Speculative v. Mattson - Amended Complaint

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    JOHNSON & PHAM, LLPChristopher D. Johnson, SBN: 222698

    E-mail: [email protected] Q. Pham, SBN: 206697

    E-mail: [email protected] F. Chaney, SBN: 245227

    E-mail: [email protected] Q. Pham, SBN: 276613E-mail: [email protected]

    6355 Topanga Canyon Boulevard, Suite 326Woodland Hills, California 91367Telephone: (818) 888-7540Facsimile: (818) 888-7544

    Attorneys for PlaintiffSPECULATIVE PRODUCT DESIGN, LLCd/b/a SPECK PRODUCTS

    UNITED STATES DISTRICT COURT

    CENTRAL DISTRICT OF CALIFORNIA

    WESTERN DIVISION

    SPECULATIVE PRODUCT DESIGN,LLC d/b/a SPECK PRODUCTS, aCalifornia Limited Liability Company,

    Plaintiff,

    v.

    PATRICK MATTSON, an Individual;STU DISTRIBUTION SERVICES,LLC, a Texas Limited LiabilityCompany; MD5 TECHNOLOGIES, aBusiness Entity of Unknown Status; andDOES 1-10, Inclusive,

    Defendants.

    Case No.: 2:14-cv-06465-ODW-PLAx

    FIRST AMENDED COMPLAINTFOR DAMAGES ANDDECLARATORY RELIEF:

    (1) FEDERAL TRADEMARKINFRINGEMENT [15 U.S.C. 1114/Lanham Act 43(a)];

    (2) FALSE DESIGNATION OFORIGIN/UNFAIRCOMPETITION/FALSE ORMISLEADING ADVERTISING[15 U.S.C. 1125(a)];

    (3) TRADEMARK DILUTION [15U.S.C. 1125(c)];

    (4) UNFAIR BUSINESS

    PRACTICES [CALIFORNIABUSINESS & PROFESSIONSCODE 17200];

    (5) FEDERAL COPYRIGHTINFRINGEMENT [17 U.S.C. 501(a)];and

    (6) FEDERAL PATENTINFRINGEMENT [35 U.S.C. 271]

    [DEMAND FOR JURY TRIAL]

    Case 2:14-cv-06465-ODW-PLA Document 29 Filed 11/25/14 Page 1 of 21 Page ID #:137

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    COMES NOW, Plaintiff SPECULATIVE PRODUCT DESIGN, LLC d/b/a

    SPECK PRODUCTS (hereinafter Plaintiff and/or SPECK), and herebyalleges as follows:

    PARTIES

    1. Plaintiff, is now, and was at the time of the filing of the Complaint,

    and at all intervening times, a California Limited Liability Company, duly

    authorized and licensed to conduct business in the State of California with its

    principal place of business located in San Mateo, California.

    2. Plaintiff alleges, on information and belief, that Defendant PATRICK

    MATTSON, is now, and was at the time of the filing of the Complaint an

    individual residing in and doing business from McKinney, Texas.

    3. Plaintiff further alleges, on information and belief, that Defendant

    PATRICK MATTSON is the alter-ego, owner and operator of Defendants STU

    DISTRIBUTION SERVICES, LLC and MD5 TECHNOLOGIES.

    4.

    Plaintiff further alleges, on information and belief, that Defendant

    STU DISTRIBUTION SERVICES, LLC, is now, and was at the time of the filing

    of the Complaint, a Texas Limited Liability Company, with its principal place of

    business located in McKinney, Texas.

    5. Plaintiff further alleges, on information and belief, that Defendant

    MD5 TECHNOLOGIES, is now, and was at the time of the filing of the

    Complaint, a business entity of unknown status doing business from McKinney,Texas.

    6. Plaintiff further alleges, on information and belief, that at the time of

    their creation, now, and at all times relevant to this Complaint, Defendants STU

    DISTRIBUTION SERVICES, LLC and MD5 TECHNOLOGIES did not and do

    not have sufficient funding to assume responsibility for their foreseeable and

    Case 2:14-cv-06465-ODW-PLA Document 29 Filed 11/25/14 Page 2 of 21 Page ID #:138

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    actual liabilities.

    7. Plaintiff further alleges, on information and belief, that since the time

    of their creation, now, and at all times relevant to this Complaint, Defendants STU

    DISTRIBUTION SERVICES, LLC and MD5 TECHNOLOGIES wereundercapitalized.

    8. Plaintiff further alleges, on information and belief, that since the time

    of their creation, now, and at all times relevant to this Complaint, Defendants STU

    DISTRIBUTION SERVICES, LLC and MD5 TECHNOLOGIES have failed to

    observe corporate formalities required by law.

    9. Plaintiff further alleges, on information and belief, that Defendants

    PATRICK MATTSON, STU DISTRIBUTION SERVICES, LLC, MD5

    TECHNOLOGIES, and DOES 1-10, inclusive, conduct business within the

    jurisdiction of the United States District Court for the Central District of

    California by offering counterfeit goods for sale and distributing said goods to

    consumers within the Central District of California utilizing services provided by

    third-party entities located in the State of California, that infringe upon Plaintiffs

    federally registered trademarks, copyright, and design patent.

