Escolar Documentos
Profissional Documentos
Cultura Documentos
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Defendant.
Jury Trial Demanded
Case 3:15-cv-00767
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Plaintiffs Trailers Intl LLC (Trailers Intl) and Vincent L. Webb (Webb), by their
attorneys, for their Complaint against Defendant XiaoFei Fred Yang (Yang), allege as
follows:
1.
This action arises out of the manufacture, importation, offer for sale, sale, and
distribution in the United States of counterfeits of Webbs and Trailers Intls UtilityMate and
UtilitySport trailers illegally manufactured by Zhuhai Sharp-Group Enterprise CO. LTD. a/k/a
Jumbo Tools & Equipment (Jumbo) at Yangs direction.
3.
4.
manufacture trailers for Webbs Company, Trailers Intl (formerly UtilityMate LLC).
5.
trademarks and copyrights. Each package includes user manuals and related documentation
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which contain text and images copied from Webbs federally registered copyrighted user
manuals and related documentation.
8.
Altocraft USA, Inc. (Altocraft) is the primary importer and distributor of utility
trailers from Jumbo. The trailers are sold under the Altocraft brand.
9.
Jumbo and Altocraft advertise the trailers using identical or confusingly similar
product names and terms as Webb and Trailers Intl use in connection the sale of utility trailers.
11.
Jumbos Authorized Agent in U.S.A. The catalog names James Zhang as the contact at
Altocraft.
12.
Purchasers of Jumbos utility trailers often receive packages and products bearing
Webbs trademarks that ship with Webbs copyrighted materials. The trailers frequently ship
with licensing and registration materials bearing Webbs former company name UtilityMate
LLC.
13.
The trailers and documentation even use Trailers Intls unique World
Manufacturer Identifier prefix to create Vehicle Identification Numbers for the trailers.
14.
contacted Plaintiffs about trailer related issues on account of Plaintiffs former company name,
UtilityMate LLC, being printed on the documentation supplied by Jumbo with the trailers.
15.
Yangs participation in the importation, offering for sale, selling, distributing, and
other activities involving the trailers has caused actual harm to Webb and Trailers Intl in the
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form of customer confusion as to product origin, reduced sales and lost profits by Trailers Intl,
and damage to Webbs and Trailers Intls reputation for product quality and brand recognition.
16.
The trailers manufactured and offered for sale by Jumbo are counterfeit.
17.
involving the counterfeit trailers puts the public at risk of physical harm. The trailers at issue are
designed to be towed behind automobiles on roads and highways. The trailers are made from
steel, can carry heavy loads, and can be dangerous when operated at high speeds. This is one
reason why product safety and integrity is of the utmost importance to Webb and Trailers Intl.
Webb and Trailers Intl design and build trailers with high quality parts that hold up to use on the
road and do not put customers at risk.
18.
The counterfeit trailers at issue are manufactured using inferior parts and
assembly procedures compared to genuine Trailers Intl trailers, and pose a greater risk of failure
and harm. Webb and Trailers Intl face an increased risk of complaints and suits due to customers
using the counterfeit documentation included with the counterfeit trailers, which names Webbs
former company and predecessor to Trailers Intl, UtilityMate LLC as manufacturer, to register
counterfeit trailers with the Department of Motor Vehicles.
JURISDICTION
19.
competition and false designation of origin under 15 U.S.C. Sections 1051 et seq. ( the Lanham
Act), copyright infringement under the United States Copyright Act of 1976, as amended, 17
U.S.C. Sections 101 et seq. (the Copyright Act), unfair business practices, conversion, and
trade secret misappropriation. This Court has subject matter jurisdiction pursuant to 15 U.S.C.
1121, and 28 U.S.C. 1331 and 1338 (copyright and trademark). This Court has jurisdiction
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over the Oregon common law claims as these claims are related to the claims brought under the
Lanham Act and the Copyright Act, so form part of the same case or controversy, and are within
the Courts supplemental jurisdiction pursuant to 28 U.S.C. 1367.
20.
This Court has personal jurisdiction over Yang because he has committed acts in
this district or directed at this district constituting or contributing to the infringement alleged, so
that a substantial part of the acts and events giving rise to the claims occurred in, or were
directed at, this judicial district. For example, Yang signed the manufacturing agreement
between Jumbo and Plaintiffs former company UtilityMate LLC, which was deemed entered
into in the State of Oregon. Plaintiffs terminated the manufacturing agreement in Ocober 2011.
After the agreement had been terminated, Yang caused the importation of counterfeit trailers into
the Port of Portland.
PARTIES
21.
Oregon. Webb is the President of Trailers Intl LLC, and has been in the business of designing
and manufacturing utility trailer kits since 2004. Webb is the exclusive owner of the federally
registered trademarks UtilityMate (U.S. Reg. No. 3,226,766), UtilitySport (U.S. Reg. No.
3,278,153), BUILD IT AND SAVE (U.S. Reg. No. 4,458,788), and 4 in 1 (U.S. Reg.
No. 4,582,732), and the common law trademark UtilityDump. Webb is also the exclusive
owner of federally registered copyrights for UtilityMate Trailer Owners Manuals (Reg. No. TX
7-187-973), and UtilityMate Web Site, Product Catalog, Sales Material & Package Artwork
(Reg. No. TX 7-748-097).
22.
is a Nevada corporation with its principal place of business at 2788 Foothill Boulevard, Grants
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Pass, Oregon 97526. Trailers Intl is in the business of manufacturing, importing, and selling
high quality utility trailer kits under the brand names UtilityMate and UtilitySport. Trailers
Intl is the assignee of the right to use and license Webbs intellectual property portfolio, which
includes Webbs federally registered trademarks, common law trademark, and federally
registered copyrights listed above.
23.
of China.
25.
Yang is the President and CEO of Zhuhai Sharp-Group Enterprise CO. LTD. a/k/a
For example, Yang negotiates and enters agreements for Jumbo to produce private label product
lines for importers and retailers around the world, including into this district.
27.
