Hutzler Manufacturing Company v. Bradshaw International

8/3/2019 Hutzler Manufacturing Company v. Bradshaw International

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relying

onitsmanufacturing

partnersorsellingkn

ock-offproducts,asm

anyimportersnowdo.

Hutzle

rnowfocusesondesigningproductsthatare

uniqueinfeaturesand

/ordesign,andithas

takenstepstoprotecttheseinnovationsthroughthe

useofutilityanddesignpatents.Nearlyall

of

thecompanysrevenuegrow

thcomesfromnewproducts.

9.

In200

5,Hutzlerintroducedalineofproductsused

forstoringand

preservingvarioustypesofp

roduce.Thislineofplasticproducts,someo

fwhichresemblethe

typesofproducetheyaredesignedtostoreandkeepfresh,iscalledtheF

oodSaverLine.Two

produc

tsintheFoodSaverL

inetheOnionSaverandtheGarlicSaverarecoveredbyU

.S.

patentsownedbyHutzler.

10.

Hutzle

rsFoodSaverLinehasquicklybecomethe

companysmostpopular

produc

tline.SalesofproductsintheFoodSaverL

inerepresentapproxim

ately63percentof

Hutzle

rssalesand,specifica

lly,salesoftheOnion

SaverandtheGarlicS

averaccountfor27

percen

tofthecompanyssales.

TheOnionSaverPatent

11.

OnMay4,2006,Hutzlerfile

dapatentapplication

withtheUnitedStates

Patent

andTrademarkOffice

(thePTO)inconnectionwithaclaimfortheornamentaldesign

foran

onioncontainer.OnMarch13,2007,thePTOdulyandlegallyissuedU.S.PatentNo.

D538,114(the114Patent),showinganddescrib

ingtheornamentaldesignforanonion

container,withHutzlerastheassigneefromthein

ventor.AttachedheretoasExhibit1isatrue

andco

rrectcopyofthe114Patent.Hutzleristheowneroftheentireright,title,andinterestin

andto

the114Patent.The114Patentisinfullfo

rceandeffect.

12.

Pursua

ntto35U.S.C.287,

sincetheissuedateof

the114Patent,Hutzler

hasmarkedeachonionconta

inerithasdesigned,m

anufactured,andsold

(underthenameOnio

n


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Saver

)inaccordancewiththe114Patentwiththe

fullpatentnumberforthe114Patent.Prio

r

tothepatentissuedate,such

productsweremarked

aspatentpending.

TheGarlicSaverPatent

13.

OnAu

gust14,2007,HutzlerfiledapatentapplicationwiththePTOin

connectionwithaclaimfortheornamentaldesign

foracontainerintendedtoholdgarlic.On

May19,2009,thePTOissue

dU.S.PatentNo.D59

2,463(the463Paten

t),showingand

describingtheornamentald

esignforacontainerintendedtoholdgarlic

,withHutzlerasthe

assigneefromtheinventors.

AttachedheretoasEx

hibit2isatrueandcorrectcopyofthe463

Patent.Hutzleristheowner

oftheentireright,title

,andinterestinandto

the463Patent.The

463P

atentisinfullforcean

deffect.

14.

Pursua

ntto35U.S.C.287,

sincetheissuedateof

the463Patent,Hutzler

hasma

rkedeachgarlicconta

inerithasdesigned,m

anufactured,andsold(underthenameGarlic

Saver

)inaccordancewiththe463Patentwiththe

fullpatentnumberforthe463Patent.Prio

r

tothepatentissuedate,such

productsweremarked

aspatentpending.

DefendantsIn

fringement

15.

Oninf

ormationandbelief,B

radshawimportshouseholdproducts

manufacturedinAsiaintoNorthAmerica,whereit

distributesthem.Bradshawisoneofthetwo

largestplayersinthedistribu

tionandsalesofhousewarestosupermarket

andmassmarket

retailers.

16.

Oninf

ormationandbelief,B

radshawpaysannualf

eestohaveexclusive

rightstopermanentspaceinmostsupermarketretailers.Thisisparticularlysignificantbecause

oncea

companybuysspaceinasupermarket,thesupermarketdoesnotse

llspacetocompetitors.