    10. The true names and capacities, whether individual, corporate,

    associate or otherwise, of defendants herein named as DOES 1-10, inclusive, are

    unknown to Plaintiff. Plaintiff therefore sues said defendants by such fictitious

    names. When the true names and capacities of said defendants have been

    ascertained, Plaintiff will amend this pleading accordingly.

    11.

    Plaintiff further alleges, on information and belief, that DefendantsPATRICK MATTSON, STU DISTRIBUTION SERVICES, LLC, MD5

    TECHNOLOGIES, and DOES 1-10, inclusive, sued herein by fictitious names are

    jointly, severally and concurrently liable and responsible with the named

    Defendants upon the causes of action hereinafter set forth.

    / / /

    Case 2:14-cv-06465-ODW-PLA Document 29 Filed 11/25/14 Page 3 of 21 Page ID #:139

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    12. Plaintiff further alleges, on information and belief, that at all times

    mentioned herein Defendants PATRICK MATTSON, STU DISTRIBUTION

    SERVICES, LLC, MD5 TECHNOLOGIES, and DOES 1-10, inclusive, and each

    of them, were the agents, servants and employees of every other Defendant andthe acts of each defendant, as alleged herein, were performed within the course

    and scope of that agency, service or employment (hereinafter collectively

    Defendants).

    JURISDICTION / VENUE

    13. This Court has Federal subject matter jurisdiction over this matter

    pursuant to 28 U.S.C.1331 and 1338(a) and (b), in that the case arises out of

    claims for trademark infringement, false designation of origin, unfair competition

    and dilution under the Lanham Act (15 U.S.C. 1051 et seq.), copyright

    infringement under the Copyright Act (17 U.S.C. 501(a)), and design patent

    infringement under the U.S. Patent Act(35 U.S.C. 1 et seq.); and this Court has

    supplemental jurisdiction pursuant to 28 U.S.C. 1367(a) and 1338 (a)(b).

    14. This Court has personal jurisdiction over Defendants since

    Defendants have committed the tortious and illegal activities of trademark

    infringement, copyright infringement, patent infringement, and unfair competition

    in this district and/or Defendants have sufficient minimum contacts with this

    district such that the exercise of jurisdiction over Defendants by this Court does

    not offend traditional notions of fair play and substantial justice. Among other

    things, Defendants have advertised, offered to sell, sold, and distributed products

    that infringe the trademarks, copyrights, and design patents of Plaintiff toconsumers within this judicial district. Defendants have also offered to sell, sold,

    and distributed counterfeit products (described more fully below) using an

    interactive internet website knowing or having reason to know that consumers

    throughout the United States, including within this judicial district, would

    purchase said counterfeit goods from Defendants, believing that they were

    Case 2:14-cv-06465-ODW-PLA Document 29 Filed 11/25/14 Page 4 of 21 Page ID #:140

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    authentic goods manufactured and distributed by Plaintiff or its authorized

    manufacturers.

    15. Additionally, supplemental jurisdiction exists over Defendants

    because, on information and belief, Defendants conduct business in California andin this judicial district, have purposefully directed action to California and this

    district, or have otherwise availed themselves of the privileges and protections of

    the laws of the State of California, such that this Courts assertion of jurisdiction

    over Defendants does not offend traditional notions of fair play and due process.

    16. Venue is proper, inter alia, pursuant to 28 U.S.C. 1391(b) because

    on information and belief, a substantial part of the events or omissions giving rise

    to the claim occurred in this judicial district, and has caused damages to Plaintiff

    in this district. The counterfeit Speck-branded products were purchased from

    California and Defendants purposefully shipped these counterfeit products into

    California. Defendants actions within this district directly interfere with and

    damage Plaintiffs commercial efforts and endeavors and harm Plaintiffs

    goodwill within this venue. Additionally, Plaintiff conducts substantial business

    within this venue.

    GENERAL ALLEGATIONS

    Plaintiff and its Famous Speck-Branded Products

    17. Plaintiff is a privately held U.S. corporation founded in Palo Alto

    California in 2001 as a form fit cellular telephone case company. Plaintiff creates

    cases for the mobile accessories market.

    18.

    Plaintiff is one of the leading companies in their industry and hasgained numerous awards and recognition for its innovative products and designs.

    19. Plaintiff is one of the worlds leading manufacturers of protective

    carrying cases for electronic devices, including but not limited to, portable

    electronic listening devices and music players, namely, mp3 players, and for

    portable computers, global positioning systems (GPS devices), mobile and cellular

    Case 2:14-cv-06465-ODW-PLA Document 29 Filed 11/25/14 Page 5 of 21 Page ID #:141

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    telephones, portable media players, and personal digital assistants.

    20. Plaintiff develops and manufactures protective carrying cases for

    products such as the Apple iPhone, Apple iPad, Apple iPod, Apple

    MacBook, Notebook bags and sleeves, Smartphones including Blackberry,HTC, Sharp, Samsung, and Motorola models, TomTom GPS navigation

    devices, portable hard drives such as WD My Passport Elite/Essential, and the

    Kindle 3.

    21. Plaintiff is continually striving to discover and develop new,

    advanced technologies and designs to meet the needs of the ever-advancing

    consumer electronics industry. Plaintiff offers over 250 products which are sold

    in over 75 countries worldwide.

