNITED STATES DISTRICT COURT

/(IJ'

CENTRAL ~ T R ~ T OF CALIFORNIA .JAT Wheels, Inc., a California l ~ a V J ~ i f - 5512 JfYv - kJvvCorporation d/b/a STR Racing,Plaintiff, COMPLAINT FOR:

vs.Wheel Supply Systems, Inc., a NevadaCOrPoration; and DOES 1-10,collectively, Defendant.

1. PATENT INFRINGEMENT [35U.S.C. 271];2 FEDERAL COPYRIGHTINFRINGEMENT n7 U.S.C. 106];3. CALIFORNIA COMMON LAWUNFAIR COMPETITION; and4 CALIFORNIA UNFAIRCOMPETITION (CALIFORNIABUSINESS & PROFESSIONSCODES 17200, t seq ]DEMAND FOR JURY TRIAL

JAT WHEELS INC.'S COMPLAINT1


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1 Plaintiff, JAT WHEELS, Inc. a California Corporation, dba STR Racing2 (hereinafter Plaintiff'), hereby files this Complaint against Defendant Wheel3 Supply Systems, Inc. (hereinafter Defendant ), and DOES 1 to 10, and alleges as4 follows:5 INTRODU TION6 1 Plaintiff files this action to combat the willful sale of unlicensed and7 counterfeit products (hereinafter Infringing Products ) utilizing the8 laintiffs exclusive design patents, and unauthorized use ofPlaintiff's9 copyrighted photographs. The Defendant is a corporation specializing in

10 the research, manufacture and sales of aftermarket automobile wheels.11 2. Plaintiff seeks a Permanent Injunction, damages, costs, and attorneys' fees12 as authorized by the Lanham Act, the patent laws of the United States,13 Title 35, United States Code, California's common law, and California14 Business Professions Code.15 JURISDI TION N D ~ V E N U E16 3 This Court has subject matter jurisdiction under 28 U.S.C. 1331 (federal17 question) and 28 U.S.C. 1338(a) (action arising under an Act of18 Congress relating to patents).19 4. The Court has personal jurisdiction over Defendant since Defendant has20 committed acts ofDesign Patent infringement and unfair competition in21 this district and/or Defendant has sufficient minimum contacts with this22 district to such that the exercise of urisdiction over Defendant by this23 Court does not offend traditional notions of fair play and substantial24 justice. Among other things, Defendant has advertised, offered to sell and25 sold products that infringe Plaintiff's Design Patent rights to consumers26



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1 within this judicial district, knowing or having reason to know that2 consumers, including those within this judicial district, would purchase3 said goods from Defendant, believing that they were authentic goods4 produced by and/or associated with Plaintiff or its authorized licensees.5 5 Further, this Court has jurisdiction over Plaintiffs California state6 statutory and common law claims pursuant to 28 U.S.C. 1367.7 6 Supplemental jurisdiction exists over Defendant because on information8 and belief, Defendant conducts business in California and in this judicial9 district, has purposefully availed itself to California and in this judicial

10 district, or has otherwise availed itself o the privileges and protections o11 the law o the State o California, such that this Court's assertion o12 jurisdiction over Defendant does not offend traditional notions o fair play13 and due process.14 7 Venue is proper within the Central District o California pursuant to 2815 U.S.C. 1391(b) and 1400(a) because on information and belief, a16 substantial part o the events or omissions giving rise to the claim17 occurred in this judicial district, and has caused damages to Plaintiff in18 this district.19 THE P RTIES20 8 Plaintiff, JAT WHEELS, INC., dba STR Racing, is a California21 corporation duly organized and existing under the laws o the State o22 California, and whose office is located at address 2107-D W23 Commonwealth Ave. #392, Alhambra, California 91803.24 9 Upon information and belief, Defendant, Wheel Supply Systems, Inc.25 (hereinafter Defendant ), is, and at all times mentioned herein was, a26



