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L.L.P. LAW OFFICES One Arizona Center, 400 E. Van Buren, Suite 1900 Phoenix, Arizona 85004-2202 602.382.6000

Joseph G. Adams (#018210) David G. Barker (#024657) Mark W. Williams (#026403) SNELL & WILMER L.L.P. One Arizona Center 400 E. Van Buren, Suite 1900 Phoenix, Arizona 85004-2202 Telephone: 602.382.6000 E-Mail: jgadams@swlaw.com dbarker@swlaw.com mwwilliams@swlaw.com Attorneys for Plaintiff Patriot Ordnance Factory, Inc. IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF ARIZONA

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Patriot Ordnance Factory, Inc., an Arizona corporation, Plaintiff, v. Hogan Manufacturing, L.L.C. an Arizona limited liability company, Defendant.

No. COMPLAINT (Jury Trial Demanded)

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Plaintiff Patriot Ordnance Factory, Inc. (POF) alleges the following for its complaint against defendant Hogan Manufacturing, L.L.C. (HMFG): OVERVIEW 1. POF is an American owned and operated small business, based in Phoenix,

Arizona, that specializes in the research, development, and manufacturing of firearms and firearm accessories. POF is dedicated to, and recognized in the industry for, innovating and providing high-quality, reliable, accurate, dependable, and durable parts and accessories for law enforcement, military, and civilian firearm applications. The innovations in POFs firearms have been described as among the most significant

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L.L.P. LAW OFFICES One Arizona Center, 400 E. Van Buren, Suite 1900 Phoenix, Arizona 85004-2202 602.382.6000

developments for similar firearms, and as improving both reliability and maintainability over any of its conventional competitors. 2. HMFG competes directly with POF and manufactures and sells firearms that

are similar to POFs firearms and that incorporate components that infringe POFs patents asserted in this complaint. PARTIES 3. POF is an Arizona corporation with its principal place of business located in

Phoenix, Arizona. 4. HMFG is an Arizona limited liability company with its principal place of

business located in Glendale, Arizona. JURISDICTION AND VENUE 5. This civil action includes claims for patent infringement arising under the

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patent laws of the United States, 35 U.S.C. 1-376. 6. This court has subject matter jurisdiction over this action under 28 U.S.C.

1331 and 1338. 7. This Court has personal jurisdiction over HMFG because HMFG has

committed acts of patent infringement, or has contributed to or induced acts of patent infringement by others, in the District of Arizona and elsewhere in the United States. HMFG has substantial and continuous contacts with the State of Arizona, has purposefully availed itself of the privilege of doing business in Arizona, and has purposefully directed its infringing activities at Arizona, knowing POF would be harmed by the infringement in Arizona. Further, HMFG has purposefully injected its infringing products into the stream of commerce, knowing that the infringing products would be sold in Arizona, and HMFGs products have in fact been sold in Arizona. 8. Venue is proper in this judicial district under 28 U.S.C. 1391(b) and (c)

and 1400(b) because HMFG resides in Arizona and in this district, is subject to personal jurisdiction here, has committed acts of infringement here, has a regular and established

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L.L.P. LAW OFFICES One Arizona Center, 400 E. Van Buren, Suite 1900 Phoenix, Arizona 85004-2202 602.382.6000

place of business here, and because a substantial part of the events giving rise to POFs claims occurred here. FACTUAL BACKGROUND 9. POF manufactures and sells multiple models of its P415 rifle chambered in

5.56 x 45 mm NATO (.223 Remington), and POF manufactures and sells multiple models of its P308 rifle chambered in 7.62 x 51 mm NATO (.308 Winchester). A side view of one model of POFs P308 is shown below. POFs P308

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -310. HMFG used to manufacture components for POFs firearms, including

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POFs P415 and P308, until HMFG started manufacturing and selling firearms that compete with POFs firearms. 11. Now HMFG manufactures and sells multiple models of its H-223 rifle

chambered in 5.56 x 45 mm NATO (.223 Remington), and HMFG manufactures and sells multiple models of its H-308 rifle chambered in 7.62 x 51 mm NATO (.308 Winchester). A side view of one model of HMFGs H-308 (from hoganguns.com) is shown below. HMFGs H-308

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L.L.P. LAW OFFICES One Arizona Center, 400 E. Van Buren, Suite 1900 Phoenix, Arizona 85004-2202 602.382.6000

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POF is the owner of United States Patent No. 7,584,567, issued September

8, 2009, and entitled Hand guard assembly for firearms (the 567 Patent). A copy of the 567 Patent is attached as Exhibit A. 13. POF is also the owner of United States Patent No. 7,464,496, issued