    22. Plaintiff has spent substantial time, money and effort in developing

    consumer recognition and awareness of its marks. Through the extensive use of

    the Plaintiffs marks, Plaintiff has built up and developed significant goodwill in

    its entire product line. A wide array of newspapers, magazines and television

    networks has included advertising of Plaintiffs products, which are immediately

    identified by Plaintiffs marks.

    23. Plaintiff is the exclusive owner of federally-registered and common

    law trademarks. The following is a partial (non-exhaustive) list of the registered

    trademarks owned by Plaintiff:

    A. SPECK, registered trademark number 3,663,010, registered on

    August 4, 2009, for use on or in connection with protective carrying cases for

    portable electronic listening devices and music players, namely, mp3 players, andfor portable computers, global positioning systems (GPS devices), mobile and

    cellular telephones, portable media players, and personal digital assistants, in

    Class 9 (U.S. CLS. 21, 23, 26, 36 and 38);

    B. [Design Mark], registered trademark number 3,666,082,

    registered on August 11, 2009, consisting of an asterisk between parentheses

    Case 2:14-cv-06465-ODW-PLA Document 29 Filed 11/25/14 Page 6 of 21 Page ID #:142

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    followed by the word SPECK in stylized letters; for use on or in co nnection

    with protective carrying cases for portable electronic listening devices and music

    players, namely, mp3 players, and for portable computers, global positioning

    systems (GPS devices), mobile and cellular telephones, portable media players,and personal digital assistants, in Class 9 (U.S. CLS. 21, 23, 26, 36 and 38);

    C. [Design Mark], registered trademark number 3,666,072,

    registered on August 11, 2009, consisting of an asterisk between parentheses; for

    use on or in connection with protective carrying cases for portable electronic

    listening devices and music players, namely, mp3 players, and for portable

    computers, global positioning systems (GPS devices), mobile and cellular

    telephones, portable media players, and personal digital assistants, in Class 9 (U.S.

    CLS. 21, 23, 26, 36 and 38); and

    D. CANDYSHELL, registered trademark number 3,817,709,

    registered on July 13, 2010, for use on or in connection with protective carrying

    cases for mp3 players, mobile and cellular telephones, portable media players, and

    personal digital assistants in Class 9 (U.S. CLS. 21, 23, 26, 36 and 38). Attached

    hereto as Exhibits A-D are true and correct copies of the certificates of

    registration for each of the above referenced federally-registered trademarks

    owned by Plaintiff (hereinafter Plaintiffs Marks).

    24. Plaintiff is also the owner of several international trademarks in the

    following locations: Canada, New Zealand, Republic of Korea, Malaysia,

    European Community, Hong Kong, Intl Registration Madrid Protocol, Taiwan,

    Australia, Singapore, Japan, Russian Federation, Thailand, and the PeoplesRepublic of China.

    25. Plaintiff is also the exclusive owner of federally-registered copyrights

    related to and used in connection with the packaging of its SPECK-branded

    products, with the following (non-exhaustive) copyright names, registration

    numbers, and registration dates:

    Case 2:14-cv-06465-ODW-PLA Document 29 Filed 11/25/14 Page 7 of 21 Page ID #:143

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    A. CANDYSHELL FOR iPHONE 4, VA1772394 (Registered

    May 6, 2011);

    B. iPhone 5 CandyShell Core2 Wedge2- Cardstock, VA1879028

    (Registered November 20, 2012);C. iPhone 5 CandyShell FLIP Core2 Wedge2- Cardstock,

    VA1879012 (Registered November 20, 2012);

    D. iPhone 5 CandyShell GRIP Core2 Wedge2- Cardstock,

    VA1879031 (Registered November 20, 2012);

    E. iPhone 5 CandyShell SATIN Core2 Wedge2- Cardstock,

    VA1879076 (Registered November 20, 2012);

    F. iPhone 5 CandyShell Apple Packaging Milk Carton,

    VA1879009 (Registered November 20, 2012); and

    G. iPhone 5 CandyShell Card Apple Packaging Milk Carton,

    VA1879036 (Registered November 20, 2012) (hereinafter Plaintiffs

    Copyrights).

    26. Additionally, Plaintiff owns a valid and lawfully issued United States

    Patent, patent no. US 8,204,561 B2, for its one piece co-formed exterior hard

    shell case with an elastomeric liner for mobile electronic devices. Attached

    hereto as Exhibit Eis a true and correct copy of Plaintiffs registration certificate

    for patent no. US 8,204,561 B2 (hereinafter Plaintiffs Patent).

    Defendants Wrongful and Infringing Conduct

    27. Defendants use, amongst other things, the Internet auction website

    known as www.ebay.com (eBay) to sell and distribute products, includingcounterfeit hard goods bearing Plaintiffs Marks, embodying Plaintiffs

    Copyrights, and utilizing Plaintiffs Patent described above, to consumers. At any

    given time, there are millions of items listed on eBay.com for purchase by its

    more than 200 million registered users.

    / / /

    Case 2:14-cv-06465-ODW-PLA Document 29 Filed 11/25/14 Page 8 of 21 Page ID #:144

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    28. Beginning on a date that is currently unknown to Plaintiff and

    continuing to the present, Defendants have, without the consent of Plaintiff,

    offered to sell and sold within the United States (including within this judicial

    district) goods that were neither made by Plaintiff nor by a manufacturerauthorized by Plaintiff (such goods are hereafter referred to as Counterfeit

    Goods) using reproductions, counterfeits, copies and/or colorable imitations of

    one or more of PlaintiffsMarks, Plaintiffs Copyrights, and PlaintiffsPatent.