At Yangs direction, Jumbo uses Webbs and Trailers Intls design, drawings,
blueprints, and tooling to manufacture counterfeit UtilityMate and UtilitySport trailers for
export to and sale across the United States, including into this district.
29.
China for sale and distribution across the United States, including into this district.
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Yang uses his U.S. contacts to facilitate the importation and sale of counterfeit
trailers from China for sale and distribution across the United States, including into this district.
Yangs U.S. contacts include Steven F. Resch, an individual residing in this district.
31.
Yang coordinated the importation and sale of counterfeit trailers seized by U.S.
Trailers Intl trailers, which are located in this district, by offering counterfeit trailers for resale at
a lower cost to Trailers Intls existing retail customers.
BACKGROUND ALLEGATIONS
33.
Webb is the President of Trailers Intl LLC. Webb has been in the business of
designing, developing, and selling utility trailer kits since 2004. Webb and Trailers Intl conduct
their utility trailer business primarily from the Trailers Intl office and warehouse facility located
in Grants Pass, Oregon. Webb and Trailers Intl sell genuine utility trailer kits online and at
retailers across the United States under federally registered trademarked brand names, e.g.,
UtilityMate and UtilitySport.
34.
Webb is the exclusive owner of copyrights related to genuine trailer kits and
possesses copyright registrations with the United States Copyright Office relating to the same,
specifically U.S. Copyright Registration Numbers TX 7-187-973 and TX 7-748-097. The table
below provides details regarding the 973 and 097 registrations.
973
Reg. No.: TX 7-187-973
Effective Registration Date: 02/05/2010
Title: UtilityMate Trailer Owners Manuals
Authorship: text, photograph(s), artwork
097
Reg. No.: TX 7-748-097
Effective Registration Date: 06/18/2013
Title: UtilityMate Web Site, Product Catalog, Sales
Material & Package Artwork
Authorship: text, photograph(s), computer program,
artwork
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3,226,766, 3,278,153, 4,458,788, and 4,582,732 (Webbs federally registered marks). The
table below provides details regarding Webbs federally registered marks.
Registration Data
Mark
Mark: UTILITYMATE
Filing Date: June 6, 2005
Registration Number: 3226766
Registration Date: April 10, 2007
Goods: Cargo Trailers
Mark: UTILITYSPORT
Filing Date: October 2, 2005
Registration Number: 3278153
Registration Date: August 7, 2007
Goods: Cargo Trailers
Mark: BUILD IT AND SAVE
Filing Date: May 14, 2013
Registration Number: 4458788
Registration Date: December 13, 2013
Goods: Utility Trailers
Mark: 4 IN 1
Filing Date: May 14, 2013
Registration Number: 4582732
Registration Date: August 12, 2014
Goods: Utility Trailers
36.
and copyrights.
37.
Trailers Intl have continuously used a number of names and terms in commerce for the sale of
utility trailers beginning as early as 2005. Specifically, Webb and Trailers Intl have continuously
used the following: UtilityMate and 4 in 1 since at least 2005; Utility Dump and
Powersport since at least 2006; Build it and Save since at least 2009; and Open Dump,
EZ Dump, Multi-Sport and Motor Sport since at least 2011.
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Webbs and Trailers Intls Quality Control and Product Integrity Standards
38.
marketplace demand for a high quality, reasonably priced, utility trailer. Webbs and Trailers
Intls utility trailer kits offer many advantages to sellers and buyers, for example, each trailer kit
is delivered and sold in a single box, making it easier to ship, store, and track logistically.
Because Webbs and Trailers Intls utility trailers are sold in kit form, they do not require
registration or licensing until fully assembled and road ready.
39.
Webbs and Trailers Intls genuine utility trailers are designed to comply with the
specification standards of the United States Department of Transportation (DOT) including the
best practices of the National Highway Traffic Safety Administration (NHTSA).
40.
Webb has worked for years to develop a good reputation for Trailers Intl and its
products. Product quality and integrity are priorities for Webb and Trailers Intl, as is customer
safety. In addition to the DOT and NHTSA standards and best practices, Webb and Trailers Intl
have set additional quality control and product integrity standards that each trailer must satisfy
before Webb and Trailers Intl will approve the trailer for sale.
41.
Trailers Intls genuine trailers and components are manufactured using Trailers
Intls custom tooling and are assembled from high quality materials, for example: Trailers Intls
tail lights and side markers use LED technology sourced from a NHTSA authorized
manufacturer; Trailers Intl uses tires that meet DOT requirements; Trailers Intls wire harnesses
are housed in a protective, insulated sleeve to protect against wear and outside elements; Trailers
Intls trailers use pre-threaded lock-nuts to avoid bolts loosening from vibration on the road; and
Trailers Intls frames are powder coated and made from corrugated and tubular steel.
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Webb and Trailers Intl have implemented various quality control measures in an
effort to maintain product integrity. For instance, Webb and Trailers Intl require that all
Manufacturers Statement of Origin certificates and Vehicle Identification Number tags be
designed, printed, and shipped from Trailers Intls offices directly to the contract manufacturer in
China, whereby the contract manufacturer will insert the materials into Trailers Intls genuine
product packaging prior to export. Webb also travels to China several times each year to inspect
the factories where his utility trailers are manufactured.
43.
China. Webb has suffered continuing problems with the theft of his intellectual property by the
Chinese companies that he has dealt with.
Webbs and Trailers Intls Former Manufacturers and Past Counterfeiting
44.
Webb, through his company Trailers Intl (and formerly UtilityMate LLC),
contracts with Chinese trading companies (contract manufacturers) to source parts for and
assemble genuine Trailers Intl trailer kits.
45.
Trailers Intl requires the contract manufacturers to comply with its quality control
On two occasions Webb and Trailers Intl, through Trailers Intls predecessor
UtilityMate LLC, have terminated licensing agreements with Chinese contract manufacturers
based on repeated failures to comply with UtilityMates quality control standards.
