kryptek v. salt armour - complaint

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    UNITED STATES DISTRICT COURTFOR THE EASTERN DISTRICT OF TEXAS

    BEAUMONT DIVISION

    KRYPTEK OUTDOOR GROUP, LLC, §

    §Plaintiff, §§

    v. § CIVIL ACTION NO. 1:15-cv-348§

    SALT ARMOUR, INC., §ALPHA DEFENSE, INC., and §THOMAS J. DE SERNIA, an individual, §

    §Defendants. §

    §

    PLAINTIFF’S ORIGINAL COMPLAINT 

    COMES NOW Plaintiff Kryptek Outdoor Group, LLC (“Kryptek ”)  by and through the

    undersigned counsel, and files this Complaint against Defendants Salt Armour, Inc., Alpha

    Defense, Inc., and Thomas J. De Sernia (“Defendants”) and alleges the following:

    I. NATURE OF THE ACTION

    1. 

    Plaintiff brings this action seeking to put an immediate stop to, and to obtain

    redress for, Defendants’ willful infringement of Plaintiff’s patents, copyrights, trademark, and

    trade dress as well as Defendants’ unlawful unfair competition and unjust enrichment under the

    United States Trademark (Lanham) Act 15 U.S.C. §§ 1051, et seq, under the common law, and

    under the laws of this State.

    2.  Plaintiff Kryptek is a highly successful veteran-owned company in the business of

    designing, creating and selling customized and performance based apparel that is specifically

    tailored to the environment and that incorporates proven tactical gear concepts. Kryptek’s

    Case 1:15-cv-00348-RC Document 1 Filed 09/09/15 Page 1 of 47 PageID #: 1

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    apparel consistently delivers the performance expectations, comfort, function and durability

    required by customers in the hunting and outdoor adventure markets.

    3.  Kryptek has developed camouflage patterns that are the leader in the industry.

    These patented designs have even been tested by the Department of Defense using laser-retinal-

    tracking to prove the effectiveness and superiority of Kryptek’s designs. 

    4.  Kryptek markets its goods and services to customers throughout the United States

     by way of extensive media advertising, including on radio, television, Facebook, Twitter, e-mail

     promotions, and on Kryptek’s websites, including www.kryptek.com  and

    www.kryptekstore.com. 

    5.  Kryptek has invested significantly in its business as well as its branding, including

    use of its five separate trademarks for “KRYPTEK.” Kryptek has further obtained patent

     protection and copyright registrations for its one-of-a-kind camouflage patterns. As a result of its

    extensive advertising, provision of goods and services, sound business practices, and operations,

    Kryptek has developed enforceable statutory and/or common law trademark, trade name, and

    trade dress rights in the marks and has established strong relationships with customers who have

    come to recognize and respect the goods and services identified by Kryptek and identified by

    Kryptek’s trademarks, patents, copyrights, and trade dress. Accordingly, Kryptek has developed

    substantial goodwill and a reputation for integrity in its market, both of which are inextricably

    intertwined with Kryptek’s trademarks, patents, copyrights, and trade dress.

    6.  Kryptek’s trademarks (“Kryptek Marks”) and trade dress (“Kryptek Trade

    Dress”) are distinctive and well known as used in connection with the goods and services offered

     by Kryptek, resulting in recognition that the goods and services offered under the marks and

    trade dress emanate under a single source –  namely Kryptek. There is a likelihood of confusion

    Case 1:15-cv-00348-RC Document 1 Filed 09/09/15 Page 2 of 47 PageID #: 2

    http://www.kryptek.com/http://www.kryptek.com/http://www.kryptekstore.com/http://www.kryptekstore.com/http://www.kryptekstore.com/http://www.kryptek.com/

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    with respect to the above-mentioned customers unless Defendants are enjoined against further

    unlawful conduct.

    7.  The goodwill embodied in the Kryptek Marks and Kryptek Trade Dress, and

    consequently Kryptek’s  valuable reputation and credibility in the industry, depends on the

    integrity of its goods and services as being identified exclusively with Kryptek  –   and not any

    other source.

    8.  This lawsuit is brought to stop Defendants’ infringement of valuable intellectual

     property rights, including Kryptek’s trademarks, patents, copyrights, and trade dress relating to

    Kryptek’s  business, from passing off Defendants’  operations as those of Kryptek, including

    engaging in activities likely to cause confusion, or to cause mistake, or to deceive as to the

    affiliation, connection, or association of such person with another person, or as to the origin,

    sponsorship, or approval of his or her goods, services, or commercial activities by another

     person.

    9.  Recognizing Kryptek’s popularity, superiority and quality, Defendants have

     brazenly created, offered for sale, and sold counterfeit copies of Kryptek’s camouflage patterns

    and products incorporating Kryptek’s camouflage patterns in an attempt to capitalize on

    Kryptek’s hard-earned success through the following websites: www.saltarmour.com; 

    www.sateam.company;  www.defensearmour.com;  www.spgapparel.com;  and

    www.safishing.com. Defendants’ products are nearly an exact copy of Kryptek’s patented and

    copyrighted designs, as well as nearly an exact copy of Kryptek’s goods and services. 

    10.  Defendants have further brazenly copied the Kryptek Marks, and co-opted its

    good name by displaying products under the moniker “KRYTEK KRONOS” on the website

    Case 1:15-cv-00348-RC Document 1 Filed 09/09/15 Page 3 of 47 PageID #: 3

    http://www.saltarmour.com/http://www.saltarmour.com/http://www.sateam.company/http://www.sateam.company/http://www.defensearmour.com/http://www.defensearmour.com/http://www.spgapparel.com/http://www.spgapparel.com/http://www.safishing.com/http://www.safishing.com/http://www.safishing.com/http://www.spgapparel.com/http://www.defensearmour.com/http://www.sateam.company/http://www.saltarmour.com/

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    www.spgapparel.com.  Such activity falsely represents to the relevant public that there is an

    association with Plaintiff Kryptek.

    11.  Defendants’ products and services are identical-or confusingly similar to the

    Kryptek Marks and Kryptek Trade Dress. Defendants’ actions are an apparent intentional effort

    to imitate and/or cause confusion with respect to Kryptek’s successful business.

    12.  On information and belief, Plaintiff and Defendants have a direct overlap in

    customers insofar as they both draw from, and thus compete for, the same pool of customers

    (e.g., customers who purchase hunting and outdoor apparel and other items).

    13. 

    Defendants’ infringement of Kryptek’s intellectual property rights harms Kryptek,

    Kryptek’s customers, and potential customers of Kryptek who may be confused and deceived by

    Defendants’  business and/or Defendants’  unauthorized reproduction and/or imitation of

    Kryptek’s trademarks and patented and copyrighted camouflage designs.

    14.  Defendants’ unauthorized use of the Kryptek Marks, Kryptek Patents, Kryptek

    Copyrights, and Kryptek Trade Dress unjustly enriches Defendants at Plaintiff’s expense.

    Defendants have been and continue to be unjustly enriched, obtaining a benefit from Plaintiff by

    taking undue advantage of Plaintiff and its extensive goodwill. Specifically, Defendants have

    taken unfair advantage of Plaintiff by trading on and profiting from the goodwill in the marks

    developed and owned by Plaintiff, resulting in Defendants wrongfully obtaining a monetary and

    reputational benefit for their own business and services.

