hutzler manufacturing company v. bradshaw international
TRANSCRIPT
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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.
Oninformationandbelief,B
radshawhasmisappropriatedthedesign
patentsfortheOnionSavera
ndtheGarlicSaver,fo
ritsownbenefit.
19.
Oninformationandbelief,B
radshawhassold,and
isofferingforsale,in
thisjudicialdistrictandotherpartsoftheUnitedStates,productsthatinfringethe114Patentan
d
the46
3Patent(theInfringi
ngProducts).
20.
Oninformationandbelief,B
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.
Oninformationandbelief,B
radshawhassold,and
isofferingforsale,
Infring
ingProductsinthisjudicialdistrictandotherpartsoftheUnitedStates.
24.
Oninformationandbelief,th
eInfringingProductswereofferedforsaleata
March
6,2011InternationalHousewaresShowinC
hicago,Illinois.
25.
Oninformationandbelief,B
radshawwasthesourc
eoftheInfringing
Produc
tsofferedforsaleattheInternationalHousewaresShow.
26.
Oninformationandbelief,B
radshawbegandistributingtheInfringing
Produc
tsinPriceChopperSu
permarketsonorbefo
reMay21,2011.
27.
Oninformationandbelief,B
radshawhasdistributedtheInfringing
Produc
tsinothersupermarke
tretailersandlocation
ssinceMay21,2011.
28.
Oninformationandbelief,B
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.
Defendantsdistributionofth
eInfringingProducts,ifnotenjoined,will
resultinirreparablepriceerosionofHutzlerspaten
tedproductsinthatHutzlerwillbeforcedto
drasticallychangeitspricing
structureinordertocompetewithlower-pric
edknock-off
produc
ts.Asaresult,Hutzlersreputationwillbep
ermanentlyharmed.
42.
Defendantsdistributionofth
eInfringingProducts,becausetheyaremore
cheaplyconstructedthanHut
zlersproducts,hashadandwillcontinueto
haveanirreparable
deleteriouseffectoncustome
rsgeneralgoodwillto
wardsplasticproductsresemblingthetypeo
f
produc
etheyaredesignedto
storeandpreserve.
43.
Defendantsdistributionofth
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.
Hutzlerincorporatesbyreferenceasthoughfullyse
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.
Hutzlerincorporatesbyreferenceasthoughfullyse
tforthhereinthe
allegationscontainedinparag
raphs1through48above.
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.
Hutzlerincorporatesbyreferenceasthoughfullyse
tforthhereinthe
allegationscontainedinparag
raphs1through48above.
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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