Case 8:13-cv-00499-CJC-RNB Document 1 Filed 03/28/13 Page 1 of 16 Page ID #:1

1 Ronald P. Oines (State Bar No. 145016) email: roines@rutan.com 2 Chelsea A. Epps (State Bar No. 261026) email: cepps a)rutan.com CKER, LLP 3 RUTAN 611 Anton Boulevard, Fourteenth Floor 4 Costa Mesa, California 92626-1931 Telephone: 714-641-5100 5 Facsimile: 714-546-9035 6 Attorneys for Plaintiffs PIPE RESTORATION TECIANOLOGIES, LLC, ACE DURAFLO 7 SYSTEMS, LLC and PIPE RESTORATION, INC. 8 9 10 11 PIPE RESTORATION TECHNOLOGIES, LLC, a Nevada Limited Liability Company; ACE 12 DURAFLO SYSTEMS, LLC. a Nevada 13 Limited Liability Company; and PIPE RESTORATION, INC., a California 14 Corporation, 15
VS.

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA Case No.

SACV 13 - 00499 CJC (RNBx)

COMPLAINT FOR INJUNCTION AND DAMAGES FOR: (1) PATENT INFRINGEMENT (2) FEDE " L UNFAIR COMPETITION [LANHA1VI ACT] (3) VIOLATION OF CALIFO IA BUSINESS & PROFESSIONS CODE 17200 ET SEQ. AND 17500

Plaintiffs,

16 17 18 19 20 21 22 23 24 25 26 27 28

COAST BUILDING & PLUMBING, INC., a California Corporation d/b/a PIPELINE RESTORA HON, PIPELINE DEMAND FOR JURY TRIAL RESTORATION SERVICES, and PIPELINE RESTORATION SERVICES, INC; ROY TERRY, an individual; and DOES 1 through 10, inclusive, Defendants.

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COMPLAINT FOR INJUNCTION AND DAMAGES FOR PATENT INFRINGMENT ETC.

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Plaintiffs PIPE RESTORATION TECHNOLOGIES, LLC ("PRT"), ACE

2 DURAFLO SYSTEMS, LLC ("ACE") and PIPE RESTORATION, NC. 3 ("PRI")(collectively, "Plaintiffs"), for themselves alone in their Complaint against 4 defendants COAST BUILDING & PLUMBING, INC. d/b/a PIPELINE 5 RESTORATION, PIPELINE RESTORATION SERVICES, and PIPELINE 6 RESTORATION SERVICES, INC. ("Coast Building"), ROY TERRY and DOES 1 7 through 10, inclusive (collectively, "Defendants"), allege as follows: 8 9 1.

JURISDICTION AND VENUE

This is an action involving claims of patent infringement under Title

10 35, United States Code, unfair competition under the Lanham Act, 15 U.S.C. 11 1051 et seq., and claims for unfair competition under California statutory law. 12 This Court has jurisdiction over Plaintiff's federal claims pursuant to 28 U.S.C. 13 1331 and 1338(a) and (b). This Court has jurisdiction over Plaintiff's related 14 claims based on state law pursuant to 28 U.S.C. 1367. 15 2. Venue is proper with this Court pursuant to 28 U.S.C. 1391(b) and

16 (c), as Defendants reside in this judicial district, and a substantial part of the events, 17 omissions and acts which are the subject matter of this action occurred within the 18 Central District of California, and a substantial part of the property that is the 19 subject of the action is located in the Central District of California. 20 21 3.

THE PARTIES
Plaintiff PRT is a Nevada Limited Liability Company with its principal

22 place of business located at 7477 W. Lake Mead Blvd., Suite 170, Las Vegas, 23 Nevada 89128. 24 4. Plaintiff ACE is a Nevada Limited Liability Company with its principal

25 place of business located at 3122 West Alpine Street, Santa Ana, California 92704. 26 5. Plaintiff PRI is a California Corporation with its principal place of

27 business located at 3122 West Alpine Street, Santa Ana, California 92704. 28 6.
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Plaintiffs are informed and believe, and thereon allege, that defendant
COMPLAINT FOR INJUNCTION AND DAMAGES FOR PATENT INFRINGMENT ETC.