    15.  Defendants’ unauthorized use of Kryptek’s Intellectual Property removes from

    Plaintiff the ability to control the nature and quality of services provided under Kryptek’s

    Intellectual Property and places the valuable reputation and goodwill of Plaintiff in the hands of

    Defendants, over whom Plaintiff has no control.

    Case 1:15-cv-00348-RC Document 1 Filed 09/09/15 Page 4 of 47 PageID #: 4

    http://www.spgapparel.com/http://www.spgapparel.com/http://www.spgapparel.com/

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    16.  Defendants’ conduct has caused, and is causing, unless immediately enjoined,

    enormous and irreparable harm to Kryptek. Plaintiff respectfully seeks intervention of this Court

    to stop Defendants from continuing their present activities and for monetary damages. Kryptek

    will be promptly seeking injunctive relief.

    II. THE PARTIES 

    17.  Plaintiff Kryptek Outdoor Group, LLC (“Kryptek” or “Plaintiff”) is a Limited

    Liability Company organized in Delaware and having a principal place of business at 291 E.

    Shore Dr., Suite 150, Eagle, Idaho, 83616.

    18. 

    On information and belief, Defendant Salt Armour, Inc. (“Salt Armour”) is a

    Florida corporation with its principal place of business at 21526 Sweetwater LN S, Boca Raton,

    Florida, 33428. Salt Armour can be served with process at its registered agent, Kevin P.

    Kassebaum, 7015 Beracasa Way, Suite 105, Boca Raton, Florida, 33433.

    19.  On information and belief, Defendant Salt Armour operates the following

    websites located at www.saltarmour.com;  www.sateam.company;  www.defensearmour.com; 

    www.safishing.com; www.spgapparel.com; and www.sellmyoutdoorstuff.com. 

    20.  On information and belief, Defendant Salt Armour owns, operates, and/or has a

    controlling interest in www.sateam.company;  and http://safishing.com;  as well as the products

    sold on these websites, labeled “SA Co.” and “SA Co. by Salt Armour,” in addition to the fact

    that Salt Armour is the registrant of www.sateam.company.  On information and belief,

    Defendant Salt Armour owns, operates, and/or has a controlling interest in

    http://sellmyoutdoorstuff.com  because the site proclaims that it is “Powered By SA Co.”

    21.  On information and belief, Defendant Salt Armour owns, operates, and/or has a

    controlling interest in Defendant Alpha Defense, Inc. (“Alpha Defense”) because Salt Armour is

    Case 1:15-cv-00348-RC Document 1 Filed 09/09/15 Page 5 of 47 PageID #: 5

    http://www.saltarmour.com/http://www.saltarmour.com/http://www.sateam.company/http://www.sateam.company/http://www.defensearmour.com/http://www.defensearmour.com/http://www.safishing.com/http://www.safishing.com/http://www.spgapparel.com/http://www.spgapparel.com/http://www.spgapparel.com/http://www.sellmyoutdoorstuff.com/http://www.sellmyoutdoorstuff.com/http://www.sellmyoutdoorstuff.com/http://www.sateam.company/http://www.sateam.company/http://www.safishing.com/http://www.safishing.com/http://www.safishing.com/http://www.sateam.company/http://www.sateam.company/http://www.sellmyoutdoorstuff.com/http://www.sellmyoutdoorstuff.com/http://www.sellmyoutdoorstuff.com/http://www.sellmyoutdoorstuff.com/http://www.sateam.company/http://www.safishing.com/http://www.sateam.company/http://www.sellmyoutdoorstuff.com/http://www.spgapparel.com/http://www.safishing.com/http://www.defensearmour.com/http://www.sateam.company/http://www.saltarmour.com/

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    the registrant of the website that promotes and sells the products of Alpha Defense, Inc.,

    www.defensear mour.com, under the moniker “Defense Armour.” (See Exhibit A). Further, the

    companies share the same director, Thomas J. De Sernia. (See Exhibit B).

    22.  On information and belief, Defendant Salt Armour owns, operates and/or has a

    controlling interest in www.spgapparel.com  and the products sold on the website, labeled

    “Swamp Slayer” because Salt Armour is the registrant of www.spgapparel.com, a website that

     promotes and sells products similar to those sold by Salt Armour and Alpha Defense. (See 

    Exhibit C)

    23. 

    On information and belief, Defendant Alpha Defense is a Florida corporation with

    its principal place of business at 21526 Sweetwater LN S, Boca Raton, Florida, 33428. Alpha

    Defense can be served with process at its registered agent, Kevin P. Kassebaum, 7015 Beracasa

    Way, Suite 105, Boca Raton, Florida, 33433.

    24.  On information and belief, Defendant Thomas J. De Sernia is the incorporator,

    President, and majority shareholder of both Salt Armour and Defense Armour. Defendant

    Thomas J. De Sernia can be served personally at his place of business, located at 21526

    Sweetwater LN S, Boca Raton, Florida, 33428.

    25.  On information and belief, Defendants Salt Armour, Alpha Defense, and Thomas

    J. De Sernia (“Defendants”) have committed the acts alleged herein within this judicial district. 

    III. THE PATENTS

    26.  On April 2, 2013, United States Design Patent No. D679,099, titled “Sheet

    Material With Camouflage Pattern” (“the ‘099 Patent”) was duly and legally issued by the

    United States Patent and Trademark Office (“USPTO”). A true and correct copy of the ‘099  

    Patent is attached as Exhibit D.

    Case 1:15-cv-00348-RC Document 1 Filed 09/09/15 Page 6 of 47 PageID #: 6

    http://www.spgapparel.com/http://www.spgapparel.com/http://www.spgapparel.com/http://www.spgapparel.com/http://www.spgapparel.com/http://www.spgapparel.com/

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    27.  On July 16, 2013, United States Design Patent No. D685,999, titled “Sheet

    Material With Camouflage Pattern” (“the ‘999 Patent”) was duly and legally issued by the

    United States Patent and Trademark Office (“USPTO”). A true and correct copy of the ‘999  

    Patent is attached as Exhibit E.

    28.  On July 16, 2013, United States Design Patent No. D686,000, titled “Sheet

    Material With Camouflage Pattern” (“the ‘000 Patent”) was duly and legally issued by the

    United States Patent and Trademark Office (“USPTO”). A true and correct copy of the ‘000  

    Patent is attached as Exhibit F.

    29. 

    Kryptek is the owner by assignment of the ‘099 Patent, the ‘999 Patent, and the

    ‘000 Patent (the “Kryptek Patents”). Kryptek has all substantial rights in and to the Kryptek

    Patents, including the right to sue and collect damages for past, present and future infringement

    of the Kryptek Patents. Kryptek has owned the Kryptek Patents throughout the period of

    Defendants’ infringing acts and is the current owner of the Kryptek Patents.  

    IV. THE TRADEMARKS

    30. 

    Plaintiff re-alleges and incorporates by reference the foregoing allegations as

    though fully set forth herein.

    31.  Plaintiff has registered “KRYPTEK” as U.S. Trademark Registration No.

    4,342,885 on the Principal Register of the United States Patent and Trademark Office, a true and

    correct copy of the Certificate of Registration is attached in Exhibit G.