47.
contract manufacturer Changzhou Nanxiashu Tool Co., Ltd. (Nanxiashu). Nanxiashu was
authorized to manufacture UtilityMate kit trailers from 2005-2007. UtilityMate terminated its
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and Trailers Intl discovered that Nanxiashu was using Webbs and Trailers Intls designs to
manufacture and import counterfeit trailers into the United States.
49.
identical in appearance to genuine Trailers Intl trailers, but were made from inferior materials
and did not comply with DOT standards. Nanxiashu sold the counterfeit trailers in direct
competition with genuine Trailers Intl trailers, but at a lower price.
50.
The Nanxiashu counterfeit trailers harmed Webb and Trailers Intl by causing
customer confusion as to the origin of the trailers. Due to their inferior and non-compliant
manufacture and assembly, they had the potential to cause harm to consumers, which could have
led to complaints and suits against Webb and Trailers Intl. In June, 2011, Webb brought a
complaint against Nanxiashu in this District. Nanxiashu failed to appear, and in August 2011
Judge Brown entered a default judgment and permanent injunction against Nanxiashu. (Case
No. 3:11-cv-00747-BR, Dkt. No. 16.)
51.
entered into a manufacturing and distribution agreement with a different Chinese contract
manufacturer, Zhuhai Sharp-Group Enterprise CO. LTD. a/k/a Jumbo Tools & Equipment.
52.
Jumbo is a Chinese power tool and equipment supplier that produces private label
and/or OEM products for retailers and importers. Jumbo also owns a number of house brands,
such as Altocraft USA, Inc., which sell products supplied by Jumbo.
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Yang signed the agreement on Jumbos behalf. The agreement, per its terms, was
Yang is the President and CEO of Jumbo. Yang was Plaintiffs principal contact
While under contract with Plaintiffs, Yang had access to Plaintiffs competitively
sensitive business materials, including information relating to pricing and product design.
56.
When Jumbo failed to abide by specific terms in the agreement and the products
being manufactured by Jumbo failed to meet the standards agreed upon by the parties,
UtilityMate LLC sent Yang and Jumbo a first notice of default in April 2011, in accordance with
the parties agreement.
57.
The first notice of default provided Yang and Jumbo with details as to each
contractual violation, including a number of violations related to the quality of the trailers being
manufactured, such as: Jumbos failure to manufacture trailers in accordance with the trailer
designs provided by UtilityMate; Jumbos failure to allow UtilityMate to perform contractually
agreed upon product quality control inspections; Jumbos refusal to pay parts suppliers; and
Jumbos failure to maintain and provide the insurance coverage agreed upon by the parties.
58.
Yang and Jumbo did not correct or otherwise address the first notice of default.
59.
In June 2011, Jumbo and UtilityMate LLC entered into a supplemental agreement
by which UtilityMate LLC would be importer of record for 100% of trailer sales shipped by
Jumbo to the United States or Canada. Per the supplemental agreement, UtilityMate LLC was to
be the sole and exclusive importer of UtilityMate trailers manufactured by Jumbo.
60.
Despite the supplemental agreement, Yang and Jumbo still had not cured the
defects listed in the first notice of default, and the additional products being manufactured by
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Jumbo continued to fail to meet the agreed upon requirements. As a result, UtilityMate LLC sent
Yang and Jumbo second and third notices of default in August and October 2011, respectively.
61.
The second and third notices of default provided Yang and Jumbo with details of
the violations initially noticed by the first notice of default, as well as details of subsequent
violations, the most serious of which included: Jumbo sourced trailer kit samples to a known
competitor of UtilityMate; Jumbo solicited other companies to purchase competing trailers made
from UtilityMates designs, but with UtilityMates name removed; and Jumbo failed to import
trailers that complied with the vehicle laws and regulations of the geographic areas where
UtilityMate trailers were being sold.
62.
The third notice of default warned Yang and Jumbo that a failure to address or
cure the noticed defaults would result in termination of the parties agreement.
63.
Despite UtilityMates warning, Yang and Jumbo still did not correct the products
result of Yangs and Jumbos failure to cure or otherwise respond to the multiple notices of
default. Upon termination of the agreement, Jumbo was no longer authorized to manufacture,
import, offer for sale, sell, distribute, or otherwise deal in trailers made from Webbs or Trailers
Intls designs. Also upon termination of the agreement, Jumbo no longer had any right to use
any of Webbs intellectual property, including his federally registered trademarks and
copyrights. Per notice of termination, Jumbo was required to return all Trailers Intl blueprints,
tooling, and dies used to manufacture genuine UtilityMate trailers, as well as all manuals,
packaging, and marketing materials.
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After termination of the agreement with Jumbo, Webb and Trailers Intl updated
the World Manufacturer Identifier (WMI) used on genuine Trailers Intl trailer kits to list
Trailers Intl LLC as the manufacturer of record. The WMI is the first three characters of a
Vehicle Identification Number (VIN) and is a unique identifier assigned to vehicle
manufacturers. UtilityMate LLCs WMI was 52Z. After the update, Trailers Intls WMI is
52Z.
66.
Another change Webb and Trailers Intl implemented following termination of the
Jumbo agreement was the production of licensing and registration documents. Webb and
Trailers Intl now design, print, and ship all Manufacturers Statement of Origin certificates and
Vehicle Identification Number tags from the Trailers Intl office in the United States to the
contract manufacturer in China, whereby the contract manufacturer inserts the materials into
genuine Trailers Intl product packaging prior to export.
67.
Webb, acting through Trailers Intl, also hired a new contract manufacturer, STC
International (STC), based out of Shanghai, China to oversee quality control and assembly of
genuine Trailers Intl trailer kits. Currently, STC is the only authorized assembler of genuine
Trailers Intl utility trailers.
Yangs Participation in Counterfeiting and Intellectual Property
Infringement Damaged the Market for Plaintiffs Genuine Trailers
68.
At Yangs direction, Jumbo illegally uses Webbs and Trailers Intls designs,
drawings, blueprints, and tooling to manufacture and advertise counterfeit Trailers Intl trailers
for export and sale, into and across the United States, including into this district.