    29. On information and belief, Plaintiff further alleges that Defendants

    imported said Counterfeit Goods into the United States, or encouraged others to

    import said Counterfeit Goods into the United States, for the purpose of reselling

    the Counterfeit Goods in the United States and within the Central District of

    California.

    30. Defendants own and operate at least two (2) known web stores on

    eBay using the seller IDs drsmartphonesgroup and md5technologies.Through

    these web stores, Defendants regularly and systematically used Plaintiffs Marks

    in advertising and marketing and distributed and sold Counterfeit Goods bearing

    Plaintiffs Marks, embodying Plaintiffs Copyrights, and comprised of Plaintiffs

    Design Patent.

    31. On or about January 29, 2013, Plaintiff purchased a purported

    IPHONE 5 SPECK CANDYSHELL WHITE / BLUE COLOR. NEW, USA

    SELLER (Item #300852917445) from Defendants, under eBay seller ID

    drsmartphonesgroup, for a cost of $13.53, shipping inclusive, charged to the

    PayPal electronic payment account of Plaintiff. Plaintiffs PayPal electronicpayment receipt clearly identifies Plaintiffs payment was made to STU

    Distribution Serviceswith a Customer Service URL of http://www.md5tech.com,

    and PayPal ID [email protected]. The Counterfeit Goods were

    shipped by Defendants into Los Angeles, California within this Courts

    jurisdiction and were received with a shipping label identifying the sender as

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    Patrick Mattson. A true and correct copy of the PayPal electronic payment

    receipt is attached hereto as Exhibit F.

    32. The purported IPHONE 5 SPECK CANDYSHELL WHITE / BLUE

    COLOR. NEW, USA SELLER (Item #300852917445) purchased fromDefendants was inspected by Plaintiff to determine authenticity. Plaintiffs

    inspection of the purchased item using security measures confirmed that the item

    Defendants sold to Plaintiff was, in fact, a counterfeit SPECK-branded

    CANDYSHELL product.

    33. On or about January 29, 2013, Plaintiff purchased a purported

    IPHONE 5 SPECK CANDYSHELL DEEP VIOLET / AQUA COLOR. NEW,

    USA SELLER (Item #271164615042) from Defendants, under eBay seller ID

    md5technologies,for a cost of $18.75, shipping inclusive, charged to the PayPal

    electronic payment account of Plaintiff. Plaintiffs PayPal electronic payment

    receipt clearly identifies Plaintiffs payment was made to STU Distribution

    Services, with a Customer Service URL of http://www.md5tech.com, and

    PayPal ID [email protected]. The Counterfeit Goods were shipped

    by Defendants into Los Angeles, California within this Courts jurisdiction and

    were received with a shipping label identifying the sender as MD5

    TECHNOLOGIES. A true and correct copy of the PayPal electronic payment

    receipt is attached hereto as Exhibit G.

    34. The purported IPHONE 5 SPECK CANDYSHELL DEEP VIOLET

    / AQUA COLOR. NEW, USA SELLER (Item #271164615042) purchased from

    Defendants was inspected by Plaintiff to determine authenticity. Plaintiffsinspection of the purchased item using security measures confirmed that the item

    Defendants sold to Plaintiff was, in fact, a counterfeit SPECK-branded

    CANDYSHELL product.

    35. Defendants intentionally and knowingly accepted Plaintiffs money

    from a financial institution located in the State of California.

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    36. Defendants also intentionally and knowingly delivered the

    Counterfeit Goods into the State of California.

    37. Through such business activities, Defendants purposely derived

    benefit from their interstate commerce activities by expressly targetingforeseeable purchasers in the State of California. But for Defendantsadvertising,

    soliciting and selling of counterfeit SPECK-branded CANDYSHELL products

    Plaintiff would not have been able to make a purchase of the subject products.

    38. Defendants use images and names confusingly similar or identical to

    PlaintiffsMarks to confuse consumers and aid in the promotion and sales of their

    unauthorized and Counterfeit Goods. Defendants use Plaintiffs Marks, Plaintiffs

    Copyrights, and Plaintiffs Patent, without authorization, to import, advertise,

    display, offer to sell, sell, and distribute Counterfeit Goods.

    39. Defendants use began long after Plaintiffs adoption and use of

    Plaintiffs Marks, and after Plaintiff obtained trademark, copyright, and patent

    registrations alleged above. Neither Plaintiff nor any authorized agents have

    consented to Defendants use of Plaintiffs Marks, Plaintiffs Copyrights, or

    Plaintiffs Patent.

    40. Defendants actions have confused and deceived, or threatened to

    confuse and deceive, the consuming public concerning the source and sponsorship

    of the Counterfeit Goods sold and distributed by Defendants. By their wrongful

    conduct, Defendants have traded upon and diminished Plaintiffs goodwill.