    32.  Plaintiff has registered “KRYPTEK” as U.S. Trademark Registration No.

    4,463,922 on the Principal Register of the United States Patent and Trademark Office, a true and

    correct copy of the Certificate of Registration is attached in Exhibit G.

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    33.  Plaintiff has registered “KRYPTEK” as U.S. Trademark Registration No.

    4,411,623 on the Principal Register of the United States Patent and Trademark Office, a true and

    correct copy of the Certificate of Registration is attached in Exhibit G.

    34.  Plaintiff has registered “KRYPTEK HIGHLANDER” as U.S. Trademark

    Registration No. 4,478,518 on the Principal Register of the United States Patent and Trademark

    Office, a true and correct copy of the Certificate of Registration is attached in Exhibit G.

    35.  Plaintiff has registered “KRYPTEK” as U.S. Trademar k Registration No.

    4,683,587 on the Principal Register of the United States Patent and Trademark Office, a true and

    correct copy of the Certificate of Registration is attached in Exhibit G.

    IV. THE COPYRIGHTS

    36. 

    Plaintiff re-alleges and incorporates by reference the foregoing allegations as

    though fully set forth herein.

    37.  Kryptek is the copyright owner and legal claimant in and to various camouflage

     patterns as seen below:

    38.  Kryptek is the owner of the following Copyright Registrations, duly and legally

    issued by the United States Copyright Office (the “Kryptek Copyrights”). Copies of these

    registrations are attached as Exhibit H.

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    Registration No. Title Date Issued

    VA0001783604 Highlander Camouflage July 25, 2011

    VA0001783605 Mandrake Camouflage July 25, 2011

    VA0001783606 Kryptek Camouflage Patterns July 25, 2011

    VA0001783608 Nomad Camouflage July 25, 2011

    VA0001829638 Kryptek Typhon Camouflage June 26, 2012

    VA0001829646 Kryptek Raid Camouflage June 26, 2012

    VA0001833727 Kryptek Yeti Camouflage September 25, 2012

    VA0001931269 Kryptek Neptune Camouflage October 14, 2014

    VA0001931271 Kryptek Altitude Camouflage October 14, 2014

    VA0001931338 Kryptek Banshee Camouflage October 14, 2014

    VA0001950891 Kryptek Inferno Camouflage February 20, 2015

    VA0001951037 Kryptek Universal Camouflage February 20, 2015

    V. JURISDICTION AND VENUE

    39.  Plaintiff re-alleges and incorporates by reference the foregoing allegations as

    though fully set forth herein. 

    40. 

    The Court has subject matter jurisdiction over this case because the action arises

    under the patent laws of the United States, Title 35 United States Code, 101 et seq. This Court

    also has subject matter jurisdiction under 17 U.S.C. § 501, 15 U.S.C. § 1125, and under 28

    U.S.C. §§ 1331, and 1338, and has supplemental jurisdiction over the state law claims under 28

    U.S.C. §1367(a).

    41.  This Court has specific personal jurisdiction over Defendants because they have

     purposefully availed themselves of the privilege of conducting business in Texas. By doing

     business in Texas, Defendants have consented to the jurisdiction of Texas and are therefore

    subject to jurisdiction in this state as set forth under Texas Civil Practices and Remedies Code §

    17.042. Defendants offer, market, and promote their goods and services which infringe the

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     patents and copyrights that are the subject of this lawsuit through their websites and other means

    to consumers located in Texas and use their infringing goods and services to promote and

    advertise their goods and services in Texas and elsewhere.

    42.  This Court has specific personal jurisdiction over Defendants because they have

    sold infringing goods to customers in this district and have shipped infringing goods to

    customers in this district. Kryptek’s causes of action arise directly from Defendants’ business

    contacts and other activities in this state and in this district.

    43.  On information and belief, Defendant has willfully and voluntarily committed the

    acts complained of herein in at least this State.

    44.  On information and belief, venue is proper under 28 U.S.C. § 1391 and 1400(b).

    VI. FACTUAL ALLEGATIONS

    A.  KRYPTEK’S INTELLECTUAL PROPERTY

    45.  Plaintiff re-alleges and incorporates by reference the foregoing allegations as

    though fully set forth herein.

    46. 

    Since at least as early as 2011 and continuing into the present, Kryptek has been

    marketing and selling goods and services that incorporate Kryptek’s patented and copyrighted

    camouflage designs, as well as that embody Kryptek’s trade dress. Kryptek’s use of its

    intellectual property has been continuous and continues today.

     Kryptek’s Patents 

    47.  Kryptek is the sole assignee of the Kryptek Patents. Examples of the designs

    covered under the Kryptek Patents are reproduced below.

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    -the ‘099 Patent 

    -the ‘000 Patent  -the ‘999 Patent 

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     Kryptek’s Trademarks

    48.  Kryptek’s trademarks (the “Kryptek Marks”)  protect not only the term

    “KRYPTEK” but various design/word trademarks that also contain the term “KRYPTEK.” The

    chart below identifies each of Kryptek’s registered trademarks. 

    Trademark/Goods and Services

    Reg. No. DateRegistered

    Owner Register

    4342885 5/28/2013 KryptekOutdoor

    Group, LLC

    Principal

    International Class 042 - Custom design of camouflage patterns for others.

    KRYPTEK4463207 1/7/2014 Kryptek

    OutdoorGroup, LLC

    Principal

    International Class 016 - Printed or painted camouflage patterns for hard surfaces.

    International Class 018 - Bags, namely, backpacks, duffel bags, waist bags, slings, luggage andsatchels, including camouflage, military, tactical, hunting and outdoor-recreation styles andcombinations thereof.

    International Class 024 - Textiles, namely, cotton, wool yarn, silk, hemp yarn, and synthetic fabricsin solid colors or in patterns, including camouflage patterns.

    4411623 10/1/2013 KryptekOutdoor

    Group, LLC

    Principal

    International Class 016 - Printed and painted paper materials, namely, paper patterns featuringcamouflage patterns.

    International Class 018 - Bags, namely, backpacks, leather and/or textile ammo pouches, duffel bags,waist bags, sling bags, luggage and satchels, all featuring camouflage, military, tactical, hunting andoutdoor-recreation styles.

    International Class 024 - Textiles, namely, cotton, wool, silk, hemp and synthetic fabrics in solidcolors, patterns, and camouflage patterns.

    Case 1:15-cv-00348-RC Document 1 Filed 09/09/15 Page 12 of 47 PageID #: 12

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    International Class 042 - Custom design of camouflage patterns for others.

    KRYPTEK HIGHLANDER4478518 2/4/2014 Kryptek

    OutdoorGroup, LLC

    Principal

    International Class 025 - Clothing, namely, shirts, pants, coats, jackets, caps, hats, foul weather gear,rainwear, gloves, shorts, sweaters, fleece tops, fleece bottoms, hooded pullovers, sweatshirts, teeshirts, vests, belts, blouses, headwear, balaclavas, face masks, namely, knit face masks and skimasks, coveralls, overalls, jeans, footwear, socks, undergarments, insulating layers and shells,namely, thermal underwear, including camouflage, military, tactical, hunting, outdoor-recreation,thermal, and moisture-wicking styles and combinations thereof.