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1 Coast Building is a California corporation having its principal place of business 2 located at 2911 E. Miraloma Ave., Unit 31, Anaheim, CA 92806. Plaintiffs are also 3 informed and believe that Coast Building does business as "Pipeline Restoration," 4 "Pipeline Restoration Services" and "Pipeline Restoration Services, Inc." 5 7. Plaintiffs are informed and believe, and thereon allege, that defendant

6 Roy Terry is the owner and President of Coast Building, and controls all aspects of 7 the business of Coast Building. 8 8. The true names and capacities, whether individual, corporate, associate

9 or otherwise, of defendants DOES 1 through 10, inclusive, are unknown to 10 Plaintiffs, which therefore sues said defendants by such fictitious names. Plaintiffs 11 will seek leave of this Court to amend this Complaint to include their proper names 12 and capacities when they have been ascertained. Plaintiffs are informed and believe, 13 and based thereon allege, that each of the fictitiously named defendants participated 14 in and are in some manner responsible for the acts described in this Complaint and 15 the damage resulting therefrom. 16 9. Plaintiffs allege on information and belief that each of the defendants

17 named herein as Does 1 through 10, inclusive, performed, participated in, or abetted 18 in some manner, the acts alleged herein, proximately caused the damages alleged 19 hereinbelow, and are liable to Plaintiffs for the damages and relief sought herein. 20 10. Plaintiffs allege on information and belief that, in performing the acts

21 and omissions alleged herein, and at all times relevant hereto, each of the 22 Defendants was the agent and employee of each of the other Defendants and was at 23 all times acting within the course and scope of such agency and employment with 24 the knowledge and approval of each of the other Defendants. 25 26 11.

PLAINTIFFS' BUSINESS
Plaintiff PRT developed and owns a proprietary system for cleaning

27 and reconditioning pipelines, as well as coating pipelines to prevent corrosion and/or 28 stop leaks, together with other related repairs and services. This process uses a
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1 proprietary epoxy. PRT's process involves cleaning, drying and then sanding the 2 interior of the pipeline. An epoxy is then air-blown to coat the interior of the 3 pipeline. PRT's epoxy is NSF certified for use in all of the applications in which 4 it is used. The NSF approval process is a rigorous one in which the applicant is 5 required to specify the actual product formulation and product conditions of use, 6 such as the type of product, pipe diameter, water contact temperature, cure time and 7 temperature, and any pre- or post-curing conditions. If the product passes the 8 rigorous approval process, it is approved only as to the information and conditions 9 specified by the applicant. 10 12. PRT owns a robust intellectual property portfolio relating to its

11 business. For example, on January 1, 2013, the United States Patent & Trademark 12 Office ("USPTO") issued United States Patent no. 8,343,579, entitled "Methods and 13 Systems for Coating and Sealing Inside of Piping Systems" ("the '579 Patent"). 14 PRT owns all rights, title and interest in the '579 Patent. 15 13. Plaintiff ACE has a license from PRT to PRT's technology and

16 intellectual property discussed above. ACE, in turn, franchises and licenses such 17 technology and intellectual property to franchisees and licensees throughout the 18 United States, including in geographic areas in which Defendants do business. 19 14. Plaintiff PRI is a franchisee of ACE, and as such, performs pipe

20 restoration work, including in the geographic areas in which Defendants do business 21 and in direct competition with Defendants. 22 15. The Application upon which the '579 Patent is based was published by

23 the USPTO on September 30, 2010. On information and belief, in early 2011, 24 Defendants' engaged patent counsel to research PRT's patents and patent 25 applications, and commenced a reexamination proceeding as to one of PRT's 26 patents. On information and belief, Defendants' likely were made aware of the 27 publication of the Application that became the '579 Patent at least as of early 2011. 28 On information and belief, Defendants also likely were made aware of the issuance
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1 and content of the '579 Patent on or shortly after January 1, 2013. Additionally,
2 Plaintiffs properly mark their goods and services with the '579 Patent, thereby 3 providing prior constructive notice of the '579 Patent to Defendants. 4 DEFENDANTS' BUSINESS, INFRINGEMENT AND FALSE ADVERTISING 5 16. On information and belief, Defendants are in the business of, among