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1 corporation organized and existing under the laws of the State of Nevada,2 having its principal place of business at 7545 Rosecrans Ave., Paramount,3 CA 90723.4 10 The true names and capacities, whether individual, corporate, associate or5 otherwise, of Defendants herein named DOES 1-10, inclusive are6 unknown to Plaintiff. Plaintiff therefore sues said Defendants by such7 fictitious names. When the true names and capacities of said Defendants8 have been ascertained, Plaintiff will amend this pleading accordingly.9 11 Plaintiff further alleges that Defendant and DOES 1-10, inclusive sued

10 herein by fictitious names are jointly, severally and concurrently liable11 and responsible with the named Defendant upon the causes of action12 hereinafter set forth.13 12 Plaintiff is informed and believes and thereon alleges that at all times14 mentioned herein Defendant, and DOES 1-10, inclusive, and each of15 them, were the agents, servants, and employees of every other Defendant16 and the acts of each Defendant, as alleged herein, were performed within17 the course and scope of that agency, service or employment.8 F CTS

19 13.Plaintiffis the owner of all right, title and interest in the U.S. Design20 Patent Application No. 29,492,155 (the Design Patent ) filed May 29,21 2014.22 14.In or around June 2014, Plaintiff discovered that Defendant was23 manufacturing and selling automobile parts on the Internet that infringed24 on Plaintiffs Design Patent.2526

JAT WHEELS INC. S COMPLAINT4


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1 15.In or around May 2014, Plaintiff published photographs to its website2 displaying its aftennarket automobile parts. Plaintiff owns the copyrights3 and ownership rights to these photographs.4 16.Without Plaintiffs consent, Defendant sporadically, but consistently, used5 Plaintiffs copyrighted images to promote and sell the Infringing Products6 on Defendant s website.7 17.Defendant s infringing activities have caused damages to Plaintiffby8 causing customer confusion as to the source of the Design Patent. In9 addition, Defendant s use of the aforementioned Design Patent has and

10 continues to dilute Plaintiffs goodwill in its products and business that it11 has invested significant time and resources.12 18.0n infonnation and belief, Defendant s infringement of one or more of13 the Plaintiff s Patents is willful and deliberate, therefore entitling Plaintiff14 to enhanced damages and reasonable attorney fees and costs.15 19 On infonnation and belief, Defendant intends to continue their unlawful16 infringing activity, and Plaintiff continues to and will continue to suffer17 irreparable hann for which there is no adequate remedy at law unless18 Defendant is enjoined by this Court.19 20.As a result of Defendant s unlawful infringement of the Plaintiffs Design20 Patent, Plaintiff has suffered and will continue to suffer damages. Plaintiff21 is entitled to recover from Defendant the damages suffered as a result of22 Defendant s unlawful acts.23242526

JA T WHEELS INC:S COMPLAINT5


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COUNT INFRINGEMENT OF THE DESIGNP TENT2 21. Plaintiff repeats and re-alleges, as if set forth herein, the allegations3 contained in paragraphs 1 through 20.4 22. Plaintiff is the owner of all right, title, and interest in the Design Patent,5 titled STR513 Wheel Design duly and properly filed with the U.S.6 Patent and Trademark Office on May 29,2014. A copy of the Design7 Patent is attached as Exhibit A.8 23. Defendants have been and/or are directly infringing and/or inducing9 infringement of and/or contributory infringing the Design Patent by,

1 among other things, making, using, offering to sell or selling in the United11 States, or importing into the United States, products that are covered by12 the design patent, including, by way of example and not limitation, the13 MST WHEELS Tll wheel, attached as Exhibit B.14 24. Plaintiff is infonned and believes, and on that basis alleges, that15 Defendant's infringement of the Design Patent has been and continues to16 be intentional, willful, and without regard to Plaintiff's rights. Plaintiff is17 infonned and believes, and on that basis alleges, that Defendant's18 infringement of the Design Patent is and has been intentional, deliberate,19 and willful at least because it had knowledge of the Design Patent through20 direct or indirect communications with Plaintiff and/or as a result of its21 participation in the aftennarket automobile parts industry.22 25. Plaintiff is infonned and believes, and on that basis alleges, that23 Defendant has gained profits by virtue of its infringement of the Design24 Patent.2526