December 16, 2008, and entitled Heat exchanger barrel nut (the 496 Patent). A copy of the 496 Patent is attached as Exhibit B. 14. When HMFG previously manufactured components for POFs firearms,

HMFG had access to POFs manufacturing drawings for POFs firearms, including for components described in the 567 Patent and the 496 Patent. 15. When HMFG previously manufactured components for POFs firearms,

POF instructed HMFG to mark certain components with the patent numbers for the 567 Patent and the 496 Patent. 16. Upon information and belief, each of HMFGs H-223 and H-308 models

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includes a Handguard Rail System. According to HMFGs website at hoganguns.com and HMFGs Owners Manual available at the website, the Handguard Rail System is made from [a]ircraft aluminum alloy precision machined from 6061 T-6 extrusion, and HOGAN patented Monolithic rail systems come in the two styles . . . These uniquely designed handrails are machined from a solid piece of aluminum extrusion providing a strong, stable platform; excellent for mounting optics, grips, lights, bipods and any number of or combination of accessories. A copy of the Owners Manual from hoganguns.com is attached as Exhibit C.

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L.L.P. LAW OFFICES One Arizona Center, 400 E. Van Buren, Suite 1900 Phoenix, Arizona 85004-2202 602.382.6000

17. guard:

Figure 3 from the 567 Patent, shown below, illustrates POFs patented hand

18.

An example of HMFGs infringing hand guard is shown below:

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -5POFs Patented Barrel Nut HMFGs Infringing Barrel Nut 19. Upon information and belief, each H-223 and H-308 model includes a

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Barrel Nut. According to hoganguns.com and the Owners Manual, the Barrel Nut is a [p]atented oversized 3.375 heat sink barrel nut design billet machined from 6061 T-6 aluminum that works as a heat sink to greatly reduce heat buildup utilizing a larger surface area and cooling fins. 20. Figure 5 from the 496 Patent (on the left below) illustrates POFs patented

barrel nut, and an example of HMFGs infringing barrel nut is shown on the right below:

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L.L.P. LAW OFFICES One Arizona Center, 400 E. Van Buren, Suite 1900 Phoenix, Arizona 85004-2202 602.382.6000

21.

Figure 3 from the 496 Patent, shown below, illustrates POFs patented

barrel nut (20) on a rifle:

22.

An example of HMFGs infringing barrel nut on a rifle is shown below:

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this Complaint as though fully set forth herein. 25. HMFG has infringed and is continuing to infringe, literally and/or under

the doctrine of equivalents, the 567 Patent by practicing a claim of the 567 Patent in the manufacture, use, offering for sale, sale, importation, and/or exportation of HMFGs products, including HMFGs Handguard Rail System and H-223 and H-308 firearm models, in violation of 35 U.S.C. 271. 26. HMFG has infringed and is continuing to infringe the 567 Patent by

contributing to and/or actively inducing the infringement by others of the 567 Patent by the manufacture, use, offering for sale, sale, importation, and/or exportation of HMFGs -6-

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L.L.P. LAW OFFICES One Arizona Center, 400 E. Van Buren, Suite 1900 Phoenix, Arizona 85004-2202 602.382.6000

products, including HMFGs Handguard Rail System and H-223 and H-308 firearm models, in violation of 35 U.S.C. 271. 27. HMFG and/or others at HMFGs direction directly or indirectly infringe

the 567 Patent by performing one or more of the methods claimed in the 567 Patent. 28. 29. HMFG has actual or constructive knowledge of the 567 Patent. HMFG knows that HMFGs products and methods infringe the 567

Patent, including because of HMFGs statements on hoganguns.com and in the Owners Manual. 30. HMFG specifically intends to induce others to perform one or more

methods, or certain steps of one or more methods, claimed in the 567 Patent, and HMFG specifically intends to induce others to infringe the 567 Patent. 31. HMFG is liable for induced patent infringement because HMFG has

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knowledge of the existence of the 567 Patent and knowledge that the acts HMFG has induced others to perform constitute patent infringement. 32. 33. HMFG has willfully infringed the 567 Patent. HMFGs acts of infringement of the 567 Patent will continue as alleged

in this Complaint unless enjoined by the Court. 34. As a direct and proximate result of HMFGs infringement of the 567

Patent, POF has suffered and will continue to suffer monetary damages. 35. POF is entitled to recover from HMFG the damages sustained by POF as a

result of HMFGs wrongful acts in an amount to be determined at trial. 36. POF has suffered irreparable harm as a result of HMFGs infringement of

the 567 Patent. POF has no adequate remedy at law 37. Unless HMFG is enjoined by this Court from continuing its infringement

of the 567 Patent, POF will continue to suffer irreparable harm and impairment of the value of its patent rights. Thus, POF is entitled to preliminary and permanent injunctions against further infringement.