    KRYPTEK  

    4683587 2/10/2015 KryptekOutdoor

    Group, LLC

    Principal

    International Class 025 - Clothing, namely, shirts, pants, coats, jackets, caps, hats, foul weather gear,rainwear, gloves, shorts, sweaters, fleece tops, fleece bottoms, hooded pullovers, sweatshirts, teeshirts, vests, belts, blouses, headwear, balaclavas, face masks, namely, knit face masks and skimasks, coveralls, overalls, jeans, footwear, socks, undergarments, insulating layers and shells,namely, thermal underwear, including camouflage, military, tactical, hunting, outdoor-recreation,thermal, and moisture-wicking styles and combinations thereof.

     Kryptek’s Copyrights 

    49. 

    K ryptek’s copyrighted designs protect various color variations of Kryptek’s

    camouflage designs. The chart below provides further detail of the Kryptek Copyrights.

    Registration

    No. & Title

    Example Design

    VA0001783604HighlanderCamouflage

    VA0001783605Mandrake

    Camouflage

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    VA0001783608 Nomad

    Camouflage

    VA0001829638Kryptek Typhon

    Camouflage

    VA0001829646Kryptek RaidCamouflage

    VA0001833727Kryptek YetiCamouflage

    VA0001931269Kryptek

     NeptuneCamouflage

    Case 1:15-cv-00348-RC Document 1 Filed 09/09/15 Page 14 of 47 PageID #: 14

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    VA0001931271KryptekAltitude

    Camouflage

    VA0001931338KryptekBanshee

    Camouflage

    VA0001950891Kryptek Inferno

    Camouflage

    50.  Under Section 106 of the Copyright Act of 1976, 17 U.S.C. § 101 et seq. (the

    “Copyright Act”), Kryptek has the distinct, severable, and exclusive rights to, among other

    things, reproduce and distribute their copyrighted works and to prepare derivative works.

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    Defendants have not received any authorization, permission, or consent to use or create

    derivative works of the copyrighted works at issue in this lawsuit.

     Kr  yptek’s Trade Dress 

    51.  Since at least 2011, Plaintiff has continually used the Kryptek Trade Dress

    throughout the United States in commerce. As a result, the Kryptek Trade Dress has acquired

    inherent distinctiveness. The Kryptek Trade Dress serves to identify and indicate the source of

    Kryptek’s goods and services to those in the relevant market. The Kryptek Trade Dress is

    embodied in the products that it sells using its patented and copyrighted designs. A few

    examples are provided below.

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    52.  Kryptek has extensively advertised and promoted its goods and services and has

    developed substantial recognition in the marketplace for its goods and services bearing the

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    Kryptek Trade Dress. Kryptek ’s advertising has included  radio, television, Facebook, Twitter,

     brochures, correspondence, e-mail, the Internet, and in other manners customary to the trade.

    Kryptek also regularly interacts and conducts business with its clients via the telephone,

    facsimile, mail and/or e-mail using the Kryptek Trade Dress.

    53.  As a result of Kryptek ’s use and promotion, the Kryptek Trade Dress has become

    distinctive to designate Kryptek, to distinguish Kryptek and its goods and services from those of

    others, and to distinguish the source or origin of Kryptek ’s goods and services. As a result of

    these efforts by Kryptek, consumers in the relevant market throughout the United States widely

    recognize and associate the trade dress with Kryptek.

    54.  As a result of Plaintiff’s  long use and promotion of the Kryptek Trade Dress in

    the United States, Plaintiff has acquired valuable common law rights in the Kryptek Trade Dress.

    55.  Through its consistent and continuous use, advertising, and third-party media

    attention, Kryptek has developed enforceable statutory and/or common law trade dress rights in

    the Kryptek Trade Dress. Kryptek has established fame and substantial goodwill with its

    customers via the Kryptek Trade Dress and has developed an excellent reputation throughout the

    United States. In addition, Plaintiff has invested significantly in advertising the Kryptek Trade

    Dress, in association with its business.

    B.  DEFENDANTS’ INFRINGING ACTIVITIES

    56.  Upon information and belief, Defendants were and are knowledgeable about

    Kryptek’s intellectual property rights, including the Kryptek Marks, Patents, Copyrights and the

    Kryptek Trade Dress. Consequently, Defendants are intentionally infringing Plaintiff’s

    intellectual property rights in order to steal and/or capitalize upon Kryptek’s intellectual property

    and goodwill.

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    57.  On August 20, 2015, Kryptek sent Defendants a letter that provided notice to

    Defendants of the Kryptek Patents, the Copyrighted designs and the Kryptek Trade Dress and

    identified the infringing products. (See  Exhibit I). Kryptek requested that Defendants

    immediately cease all infringing activity but to date, Defendants continue to infringe.

    58.  Upon information and belief, by at least August 20, 2015 Defendants have had

    actual notice of the Kryptek Patents, the Copyrighted designs and the Kryptek Trade Dress, and

    that their actions constitute willful and intentional infringement of the intellectual property 

    59.  Despite the knowledge that its products and services infringe Kryptek’s

    intellectual property, Defendants refused to cease their infringing activity and continue such

    activity to this day.

    60. 

    Defendants have infringed, and continue to directly infringe, at least claim 1 in

    each of the Kryptek Patents by making, using, selling, offering for sale, and/or importing one or

    more of the infringing products identified in Exhibit J (“Defendants’ Infringing Products”). An

    ordinary observer, familiar with the prior art, would be deceived into believing that the infringing

    designs utilized by Defendants are the same as Kryptek’s patented designs.  

    61.  Defendants have further induced and contributed to infringement of the Kryptek

    Patents. Defendants intentionally and actively induce infringement the Kryptek Patents by the

     public, by Defendants’ manufacturers, Defendants’ distributors, Defendants’ retailers,

    Defendants’ partners and by Defendants’ website users, customers, and/or end users who import,

    make, use, sell, and/or offer to sell at least one or more of Defendants’ Infringing Products. 

    62.  At least as early as August 20, 2015, Defendants have had actual knowledge of

    the Kryptek Patents as a matter of law.

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    63.  At least as early as August 20, 2015, Defendants have been willfully blind toward

    the existence of the Kryptek Patents.

    64.  Upon information and belief, since becoming aware of the Kryptek Patents,

    Defendants have continued to intentionally, knowingly, and actively advertise, sell, and offer to

    sell Defendants’ Infringing Products at least through Defendants’ websites,

    www.saltarmour.com;  www.sateam.company;  www.defensearmour.com;  www.safishing.com; 

    and www.spgapparel.com. 

    65.  Upon information and belief, since becoming aware of the Kryptek Patents,

    Defendants have continued to intentionally, knowingly, and actively cause and/or influence the

     public, Defendants’ manufacturers, Defendants’ distributors, Defendants’ retailers, Defendants’

     partners, and Defendants’ website users, customers, and/or end users to import, make, use, sell,

    and/or offer to sell at least one or more of Defendants’ Infringing Products, and/or practice the

    inventions claimed in the Kryptek Patents.