69.
At Yangs direction, Jumbo offers customers counterfeit trailers from under its
Altocraft brand in direct competition with genuine UtilityMate and UtilitySport trailers, but
at significantly lower prices.
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The counterfeit trailers made by Jumbo and sold under the Altocraft brand are
advertised using identical or confusingly similar names and terms as Webb and Trailers Intl use
in connection with the sale of genuine utility trailers. (Figures 1 and 2, below.)
Figure 1.
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Figure 2: Jumbo used the term 4 in 1 and the name Utility Dump on its website.
71.
or confusingly similar product names and terms, and even images, copied directly from Webbs
and Trailers Intls websites. Some of the images even display Webbs personal property.
Examples of copying on Altocrafts trailers website include:
Image one (1) displays Trailers Intls UM6096 trailer from its Open Dump line
loaded with Webbs personal all-terrain vehicle, and hitched to Webbs personal
pick-up truck. Altocraft uses a mirror image copy of image one (1) on its website;
Image two (2) displays Trailers Intls MC583 trailer from its PowerSport line in
three positions. Altocraft uses an identical copy of image two (2) and the name
Power Sport on its website;
Image three (3) displays Trailers Intls UD5806 4 in 1 trailer from its Utility
Dump line. This image was created by Webb specifically to provide a visual
affect showing the various positions that the UD5806 can be used in. Altocraft
uses an identical copy of image three (3) and the name Utility Dump on its
website and in documentation it and Jumbo distribute;
Image four (4) displays Trailers Intls HD4872EZ trailer from its Open Dump
line. Altocraft uses an identical copy of image four (4) and the confusingly
similar name EZ Dump on its website;
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Image five (5) displays Trailers Intls HD4872 trailer from its Open Dump line
loaded with Webbs personal lawnmower. Altocraft uses an identical copy of
image five (5) and the name Open Dump on its website.
Yang offers the counterfeit trailers from Jumbo at a lower price because they are
manufactured from parts and materials that are inferior to those used in genuine Trailers Intl
trailers, and do not meet Trailers Intls quality control standards.
73.
Yang informs customers that Jumbo and Plaintiffs still have a valid
Although Yang informs customers that Jumbo and Plaintiffs still have a valid
agreement, Yang behaves as if the agreement was terminated, which it was in 2011. Yang has
not operated within the scope of the agreement or suggested he will abide by its terms since prior
to the second notice of default.
75.
Yang misleads customers as to the quality and origin of the counterfeit trailers by
distributing Jumbo product catalogs that contain Webbs registered trademarks and
copyrighted materials. (Figure 3.)
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COUNTERFEIT
Figure 3.
76.
supplying counterfeit trailers from Jumbo to distributors and retailers across the United States.
77.
Webb and Trailers Intl have been, and continue to be, harmed by Yangs
participation in the manufacture, import, offer for sale, sale, and distribution of counterfeit
trailers.
Loss of Business with Home Depot
78.
In February 2012, Webb and Trailers Intl learned that Jumbos U.S. brand
Altocraft was offering for sale in the United States utility trailers that appeared to be the same as
Trailers Intl trailers. At the time, the designs, photographs, descriptions, specifications, and even
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model numbers of the trailers offered for sale by Altocraft were identical, or nearly so, to those
on Webbs and Trailers Intls genuine websites.
79.
At this time, Webb was in the final stages of negotiations with Home Depot to sell
Trailers Intl trailers in Home Depot stores across the United States. Webb began discussions
with Home Depot in December 2010 about selling UtilityMate trailers in Home Depot stores.
Home Depot planned to launch a trailer kit program selling UtilityMate trailer kits in its stores
nationwide by the Spring of 2012 under the brand UtilityDump. Home Depot estimated it
would order 5,400 UtilityDump trailer kits for nearly $4.2 million for the UtilityDump
launch.
80.
Shortly after Plaintiffs learned that Altocraft was offering counterfeit trailers for
sale, Home Depot contacted Webb via e-mail to inquire about the competitive stance of Altocraft
in relation to Trailers Intl and its products. In its e-mail to Webb, Home Depot noted that
Altocraft offered the counterfeit trailers at a lower price than the wholesale price of Plaintiffs
genuine trailers.
81.
Despite Webbs warning to Home Depot that Altocraft did not have any rights to
make or sell any of Trailers Intls products or use Webbs designs or intellectual property to
make or sell similar products, Home Depot never completed its agreement to buy trailers from
Trailers Intl, and instead purchased counterfeit trailers from Altocraft.
Loss of Existing Business with Sears and K-mart
82.
Sears and K-Mart, at one time, were authorized to sell, and did in fact sell,
Sears and K-Mart acquired genuine UtilityMate trailers from a Trailers Intl
authorized distributor based in Oregon, Scotsco, Inc. (Scotsco). Scotsco had an agreement
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with Trailers Intl by which genuine Trailers Intl trailers would be supplied to Scotsco, and
Scotsco would distribute the genuine trailers to retailers such as Sears, K-Mart, and WalMart.
84.
Yang communicated directly with buyers from Scotsco regarding the sale and
shipment of genuine UtilityMate trailers while the agreement between Plaintiffs and Jumbo
was still in force. Yang even approached Scotsco about supplying other Jumbo products to
Scotsco, in Oregon, and selling the products through Scotscos distribution channels.
85.
Yang had detailed knowledge of Trailers Intls agreement and dealings with
On information and belief, after Plaintiffs terminated the agreement with Jumbo,
Yang arranged to supply Sears and K-Mart with counterfeit trailers distributed through Altocraft
at a significantly lower cost than they paid for Trailers Intls genuine UtilityMate trailers.
87.
By December 2012, Sears was selling counterfeit Altocraft trailers on its website.
Sears used Webbs copyrighted images and descriptions on its counterfeit Altocraft trailer web
pages. At some time, both Sears and K-Mart stopped buying genuine UtilityMate trailers.
88.