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L.L.P. LAW OFFICES One Arizona Center, 400 E. Van Buren, Suite 1900 Phoenix, Arizona 85004-2202 602.382.6000

COUNT TWO (Infringement of the 496 Patent) 38. POF realleges and incorporates by reference the preceding paragraphs of

this Complaint as though fully set forth herein. 39. HMFG has infringed and is continuing to infringe, literally and/or under

the doctrine of equivalents, the 496 Patent by practicing a claim of the 496 Patent in the manufacture, use, offering for sale, sale, importation, and/or exportation of HMFGs products, including HMFGs Barrel Nut and H-223 and H-308 firearm models, in violation of 35 U.S.C. 271. 40. HMFG has infringed and is continuing to infringe the 496 Patent by

contributing to and/or actively inducing the infringement by others of the 496 Patent by the manufacture, use, offering for sale, sale, importation, and/or exportation of HMFGs products, including HMFGs Barrel Nut and H-223 and H-308 firearm models, in violation of 35 U.S.C. 271. 41. 42. HMFG has actual or constructive knowledge of the 496 Patent. HMFG knows that HMFGs products infringe the 496 Patent, including

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because of HMFGs statements on hoganguns.com and in the Owners Manual. 43. HMFG specifically intends to induce others to perform one or more

claims, or certain elements of one or more claims, in the 496 Patent, and HMFG specifically intends to induce others to infringe the 496 Patent. 44. HMFG is liable for induced patent infringement because HMFG has

knowledge of the existence of the 496 Patent and knowledge that the acts HMFG has induced others to perform constitute patent infringement 45. 46. HMFG has willfully infringed the 496 Patent. HMFGs acts of infringement of the 496 Patent will continue as alleged

in this Complaint unless enjoined by the Court. 47. As a direct and proximate result of HMFGs infringement of the 496

Patent, POF has suffered and will suffer monetary damages. -8-

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L.L.P. LAW OFFICES One Arizona Center, 400 E. Van Buren, Suite 1900 Phoenix, Arizona 85004-2202 602.382.6000

48.

POF is entitled to recover from HMFG the damages sustained by POF as a

result of HMFGs wrongful acts in an amount to be determined at trial. 49. POF has suffered irreparable harm as a result of HMFGs infringement of

the 496 Patent. POF has no adequate remedy at law 50. Unless HMFG is enjoined by this Court from continuing its infringement

of the 496 Patent, POF will suffer additional irreparable harm and impairment of the value of its patent rights. Thus, POF is entitled to preliminary and permanent injunctions against further infringement. PRAYER FOR RELIEF WHEREFORE, POF prays for judgment against HMFG as follows: 1. above; 2. For judgment that the 567 and 496 Patents are valid, enforceable, and For judgment in favor of POF and against HMFG on the claims set forth

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infringed by HMFG; 3. For profits and damages resulting from HMFGs past and present

infringement of the 567 and 496 Patents; 4. For judgment that HMFGs conduct on each of the claims set forth above

is willful, intentional, and/or in bad faith; 5. For treble damages resulting from HMFGs willful infringement of the

567 and 496 Patents under 35 U.S.C. 284; 6. 7. 285; 8. For injunctive relief, preliminarily and permanently enjoining against the For judgment that this is an exceptional case under 35 U.S.C. 285; For an award of reasonable attorneys fees, including under 35 U.S.C.

continuing infringement of the 496 and 567 Patents by HMFG, their officers, agents, servants, employees, and those persons acting in active concert or in participation with them, under 35 U.S.C. 283; 9. For costs and disbursements incurred by POF; -9-

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L.L.P. LAW OFFICES One Arizona Center, 400 E. Van Buren, Suite 1900 Phoenix, Arizona 85004-2202 602.382.6000

10. 11.

For an assessment of prejudgment interest; and For any other and further relief as the Court deems just and proper. DEMAND FOR JURY TRIAL

Plaintiff demands a jury trial under Rule 38 of the Federal Rules of Civil Procedure as to all issues in this lawsuit of which trial by jury is permitted. DATED this 5th day of December, 2013. SNELL & WILMER L.L.P.

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18349741

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By: s/ David G. Barker David G. Barker Joseph G. Adams Mark W. Williams One Arizona Center 400 E. Van Buren, Suite 1900 Phoenix, Arizona 85004-2202 Attorneys for Patriot Ordnance Factory, Inc.

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