Onaverage,acompanycanbuyspaceforbetween

twoandfiveyears.


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17.

Oninformationandbelief,B

radshawistheexclusivedistributorforutens

ils

andgadgetstoamajordiscountdepartmentstore.

18.


radshawhasmisappropriatedthedesign

patentsfortheOnionSavera

ndtheGarlicSaver,fo

ritsownbenefit.

19.


radshawhassold,and

isofferingforsale,in

thisjudicialdistrictandotherpartsoftheUnitedStates,productsthatinfringethe114Patentan

d

the46

3Patent(theInfringi

ngProducts).

20.


radshawpurchasedtheInfringingProducts

froma

manufacturerinChina.

21.

TheOnionSaverproductma

nufacturedanddistributedbyHutzlerisbase

d

onthe

designanddrawingso

fthe114Patent.The

onioncontainerbeing

distributedby

defend

antisclearlyandunmistakablymanufacturedaccordingtothedesignsetforthinthe114

Patent.AttachedheretoasExhibit3isacompariso

nofthe114Patentan

ddefendantsOnion

Keeper.Inparticular,theshapeofdefendantsproduct,includingitsrou

ndbottomwitha

flattenedbase,andthelineacrosstheproductatapproximatelyhalfwayfromitstop,demonstrate

infring

ement.22.

TheGarlicSaverproductma

nufacturedanddistributedbyHutzlerisbase

d

onthe

designanddrawingsd

epictedinthe463Patent.Thegarliccontainerbeingdistributedby

thedefendantclearlywasma

nufacturedanddesignedtobeidenticalthed

esignembodiedinthe

463Patent.Attachedhereto

asExhibit4isacomparisonofthe463Patentanddefendants

GarlicKeeper.Inparticular,theshapeofdefendantsproduct,itsroundbottomwithaflattened

base,thelineacrosstheproductatapproximatelytwo-thirdsfromitstop,

andtheproductsslits

onitsbase,areidenticalineverydetail.


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23.


radshawhassold,and

isofferingforsale,

Infring

ingProductsinthisjudicialdistrictandotherpartsoftheUnitedStates.

24.

Oninformationandbelief,th

eInfringingProductswereofferedforsaleata

March

6,2011InternationalHousewaresShowinC

hicago,Illinois.

25.


radshawwasthesourc

eoftheInfringing

Produc

tsofferedforsaleattheInternationalHousewaresShow.

26.


radshawbegandistributingtheInfringing

Produc

tsinPriceChopperSu

permarketsonorbefo

reMay21,2011.

27.


radshawhasdistributedtheInfringing

Produc

tsinothersupermarke

tretailersandlocation

ssinceMay21,2011.

28.


radshawhassoldandofferedforsalethe

Infring

ingProductstocompa

niesthathavepreviouslypurchasedproductsintheFoodSaverLin

e

fromH

utzler,therebydisplac

ingHutzlerproductsa

ndharmingHutzlersreputation.

29.

Oninformationandbelief,in

additiontoimitatingtheOnionSaverandth

e

Garlic

Saver,BradshawhassoldandofferedforsaleproductswhichdirectlyimitateHutlzers

Lemon

/LimeSaver,PepperS

aver,andTomatoSav

er.

30.

SalesfortheFoodSaverLineofproductshasconsistentlygrownsincethe

produc

tsintroduction.Specifically,inyear2007,salesfortheFoodSaverLineinsupermarkets

grewb

y1472%;in2008by241%;in2009by46%

;andin2010by15%.

Inyear2007,salesfo

r

theOn

ionSaverandtheGarlicSaverinsupermarketsgrewby1369%;in

2008by255%;in200

9

by34%

;andin2010by13%

.


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31.

Bycon

trast,forthefirsttime

sincetheinceptionof

theFoodSaverLine,

salesh

avedeclinedby21%inthesecondhalfof20

11becauseoftheintroductionofBradshaws

Infring

ingProducts.