Within a matter of months, Sears had completely replaced Trailers Intls genuine
UtilityMate trailers in favor of Altocrafts counterfeit trailers, and searches for UtilityMate
trailers on Sears website only returned listings for counterfeit Altocraft trailers.
89.
By November 2013, K-Mart was also selling counterfeit Altocraft trailers on its
website.
Port of Portland U.S. Customs and Border Protection Seizure
90.
In October 2012, U.S. Customs and Border Protection (CBP) informed Webb
that a shipment of suspected infringing trailers from China had attempted entry at the Port of
Portland. The declared manufacturer of the suspect trailers was Jumbo.
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The container of trailers arrived at the Port of Portland on October 29, 2012, and
was detained and examined by CBP shortly thereafter. During the first week of December 2012,
CBP officers provided Webb with photographs of the suspect trailers for review. The suspect
trailers were clearly marked with Webbs trademarks. Moreover, Webb observed multiple
indications that the suspect trailers were not genuine UtilityMate trailers, including the overall
inferior quality of the suspect trailers compared to the quality of genuine UtilityMate trailers.
For example, the trailer lights on the suspect trailers were not LED lights, and those trailers had
bare wiring not housed in an insulated harness.
92.
details explaining why the trailers were not genuine UtilityMate trailers. Webb subsequently
received a letter from CBP dated December 18, 2012, informing him that CBP seized the suspect
trailers on December 13, 2012, under case number 2013-2904-000018, because the trailers bore
marks that constituted counterfeit copies of Webbs registered UtilityMate trademark.
93.
In February 2013, Orrin Lundy (Lundy) sent an e-mail to Webb requesting the
release of the counterfeit trailers seized at the Port of Portland. Lundy had ordered the shipment
of counterfeit trailers seized at the Port of Portland. Lundy is the owner of Trailer World in
Vancouver, Washington, a previous violator of Webbs intellectual property rights, and a
Defendant in Webbs concurrent lawsuit pending in this district.
94.
On information and belief, Yang arranged for the sale to Lundy and importation
of the counterfeit trailers into the Port of Portland with the assistance of Steven F. Resch
(Resch).
95.
trailers while the agreement between Plaintiffs and Jumbo was still in force. During this period,
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Resch earned commissions from Jumbo for sales of genuine UtilityMate trailers. Resch resides
in this district, and is also a defendant in Webbs concurrent lawsuit pending in this district.
96.
According to Lundy, Resch represented that the counterfeit trailers were genuine
UtilityMate trailers that Jumbo was offering as a closeout, and that Trailers Intl (as its
predecessor UtilityMate) still had a valid agreement with Jumbo.
97.
Also according to Lundy, Yang [took] responsibility for the situation and
refunded most of [Lundys] purchase price less shipping charges as compensation for Lundys
losses suffered as a result of the seizure of the counterfeit trailers by CBP.
Undercover Purchase and Miami Customs and Border Protection Seizure
98.
After U.S. Customs and Border Protection seized the counterfeit trailers at the
Port of Portland, Webb researched shipping data on the PIERS commercial trade database at
www.piers.com (PIERS) in search of additional unauthorized shipments by Jumbo.
99.
The PIERS reports revealed that Jumbo had continued to import unauthorized
containers of trailers. The PIERS reports further revealed that Jumbos owned brand Altocraft
was the importer of many of the unauthorized containers from Jumbo.
100.
Webbs investigator met with Altocrafts principal, Xuefeng James Zhang, at Altocrafts
warehouse in Miami, Florida, and purchased two counterfeit trailers from the warehouse.
101.
Jumbo product catalog nearly identical to Trailers Intls authentic UtilityMate catalog. The
counterfeit catalog contained Webbs registered trademarks and copyrighted material throughout,
and listed Altocraft as Jumbos U.S. agent. (Figures 4 and 5.)
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AUTHENTIC
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COUNTERFEIT
Figure 4.
Figure 5.
102.
provided an intellectual property product identification guide to U.S. Customs and Border
Protection to help law enforcement officers identify Webbs registered trademarks and
copyrights, and identify infringing shipments of imported products. The guide provided details
regarding Webbs registered marks, copyrighted material, genuine packaging, products, and
product registration material.
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103.
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trailers. Per photographs provided by CBP to Webb, CBPs examination of the suspect shipment
revealed that the shipping cartons containing the suspect trailers bore Webbs UtilityMate
trademark, but the label bearing Webbs mark was either concealed behind another label,
crossed-out by black marker, or removed and replaced with another label.
104.
provided details explaining why the trailers were not genuine UtilityMate trailers. On October
15, 2013, CBP informed Webb that it had seized a container of trailers under case number 20135201-001147 because the trailers bore marks that constituted counterfeit copies of Webbs
registered UtilityMate trademark. The seized trailers also bore Webbs registered copyrighted
safety sticker on the trailer tongue. 1 (Figure 6.) The seized container of counterfeit trailers was
shipped by Jumbo and destined for Altocrafts warehouse.
Figure 6: Webbs copyrighted safety sticker on a counterfeit trailer seized by CBP in Miami.
105.
pervasive.
106.
Yang continues to cause the importation of counterfeit trailers into the U.S. As
recently as February 27, 2015, Customs and Border Patrol in Miami seized a container of trailers
that CBP determined infringed Plaintiffs intellectual property rights. The counterfeit trailers
To date, every counterfeit trailer supplied by Jumbo seized by CBP has borne Webbs copyrighted safety sticker.
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were destined for James Zhang at Starlight New Energy LLC. Starlight New Energy LLC is a
fictitious name registered with the Florida Secretary of State by James Zhang. Per the
registration, Starlight New Energy LLC has an identical business address as Altocraft. On
information and belief, the counterfeit trailers were shipped by Jumbo.
107.
Intl in the form of actual and future reduced sales and lost profits.
108.
Yangs infringement has caused customer confusion, has damaged Webbs and
Trailers Intls reputation for offering a quality product, and has put customers at risk of physical
harm due to the inferior craftsmanship of the counterfeit trailers.
