Case 4:11-cv-40145-TSH Document 1

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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MASSACHUSETTS

WEBSTONE COMPANY, INC. One Appian Way Worcester, Massachusetts 01610, CIVIL ACTION NO. QQM MTPQTU Plaintiff, JURY TRIAL DEMANDED v. RED-WHITE VALVE USA 20600 Regency Lane Lake Forest, CA 92630, and VIR VALVO INDUSTRIA ING. RIZZIO S.P.A. Via Circonvallazione, 10 13018 Valduggia (Vercelli), Italy Defendants.

COMPLAINT FOR PATENT INFRINGEMENT

PARTIES AND JURISDICTION Plaintiff Webstone Company, Inc. (Webstone), for its Complaint, avers as follows: 1. Webstone Company, Inc. is a corporation organized under the laws of the State of

Massachusetts, with its principal place of business in Worcester, Massachusetts. 2. Upon information and belief, defendant Red-White Valve USA (Red-White) is

a corporation with its principal place of business in Lake Forest, California. 3. Upon information and belief, defendant VIR Valvo Industria Ing. Rizzio S.P.A.

(VIR) is a company with a place of business at Via Circonvallazione, 10, 13018 Valduggia (Vercelli), Italy. 4. This action for patent infringement is brought under the patent laws of the United

States, including 35 U.S.C. 271 et seq. -113376208v.1

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5. 6.

Jurisdiction is proper in this Court pursuant to 28 U.S.C. 1331 and 1338(a). Venue is proper in this Court pursuant to 28 U.S.C. 1391(b), (c) and 1400(b) as

the products accused of infringing the patents-in-suit have been and are being sold in this judicial district. WEBSTONE BACKGROUND 7. Since 1954 Webstone has been an industry leader in providing valves and

supplies for a variety of plumbing applications. 8. Webstone is an innovator in valve design and has invested significant resources

into developing valve products and securing intellectual property rights relating to those valve products it produces and/or sells. 9. Webstone is the owner of all right, title and interest in and to U.S. Patent No.

7,621,295 (the 295 Patent) which duly issued on November 24, 2009, entitled System for Controlling Fluid Flow to an Appliance. A copy of the 295 Patent is attached as Exhibit A. 10. Webstone is the owner of all right, title and interest in and to U.S. Patent No.

7,631,662 (the 662 Patent) which duly issued on December 15, 2009, entitled Hot/Cold Fluid Isolation Valve. A copy of the 662 Patent is attached as Exhibit B. 11. Webstone is the owner of all right, title and interest in and to U.S. Patent No.

7,644,730 (the 730 Patent) which duly issued on January 12, 2010, entitled Method for Isolating An Appliance In A Plumbing System. A copy of the 730 Patent is attached as Exhibit C. 12. Webstone is the owner of all right, title and interest in and to U.S. Patent No.

7,681,596 (the 596 Patent) which duly issued on March 23, 2010, entitled Isolation Valve With Valve In Drain. A copy of the 596 Patent is attached as Exhibit D.

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13.

Webstone is the owner of all right, title, and interest in and to U.S. Patent No.

7,789,106 (the 106 Patent) which duly issued on September 7, 2010, entitled Hot Water Fluid Isolation Valve. A copy of the 106 Patent is attached as Exhibit E. 14. Webstone is the owner of all right, title, and interest in and to U.S. Patent No.

7,857,002 (the 002 Patent) which duly issued on December 28, 2010, entitled Method For Isolating An Appliance In A Plumbing System. A copy of the 002 Patent is attached as Exhibit F (collectively, Exhibits A-F are referred to herein as the Asserted Patents). 15. Webstone sells a line of tankless hot water heater service valves under the name

Isolator E-X-P". 16. 17. Webstone began selling the Isolator E-X-P" valves on or about June 3, 2004. Certain Webstone Isolator E-X-P" valves are commercial embodiments of the

inventions described in the Asserted Patents. 18. Included in the packaging of Webstones Isolator E-X-P" valves are

instructions for installation. DEFENDANTS BACKGROUND 19. 20. Upon information and belief, VIR is an Italian manufacturer of plumbing valves. Upon information and belief, Red-White is a U.S. manufacturer of plumbing

valves and a U.S. distributor for VIR plumbing valves. 21. 22. Red-White and VIR are competitors of Webstone. Red-White and VIR are aware of Webstones patent rights as they were

previously licensees under the Asserted Patents until they ceased making royalty payments on or around April 29, 2011.

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23.

Upon information and belief, Red-White and VIR offer for sale and sell in the

United States, including in this judicial district, a 3400 Series Tankless Water Heater Valve, including 3401 and 3421 hot valves, 3402 and 3422 cold valves, and certain tankless water heater valve installation kits containing one or more of the 3400 Series Tankless Water Heater Valves (the Accused Products). RED-WHITES AND VIRS INFRINGEMENT A. The Accused Products 24. A sample of the Accused Products is shown below:

25. 26. 27. 28.