Sales

Revenue

255

13

21

4

15

21

Sales

Revenue


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IrreparableHarmtoHutzler

32.

Bradsh

awsimportationanddistributionoftheInfringingProductsiswith

fullknowledgeofHutzlersp

atentrightsandbusinessoperations.

33.

Bradsh

awsimportationanddistributionoftheInfringingProductsisdone

withth

eintenttocompetewithHutzler.

34.

PriortofilingthepresentComplaint,Hutzleranditscounseladvised

defend

antofHutzlersrights

inandtothe114Pate

ntandthe463Patent

andofHutzlersbelief

thatcertainproductsbeingdi

stributedbydefendant

infringedsuchpatents

.Bradshawhasnot

substantivelyrespondedtosu

chcommunications.

35.

Hutzle

randdefendantaredirectcompetitorsvying

forthebusinessofthe

sameg

roupofcustomers.

36.

Hutzle

rhasbuiltitsreputatio

nonthequalityandth

euniquenessofits

produc

ts.

37.

Byitsinfringingacts,Bradsh

awhasirreparablyharmedHutzlerandsuch

injurywillcontinueandgrow

unlessBradshawisenjoinedbythisCourt.

38.

TheInfringingProductsarem

orecheaplyconstructedandmorecheaply

priced

thanHutzlersinfringed-uponproducts.Oninformationandbelief,theInfringingProduc

ts

arebeingsoldandofferedforsaleatapriceapproximately25-50percent

lowerthanthe

advertisedpricefortheOnionSaverandtheGarlic

Saver.

39.

DefendantsdistributionoftheInfringingProducts

hascreatedandwill

continuetocreateconfusionirreparablydamagingHutzlersreputationan

dgoodwill.


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40.

Defendantsdistributionofth

eInfringingProducts

hasirreparably

decreasedandwillcontinuetoirreparablydecrease

thesizeofHutzlersm

arketshareand,ifnot

enjoined,willcostHutzleritspositionasthemarketleader.

41.


eInfringingProducts,ifnotenjoined,will

resultinirreparablepriceerosionofHutzlerspaten

tedproductsinthatHutzlerwillbeforcedto

drasticallychangeitspricing

structureinordertocompetewithlower-pric

edknock-off

produc

ts.Asaresult,Hutzlersreputationwillbep

ermanentlyharmed.

42.


eInfringingProducts,becausetheyaremore

cheaplyconstructedthanHut

zlersproducts,hashadandwillcontinueto

haveanirreparable

deleteriouseffectoncustome

rsgeneralgoodwillto

wardsplasticproductsresemblingthetypeo

f

produc

etheyaredesignedto

storeandpreserve.

43.


eInfringingProductshasstalledandreverse

d

Hutzlerssalesmomentum,causingthelossofatleastsevenmajoraccounts,andhaspossibly

permanentlydisplacedHutzlersproductsinsuperm

arkets.

44.

Thepo

pularityoftheFoodSaversLineisresponsib

leforapproximately8

0

percentofHutzlersoverallsalesgrowth(inadepre

ssedhousewaresmark

et)in2010.Priortothe

introdu

ctionoftheOnionSaverin2006,Hutzlerssaleshadplateaued.If

notfortheintroductio

n

oftheOnionSaverandtheG

arlicSaver,thecompa

nyssaleslikelywouldhavedecreased.

Moreover,productsintheFo

odSaversLineoftenserveasgatewayor

introductoryproducts

inthat

theyaretheinitialHutzlerproductspurchase

dbycustomers,whoa

rethenintroducedto

otherp

roductsintheHutzler

line.DefendantsdistributionoftheInfringi

ngProductshashadand

willco

ntinuetohaveanirrep

arabledeleteriouseffectonHutzlerssalesm

omentumandprofits.


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45.

IfBrad

shawisnotenjoinedfromunfairlycompetin

gandinfringingthe

114Patentandthe463Pate

nt,otherpotentialcom

petitorswillbeencouragedtodistribute

knock

-offproductsresemblingtheOnionSavera

ndtheGarlicSaverthemselves,andwillfloo

d

themarketwithevenmorech

eaply-madeandcheap

ly-pricedknock-off

products.Someof

thesep

otentialcompetitorsareHutzlersownpresentcustomers.