6 other things, plumbing. As part of their plumbing operations, Defendants offer an 7 epoxy-based pipe restoration process that is similar in some respects to Plaintiffs' 8 process described above. Defendants compete with Plaintiffs for pipe restoration 9 work in small diameter, potable water applications. 10 17. In connection with advertising their pipe restoration services,

11 Defendants have made, and continue to make, false and misleading representations 12 in marketing and other materials in an effort to confuse actual and potential 13 customers and compete unfairly with Plaintiffs in the marketplace. 14 18. On February 22, 2011, Plaintiff PRT filed a lawsuit against Defendants

15 arising out of, among other things, the following false statements that Defendants 16 marketing materials included at that time: 17 18 19 20 21 22 23 24 25 26 27 28 Defendants stated in marketing and other materials that all of Defendants' materials are approved for potable water contact and are certified to NSF/ANSI Standard 61. On information and belief, this statement was false because the epoxy Defendants use and have used is not and was not approved for the small diameter application in which Defendants use it and have used it. Defendants also made statements that the epoxy materials used by Defendants have been in use worldwide for over 45 years and have been applied to more than 5,000 miles of domestic water lines in the United Kingdom alone. On information and belief, this statement was false and/or misleading because it falsely suggests that the epoxy used by Defendants has been used to such extent in small diameter, potable
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1 2 3 4 5 6 7 8 9 10 11

water applications, which is false. Defendants also stated that their process stops all future corrosion of the piping system, which is false. Defendants also stated that their pipe restoration service is the "only solution" to prevent slab leaks or other pinhole leaks. This statement is false. Defendants also stated that their process results in no waste to landfills. This is false. Defendants also stated that they are the only company that specifically targets the repair of single water lines. This statement is false. 19. As a result of the lawsuit and Defendants' recognition that these

12 statements were false, Defendants took down the intemet site on which these 13 statements had been made, i.e., www.pipelinerestoration.corn. 14 20. However, recently, Defendants have reinstituted their use of the

15 pipelinerestoration.com website, and continue to make false and misleading 16 statements in an effort to mislead actual and potential customers of Defendants 17 who are also potential customers of Plaintiffs in an effort to steer business away 18 from Plaintiffs to Defendants. The false and misleading statements that are 19 currently on www.pipelinerestoration.corn include: 20 21 22 23 24 25 26 27 28 Defendants continue to state that all of Defendants' materials are approved for potable water contact and are certified to NSF/ANSI Standard 61. On information and belief, this statement is false because the epoxy Defendants use and have used is not and was not approved for the small diameter application in which Defendants use it and have used it. Defendants continue to make statements that the epoxy materials used by Defendants have been in use worldwide for over 45 years and have been applied to more than 5,000 miles of domestic water lines in the
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1 2 3 4 5 6 7 8 9 10 11

United Kingdom alone. On information and belief, this statement is false and/or misleading because it falsely suggests that the epoxy used by Defendants has been used to such extent in small diameter, potable water applications, which is false. Defendants also state that their process stops all corrosion "for the life of your home," which is false. Defendants also state that they are the "only company offering a single line service . . . ." This statement is false. Defendants continue to state that their process results in no waste to landfills. This is false. 21. All of the above-referenced statements have a tendency to deceive, and

12 on information and belief have actually deceived, a substantial segment of the 13 consuming public. Such deception is material and likely to influence purchasing 14 decisions. 15 22. Defendants have caused their falsely advertised goods and services to

16 be advertised and/or sold in interstate commerce. On information and belief, 17 Plaintiffs have been injured by such false statements by, among other things, the 18 direct diversion of business from Plaintiffs to Defendants. 19 23. On information and belief, Defendants also routinely and consistently

20 violate air quality laws and regulations, including those that are enforced by the 21 South Coast Air Quality Management District, the California Environmental 22 Protection Agency, and/or the Air Resources Board. For example, Defendants are 23 required to be registered and compliant with rules relating to the use of their diesel 24 engines. Defendants also are required to be registered and compliant with rules 25 relating to the use of coatings. On information and belief, Defendants are not so 26 registered or compliant. 27 24. As stated above, on information and belief, the epoxy coating
COMPLAINT FOR INJUNCTION AND DAMAGES FOR PATENT INFRTNGMENT ETC.