    Furthermore, the sale and distribution of Counterfeit Goods by Defendants have

    infringed upon Plaintiffs Marks, PlaintiffsCopyrights and/or Plaintiffs Patent.41. Defendants offering to sell, selling, importing and encouraging

    others to import Counterfeit Goods in this manner was and is likely to cause

    confusion or to cause mistake and/or to deceive consumers who purchase the

    Counterfeit Goods. Defendants also offered to sell, sold, imported, and/or

    encouraged others to import for purpose of resale within the United States

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    Counterfeit Goods consisting of reproductions and/or copies of products bearing

    Plaintiffs Marks, embodying Plaintiffs Copyrights, and utilizing Plaintiffs

    Patent. Defendantsuse of such marks, copyrights, and patent was done without

    Plaintiffs authorization.FIRST CAUSE OF ACTION

    (Trademark Infringement Against Defendants PATRICK MATTSON, STU

    DISTRIBUTION SERVICES, LLC, MD5 TECHNOLOGIES, and DOES 1-

    10, Inclusive)

    [15 U.S.C. 1114/Lanham Act43(a)]

    42. Plaintiff hereby incorporates by reference each of the other

    allegations set forth elsewhere in this First Amended Complaint as though fully

    set forth in this cause of action.

    43. Defendants actions as described herein constitute direct and/or

    contributory trademark infringement in violation of 15 U.S.C. 1114(1)(a).

    44. As a proximate result of Defendants trademark infringement,

    Plaintiff has been damaged in an amount to be proven at trial. Further, Plaintiff

    alleges on information and belief that, as a proximate result of Defendants

    trademark infringement, Defendants have unlawfully profited in an amount to be

    proven at trial.

    45. At all relevant times, Defendants acted intentionally and/or willfully

    in using Plaintiffs Marks on the Counterfeit Goods, knowing that Plaintiffs

    Marks belonged to Plaintiff, that the Counterfeit Goods were in fact counterfeit,

    and that Defendants were not authorized to use Plaintiffs Marks on theCounterfeit Goods. Plaintiff is therefore entitled to recovery of treble damages

    pursuant to 15 U.S.C.1117(a). Further, Defendantsknowing, intentional and/or

    willful actions make this an exceptional case, entitling Plaintiff to an award of

    reasonable attorney fees pursuant to 15 U.S.C. 1117(a).

    / / /

    Case 2:14-cv-06465-ODW-PLA Document 29 Filed 11/25/14 Page 12 of 21 Page ID #:148

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    46. Defendantsactions also constitute the use by Defendants of one or

    more counterfeit marks as defined in 15 U.S.C. 1116(d)(1)(B). Plaintiff

    therefore reserves the right to elect, at any time before final judgment is entered in

    this case, an award of statutory damages pursuant to 15 U.S.C.1117(c)(1) and/or(2).

    47. The acts of direct and/or contributory trademark infringement

    committed by Defendants have caused, and will continue to cause, Plaintiff

    irreparable harm unless they are enjoined by this Court.

    SECOND CAUSE OF ACTION

    (False Designation of Origin, False or Misleading Advertising Against

    Defendants PATRICK MATTSON, STU DISTRIBUTION SERVICES, LLC,

    MD5 TECHNOLOGIES, and DOES 1-10, Inclusive)

    [15 U.S.C. 1125 (a)]

    48. Plaintiff hereby incorporates by reference each of the other

    allegations set forth elsewhere in this First Amended Complaint as thought fully

    set forth in this cause of action.

    49.

    Defendants actions as described herein constitute direct and/or

    contributory violation of 15 U.S.C. 1125(a)(1)(A), as such actions are likely to

    cause confusion, or to cause mistake, or to deceive as to the affiliation,

    connection, or association of Defendants with Plaintiff and/or as to the origin,

    sponsorship, and/or approval of such Counterfeit Goods by Plaintiff.

    50. As a proximate result of Defendantsviolation as described herein,

    Plaintiff has been damaged in an amount to be proven at trial. Further, Plaintiffalleges on information and belief that, as a proximate result of defendants direct

    and/or contributory trademark infringement, Defendants have unlawfully profited,

    in an amount to be proven at trial.

    51. Defendantsacts of violating, directly and/or contributorily 15 U.S.C.

    1125 have caused, and will continue to cause, Plaintiff irreparable harm unless

    Case 2:14-cv-06465-ODW-PLA Document 29 Filed 11/25/14 Page 13 of 21 Page ID #:149

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    they are enjoined by this Court.

    THIRD CAUSE OF ACTION

    (Trademark Dilution Against Defendants PATRICK MATTSON, STU

    DISTRIBUTION SERVICES, LLC, MD5 TECHNOLOGIES, and DOES 1-

    10, Inclusive)

    [15 U.S.C. 1125(c)]

    52. Plaintiff hereby incorporates by reference each of the other

    allegations set forth elsewhere in this First Amended Complaint as though fully

    set forth in this cause of action.

    53. Plaintiffs Marks are distinctive and famous within the meaning of

    theLanham Act.

    54. Upon information and belief, Defendants unlawful actions began

    long after Plaintiffs Marks became famous, and Defendants acted knowingly,

    deliberately and willfully with the intent to trade on Plaintiffs reputation and to

    dilute Plaintiffs Marks. Defendantsconduct is willful, wanton and egregious.