46.

Forthe

firsttimesincetheFo

odSaverLinewasintroducedbyHutzler,

therehasbeenadeclineinsales,whichisdirectlyattributabletodefendan

tsdistributionandsale

oftheInfringingProducts.

47.

BecauseHutzlersbusinessandreputation,aswellasthevalueofits

patents

,willbeirreparablyharmedifBradshawisn

otenjoined,moneyda

magescannot

sufficientlycompensateHutz

lerforthedamagecausedbyBradshawsinfringingacts.

48.

Incontrast,Bradshawwillno

tsufferanycognizableorirreparableinjuryif

itisenjoined.

COUNTI

Infringementofthe114Patent

49.

Hutzlerincorporatesbyreferenceasthoughfullyse

tforthhereinthe

allegationscontainedinparagraphs1through48ab

ove.

50.

Oninformationandbelief,Bradshawhasmade,use

d,imported,sold,

and/or

offeredforsaleproductsthatinfringethe11

4Patentinviolationo

f35U.S.C.271(a).

51.

Oninformationandbelief,Bradshawhasinducedo

therstoinfringethe

114Patentbyencouraginga

ndpromotingtheuse,

manufacture,importation,sale,and/oroffer

forsalebyothersofproducts

thatinfringethe114Patentinviolationof3

5U.S.C.271(b).


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52.

Oninformationandbelief,Bradshawhadnoticeandactualknowledgeof

the11

4Patentbeforethefilingofthisaction,andi

tsinfringementofthe114Patenthasbeen

andcontinuestobewillfulan

ddeliberate.

53.

Hutzlerhasbeendamagedby

Bradshawsinfringem

entofthe114Patent

,

inanamounttobedeterminedattrial.Furthermore

,byitsinfringingacts,Bradshawhas

irreparablyharmedHutzlerandsuchinjurywillcon

tinueandgrowunless

Bradshawisenjoined

bythis

Court.

COUNTII

Infringementofthe463Patent

54.


tforthhereinthe

allegationscontainedinparag

raphs1through48above.

55.

Oninformationandbelief,Bradshawhasmade,use

d,imported,sold,

and/or

offeredforsaleproductsthatinfringethe46

3Patentinviolationo

f35U.S.C.271(a).

56.

Oninformationandbelief,Bradshawhasinducedo

therstoinfringethe

463Patentbyencouragingandpromotingtheuse,

manufacture,importation,sale,and/oroffer

forsalebyothersofproducts

thatinfringethe463Patentinviolationof3

5U.S.C.271(b).

57.

Oninformationandbelief,Bradshawhadnoticeandactualknowledgeof

the46

3Patentbeforethefilingofthisaction,andi

tsinfringementofthe463Patenthasbeen

andcontinuestobewillfulan

ddeliberate.

58.

Hutzlerhasbeendamagedby

Bradshawsinfringem

entofthe463Patent

,

inanamounttobedeterminedattrial.Furthermore

,byitsinfringingacts,Bradshawhas

irreparablyharmedHutzlerandsuchinjurywillcon

tinueandgrowunless

Bradshawisenjoined

bythis

Court.


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COUNT

III

TortiousInterferenc

eWithBusiness

59.


tforthhereinthe



60.

Oninformationandbelief,at

thetimeitsoldoroffe

redforsalethe

InfringingProducts,BradshawknewthatHutzlerwassellingtheOnionSaverandGarlicSaverto

variouscustomerswithinthe

UnitedStates.

61.

Oninformationandbelief,at

thetimeitsoldoroffe

redforsalethe

InfringingProducts,Bradshawhadnoticeandactua

lknowledgethattheO

nionSaverandthe

GarlicSaverweresubjecttopatentsissuedtoHutzlerbythePTO.

62.