28 Defendants use in connection with their pipe restoration business is not approved for
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1 small diameter pipes. Nor is it approved to be in contact with drinking water in 2 small diameter pipes. On information and belief, by using its epoxy coating in 3 unapproved applications, Defendants violate the Health and Safety Code of the State 4 of California and other state and federal laws and regulations. 5 25. The conduct described above also violates various provisions of the

6 California Contractor's Licensing Laws. For example, on information and belief, 7 Defendants are in violation of section 7110, which prohibits willful or deliberate 8 disregard and violation of the building laws of California or political subdivision 9 thereof, and the provisions of the California Health and Safety or Water Codes. On 10 information and belief, the conduct described above also violates section 7161 of the 11 Contractor's Licensing Laws, which section provides that it is a misdemeanor to 12 Use false, misleading, or deceptive advertising as an inducement to enter into any 13 contract for a work of improvement, or make any substantial misrepresentation in 14 the procurement of a contract for a home improvement or other work of 15 improvement. 16 17 18 26.

FIRST CLAIM FOR LIEF

(Patent Infringement [`579 Patent])

Plaintiffs reallege each and every allegation set forth in paragraphs 1

19 through 25, inclusive, and incorporate them herein by this reference. 20 27. Defendants have practiced and continue to practice in the United States

21 the process that is described in one or more claims of the '579 patent. As a result, 22 Defendants have infringed and are infringing the '579 patent. 23 28. On information and belief, Defendants' infringement of the '579 patent

24 has been and will continue to be willful, wanton and deliberate with full knowledge 25 and awareness of Plaintiffs' patent rights. 26 29. Plaintiffs have been damaged in an amount to be determined at trial,

27 but which is no less than a reasonable royalty, and irreparably injured by 28 Defendants' infringing activities. Plaintiffs will continue to be so damaged and
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1 irreparably injured unless such infringing activities are enjoined by this Court. 2 30. Moreover, in light of the willful nature of Defendants' conduct, this

3 case should be deemed "exceptional" under the Patent Laws. As a result, in addition 4 to damages, Plaintiffs are entitled to enhanced damages and their attorneys' fees and 5 costs incurred herein. 6 7 8 31.

SECOND CLAIM FOR LIEF (Federal Unfair Competition 15 U.S.C. 1125)

Plaintiffs reallege each and every allegation set forth in paragraphs 1

9 through 25 inclusive, and incorporate them herein by this reference. 10 32. Defendants' false statements in advertising materials and otherwise as

11 described in paragraphs 17 to 25 above, constitute violations of 15 U.S.C. 1125 of 12 the Lanham Act. 13 33. Defendants' aforesaid acts constitute deliberate and intentional

14 violations of 15 U.S.C. 1125, causing damages, as well as irreparable harm to 15 Plaintiffs for which there is no adequate remedy at law. Given the willful nature of 16 Defendants' conduct, this is an "exceptional" case under the Lanham Act, entitling 17 Plaintiffs to their attorneys' fees incurred herein. 18 19 20

THI CLAIM FOR ' LIEF (California Business And Professions Code 17200 et seq. and 17500)
34. Plaintiffs reallege each and every allegation set forth in paragraphs 1

21 through 25, inclusive, and incorporate them herein by this reference. 22 35. The foregoing acts and conduct of Defendants described in paragraphs

23 17 through 25, constitute unfair trade practices and unfair competition under 24 California Business and Professions Code ("Cal. B&P Code") 17200 et seq., and 25 False Advertising under Cal. B&P Code 17500. 26 36. Defendants' acts have caused damage to Plaintiffs, including incidental

27 and general damages, lost profits, and out-of-pocket expenses. Defendants should 28 therefore be required to disgorge and restore to Plaintiffs all profits and other
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1 expenses as may be incurred by Plaintiffs. 2 37. Plaintiffs further seek an injunction to enjoin Defendants from

3 continuing such unfair business practices and false advertising. 4 5 6

YER FOR RELIEF

WHEREFORE, Plaintiffs pray for judgment against Defendants as follows: 1. That Defendants, their officers, directors, agents, servants, employees,

7 and all persons and entities in active concert or participation with them, or any of 8 them, be preliminarily and permanently enjoined and restrained from further 9 infringement of the '579 Patent; 10 2. A Judgment by the Court that Defendants have infringed and are

11 infringing the '579 Patent; 12 3. An award of damages for infringement of the '579 Patent, together with

13 prejudgment interest and costs, said damages to be trebled by reason of the 14 intentional and willful nature of Defendants' infringement, as provided by 35 U.S.C. 15 284; 16 4. An award of Plaintiffs' reasonable attorneys' fees pursuant to 35 U.S.C.