109.
Webb or Trailers Intl face increased risk of complaints and suits as a direct result
Webb and Trailers Intl repeat and reallege each of the allegations contained in
112.
Webb is the author and copyright holder of copyrighted material for his utility
trailers. Webb has registered the owners manual and contents, web site, product catalog, sales
material and package artwork associated with his utility trailers with the U.S. Copyright Office.
113.
Webb has complied with 17 U.S.C. 101 et seq., and has secured the exclusive
rights and privileges in and to the copyrights of the owners manual and contents, web site,
product catalog, sales material and package artwork associated with his utility trailers. Webb is,
and has been, the sole owner of the rights, title, and interest in and to the copyrights in their
respective works as referenced above.
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114.
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Yang caused the distribution of counterfeit utility trailers that included manuals
copyrighted images.
117.
exclusive rights and privileges, conferred pursuant to 17 U.S.C. 101 et seq., including without
limitation 17 U.S.C. 106, of Webbs registered copyright in the owners manual and contents,
web site, product catalog, sales material and package artwork associated with Trailers Intl utility
trailers.
118.
Yang has realized and continues to realize profits and other benefits rightfully
belonging to Webb or Trailers Intl as a result of his violations of Webbs and Trailers Intls
exclusive rights in the copyrighted material.
119.
copyrighted material has caused and is likely to cause Webb and Trailers Intl to sustain monetary
damages, loss, and injury in an amount to be determined in this action.
120.
Yangs use of Webbs copyrighted material is without Webbs and Trailers Intls
consent or permission.
121.
copyrighted material was made with actual or constructive knowledge of Webbs and Trailers
Intls exclusive rights. Webb and Trailers Intl are therefore entitled to the maximum damages
allowable.
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Webb and Trailers Intl repeat and reallege each of the allegations contained in
The registration of Webbs marks on the Principal Register constitutes prima facie
evidence of the validity of Webbs marks, as well as Webbs ownership and exclusive rights to
use the marks in commerce, pursuant to 15 U.S.C. 1115.
126.
Webb and Trailers Intl, as the owner and licensee of all right, title, and interest to
the registered marks, have standing to maintain an action for trademark infringement under 15
U.S.C. 1114.
128.
Webb and Trailers Intl have continuously used the UtilityMate, UtilitySport,
and 4 in 1 marks in commerce for the sale of utility trailers since at least 2005. And, Webb and
Trailers Intl have continuously used the BUILD IT AND SAVE mark in commerce for the sale
of utility trailers since at least 2009.
129.
Yang has used and continues to use Webbs federally registered marks in
connection with the sale of utility trailersthe same goods sold by Trailers Intl under these
federally registered marks and the same goods listed in Webbs Federal Registration for his
registered marks.
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130.
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Yang sold utility trailers bearing marks identical or confusingly similar to Webb
Yangs use of Webbs federally registered marks as alleged above has caused, and
is likely to further cause confusion, mistake, or deception as to the source, or approval of the
products and services of Yang, in that others are likely to believe that Yangs goods and services
are in some way legitimately connected with, sponsored or licensed by, or otherwise related to
Webb and Trailers Intl.
132.
Yangs use of Webbs federally registered marks is without Webbs and Trailers
Yangs infringement has caused and is likely to cause damage to Webbs and
Trailers Intls reputation and goodwill among consumers and will divert sales and opportunities
away from Trailers Intl and to Yang.
134.
Yangs acts of trademark infringement, unless enjoined, are likely to cause Webb
and Trailers Intl to sustain monetary damages, loss, and injury in an amount to be determined in
this action.
135.
Webb and Trailers Intl are without an adequate remedy at law because Yangs
infringement of Webbs federally registered marks has caused irreparable injury to Webb and
Trailers Intl, and unless said acts are enjoined by this Court, they will continue and Webb and
Trailers Intl will continue to suffer irreparable injury.
136.
Yangs violations of Webbs and Trailers Intls exclusive rights in the federally
registered marks are with actual or constructive knowledge of Webbs and Trailers Intls
exclusive rights. Webb and Trailers Intl are therefore entitled to the maximum damages
allowable.
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Webb and Trailers Intl repeat and reallege each of the allegations contained in
The registration of Webbs marks on the Principal Register constitutes prima facie
evidence of the validity of Webbs marks, as well as Webbs ownership and exclusive rights to
use the marks in commerce, pursuant to 15 U.S.C. 1115.
141.
Webb and Trailers Intl have continuously used the UtilityMate, UtilitySport,
and 4 in 1 marks in commerce for the sale of utility trailers since at least 2005. And, Webb and
Trailers Intl have continuously used the BUILD IT AND SAVE mark in commerce for the sale
of utility trailers since at least 2009.
143.
Yang has used and continues to use marks that are identical or substantially
Yang has used marks that are identical or substantially indistinguishable, and
confusingly similar, to Webbs federally registered marks knowing that they are counterfeit in
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connection with the advertisement, promotion, offer for sale, sale, and distribution of utility
trailers
145.
has caused and is likely to cause confusion, mistake, or deception as to the affiliation,
connection, or association of Yang with Webb and Trailers Intl or as to the origin or approval of
the products of Yang and those of Webb and Trailers Intl, and misrepresents the nature,
characteristics, and qualities of these products.
146.
Yangs use of Webbs federally registered marks is without Webbs and Trailers
Yangs activities have caused and are likely to cause damage to Webbs and
Trailers Intls reputation and goodwill among consumers and will divert sales and opportunities
away from Webb and Trailers Intl and to Yang.
148.
Yangs acts of trademark counterfeiting have caused, and, unless enjoined, are
likely to further cause Webb and Trailers Intl to sustain monetary damages, loss, and injury in an
amount to be determined in this action.
149.
Webb and Trailers Intl are without an adequate remedy at law because Yangs use
of Webbs federally registered marks has caused irreparable injury to Webb and Trailers Intl, and
unless said acts are enjoined by this Court, they will continue and Webb and Trailers Intl will
continue to suffer irreparable injury.