Oninformationandbelief,Bradshawknowingly,willfully,andwrongfully

interferedwiththerelationshipbetweenHutzlerand

itscustomersbysellingorofferingtosell

InfringingProductstoHutzlerscustomerseither(a)withoutnotifyingsuc

hCustomersthatthe

InfringingProductsinfringed

certainpatentsheldbyHutzler,or(b)falselyrepresentingthatsuch

InfringingProductsdidnotin

fringesuchpatents.

63.

Bradsh

aw,throughitstortiou

sactions,directlyand

proximatelyharmed

HutzlerbycausingHutzlers

customerstoceasedoingbusinesswithHutzler.

COUNT

IV

UnfairCom

petition

64.


tforthhereinthe



65.

Hutzleristheexclusiveowne

rofthe114Patentan

dthe463Patent.

66.

HutzlerhascreatedtheFood

SaverLine,andspecif

ically,theOnionSaver

andthe

GarlicSaver,through

extensivetime,labor,

skill,andmoney.


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67.

Oninformationandbelief,BradshawusedHutzlerspatenteddesignin

competitionwithHutzler,gai

ninganunfairadvanta

ge,becauseBradshaw

borelittleornoburden

ofexpe

nseofdevelopment.

68.

Bradsh

awusedHutzlerspatenteddesigntotheexclusionofBradshaw,by,

among

otherthings,buyingexclusivespaceinsupermarkets.

69.

Bycreatingalineofproducts

identicaltotheFoodSaverLine,Bradshaw

hasmisappropriatedacommercialadvantagebelongingtoHutzler.

70.

BytakingandusingHutzlerspatenteddesigntoco

mpeteagainstHutzler,

Bradsh

awhasmisappropriate

dacommercialadvantagebelongingtoHutz

ler.

71.

Bradsh

awhasalsoengagedinbadfaithmisappropriationofthelaborsof

Hutzlerwhichislikelytocau

seconfusion,ortodec

eivepurchasersastotheoriginofthegoods.

72.

Bradsh

awsactionshavecausedsignificantcommercialdamagetoHutzle

r.

73.

Bradsh

awsactshavebeenin

tentional,willful,andinconsciousdisregard

ofHutzlersrights,entitlingH

utzlertotheremedies

providedunderNewYorklaw.


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WHEREFOR

E,plaintiffHutzlerde

mandsjudgmentagain

stdefendantasfollows:

(1)

Adjudg

ingthatdefendantsproductsinfringethe114Patentandthe463

Patent;

(2)

Adjudg

ingthatdefendantsin

fringementofthe114Patentandthe463

Patentwaswillfulanddeliberate,anddeemingthiscaseexceptionalunder35U.S.C.285;

(3)

Adjudg

ingdefendanttohave

tortiouslyinterferedw

ithHutzlersbusiness;

(4)

Adjudg

ingdefendanttohave

unfairlycompetedwit

hHutzler;

(5)

Preliminarilyandpermanentlyenjoiningdefendant,

itssubsidiaries,

affiliates,parents,successors,assigns,officers,agen

ts,servants,employee

s,attorneys,andall

personsactinginconcertorinparticipationwithdefendant,fromunfairly

competingwithHutzler

andfro

minfringingorinducinginfringementofthe

114Patentand/orthe

463Patentand,

specifically,fromdirectlyorindirectlymaking,usin

g,selling,orofferingforsaleanyproducts

embodyingtheinventionsofthe114Patentand/or

the463Patentduring

theirterms,withoutth

e

expresswrittenauthorityofH

utzler.

(6)

AwardingHutzlerdamagesinconnectionwithCountsIandIIinanamount

tobedeterminedattrial,andthetreblingthereof,pu

rsuantto35U.S.C.284or,alternatively,

damagesinconnectionwithC

ountsIandIIpursuan

tto35U.S.C.289basedonanaccounting

ofdefendantsprofitsderived

fromitsactsofinfringement;

(7)

AwardingHutzlerdamagesinconnectionwithCountsIIIandIVinan

amounttobedeterminedattr

ial;

(8)

AwardingHutzleritscostspu

rsuantto35U.S.C.284anditsreasonable

attorneysfeespursuantto35

U.S.C.285;


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Hutzler Manufacturing Company v. Bradshaw International

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