17 285 in that this is an exceptional case; 18 5. That Defendants, their officers, directors, agents, servants, employees,

19 and all persons and entities in active concert or participation with them, or any of 20 them, be preliminarily and permanently enjoined and restrained from publishing 21 false or misleading statements, as alleged herein; 22 6. That Plaintiffs have and recover from Defendants reasonable attorneys'

23 fees, costs and disbursements relating to this action because this is an "exceptional 24 case" pursuant to the Lanham Act; 25 7. That the Court grant Plaintiffs restitution from Defendants by

26 disgorgement of all profits earned through Defendants conduct; 27 8. For restitution of any money or property Defendants wrongfully
COMPLAINT FOR INJUNCTION AND DAMAGES FOR PATENT INFRINGMENT ETC.

28 obtained, pursuant Business and Professions Code section 17203;

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9.

That any monetary award include pre- and post-judgment interest at the

2 highest rate allowed by law; 3 4 10. 11. For costs of suit; and For such other and further relief as the Court may deem just and proper. RUTAN & TUCKER, LLP RONALD P. OINES CHELSEA A. EPPS By: Rona`rd . Oines Attorneys for Plaintiffs PIPE RESTORATION TECHNOLOGIES, LLC, ACE DURAFLO SYSTEMS, LLC and PIPE RESTORATION, INC.

5 Dated: March 28, 2013 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

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1
2

DEMAND FOR JURY TRIAL

Pursuant to Local Rule 38-1 of the Local Rules of the United States District

3 Court for the Central District of California, Plaintiffs hereby demand a jury trial in 4 this action. 5 Dated: March 28, 2013 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
2118/022688-0054 5075031.1 a03/26/13

RUTAN & TUCKER, LLP RONALD P. OINES CHELSEA A. EPP By: ines \\Ronald Attorneys for Plaintiffs PIPE RESTORATION TECHNOLOGIES, LLC, ACE DURAFLO SYSTEMS, LLC and PIPE RESTORATION, INC.

N-\\

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Case 8:13-cv-00499-CJC-RNB Document 1 Filed 03/28/13 Page 13 of 16 Page ID #:13

UNITED STATES DISTRICT COURT CENT >,L DISTRICT OF CALIFO< IA

NOTICE OF ASSIGNMENT TO UNITED STATES MAGIST TE JUDGE FOR DISCOVERY

This case has been assigned to District Judge Cormac J. Carney and the assigned discovery Magistrate Judge is Robert N. Block. The case number on all documents filed with the Court should read as follows: SACV13 499 CJC ( ' Bx) Pursuant to General Order 05-07 of the United States District Court for the Central District of California, the Magistrate Judge has been designated to hear discovery related motions.

All discovery related motions should be noticed on the calendar of the Magistrate Judge

NOTICE TO COUNSEL
A copy of this notice must be served with the summons and complaint on all defendants (if a removal action is filed, a copy of this notice must be served on all plaintiffs).

Subsequent documents must be filed at the following location: 11 Western Division 312 N. Spring St., Rm. G-8 Los Angeles, CA 90012 Southern Division 411 West Fourth St., Rm. 1-053 Santa Ana, CA 92701-4516 11 Eastern Division 3470 Twelfth St., Rm. 134 Riverside, CA 92501

Failure to file at the proper location will result in your documents being returned to you.