    66.  Defendants have directly infringed the Kryptek Marks through their use of

    Kryptek’s marks on the we bsite www.spgapparel.com  to sell infringing products. (See Exhibit

    K). Defendants intentionally label their infringing products as “Kryptek Kronos,” a deliberate

    attempt to associate their infringing goods with Plaintiff’s established marks and goodwill. The

    services offered under Defendants’ moniker “Kryptek Kronos” are identical to or closely related

    to the services offered under the Kryptek Marks.

    67.  The Kryptek Marks were first used in interstate commerce in the United States

     before Defendants’ “Kryptek Kronos” was first used anywhere. 

    68.  Given that the parties operate in the same industry and targeting the same market,

    Defendants unauthorized use of the Kryptek Marks is likely to cause confusion, to cause mistake,

    Case 1:15-cv-00348-RC Document 1 Filed 09/09/15 Page 20 of 47 PageID #: 20

    http://www.saltarmour.com/http://www.saltarmour.com/http://www.sateam.company/http://www.sateam.company/http://www.defensearmour.com/http://www.defensearmour.com/http://www.safishing.com/http://www.safishing.com/http://www.spgapparel.com/http://www.spgapparel.com/http://www.spgapparel.com/http://www.spgapparel.com/http://www.spgapparel.com/http://www.spgapparel.com/http://www.spgapparel.com/http://www.safishing.com/http://www.defensearmour.com/http://www.sateam.company/http://www.saltarmour.com/

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    and/or to deceive customers and potential customers of the parties, as least as to some affiliation,

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

    approval of Defendants’ infringing products by Plaintiff. 

    69.  Defendants’ unauthorized use of the marks falsely designates the origin of its goods

    and services, and falsely and misleadingly describes and represents facts with respect to its goods and

    services.

    70. 

    Defendants’ unauthorized use of the Kryptek Marks enables Defendants to trade on

    and receive the benefit of goodwill built up at great labor and expense by Plaintiff, and to gain

    acceptance for its goods and services not solely on its own merits, but on the reputation and goodwill

    of Plaintiff, its Marks, and its services.

    71.  Defendants’ unauthorized use of the moniker “Kryptek Kronos” is likely to cause

    dilution of the Kryptek Marks under 15 U.S.C. § 1125(c) and in violation of Texas Business and

    Commercial Code § 16.103.

    72.  Defendants have further directly infringed, and continue to directly infringe

    Kryptek’s copyrighted designs by, without permission or authorization, making and selling exact

    copies of Kryptek’s copyrighted designs, as well as by making and selling derivative works

     based on Kryptek’s copyrighted designs  without permission or authorization on the websites

    www.saltarmour.com;  www.sateam.company;  www.defensearmour.com;  www.safishing.com; 

    www.spgapparel.com and www.sellmystuff.com. 

    73.  Defendants have further induced and contributed to infringement of Kryptek’s

    copyrighted designs,  by intentionally inducing and/or causing Defendants’ manufacturers,

    distributers, retailers, partners, Defendants’ website users, customers and/or end users to create

    unauthorized reproductions and/or derivative works of Kryptek’s copyrighted designs.

    Case 1:15-cv-00348-RC Document 1 Filed 09/09/15 Page 21 of 47 PageID #: 21

    http://www.saltarmour.com/http://www.saltarmour.com/http://www.sateam.company/http://www.sateam.company/http://www.defensearmour.com/http://www.defensearmour.com/http://www.safishing.com/http://www.safishing.com/http://www.spgapparel.com/http://www.spgapparel.com/http://www.sellmystuff.com/http://www.sellmystuff.com/http://www.sellmystuff.com/http://www.sellmystuff.com/http://www.spgapparel.com/http://www.safishing.com/http://www.defensearmour.com/http://www.sateam.company/http://www.saltarmour.com/

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    74.  Defendant Thomas J. De Sernia, as an officer of both Defendants Salt Armour

    and Alpha Defense, has the right and ability to supervise and control the infringing conduct of

    Defendants Salt Armour and Alpha Defense. De Sernia has refused to exercise such supervision

    and control to prevent the infringing activities of Defendants Salt Armour and Alpha Defense.

    Further, De Sernia derives a direct financial benefit from the infringing activity as an officer of

     both companies, including obtaining a financial benefit that directly flows from the sale of

    infringing goods and services by Defendants Salt Armour and Alpha Defense.

    75.  Defendants Infringing Products further infringe the Kryptek Trade Dress because

    Defendants’ Infringing Products are confusingly similar to Kryptek’s goods and services sold

    with the Kryptek Trade Dress. Defendants’ use of the Kryptek Trade Dress in connection with

    the infringing products is likely to cause confusion, mistake, or to deceive as to the affiliation,

    connection, or association of Defendants with Kryptek.

    76.  Defendants’ unauthorized use of the Kryptek Trade Dress falsely designates the

    origin of its goods and services, and falsely and misleadingly describes and represents facts with

    respect to its goods and services.

    77.  Def endants’ unauthorized use of the Kryptek Trade Dress, as well the Kryptek

    Patents and Copyrighted designs, enables Defendants to trade on and receive the benefit of

    goodwill built up at great labor and expense by Kryptek, and to gain acceptance for its goods and

    services not solely on its own merits, but on the reputation and goodwill of Kryptek, the Kryptek

    Trade Dress, and its goods and services.

    78.  Defendants’ unauthorized use of the Kryptek Trade Dress is likely to cause

    dilution of the Kryptek Trade Dress under 15 U.S.C. § 1125(c) and in violation of Texas

    Business and Commerce Code § 16.103.

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    79.  Defendants’ unauthorized use of the Kryptek Trade Dress, as well the Kryptek

    Patents and Copyrighted designs, unjustly enriches Defendants at Kryptek ’s expense. Defendants

    have been and continue to be unjustly enriched, obtaining a benefit from Kryptek by taking

    unfair advantage of Plaintiff and its extensive goodwill. Specifically, Defendants have taken

    unfair advantage of Kryptek by trading on and profiting from the goodwill in Kryptek’s

    intellectual property developed and owned by Kryptek, resulting in Defendants wrongfully

    obtaining a monetary and reputational benefit for its own business as well as goods and services.

    80.  Defendants’ unauthorized use of the Kryptek Trade Dress, as well the Kryptek

    Patents and Copyrighted designs, removes from Kryptek the ability to control the nature and

    quality of goods and services provided under its intellectual property, and places the valuable

    reputation and goodwill of Kryptek in the hands of Defendants, over whom Kryptek has no

    control.

    81.  Unless Defendants’ acts are restrained by this Court, they will continue, and they

    will continue to cause irreparable injury to Kryptek and to the relevant public for which there is

    no adequate remedy at law.

    VII. CAUSES OF ACTION

    Count 1: Direct Patent Infringement of U.S. Patent D679,099 Under 35 U.S.C. § 271(a)

    82.  Plaintiff repeats the allegations above as if fully set forth herein.

    83.  This is a claim for direct patent infringement under 35 U.S.C. § 271(a).

    84.  Defendants, directly and through their agents, employees and servants, have and

    continue to knowingly, intentionally, and willfully directly infringe U.S. Patent No. D679,099

    (“the ‘099 Patent”)  by making, using, selling, offering for sale, and/or importing products,

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    including Defendants’ Infringing Products, which have camouflage designs that are covered by

    the claim of the ‘099 Patent.