    55. Defendants intentional sale of fake, pirated Counterfeit Goods

    bearing Plaintiffs Marks is likely to cause confusion, mistake, or to deceive,

    mislead, betray, and defraud consumers to believe that the substandard imitations

    are genuine products manufactured by Plaintiff. The actions of Defendants

    complained of herein have diluted and will continue to dilute Plaintiffs Marks,

    and are likely to impair the distinctiveness, strength and value of Plaintiffs

    Marks, and injure the business reputation of Plaintiff and its marks.

    56.

    Defendants acts have caused and will continue to cause Plaintiffirreparable harm. Plaintiff has no adequate remedy at law to compensate it fully

    for the damages that have been caused and which will continue to be caused by

    Defendantsunlawful acts, unless they are enjoined by this Court.

    57. As the acts alleged herein constitute a willful violation of section

    43(c) of the Lanham Act, 15 U.S.C. 1125(c), Plaintiff is entitled to injunctive

    Case 2:14-cv-06465-ODW-PLA Document 29 Filed 11/25/14 Page 14 of 21 Page ID #:150

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    relief as well as monetary damages and other remedies provided by 15 U.S.C.

    1116, 1117, 1118, and 1125(c), including Defendantsprofits, treble damages,

    reasonable attorneys fees, costs and prejudgment interest.

    FOURTH CAUSE OF ACTION

    (Unfair Competition Against Defendants PATRICK MATTSON, STU

    DISTRIBUTION SERVICES, LLC, MD5 TECHNOLOGIES, and DOES 1-

    10, Inclusive)

    Cali fornia Business & Professions Code17200 et seq.

    58. Plaintiff hereby incorporates by reference each of the other

    allegations set forth elsewhere in this First Amended Complaint as thought fully

    set forth in this cause of action.

    59. Defendants actions described herein constitute unlawful, unfair

    and/or fraudulent business acts or practices. Defendants actions thus constitute

    unfair competition pursuant to California Business & Professions Code 17200.

    60. As a proximate result of Defendants actions, Plaintiff has suffered an

    injury in fact, including without limitation, damages in an amount to be proven at

    trial, loss of money or property, and diminution in the value of its trademarks,

    copyrights, and patent. Plaintiff therefore has standing to assert this claim

    pursuant to California Business & Professions Code 17204.

    61. Defendants actions have caused, and will continue to cause Plaintiff

    to suffer irreparable harm unless enjoined by this Court pursuant to California

    Business & Professions Code 17203. In addition, Plaintiff requests that the

    Court order that Defendants disgorges all profits wrongfully obtained as a result ofDefendants unfair competition, and order that defendant pay restitution to

    Plaintiff in an amount to be proven at trial.

    / / /

    / / /

    / / /

    Case 2:14-cv-06465-ODW-PLA Document 29 Filed 11/25/14 Page 15 of 21 Page ID #:151

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    FIFTH CAUSE OF ACTION

    (Federal Copyright Infringement Against Defendants PATRICK

    MATTSON, STU DISTRIBUTION SERVICES, LLC, MD5

    TECHNOLOGIES, and DOES 1-10, Inclusive)

    [17 U.S.C. 501(a)]

    62. Plaintiff hereby incorporates by reference each of the other

    allegationsset forth elsewhere in this First Amended Complaint as thought fully

    set forth in this cause of action.

    63. Plaintiff is the exclusive owner of copyrights in and related to the

    packaging of SPECK-branded CANDYSHELL products, among others,

    having numerous registrations and applications relating to the same pending with

    the United States Copyright Office.

    64. Defendants did not seek and failed to obtain Plaintiffs consent or

    authorization to utilize, manufacture, reproduce, copy, display, prepare derivative

    works, distribute, sell, transfer, rent, perform, and/or market packaging

    embodying Plaintiffs Copyrights.

    65.

    Without permission, Defendants intentionally and knowingly

    imported, reproduced, counterfeited, copied, displayed, and/or manufactured

    Plaintiffs protected works by offering, advertising, promoting, retailing, selling,

    and distributing counterfeit SPECK-branded CANDYSHELL products

    contained within packaging which is at a minimum substantially similar to

    Plaintiffs Copyrights.

    66.

    Defendants acts as alleged herein, constitute infringement ofPlaintiffs Copyrights, including Plaintiffs exclusive rights to reproduce,

    distribute and/or sell such protected material.

    67. Defendants knowing and intentional copyright infringement as

    alleged herein has caused and will continue to cause substantial and irreparable

    harm to Plaintiff and has and will continue to cause damage to Plaintiff. Plaintiff

    Case 2:14-cv-06465-ODW-PLA Document 29 Filed 11/25/14 Page 16 of 21 Page ID #:152

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    is therefore entitled to injunctive relief, damages, Defendants profits, increased

    damages, and reasonable attorneys fees and costs.

    SIXTH CAUSE OF ACTION

    (Federal Patent Infringement Against Defendants PATRICK MATTSON,

    STU DISTRIBUTION SERVICES, LLC, MD5 TECHNOLOGIES, and

    DOES 1-10, Inclusive)

    [35 U.S.C. 71]

    68. Plaintiff hereby incorporates by reference each of the other

    allegations set forth elsewhere in this First Amended Complaint as though fully

    set forth in this cause of action.

    69. Plaintiff is the owner of the federally registered utility patent with the

    USPTO Registration No.: US 8,204,561 B2.