CV-18 (03/06)

NOTICE OF ASSIGNMENT TO UNITED STATES MAGISTRATE JUDGE FOR DISCOVERY

Case 8:13-cv-00499-CJC-RNB Document 1 Filed 03/28/13 Page 14 of 16 Page ID #:14 Ronald P. Oines SBN 145016, roil )rutan.com Chelsea A. Epps SBN 261026, cepps@rutan.com RUTAN & TUCKER, LLP 611 Anton Boulevard, Fourteenth Floor Costa Mesa, CA 92626 Telephone: 714-641-5100 Facsimile: 714-546-9035 Attorneys for Plaintiffs UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA PIPE RESTORATION TECHNOLOGIES, LLC, a CASE NUMBER Nevada Limited Liability Company, ACE DURAFLO SYSTEMS, LLC. a Nevada Limited Liability SACV 13 - 00499 CJC Company; and PIPE RESTORATION, INC., a California Corporation,
PLAINTIFF(S)

v. COAST BUILDING & PLUMBING, INC., a California Corporation d/b/a PIPELINE RESTORATION, PIPELINE RESTORATION SERVICES, and PIPELINE RESTORATION SERVICES, INC; ROY TERRY, an individual; and DOES 1 through 10, inclusive,
DEFENDANT(S).

SUMMONS

TO: DEFENDANT(S): A lawsuit has been filed against you. Within 21 days after service of this summons on you (not counting the day you received it), you must serve on the plaintiff an answer to the attached X complaint amended complaint counterclaim I cross-claim or a motion under Rule 12 of the Federal Rules of Civil Procedure. The answer or motion must be served on the plaintiffs attorney, Ronald P. Oines and Chelsea A. Epps of Rutan & Tucker, LLP, whose address is 611 Anton Boulevard, Fourteenth Floor, Costa Mesa, CA 92626. If you fail to do so, judgment by default will be entered against you for the relief demanded in the complaint. You also must file your answer or motion with the court. Clerk, U.S. District Court Dated: By: Dep is Clerk LORI WAGERS
(Seal oj tneCourt)
Az2.5

[Use 60 days if the defendant is the United States or a United States agency, or is an officer or employee of the United States. Allowed 60 days by Rule 12(a)(3)].

CV-01A (10/11

SUMMONS

American LegalNet, Inc.

www FormsWorkFlow corn

Case 8:13-cv-00499-CJC-RNB Document 1 Filed 03/28/13 Page 15 of 16 Page ID #:15

UNITED STAT DISTRICT COURT, CENTRAL DISTRICT OF CIVIL COVER SHEET
I. (a) PLAINTIFFS ( Check box if you are representing yourself )

.IFORNIA

DEFENDANTS

Check box if you are representing yourself Ej )

PIPE RESTORATION TECHNOLOGIES, LLC, a Nevada Limited Liability Company; ACE DURAFLO SYSTEMS, LLC. a Nevada Limited Liability Company; and PIPE RESTORATION, INC., a California Corporation,
tb) Attorneys (Firm Name, Address and Telephone Number. If you
are representing yourself, provide same.)

COAST BUILDING & PLUMBING, INC., a California Corporation d/b/a PIPELINE RESTORATION, PIPELINE RESTORATION SERVICES, and PIPELINE RESTORATION SERVICES, INC; ROY TERRY, an individual; and DOES 1 through 10, inclusive,
(b) Attorneys (Firm Name, Address and Telephone Number. If you are representing yourself, provide same.)

Ronald P. Oines SBN 145016 / Chelsea A. Epps SBN 261026

RUTAN & TUCKER, LLP

611 Anton Boulevard, Fourteenth Floor Costa Mesa, CA 92626 Telephone: 714-641-5100
II. BASIS OF JURISDICTION (Place an X in one box only.)
111. U.S. Government Plaintiff E] 2. U.S. Government Defendant

III. CITIZENSHIP OF PRINCIPAL PARTIES-For Diversity Cases Only

(Place an X in one box for plaintiff and one for defendant)
Citizen of This State Citizen of Another State PTF DEF 1 El 1 2 El 2 PTF Incorporated or Principal Place of Business in this State El 4 DEF 4

a 3. Federal Question (U.S.