    85.  Defendants’ acts of infringement of the ‘099 Patent  were undertaken without

     permission or license from Kryptek. Upon information and belief, Defendants have actual

    knowledge of the ‘099 Patent, including knowledge that its actions constitute willful and

    intentional infringement of the ‘099 Patent.

    86.  As a direct and proximal result of Defendants’ patent infringement, Defendants

    have derived and received gains, profits, and advantages in an amount not presently known to

    Kryptek.

    87.  Pursuant to 35 U.S.C. § 284, Kryptek is entitled to damages for Defendants’

    infringing acts and treble damages together with interests and costs as fixed by this Court.

    88.  Pursuant to 35 U.S.C. § 289, Kryptek is entitled to Defendants’ total profits from

    the sale of Defendants’ goods that infringe the ‘099 Patent.

    89.  Pursuant to 35 U.S.C. § 285, Kryptek is entitled to reasonable attorneys’ fees for

    the necessity of bringing this claim.

    90.  Due to the aforesaid infringing acts, Kryptek has suffered great and irreparable

    injury, for which Kryptek has no adequate remedy at law.

    91.  Defendants will continue to directly infringe the ‘099 Patent  to the great and

    irreparable injury of Kryptek, unless enjoined by this Court.

    Count 2: Inducement of Infringement of U.S. Patent D679,099 Under 35 U.S.C. § 271(b) 

    92.  Plaintiff repeats the allegations above as if fully set forth herein.

    93.  This is a claim for inducing patent infringement under 35 U.S.C. § 271(b).

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    94.  Defendants, directly and through their agents, employees and servants, have and

    continue to knowingly, intentionally, and willfully induced others to infringe the ‘099 Patent.

    Defendants induced Defendants’ manufacturers  to infringe the ‘099 Patent  by causing to be

    made or manufactured products, including Defendants’ Infringing Products, which have

    camouflage designs that are covered by the claim of the ‘099 Patent. Defendants, because of

    their prior knowledge of the ‘099 Patent, intended to cause Defendants’ manufacturers to

    infringe the ‘099 Patent  by inducing the manufacture of infringing goods. Defendants further

    induced Defendants’ distributors, retailers, partners and customers to infringe the ‘099 Patent by

    using, selling, offering for sale, and/or importing products, including Defendants’ Infringing

    Products, which have camouflage designs that are covered by the claim of the ‘099 Patent.

    95. 

    Defendants had actual knowledge of the ‘099 Patent because Kryptek informed

    Defendants of the ‘099 Patent and of Defendants’ infringement on August 20, 2015. Because

    they knew of the ‘099 Patent  and had been warned that their actions were infringing, by

    continuing in those infringing acts to the present day, Defendants had knowledge that their

    actions and the actions they induced others to perform constitute patent infringement.

    96.  Upon information and belief, since becoming aware of the ‘099 Patent,

    Defendants have been willfully blind, knew, or should have known that the acts of Defendants’

    manufacturers, distributors, retailers, and customers relative to the making, using, selling,

    offering for sale, and/or importing goods containing camouflage design, including Defendants’

    Infringing Products, practice the invention claimed in the ‘099  Patent and directly infringe at

    least claim 1 of the ‘099 Patent.

    97.  Due to the aforesaid infringing acts, Kryptek has suffered great and irreparable

    injury, for which Kryptek has no adequate remedy at law.

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    98.  Defendants will continue to indirectly infringe the ‘099 Patent  to the great and

    irreparable injury of Kryptek, unless enjoined by this Court.

    Count 3: Contributory Infringement of U.S. Patent D679,099 Under 35 U.S.C. § 271(c) 

    99.  Plaintiff repeats the allegations above as if fully set forth herein.

    100.  This is a claim for contributory patent infringement under 35 U.S.C. § 271(c).

    101.  The camouflage designs of Defendants’ goods, including Defendants’ Infringing

    Products, constitute a material part of the invention claimed in the ‘099 Patent. The camouflage

    designs are not staple articles and are not commodities of commerce suitable for a non-infringing

    use because the camouflage designs have no use other than as part of the patented design.

    102.  Upon information and belief, since becoming aware of the ‘099 Patent,

    Defendants have been willfully blind, knew, or should have known that Defendants’ goods

    containing camouflage design, including Defendants’ Infringing Products, and the components

    thereof were especially made and/or especially adapted for use in infringing the ‘099 Patent.

    103.  Upon information and belief, since becoming aware of the ‘099 Patent,

    Defendants have been willfully blind, knew, or should have known that Defendants’ goods

    containing camouflage design, including Defendants’ Infringing Products, and the components

    thereof were not staple articles or commodities of commerce suitable for substantial

    noninfringing use.

    104.  By selling, offering to sell, and/or importing into the United States goods

    containing camouflage design, including Defendants’ Infringing Products, and the components

    thereof, Defendants have contributed to the infringement of distributors, retailers, and/or

    customers who sell, offer for sale, purchase, make, and/or use Defendants’ goods containing

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    camouflage design, including Defendants’ Infringing Products, to practice the invention claimed

    in the ‘099 Patent, and thus directly infringes the ‘099 Patent.

    105.  Due to the aforesaid infringing acts, Kryptek has suffered great and irreparable

    injury, for which Kryptek has no adequate remedy at law.

    106.  Defendants will continue to indirectly infringe the ‘099 Patent  to the great and

    irreparable injury of Kryptek, unless enjoined by this Court.

    Count 4: Direct Patent Infringement of U.S. Patent D685,999 Under 35 U.S.C. § 271(a) 

    107.  Plaintiff repeats the allegations above as if fully set forth herein.

    108. 

    This is a claim for direct patent infringement under 35 U.S.C. § 271(a).

    109.  Defendants, directly and through their agents, employees and servants, have and

    continue to knowingly, intentionally, and willfully directly infringe U.S. Patent No. D685,999

    (“the ‘999 Patent”) by making, using, selling, offering for sale, and/or importing products,

    including Defendants’ Infringing Products, which have camouflage designs that are covered by

    the claim of the ‘999 Patent.

    110. 

    Defendants’ acts of infringement of the ‘999 Patent were undertaken without

     permission or license from Kryptek. Upon information and belief, Defendants have actual

    knowledge of the ‘999 Patent, including knowledge that its actions constitute willful and

    intentional infringement of the ‘999 Patent.

    111.  As a direct and proximal result of Defendants’ patent infringement, Defendants

    have derived and received gains, profits, and advantages in an amount not presently known to

    Kryptek.

    112.  Pursuant to 35 U.S.C. § 284, Kryptek is entitled to damages for Defendants’

    infringing acts and treble damages together with interests and costs as fixed by this Court.

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    113.  Pursuant to 35 U.S.C. § 289, Kryptek is entitled to Defendants’ total profits from

    the sale of Defendants’ goods that infringe the ‘999 Patent.

    114.  Pursuant to 35 U.S.C. § 285, Kryptek is entitled to reasonable attorneys’ fees for

    the necessity of bringing this claim.

    115.  Due to the aforesaid infringing acts, Kryptek has suffered great and irreparable

    injury, for which Kryptek has no adequate remedy at law.

    116.  Defendants will continue to directly infringe the ‘999 Patent  to the great and

    irreparable injury of Kryptek, unless enjoined by this Court.