    70. Defendants have infringed and continue to infringe Plaintiffs Patent

    by using, selling and/or offering to sell, in the United States and/or importing into

    the United States, Counterfeit Goods which utilize Plaintiffs Patent. By their

    conduct, Defendants have violated 35 U.S.C. 271 by direct infringement of

    Plaintiffs Patent.

    71. On the basis allege, Defendants have gained profits by virtue of its

    infringement of PlaintiffsPatent.

    72. As a direct and legal result of Defendants wrongful conduct,

    Plaintiff has been and will be irreparably and permanently harmed; wherefore

    Plaintiff is without an adequate remedy at law. Accordingly, Plaintiff is entitled

    to, among other things, an order enjoining and restraining Defendants from furtherengaging in the infringement of PlaintiffsPatent.

    73. Defendantsinfringement of PlaintiffsPatent is and has been willful.

    Accordingly, Plaintiff is entitled to its monetary damages, in an amount to be

    proven at trial, and award of treble damages, and its reasonable attorneys fees and

    costs.

    Case 2:14-cv-06465-ODW-PLA Document 29 Filed 11/25/14 Page 17 of 21 Page ID #:153

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    REQUEST FOR RELIEF

    WHEREFORE, Plaintiff SPECULATIVE PRODUCT DESIGN, LLC

    hereby respectfully requests the following relief against Defendants PATRICK

    MATTSON, STU DISTRIBUTION SERVICES, LLC, MD5 TECHNOLOGIES,and DOES 1-10, inclusive, and each of them as follows:

    1. For an award of Defendants profits and Plaintiffs damages in anamount

    to be proven at trial for trademark infringement under 15 U.S.C.

    1114(a);

    2. For an award of Defendants profits and Plaintiffs damages in an amount

    to be proven at trial for false designation of origin and unfair competition

    under 15 U.S.C.1125(a);

    3. For an award of Defendants profits and Plaintiffs damages in an amount

    to be proven at trial for trademark dilution under 15 U.S.C. 1125(c);

    4. For treble damages suffered by Plaintiff as a result of the willful and

    intentional infringements and acts of counterfeiting engaged in by

    Defendants, under 15 U.S.C. 1117(b);

    5.

    In the alternative to actual damages and Defendants profits for the

    infringement and counterfeiting of Plaintiffs trademarks pursuant to the

    Lanham Act, for statutory damages pursuant to 15 U.S.C. 1117(c)

    which election Plaintiff will make prior to the rendering of final

    judgment;

    6. For $2,000,000 per counterfeit mark, per type of goods sold, offered for

    sale, or distributed under 15 U.S.C. 1117(c)(2);7. For an award of Defendants profitsand Plaintiffs damages in an amount

    to be proven at trial for copyright infringement under 17 U.S.C. 501(a);

    8. In the alternative to actual damages and Defendants profits pursuant to

    17 U.S.C. 504(b), for statutory damages pursuant to 17 U.S.C. 504(c)

    which election Plaintiff will make prior to the rendering of final

    Case 2:14-cv-06465-ODW-PLA Document 29 Filed 11/25/14 Page 18 of 21 Page ID #:154

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    judgment;

    9. For $150,000 per work under 17 U.S.C. 504(c)(2);

    10.For restitution in an amount to be proven at trial for unfair, fraudulent

    and illegal business practices under Business and Professions Code17200;

    11.For damages to be proven at trial for common law unfair competition;

    12.For an injunction by this Court prohibiting Defendants from engaging or

    continuing to engage in the unlawful, unfair, or fraudulent business acts

    or practices described herein, including the advertising and/or dealing in

    any Counterfeit Goods; the unauthorized use of any mark, copyright or

    other intellectual property right of Plaintiff; acts of trademark

    infringement or dilution; acts of copyright infringement; false designation

    of origin; unfair competition; patent infringement; and any other act in

    derogation of Plaintiffs rights;

    13.For an order from the Court requiring that Defendants provide complete

    accountings and for equitable relief, including that Defendants disgorge

    and return or pay their ill-gotten gains obtained from the illegal

    transactions entered into and or pay restitution, including the amount of

    monies that should have been paid if Defendants complied with their

    legal obligations, or as equity requires;

    14.For an order from the Court that an asset freeze or constructive trust be

    imposed over all monies and profits in Defendants possession which

    rightfully belong to Plaintiff;15.For destruction of the infringing articles in Defendants possession under

    15 U.S.C. 1118 and 17 U.S.C. 503;

    16.An order and judgment preliminary and permanently enjoining

    Defendants and their officers, directors, agents, servants, employees,

    affiliates, attorneys, and all others acting in privity or in concert with

    Case 2:14-cv-06465-ODW-PLA Document 29 Filed 11/25/14 Page 19 of 21 Page ID #:155

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    them, and their parents, subsidiaries, divisions, successors and assigns

    from further acts of infringement of Plaintiffs Patent;

    17.For an award of Plaintiffs damages and Defendants profits adequate to

    compensate Plaintiff for Defendants infringement of Plaintiffs Patent,and in no event less than a reasonable royalty for Defendants acts of

    infringement, including all pre-judgment and post-judgment interest as

    the maximum rate permitted by law;

    18.For an award of all damages, including treble damages, based on any

    infringement found to be willful, pursuant to 35 U.S.C. 284, together

    with prejudgment interest;

    19.For an award of all profits, pursuant to 35 U.S.C. 289 together with

    prejudgment interest;

    20.For damages in an amount to be proven at trial for unjust enrichment;

    21.For an award of exemplary or punitive damages in an amount to be

    determined by the Court;

    22.For Plaintiffs reasonable attorneys fees;

    23.