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1 26. Plaintiffhas sustained damages as a direct and proximate result of2 Defendant s infringement of the Design Patent.3 COUNT II FEDERAL COPYRIGHT INFRINGEMENT4 27. Plaintiff repeats and re-alleges, as set forth herein, the allegations5 contained in paragraphs 1 through 26.6 28. Plaintiffs were and are the exclusive holder of all rights, title and interest7 in their photographs, as separate and distinct works.8 29. Defendant has infringed and is infringing the copyrighted photographs by9 unlawfully reproducing and using such photographs in violation of the

1 United States Copyright Act, 17 U.S.C. 106.11 30. Defendant s infringement was and is willful, in bad faith, and executed12 with full knowledge of laintiffs copyright, and in conscious disregard13 for laintiffs exclusive rights in the protected work.14 31. Defendant s deliberate infringement of Plaintiff s copyrights has greatly15 and irreparably damaged Plaintiff.16 32. Defendant s production of infringing products and copyrighted material,17 and Defendant s wrongful conduct, have deprived and continue to deprive18 the Plaintiffof their opportunity of expanding their goodwill. Plaintiff is19 entitled to an injunction restraining Defendant, its officers, agents, and20 employees, and all persons acting in concert with it, from engaging in any21 further acts in violation of the copyright laws.22 33.Plaintiff is further entitled to recover the damages, including attorneys23 fees, they have sustained and will sustain, and any gains, profits, and24 advantages obtained by Defendant as a result of Defendant s acts of2526



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1 infringement alleged above. At present, the amount of such damages,2 gains, profits, are in an amount to be determined.

COUNT C LIFORNI COMMON L W UNF IR COMPETITION4 34. Plaintiff repeats and re-alleges, as set forth herein, the allegations5 contained in paragraphs 1 through 34 and brings the following claim for6 unfair competition pursuant to California s common law against the7 Defendant.8 35. The Court has jurisdiction over this Cause pursuant to 28 U.S.C. 13679 and 1338(b).1 36. By Defendant s acts alleged herein, the Defendant has engaged in unfair11 competition under the common law of the State of California.12 37. Defendant has distributed and sold Infringing Products utilizing the13 Design Patent of the Plaintiff in California, thereby creating a false14 designation of origin of Plaintiffs brand of goods and unfairly competing15 with Plaint iff s business.16 38. Upon information and belief, Defendant has knowingly and willfully17 misappropriated Plaintiff s Design Patent in an effort to create the18 impression that the Defendant s counterfeit products are sanctioned by the19 Plaintiff and to misappropriate the goodwill associated with Plaintiff s20 Design Patent, entitling Plaintiff to an award of exemplary damages and21 attorneys fees.22 39. The aforesaid acts of the Defendant have caused damage to Plaintiff, in23 an amount to be determined.242526



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1 40.By reason of the acts of the Defendants alleged herein, Plaintiff has2 suffered, is suffering and will continue to suffer irreparable damage,3 which damage will continue unless enjoined by Order of this Court.

COUNT IV- UNFAIR COMPETITION UN ER CALIFORNIA5 BUSINESS PROFESSIONS CODE 17200, t seq6 41. Plaintiff repeats and re-alleges, as set forth herein, the allegations7 contained in paragraphs 1 through 49 and brings the following claim for8 unfair competition pursuant to California Business and Professions Code9 17200.

1 42. The Court has jurisdiction over this Cause pursuant to 26 U.S.C. 1367.11 43. By acts complained of herein, Defendant has engaged in unfair12 competition under Section 17200 of the Business and Professions Code of13 the State ofCalifornia.14 44.Defendant s use of the infringing Design Patent complained ofherein15 constitutes deceptive and misleading advertising and is likely to, and is16 intended to, cause confusion to the purchasers and potential purchasers of17 the products.18 45.Defendant markets, conducts business, and publicly represents that the19 Plaintiff s Design Patent is associated or connected to the Defendant s20 business and thus creates a false designation of origin ofPlaintiff s brand21 of goods and services.22 46.Upon information and belief, the aforesaid acts ofDefendant was23 undertaken willfully and with the intention of causing confusion, mistake24 and deception, entitling the Plaintiff to an award of exemplary damages25 and attorneys fees.26