150.
Yangs violations of Webbs and Trailers Intls exclusive rights in the federally
registered marks are with actual or constructive knowledge of Webbs and Trailers Intls
exclusive rights. Webb and Trailers Intl are therefore entitled to the maximum damages
allowable.
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Webb and Trailers Intl repeat and realleges each of the allegations contained in
1125(a)(1).
153.
Webb and Trailers Intl have continuously used the name UtilityMate and the
term 4 in 1 in commerce for the sale of utility trailers since at least 2005. Webb and Trailers
Intl have continuously used the names Utility Dump and Powersport in commerce for the
sale of utility trailers since at least 2006. Webb and Trailers Intl have continuously used the
term Build it and Save in commerce for the sale of utility trailers since at least 2009. And,
Webb and Trailers Intl have continuously used the names Open Dump, EZ Dump, MultiSport and Motor Sport in commerce for the sale of utility trailers since at least 2011.
154.
The registration of Webbs marks on the Principal Register constitutes prima facie
evidence of the validity of Webbs marks, as well as Webbs ownership and exclusive rights to
use the marks in commerce, pursuant to 15 U.S.C. 1115.
156.
Webb and Trailers Intl have continuously used the UtilityMate, UtilitySport,
and 4 in 1 marks in commerce for the sale of utility trailers since at least 2005. And, Webb and
Trailers Intl have continuously used the BUILD IT AND SAVE mark in commerce for the sale
of utility trailers since at least 2009.
157.
Yang has used and continues to use identical or confusingly similar names and
terms as Webb and Trailers Intl use, as well as Webbs federally registered marks, in connection
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with the importation and sale of utility trailers into and across the United States, which is
identical to the goods in connection with which Webb and Trailers Intl use and have used the
names and terms, and federally registered marks, and to the goods listed in Webbs Federal
Registration for his registered marks.
158.
Yangs use of identical or confusingly similar names and terms as Webb and
Trailers Intl use, as well as Yangs use of Webbs federally registered marks, has caused and is
likely to cause confusion, mistake, or deception as to the source, affiliation, or approval of the
goods and services of Yang because others are likely to believe that Yangs goods and services
in some way are connected with, licensed by, associated with, affiliated with, or otherwise
related to Webb and Trailers Intl.
159.
Yangs use of identical or confusingly similar names and terms as Webb and
Trailers Intl use, as well as Yangs use of Webbs federally registered marks, is without Webbs
and Trailers Intls consent or permission.
160.
Yangs activities have caused and are likely to cause damage to Webbs and
Trailers Intls reputation and goodwill among consumers and will divert sales and opportunities
away from Webb and Trailers Intl and to Yang.
161.
Yang acts which constitute false designation of origin have caused, and, unless
enjoined, are likely to further cause Webb and Trailers Intl to sustain monetary damages, loss,
and injury in an amount to be determined in this action.
162.
Webb and Trailers Intl are without an adequate remedy at law because Yangs use
of identical or confusingly similar names and terms as Webb and Trailers Intl use, as well as
Yangs use of Webbs federally registered marks, has caused irreparable injury to Webb and
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Trailers Intl, and unless said acts are enjoined by this Court, they will continue and Webb and
Trailers Intl will continue to suffer irreparable injury.
163.
Yangs violations of Webbs and Trailers Intls exclusive rights in the federally
registered marks are with actual or constructive knowledge of Webbs and Trailers Intls
exclusive rights. Webb and Trailers Intl are therefore entitled to the maximum damages
allowable.
CLAIM FIVE UNFAIR COMPETITION (PASSING OFF)
164.
Webb and Trailers Intl repeat and reallege each of the allegations contained in
166.
Webb and Trailers Intl have continuously used the name UtilityMate and the
term 4 in 1 in commerce for the sale of utility trailers since at least 2005. Webb and Trailers
Intl have continuously used the names Utility Dump and Powersport in commerce for the
sale of utility trailers since at least 2006. Webb and Trailers Intl have continuously used the
term Build it and Save in commerce for the sale of utility trailers since at least 2009. And,
Webb and Trailers Intl have continuously used the names Open Dump, EZ Dump, MultiSport and Motor Sport in commerce for the sale of utility trailers since at least 2011.
167.
The registration of Webbs marks on the Principal Register constitutes prima facie
evidence of the validity of Webbs marks, as well as Webbs ownership and exclusive rights to
use the marks in commerce, pursuant to 15 U.S.C. 1115.
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169.
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Webb and Trailers Intl have continuously used the UtilityMate, UtilitySport,
and 4 in 1 marks in commerce for the sale of utility trailers since at least 2005. And, Webb and
Trailers Intl have continuously used the BUILD IT AND SAVE mark in commerce for the sale
of utility trailers since at least 2009.
171.
Yang imports, offers for sale, sells, and distributes utility trailers across the
United States.
172.
Yang represents to potential and actual customers that the utility trailers Yang
imports, offers for sale, sells, and distributes across the United States are Altocraft brand,
supplied by Jumbo.
173.
Customers who order Altocraft trailers receive trailers that bear Webbs federally
registered trademarks, bear identical or similar names and terms as Webb and Trailers Intl use,
and which are packaged with documentation that consists of Webbs federally registered
copyrighted material and includes licensing and registration certificates bearing Trailers Intls
predecessor business name and World Manufacturer Identifier.
174.
Yang has used and continues to use identical or confusingly similar names and
terms as Webb and Trailers Intl use, as well as Webbs federally registered marks in connection
with the importation and sale of utility trailers into and across the United States, which is
identical to the goods in connection with which Webb and Trailers Intl use and have used the
federally registered marks since at least 2005 and 2009, respectively, and to the goods listed in
Webbs Federal Registration for his registered marks.
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175.
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Yangs use of identical or confusingly similar names and terms as Webb and
Trailers Intl use, as well as Yangs use of Webbs federally registered marks has caused and is
likely to cause confusion, mistake, or deception as to the source, affiliation, or approval of the
goods and services of Yang because others are likely to believe that Yangs goods and services
in some way are connected with, licensed by, associated with, affiliated with, or otherwise
related to Webb and Trailers Intl.