    For all costs of suit; and

    24.For such other and further relief as the Court may deem just and

    equitable.

    DATED: November 25, 2014 JOHNSON & PHAM, LLP

    By: __/s/Marcus F. Chaney__________Marcus F. Chaney, Esq.

    Attorneys for PlaintiffSPECULATIVE PRODUCT DESIGN,LLC d/b/a SPECK PRODUCTS

    Case 2:14-cv-06465-ODW-PLA Document 29 Filed 11/25/14 Page 20 of 21 Page ID #:156

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    DEMAND FOR JURY TRIAL

    Plaintiff SPECULATIVE PRODUCT DESIGN, LLC, dba SPECK

    PRODUCTS, respectfully demands a trial by jury in this action pursuant to Local

    Rule 38-1.DATED: November 25, 2014 JOHNSON & PHAM, LLP

    By: __/s/Marcus F. Chaney__________Marcus F. Chaney, Esq.Attorneys for PlaintiffSPECULATIVE PRODUCT DESIGN,LLC d/b/a SPECK PRODUCTS

    Case 2:14-cv-06465-ODW-PLA Document 29 Filed 11/25/14 Page 21 of 21 Page ID #:157

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    Exhibit A

    Case 2:14-cv-06465-ODW-PLA Document 29-1 Filed 11/25/14 Page 1 of 25 Page ID #:158

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    Case 2:14-cv-06465-ODW-PLA Document 29-1 Filed 11/25/14 Page 2 of 25 Page ID #:159

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    Exhibit B

    Case 2:14-cv-06465-ODW-PLA Document 29-1 Filed 11/25/14 Page 3 of 25 Page ID #:160

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    Case 2:14-cv-06465-ODW-PLA Document 29-1 Filed 11/25/14 Page 4 of 25 Page ID #:161

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    Exhibit C

    Case 2:14-cv-06465-ODW-PLA Document 29-1 Filed 11/25/14 Page 5 of 25 Page ID #:162

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    Case 2:14-cv-06465-ODW-PLA Document 29-1 Filed 11/25/14 Page 6 of 25 Page ID #:163

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    Exhibit D

    Case 2:14-cv-06465-ODW-PLA Document 29-1 Filed 11/25/14 Page 7 of 25 Page ID #:164

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    Case 2:14-cv-06465-ODW-PLA Document 29-1 Filed 11/25/14 Page 8 of 25 Page ID #:165

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    Exhibit E

    Case 2:14-cv-06465-ODW-PLA Document 29-1 Filed 11/25/14 Page 9 of 25 Page ID #:166

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    44/46

    Exhibit G

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  • 8/10/2019 Speculative v. Mattson - Amended Complaint

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    Case 2:14-cv-06465-ODW-PLA Document 29-1 Filed 11/25/14 Page 24 of 25 Page ID#:181

  • 8/10/2019 Speculative v. Mattson - Amended Complaint

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    PROOF OF SERVICE

    I am a resident of the State of California, over the age of eighteen years, andnot a party to the within action. My business address is Johnson & Pham, LLP6355 Topanga Canyon Blvd., Suite 326, Woodland Hills, California 91367. OnNovember 25, 2014, I served the within document(s):

    FIRST AMENDED COMPLAINT FOR DAMAGES ANDDECLARATORY RELIEF

    FACSIMILE - by transmitting via facsimile the document(s) listedabove to the fax number(s) set forth on the attached Telecommunications CoverPage(s) on this date before 5:00 p.m.

    MAIL - by causing the document(s) listed above to be placed in asealed envelope with postage thereon fully prepaid, in the United States mail atWoodland Hills, California addressed as set forth below.

    PERSONAL SERVICE - by personally delivering the document(s)listed above to the person(s) at the address(es) set forth below.

    OVERNIGHT COURIER - by placing the document(s) listed abovein a sealed envelope with shipping prepaid, and depositing in a collection box fornext day delivery to the person(s) at the address(es) set forth below via UNITEDPARCEL SERVICE.

    BY E-MAIL/ELECTRONIC DELIVERY - by causing suchdocument(s) to be transmitted by electronic mail transmission to the appropriateelectronic mail address(es) set forth below.

    Marina L. Lang, Esq. STU DISTRIBUTION SERVICES, LLC

    [email protected] 6803 Preston Rd., Suite 138SoCal IP Law Group, LLP Frisco, TX 75034310 N. Westlake Blvd., Suite 120Westlake Village, CA 91362 MD5 TECHNOLOGIESPhone: (805) 230-1350 6803 Preston Rd., Suite 138Fax: (805) 230-1355 Frisco, TX 75034

    Attorneys for DefendantPATRICK MATTSON

    I declare that I am a member of the bar of this court.

    Executed on November 25, 2014, at Woodland Hills, California.

    By: __/s/Marcus F. Chaney__________

    Marcus F. Chaney

    Case 2:14-cv-06465-ODW-PLA Document 29-1 Filed 11/25/14 Page 25 of 25 Page ID#:182