    Count 5: Inducement of Infringement of U.S. Patent D685,999 Under 35 U.S.C. § 271(b) 

    117.  Plaintiff repeats the allegations above as if fully set forth herein.

    118. 

    This is a claim for inducing patent infringement under 35 U.S.C. § 271(b).

    119.  Defendants, directly and through their agents, employees and servants, have and

    continue to knowingly, intentionally, and willfully induced others to infringe the ‘999 Patent.

    Defendants induced Defendants’ manufacturers to infringe the ‘999 Patent by causing to be

    made or manufactured products, including Defendants’ Infringing Products, which have

    camouflage designs that are covered by the claim of the ‘999 Patent. Defendants, because of

    their prior knowledge of the ‘999 Patent, intended to cause Defendants’ manufacturers to

    infringe the ‘999 Patent by inducing the manufacture of infringing goods. Defendants further

    induced Defendants’ distributors, retailers, partners and customers to infringe the ‘999 Patent by

    using, selling, offering for sale, and/or importing products, including Defendants’ Infringing

    Products, which have camouflage designs that are covered by the claim of the ‘999 Patent.

    120.  Defendants had actual knowledge of the ‘999 Patent because Kryptek informed

    Defendants of the ‘999 Patent and of Defendants’ infringement on August 20, 2015. Because

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    they knew of the ‘999 Patent and had been warned that their actions were infringing, by

    continuing in those infringing acts to the present day, Defendants had knowledge that their

    actions and the actions they induced others to perform constitute patent infringement.

    121.  Upon information and belief , since becoming aware of the ‘999 Patent,

    Defendants have been willfully blind, knew, or should have known that the acts of Defendants’

    manufacturers, distributors, retailers, and customers relative to the making, using, selling,

    offering for sale, and/or importing goods containing camouflage design, including Defendants’

    Infringing Products, practice the invention claimed in the ‘999 Patent and directly infringe at

    least claim 1 of the ‘999 Patent.

    122.  Due to the aforesaid infringing acts, Kryptek has suffered great and irreparable

    injury, for which Kryptek has no adequate remedy at law.

    123.  Defendants will continue to indirectly infringe the ‘999 Patent to the great and

    irreparable injury of Kryptek, unless enjoined by this Court.

    Count 6: Contributory Infringement of U.S. Patent D685,999 Under 35 U.S.C. § 271(c) 

    124. 

    Plaintiff repeats the allegations above as if fully set forth herein.

    125.  This is a claim for contributory patent infringement under 35 U.S.C. § 271(c).

    126.  The camouflage designs of Defendants’ goods, including Defendants’ Infringing

    Products, constitute a material part of the invention claimed in the ‘999 Patent. The camouflage

    designs are not staple articles and are not commodities of commerce suitable for a non-infringing

    use because the camouflage designs have no use other than as part of the patented design.

    127.  Upon information and belief , since becoming aware of the ‘999 Patent,

    Defendants have been willfully blind, knew, or should have known that Defendants’ goods

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    containing camouflage design, including Defendants’ Infringing Products, and the components

    thereof were especially made and/or especially adapted for use in infringing the ‘999 Patent.

    128.  Upon information and belief , since becoming aware of the ‘999 Patent,

    Defendants have been willfully blind, knew, or should have known that Defendants’ goods

    containing camouflage design, including Defendants’ Infringing Products, and the components

    thereof were not staple articles or commodities of commerce suitable for substantial

    noninfringing use.

    129.  By selling, offering to sell, and/or importing into the United States goods

    containing camouflage design, including Defendants’ Infringing Products, and the components

    thereof, Defendants have contributed to the infringement of distributors, retailers, and/or

    customers who sell, offer for sale, purchase, make, and/or use Defendants’ goods containing

    camouflage design, including Defendants’ Infringing Products, to practice the invention claimed

    in the ‘999 Patent, and thus directly infringes the ‘999 Patent.

    130.  Due to the aforesaid infringing acts, Kryptek has suffered great and irreparable

    injury, for which Kryptek has no adequate remedy at law.

    131.  Defendants will continue to indirectly infringe the ‘999 Patent to the great and

    irreparable injury of Kryptek, unless enjoined by this Court.

    Count 7: Direct Patent Infringement of U.S. Patent D686,000 Under 35 U.S.C. § 271(a) 

    132.  Plaintiff repeats the allegations above as if fully set forth herein.

    133.  This is a claim for direct patent infringement under 35 U.S.C. § 271(a).

    134.  Defendants, directly and through their agents, employees and servants, have and

    continue to knowingly, intentionally, and willfully directly infringe U.S. Patent No. D686,000

    (“the ‘000  Patent”) by making, using, selling, offering for sale, and/or importing products,

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    including Defendants’ Infringing Products, which have camouflage designs that are covered by

    the claim of the ‘000 Patent.

    135.  Defendants’ acts of infringement of the ‘000  Patent were undertaken without

     permission or license from Kryptek. Upon information and belief, Defendants have actual

    knowledge of the ‘000  Patent, including knowledge that its actions constitute willful and

    intentional infringement of the ‘000 Patent.

    136.  As a direct and proximal result of Defendants’ patent infringement, Defendants

    have derived and received gains, profits, and advantages in an amount not presently known to

    Kryptek.

    137.  Pursuant to 35 U.S.C. § 284, Kryptek is entitled to damages for Defendants’

    infringing acts and treble damages together with interests and costs as fixed by this Court.

    138.  Pursuant to 35 U.S.C. § 289, Kryptek is entitled to Defendants’ total profits from

    the sale of Defendants’ goods that infringe the ‘000 Patent.

    139.  Pursuant to 35 U.S.C. § 285, Kryptek is entitled to reasonable attorneys’ fees for

    the necessity of bringing this claim.

    140.  Due to the aforesaid infringing acts, Kryptek has suffered great and irreparable

    injury, for which Kryptek has no adequate remedy at law.

    141.  Defendants will continue to directly infringe the ‘000  Patent to the great and

    irreparable injury of Kryptek, unless enjoined by this Court.

    Count 8: Inducement of Infringement of U.S. Patent D686,000 Under 35 U.S.C. § 271(b) 

    142.  Plaintiff repeats the allegations above as if fully set forth herein.

    143.  This is a claim for inducing patent infringement under 35 U.S.C. § 271(b).

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    144.  Defendants, directly and through their agents, employees and servants, have and

    continue to knowingly, intentionally, and willfully induced others to infringe the ‘000 Patent.

    Defendants induced Defendants’ manufacturers to infringe the ‘000 Patent by causing to be

    made or manufactured products, including Defendants’ Infringing Products, which have

    camouflage designs that are covered by the claim of the ‘000 Patent. Defendants, because of

    their prior knowledge of the ‘000 Patent, intended to cause Defendants’ manufacturers to

    infringe the ‘000 Patent by inducing the manufacture of infringing goods. Defendants further

    induced Defendants’ distributors, retailers, partners and customers to infringe the ‘000 Patent by

    using, selling, offering for sale, and/or importing products, including Defendants’ Infringing

    Products, which have camouflage designs that are covered by the claim of the ‘000 Patent.