The Accused Products are sold for use with water-flow appliances. In particular, the Accused Products are sold for use with tankless water heaters. Tankless water heaters have an inlet port and an outlet port. Typically, the inlet port for a tankless water heater carries cold water and the

outlet port carries hot water. 29. The Accused Products, in some cases, are sold as kits with at least two valves, one

for hot water, one for cold water, and often with a pressure relief valve.

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30.

Red-White and VIR provide instructions associated with the Accused Products for

installation, operation, and maintenance of the Accused Products. 31. A sample of the instructions associated with the Accused Products is shown

directly below:

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B.

The Cold Water Valve 32. The cold water valve of the Accused Products (seen in the right-hand side of

paragraph 24 of this Complaint with a blue handle) has an inlet port, an outlet port, and a drain port. 33. 34. The cold water valve of the Accused Products has a valve body. The valve body of the cold water valve of the Accused Products includes the inlet

port, the outlet port, and the drain port. 35. The cold water valve of the Accused Products is configurable such that its outlet

port is open to its inlet port. 36. The cold water valve of the Accused Products is configurable such that its outlet

port is open to its drain port. 37. The cold water valve of the Accused Products is configurable such that during

operation of a water heater, water can be introduced into the inlet port and through the outlet port into the cold water side of a water heater. 38. The cold water valve of the Accused Products is configurable such that during

flushing of a water heater, flushing fluid can be introduced into the drain port and through the outlet port into the cold water side of a water heater. C. The Hot Water Valve 39. The hot water valve of the Accused Products (seen in the left-hand side of

paragraph 24 of this Complaint with a red handle) has an inlet port, an outlet port, a drain port, and a relief port. 40. The hot water valve of the Accused Products has a valve body.

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41.

The valve body of the hot water valve of the Accused Products includes the inlet

port, the outlet port, the drain port, and the relief port. 42. The hot water valve of the Accused Products is configurable such that its inlet

port is open to its outlet port and its relief port. 43. The hot water valve of the Accused Products is configurable such that its inlet

port is open to its drain port and its relief port. 44. The hot water valve of the Accused Products is configurable such that during

operation of a water heater, hot water can be introduced into the inlet port from the hot water side of a water heater and through the outlet port to deliver hot water to a plumbing system. 45. The hot water valve of the Accused Products is configurable such that during

flushing of a water heater, the water heater can be isolated from the plumbing system and flushing fluid, introduced into the cold water valve drain port and through the cold water valve outlet port into the cold water side of a water heater, can be drained from the water heater through the drain port of the hot water valve. CLAIM FOR PATENT INFRINGEMENT OF U.S. PATENT NO. 7,621,295 (Count I) 46. Webstone re-alleges and incorporates by reference Paragraphs 1 through 45 of

this Complaint as if separately restated herein. 47. The Accused Products have infringed and continue to infringe directly,

contributorily, and/or by acts of inducement, the claims of the 295 Patent, including but not limited to claim 1. 48. Red-White and VIR have infringed and continue to infringe the 295 Patent by

manufacturing, offering for sale, selling, and/or importing into the United States, the

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Accused Products in this judicial district and elsewhere and will continue to do so unless enjoined by this Court. 49. Red-Whites and VIRs acts of infringement are willful as Red-White and VIR

had actual knowledge of the 295 Patent, and acted recklessly and in complete disregard for Webstones patent rights. 50. Red-Whites and VIRs acts of infringement have caused and will continue to

cause substantial and irreparable damage to Webstone. 51. Webstone has no adequate remedy at law.

CLAIM FOR PATENT INFRINGEMENT OF U.S. PATENT NO. 7,631,662 (Count II) 52. Webstone re-alleges and incorporates by reference Paragraphs 1 through 51 of

this Complaint as if separately restated herein. 53. The Accused Products have infringed and continue to infringe directly,

contributorily, and/or by acts of inducement, the claims of the 662 Patent, including but not limited to claim 1. 54. Red-White and VIR have infringed and continue to infringe the 662 Patent by

manufacturing, offering for sale, selling, and/or importing into the United States, the Accused Products in this judicial district and elsewhere and will continue to do so unless enjoined by this Court. 55. Red-Whites and VIRs acts of infringement are willful as Red-White and VIR

had actual knowledge of the 662 Patent, and acted recklessly and in complete disregard for Webstones patent rights. 56. Red-Whites and VIRs acts of infringement have caused and will continue to

cause substantial and irreparable damage to Webstone.

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57.

Webstone has no adequate remedy at law.

CLAIM FOR PATENT INFRINGEMENT OF U.S. PATENT NO. 7,644,730 (Count III) 58. Webstone re-alleges and incorporates by reference Paragraphs 1 through 57 of

this Complaint as if separately restated herein. 59. The Accused Products have infringed and continue to directly, contributorily,

and/or by acts of inducement, infringe the claims of the 730 Patent, including but not limited to claim 1. 60. Red-White and VIR have infringed and continue to infringe the 730 Patent by

manufacturing, offering for sale, selling, and/or importing into the United States, the Accused Products in this judicial district and elsewhere and will continue to do so unless enjoined by this Court. 61. Red-Whites and VIRs acts of infringement are willful as Red-White and VIR

had actual knowledge of the 730 Patent, and acted recklessly and in complete disregard for Webstones patent rights. 62. Red-Whites and VIRs acts of infringement have caused and will continue to

cause substantial and irreparable damage to Webstone. 63. Webstone has no adequate remedy at law.