Government Not a Party)

1-14. Diversity (Indicate Citizenship

of Parties in Item III) El 3. Remanded from
Appellate Court

Incorporated and Principal Place ofl: 5 Business in Another State El 6

El 5 [11 6

Citizen or Subject of a Foreign Country

El 3 El 3 Foreign Nation

IV. ORIGIN (Place an X in one box only.)

1. Original Proceeding El 2. Removed from State Court

El 4. Reinstated or LIII
Reopened

5. Transferred from Another District (Specify)

Cl 6. Multi- District
Litigation

V. REQUESTED IN COMPLAINT: JURY DEMAND: CLASS ACTION under F.R.Cv.P. 23:

El Yes

Yes El No (Check "Yes" only if demanded in complaint.) No MONEY DEMANDED IN COMPLAINT: $ According to Proof.

VI. CAUSE OF ACTION (Cite the U.S. Civil Statute under which you are filing and writes brief statement of cause. Do not cite jurisdictional statutes unless diversity.) This is an action involving claims of patent infringement under Title 35, United States Code, unfair competition under the Lanham Act, 15 U.S.C. 1051 et seq., and claims for unfair competition under California statutory law. VII. NATURE OF SUIT Place an X in one box onl y).
OTHER STATUTES CONTRACT 110 Insurance 120 Marine 130 Miller Act 140 Negotiable Instrument LI 150 Recovery of Overpayment & Enforcement of Judgment 151 Medicare Act IIII 152 Recovery of Defaulted Student Loan (Excl. Vet.) 153 Recovery of Overpayment of Vet. Benefits 160 Stockholders' Suits 190 Other Contract 195 Contract Product Liability 196 Franchise m MI 210 Land Condemnation REAL PROPERTY CONT. 240 Torts to Land 245 Tort Product Liability 290 All Other Real Property TORTS PERSONAL INJURY IMMIGRATION 462 Naturalization Application 465 Other Immigration Actions TORTS PERSONAL PROPERTY

LII LI Lii LII Lii LI

375 False Claims Act 400 State Reapportionment 410 Antitrust 430 Banks and Banking 450 Commerce/ICC Rates/Etc. 460 Deportation 470 Racketeer Influenced & Corrupt Org. 480 Consumer Credit 490 Cable/Sat TV 850 Securities/Cornmodities/Exchange 890 Other Statutory Actions 891 Agricultural Acts 893 Environmental Matters 895 Freedom of Info. Act 896 Arbitration 899 Admin. Procedures Act/Review of Appeal of Agency Decision 950 Constitutionality of State Statutes

PRISONER PETITIONS Habeas Corpus: 463 Alien Detainee 510 Motions to Vacate Sentence IIII 530 General 535 Death Penalty Other: 540 Mandamus/Other EN IN 550 Civil Rights 555 Prison Condition 560 Civil Detainee Conditions of Confinement FORFEITURE/PENALTY 625 Drug Related Seizure of Property 21 USC 881 690 Other LABOR

PROPERTY RIGHTS 820 Copyrights gl. 830 Patent 840 Trademark SOCIAL SECURITY 861 HIA (1395ff) 862 Black Lung (923) 863 DIWC/DIWW (405 (g)) 864 SSID Title XVI 865 RSI (405 (g)) FEDERAL TAX SUITS 870 Taxes (U.S. Plaintiff or Defendant) [1 871 IRS-Third Party 26 USC 7609

L 370 Other Fraud

371 Truth in Lending 380 Other Personal Property Damage 385 Property Damage Product Liability BANKRUPTCY ii 422 Appeal 28 USC 158 423 Withdrawal 28 USC 157 CIVIL RIGHTS 440 Other Civil Rights 441 Voting 442 Employment 443 Housing/ Accomodations 445 American with DisabilitiesEmployment 446 American with Disabilities-Other U448 Education

LA 310 Airplane
315 Airplane Product Liability 320 Assault, Libel & Slander 330 Fed. Employers' Liability 340 Marine 345 Marine Product Liability 350 Motor Vehicle 355 Motor Vehicle Product Liability 360 Other Personal Injury 362 Personal InjuryMed Malpratice 365 Personal InjuryProduct Liability 367 Health Care/ Pharmaceutical Personal Injury Product Liability 368 Asbestos Personal Injury Product Liability

[1 71 b Fair Labor Standards

Act 720 Labor/Mgmt. Relations 740 Railway Labor Act r---1 1_1 751 Family and Medical Leave Act 790 Other Labor Litigation 791 Employee Ret. Inc. Security Act

REAL PROPERTY

220 Foreclosure 230 Rent Lease & Ejectment

FOR OFFICE USE ONLY: Case Number: AFTER COMPLE I INS C V1M-F

a
CIVIL COVER SHEET

THE INFORMATION REQUESTED ON PAGE 2.