176.
Yangs use of identical or confusingly similar names and terms as Webb and
Trailers Intl use, as well as Yangs use of Webbs federally registered marks is without Webbs
or Trailers Intls consent or permission.
177.
Yangs activities have caused and are likely to cause damage to Webbs and
Trailers Intls reputation and goodwill among consumers and will divert sales and opportunities
away from Trailers Intl and to Yang.
178.
Yangs acts which constitute passing off unfair competition have caused, and,
unless enjoined, are likely to further cause Webb and Trailers Intl to sustain monetary damages,
loss, and injury in an amount to be determined in this action.
179.
Webb and Trailers Intl are without an adequate remedy at law because Yangs use
of identical or confusingly similar names and terms as Webb and Trailers Intl use, as well as
Yangs use of Webbs federally registered marks has caused irreparable injury to Webb and
Trailers Intl, and unless said acts are enjoined by this Court, they will continue and Webb and
Trailers Intl will continue to suffer irreparable injury.
180.
Yangs violations of Webbs and Trailers Intls exclusive rights in the federally
registered marks are with actual or constructive knowledge of Webbs and Trailers Intls
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exclusive rights. Webb and Trailers Intl are therefore entitled to the maximum damages
allowable.
CLAIM SIX UNFAIR BUSINESS PRACTICES (ORS 646.608(1)(b-c))
181.
Webb and Trailers Intl repeat and reallege each of the allegations contained in
Plaintiffs UtilityMate and UtilitySport trailers constitutes an unfair business practice under
ORS 646.608(1)(b-c).
183.
course of the persons business, vocation or occupation the person does any of the following:
(b)
Yangs violation of ORS 646.608(1)(b) and (c) has caused Plaintiffs to suffer
lost sales to companies that sell utility trailers in Oregon, including but not limited to Home
Depot, Sears, and K-Mart.
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punitive damages, and reasonable attorneys fees, pursuant to ORS 646.638(1) and (3), and to
injunctive relief under ORS 646.636.
CLAIM SEVEN CONVERSION
187.
Webb and Trailers Intl repeat and reallege each of the allegations contained in
Webb and Trailers Intl own all blueprints, tooling, and dies used to manufacture
Webb and Trailers Intl demanded that Yang return all blueprints, tooling, dies,
and any copies of the same, used to manufacture genuine Trailers Intl trailers.
190.
Yang does not have the right to use or possess Webbs and Trailers Intls
Yang knowingly and illegally has caused and continues to cause the manufacture
of counterfeit utility trailers using Webbs and Trailers Intls blueprints, tooling, and dies, or
copies of the same.
192.
tooling, and dies, or copies of the same, and by his acts of directing Jumbo to manufacture
counterfeit trailers has wrongfully converted Webbs and Trailers Intls blueprints, tooling, and
dies, or copies of the same, to his own use and benefit.
193.
Webb and Trailers Intl have been damaged and inconvenienced by Yangs
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Webb and Trailers Intl repeat and reallege each of the allegations contained in
Webb and Trailers Intl own all blueprints, tooling, and dies used to manufacture
Webbs and Trailers Intls blueprints, tooling, and dies used to manufacture
genuine Trailers Intl trailers are Webbs and Trailers Intls secret and proprietary materials.
198.
Webb and Trailers Intl only disclose and allow the use of their blueprints, tooling,
and dies used to manufacture genuine Trailers Intl trailers to contract manufacturers that they
authorize.
199.
Webb and Trailers Intl demanded that Yang return all blueprints, tooling, dies,
and any copies of the same, used to manufacture genuine Trailers Intl trailers.
200.
Yang does not have the right to use or possess Webbs and Trailers Intls
Yang knowingly and illegally has used and continues to use Webbs and Trailers
Intls blueprints, tooling, and dies, or copies of the same to manufacture counterfeit trailers.
202.
and Trailers Intls blueprints, tooling, and dies, or copies of the same.
203.
Webb and Trailers Intl have been damaged by Yangs misappropriation of their
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A judgment for Plaintiffs against Yang that Yang is liable for Federal Copyright
A judgment for Plaintiffs against Yang that Yang is liable for unfair business
A judgment for Plaintiffs against Yang that Yang is liable for damages caused by
his conversion of Plaintiffs blueprints, tooling, and dies, or copies of the same;
D.
A judgment for Plaintiffs against Yang that Yang is liable for damages caused by
his misappropriation of Plaintiffs blueprints, tooling, and dies, or copies of the same;
E.
A grant of permanent injunction against Yang enjoining him from using Webbs
federally registered copyrights and trademarks, or any confusingly similar variation thereof in
connection with utility trailers, pursuant to 17 U.S.C. 502 and 15 U.S.C. 1116;
G.
result of Yangs actions, together with interest and costs, including enhanced and treble damages,
pursuant to 17 U.S.C. 504, and 15 U.S.C. 1117(a)-(d);
H.
fees incurred in this action, together with interest, including prejudgment interest, pursuant to 17
U.S.C. 505, and 15 U.S.C. 1117(b), and the equity powers of this Court; and
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Such other and further relief as may be deemed just and appropriate.
DEMAND FOR JURY TRIAL
Pursuant to Fed. R. Civ. P. 38(b), Plaintiff requests a trial by jury on all issues properly
triable by a jury.
Respectfully submitted,
By:
s/ Stephen J. Joncus
Stephen J. Joncus, OSB No. 013072
Email: stephen.joncus@klarquist.com
Xavier A. Clark, OSB No. 133287
Email: xavier.clark@klarquist.com
KLARQUIST SPARKMAN, LLP
121 S.W. Salmon Street, Suite 1600
Portland, Oregon 97204
Telephone: 503-595-5300
Attorneys for Plaintiffs
TRAILERS INTL LLC and
VINCENT L. WEBB
COMPLAINT
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