CLAIM FOR PATENT INFRINGEMENT OF U.S. PATENT NO. 7,681,596 (Count IV) 64. Webstone re-alleges and incorporates by reference Paragraphs 1 through 63 of

this Complaint as if separately restated herein. 65. The Accused Products have infringed and continue to infringe directly,

contributorily, and/or by acts of inducement, the claims of the 596 Patent, including but not limited to claim 1. -913376208v.1

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66.

Red-White and VIR have infringed and continue to infringe the 596 Patent by

manufacturing, offering for sale, selling, and/or importing into the United States, the Accused Products in this judicial district and elsewhere and will continue to do so unless enjoined by this Court. 67. Red-Whites and VIRs acts of infringement are willful as Red-White and VIR

had actual knowledge of the 596 Patent, and acted recklessly and in complete disregard for Webstones patent rights. 68. Red-Whites and VIRs acts of infringement have caused and will continue to

cause substantial and irreparable damage to Webstone. 69. Webstone has no adequate remedy at law.

CLAIM FOR PATENT INFRINGEMENT OF U.S. PATENT NO. 7,789,106 (Count V) 70. Webstone re-alleges and incorporates by reference Paragraphs 1 through 69 of

this Complaint as if separately restated herein. 71. The Accused Products have infringed and continue to infringe directly,

contributorily, and/or by acts of inducement, the claims of the 106 Patent, including but not limited to claim 1. 72. Red-White and VIR have infringed and continue to infringe the 106 Patent by

manufacturing, offering for sale, selling, and/or importing into the United States, the Accused Products in this judicial district and elsewhere and will continue to do so unless enjoined by this Court. 73. Red-Whites and VIRs acts of infringement are willful as Red-White and VIR

had actual knowledge of the 106 Patent, and acted recklessly and in complete disregard for Webstones patent rights.

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74.

Red-Whites and VIRs acts of infringement have caused and will continue to

cause substantial and irreparable damage to Webstone. 75. Webstone has no adequate remedy at law.

CLAIM FOR PATENT INFRINGEMENT OF U.S. PATENT NO. 7,857,002 (Count VI) 76. Webstone re-alleges and incorporates by reference Paragraphs 1 through 75 of

this Complaint as if separately restated herein. 77. The Accused Products have infringed and continue to infringe directly,

contributorily, and/or by acts of inducement, the claims of the 002 Patent, including but not limited to claim 1. 78. Red-White and VIR have infringed and continue to infringe the 002 Patent by

manufacturing, offering for sale, selling, and/or importing into the United States, the Accused Products in this judicial district and elsewhere and will continue to do so unless enjoined by this Court. 79. Red-Whites and VIRs acts of infringement are willful as Red-White and VIR

had actual knowledge of the 002 Patent, and acted recklessly and in complete disregard for Webstones patent rights. 80. Red-Whites and VIRs acts of infringement have caused and will continue to

cause substantial and irreparable damage to Webstone. 81. Webstone has no adequate remedy at law.

WHEREFORE, Webstone requests the relief set forth below. PRAYER FOR RELIEF 1. That the Court enter judgment that defendants, individually and collectively, have

infringed the Asserted Patents;

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2.

That pursuant to Counts I-VI and 35 U.S.C. 283, the Court preliminarily and

permanently enjoin defendants, individually and collectively, as well as their subsidiaries, affiliates, divisions, officers, agents, servants employees, directors, partners, representatives, and all parties in active concert and/or participation with them, from directly or indirectly making, having made, selling, offering for sale, distributing, and/or using in the United States, and/or importing into the United States, products that infringe the Asserted Patents, including the Accused Products; 3. That the Court enter judgment that defendants acts of infringement, individually

and collectively, were committed willfully; 4. That the Court award Webstone damages adequate to compensate for Red-

Whites and VIRs infringement, individually and collectively, including but not limited to: a. pursuant to 35 U.S.C. 284, damages to adequately compensate Webstone for its lost profits from the date of the issuance of the respective Asserted Patents through the date Red-White and VIR cease sales of infringing products, but in no event less than a reasonable royalty from the date of the issuance of the respective Asserted Patents through the date Red-White and VIR cease sales of infringing products; b. damages for sales of articles that Red-White and VIR sold and would not have sold but for sales of the Accused Products (i.e., convoyed sales); and c. interest for the damages to Webstone; 5. 6. That the Court award treble damages pursuant to 35 U.S.C. 284; That the Court find this to be an exceptional case pursuant to 35 U.S.C. 285 and

award Webstone its reasonable attorneys fees and costs; and

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7.

Such other and further relief that this Court may deem just and proper. WEBSTONE COMPANY, INC. By its attorneys, /s/ Zachary Berk Zachary W. Berk (BBO #663575) zberk@seyfarth.com SEYFARTH SHAW LLP World Trade Center East Two Seaport Lane, Suite 300 Boston, MA 02210-2028 Tel: 617.946.4800 Fax: 617.946.4801

Dated: August 2, 2011

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