JA T WHEELS INC. S COMPLAlNT9


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1 47. The aforesaid acts o Defendant have caused damage to Plaintiff in an2 amount to be determined.3 48.By reason o the acts o the Defendant alleged herein, Plaintiff has4 suffered injury in fact and has lost money or property as a result o5 Defendant s acts o unfair business practices alleged herein, is suffering6 and will continue to suffer irreparable damage, which irreparable damage7 will continue unless enjoined by Order o this Court.8 PR Y R FOR RELIEF9 WHEREFORE, Plaintiff demands entry o a judgment against the Defendant as

10 follows:11 1 For a judgment declaring that Defendant has infringed on Plaintiff s12 Patents.13 2 For a judgment awarding Plaintiff compensatory damages as a result o14 Defendant s infringement o Plaintiffs Design Patent, together with15 interest and costs, and in no event less than a reasonable royalty;16 3 For a judgment declaring that Defendant s infringement o Plaintiffs17 Design Patent was willful and deliberate;18 4 The Defendant, its officers, agents, servants, employees, attorneys, and19 all those in active concert or participation with them be enjoined and20 restrained:21 a From further using Plaintiff s Design Patents or any other22 confusingly similar design, in connection with the manufacture,23 sale, advertisement or promotion o any product or any other24 similar infringement o Plaintiffs Design Patent rights, for2526



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1 products not originating from Plaintiff or authorized by Plaintiff;2 and3 b From engaging in unfair competition by making and selling its4 products or otherwise using confusingly similar designs, in such a5 way as to misrepresent the origin o any o the Defendant s6 products;7 5 For an order requiring Defendant to deliver and be impounded during the8 pendency o this action all material in Defendant s possession, custody or9 control that include or incorporate products that infringe Plaintiffs

10 Design Patent rights, including but not limited to, any containers,11 packages, labels and advertisements in their possession or under their12 control utilizing Plaintiff s Design Patents, or any simulation,13 reproduction, counterfeit, copy, or colorable imitation thereof;14 6 Directing that the Defendant report to this Court within thirty (30) days15 after a Permanent Injunction is entered to show its compliance with16 paragraphs 1 and 2 above;17 7 For compensatory damages in an amount to be proven at trial;18 8 For all gains, profits and advantages derived by Defendant by its19 infringement o Plaintiffs Design Patent rights;20 9 For punitive damages in an amount sufficient to punish Defendant for its21 wrongful conduct and to deter others from engaging in similar conduct in22 the future;23 10.For permanent injunction against Defendant, preventing Defendant from24 any future usage o any identical or similarly confusing designs related to25 Plaintiff s registered Design Patent;26

JAT WHEELS INC. S COMPLAINT


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1 II.Directing such other relief as the Court may deem appropriate to prevent2 the trade and public, or individual members thereof, from gaining the3 erroneous impression that the Plaintiff authorized or approved any4 products manufactured, sold, or otherwise circulated or promoted by the5 Defendant or that such products are in any way related to the Plaintiff;6 12 For a judgment declaring that this case is exceptional and awarding to7 the Plaintiff from the Defendant, its expenses, costs, and attorneys fees in8 accordance with 35 U.S.C. 284 and 285 and Rule 54(d) of the Federal9 Rules of Civil Procedure;

10 13 That Plaintiff be granted pre-judgment and post-judgment interest in11 accordance with 35 U.S.C. 284 on the damages caused to t by reason12 of Defendants' infringement of the Design Patent, including pre-judgment13 and post-judgment interest on any enhanced damages or attorneys' fees14 award;15 I4.F or statutory damages as provided by law;16 I5.Awarding other such relief to the Plaintiff as this Court deems just.171819 DATE: July 15,201420212223242526

BY:// )d ~ ( _ - - 1

lAT WHEELS INC.'S COMPLAINT2

T o ~ W a n gYang Wang P.C.Attorney for PlaintiffJ AT Wheels, Inc.


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JAT v. Wheel Supply - Complaint

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