Page 1 of 2

CV-71 (02/13)

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UNITED ST/ _S DISTRICT COURT, CENTRAL DIST, T OF CALIFORNIA
CIVIL COVER SHEET VIII(a). IDENTICAL CASES: Has this action been previously filed in this court and dismissed, remanded or closed?
If yes, list case number(s):

NO

El YES

VIII(b). RELATED CASES: Have any cases been previously filed in this court that are related to the present case?
If yes, list case number(s):

NO

LII YES

Civil cases are deemed related if a previously filed case and the present case:
(Check all boxes that apply)

Li

A. Arise from the same or closely related transactions, happenings, or events; or

El B. Call for determination of the same or substantially related or similar questions of law and fact; or El C. For other reasons would entail substantial duplication of labor if heard by different judges; or

LII
IX. VENUE:

D. Involve the same patent, trademark or copyright, and one of the factors identified above in a, b or c also is present.

(When completing the following information, use an additional sheet if necessary.)

(a) List the County in this District; California County outside of this District; State if other than California; or Foreign Country, in which EACH named plaintiff resides. El Check here if the government, its agencies or employees is a named plaintiff. If this box is checked, go to item (b).
County in this District:* California County outside of this District; State, if other than California; or Foreign Country

Ace Duraflo Systems, LLC and Pipe Restoration, Inc. reside in Orange County

Pipe Restoration Technologies resides in Las Vegas, Nevada

EACH named

(b) List the County in this District; California County outside of this District; State if other than California; or Foreign Country, in which defendant resides. Check here if the government, its agencies or employees is a named defendant. If this box is checked, go to item (c).
County in this District:"

California County outside of this District; State, if other than California; or Foreign Country

Orange County
(c) List the County in this District; California County outside of this District; State if other than California; or Foreign Country, in which NOTE: In land condemnation cases, use the location of the tract of land involved.
County in this District:* Country EACH claim arose,

California County outside of this District; State, if other than California; or Foreign

....r .. ....,
ange, San Berne ino, Riverside, Ventura, Santa Barbara, or San Luis Obispo Counties *Los Angele Note: In Ian condemnation cas , use the location of the tract of land in re-145d X. SIGNATURE OF ATTORNEY (OR SELF-REPRESENTED LITIGANT): DATE:

March 28, 2013

Ro Id P.

OA

Notice to Counsel/Parties: The CV-71 (JS-44) Civil Cover Sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or other papers as required by law. This form, approved by the Judicial Conference of the United States in September 1974, is required pursuant to Local Rule 3-1 is not filed but is used by the Clerk of the Court for the purpose of statistics, venue and initiating the civil docket sheet. (For more detailed instructions, see separate instructions sheet). Key to Statistical codes relating to Social Security Cases: Nature of Suit Code Abbreviation 861 HIA Substantive Statement of Cause of Action All claims for health insurance benefits (Medicare) under Title 18, Part A, of the Social Security Act, as amended. Also, include claims by hospitals, skilled nursing facilities, etc., for certification as providers of services under the program. (42 U.S.C. 1935FF(b)) All claims for "Black Lung" benefits under Title 4, Part B, of the Federal Coal Mine Health and Safety Act of 1969. (30 U.S.C. 923) All claims filed by insured workers for disability insurance benefits under Title 2 of the Social Security Act, as amended; plus all claims filed for child's insurance benefits based on disability. (42 U.S.C, 405 (g)) All claims filed for widows or widowers insurance benefits based on disability under Title 2 of the Social Security Act, as amended. (42 U.S.C. 405 (g)) All claims for supplemental security income payments based upon disability filed under Title 16 of the Social Security Act, as amended. All claims for retirement (old age) and survivors benefits under Title 2 of the Social Security Act, as amended. (42 U.S.C. 405 (g)) CIVIL COVER SHEET Page 2 of 2
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