    145.  Defendants had actual knowledge of the ‘000 Patent because Kryptek informed

    Defendants of the ‘000 Patent and of Defendants’ infringement on August 20, 2015. Because

    they knew of the ‘000 Patent and had been warned that their actions were infringing, by

    continuing in those infringing acts to the present day, Defendants had knowledge that their

    actions and the actions they induced others to perform constitute patent infringement.

    146.  Upon information and belief, since becoming aware of the ‘000 Patent,

    Defendants have been willfully blind, knew, or should have known that the acts of Defendants’

    manufacturers, distributors, retailers, and customers relative to the making, using, selling,

    offering for sale, and/or importing goods containing camouflage design, including Defendants’

    Infringing Products, practice the invention claimed in the ‘000 Patent and directly infringe at

    least claim 1 of the ‘000 Patent.

    147.  Due to the aforesaid infringing acts, Kryptek has suffered great and irreparable

    injury, for which Kryptek has no adequate remedy at law.

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    148.  Defendants will continue to indirectly infringe the ‘000 Patent to the great and

    irreparable injury of Kryptek, unless enjoined by this Court.

    Count 9: Contributory Infringement of U.S. Patent D686,000 Under 35 U.S.C. § 271(c) 

    149.  Plaintiff repeats the allegations above as if fully set forth herein.

    150.  This is a claim for contributory patent infringement under 35 U.S.C. § 271(c).

    151.  The camouflage designs of Defendants’ goods, including Defendants’ Infringing

    Products, constitute a material part of the invention claimed in the ‘000 Patent. The camouflage

    designs are not staple articles and are not commodities of commerce suitable for a non-infringing

    use because the camouflage designs have no use other than as part of the patented design.

    152.  Upon information and belief, since becoming aware of the ‘000  Patent,

    Defendants have been willfully blind, knew, or should have known that Defendants’ goods

    containing camouflage design, including Defendants’ Infringing Products, and the components

    thereof were especially made and/or especially adapted for use in infringing the ‘000 Patent.

    153.  Upon information and belief, since becoming aware of the ‘000  Patent,

    Defendants have been willfully blind, knew, or should have known that Defendants’ goods

    containing camouflage design, including Defendants’ Infringing Products, and the components

    thereof were not staple articles or commodities of commerce suitable for substantial

    noninfringing use.

    154.  By selling, offering to sell, and/or importing into the United States goods

    containing camouflage design, including Defendants’ Infringing Products, and the components

    thereof, Defendants have contributed to the infringement of distributors, retailers, and/or

    customers who sell, offer for sale, purchase, make, and/or use Defendants’ goods containing

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    camouflage design, including Defendants’ Infringing Products, to practice the invention claimed

    in the ‘000 Patent, and thus directly infringes the ‘000 Patent.

    155.  Due to the aforesaid infringing acts, Kryptek has suffered great and irreparable

    injury, for which Kryptek has no adequate remedy at law.

    156.  Defendants will continue to indirectly infringe the ‘000  Patent to the great and

    irreparable injury of Kryptek, unless enjoined by this Court.

    Count 10: Federal Trademark Infringement under 15 U.S.C. § 1114(1).

    157.  Plaintiff repeats the allegations above as if fully set forth herein.

    158. 

    The acts of Defendants complained of herein constitute infringement of Plaintiff’s

    federally registered trademarks, Nos. 4342885, 4463207, 4411623, 4478518, and 4683587 in

    violation of 15 U.S.C. § 1114(1).

    159.  Defendants’ acts complained of herein have been deliberate, willful, intentional,

    and in bad faith, with full knowledge and conscious disregard of Plaintiff’s rights in the Kryptek

    Marks, and with intent to cause confusion and to trade on Plaintiff’s extensive goodwill in the

    Kryptek Marks. In view of the egregious nature of Defendants’ infringement, this is an

    exceptional case within the meaning of 15 U.S.C. § 1117(a).

    Count 11: Common Law Trademark Infringement

    160.  Plaintiff repeats the allegations above as if fully set forth herein.

    161.  The acts of Defendants complained of herein constitute trademark infringement in

    violation of the common law of this State.

    Count 12: Direct Copyright Infringement Under 17 U.S.C. § 501

    162.  Plaintiff repeats the allegations above as if fully set forth herein.

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    163.  Defendants have directly infringed the Kryptek Copyrights by reproducing the

    Kryptek’s copyrighted works, by preparing derivative works based on Kryptek’s copyrighted

    works, and by distributing the copies and/or derivative works to the public by sale without

    authorization in violation of 17 U.S.C. § 106 et seq and § 501.

    164.  Each infringement of the Kryptek Copyrights by Defendants constitutes a separate

    and distinct act of infringement.

    165.  Defendants’  acts of infringement were willful, and in disregard to Kryptek’s

    rights.

    166. 

    As a direct and proximate result of Defendants’ infringements, Kryptek is entitled

    to damages and Defendants’ profits. 

    167. 

    Alternatively, Kryptek is entitled to the maximum statutory damages in the

    amount of $150,000 with respect to each work infringed, or for such other amounts as may be

     proper un 17 U.S.C. § 504.

    168.  Kryptek is further entitled to recover its attorney’s fees and costs pursuant to 17

    U.S.C. § 505.

    169.  Defendants are each jointly and severally liable for damages resulting from the

    acts of infringement, as well as for Kryptek’s attorney’s fees and costs. 

    170.  As a direct and proximate result of Defendants’ infringements, Kryptek has

    sustained and will continue to sustain substantial, immediate and irreparable injury, for which

    there is no adequate remedy at law. Unless enjoined and restrained by this Court, Defendants

    will continue to infringe Kryptek’s rights in the Kryptek Copyrights and thus Kryptek is entitled

    to injunctive relief.

    Count 13: Contributory Copyright Infringement Under 17 U.S.C. § 501

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    171.  Plaintiff repeats the allegations above as if fully set forth herein.

    172.  Defendants have infringed the Kryptek Copyrights by knowingly and materially

    contributing to, intentionally inducing, and/or causing Defendants’ manufacturers, distributors,

    retailers, and/or customers to infringe the Kryptek Copyrights. Defendants have materially

    contributed to, intentionally induced, and/or caused unauthorized reproductions, derivative

    works, distributions, and/or public display of the Kryptek Copyrights without authorization in

    violation of 17 U.S.C. § 106 et seq  and § 501. Notwithstanding such knowledge, Defendants

    have failed to take any measures, including measures readily available to Defendants, to prevent

    further damage to the Kryptek Copyrights.

    173.  Each infringement of the Kryptek Copyrights by Defendants constitutes a separate

    and distinct act of infringement.

    174.  Defendants’ acts of infringement were willful, and in disregard to Kryptek’s

    rights.

    175.  As a direct and proximate result of Defendants’ infringements, Kryptek is entitled

    to damages and Defendants’ profits. 

    176.  Alternatively, Kryptek is entitled to the maximum statutory damages in the

    amount of $150,000 with respect to each work infringed, or for such other amounts as may be

     proper un 17 U.S.C. § 504.

    177.  Kryptek is further entitled to recover its attorney’s fees and costs pursuant to 17

    U.S.C. § 505.

    178.  Defendants are each jointly and severally liable for damages resulting from the

    acts of infringement, as well as for Kryptek’s attorney’s fees and costs. 

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    179.  As a direct and proximate result of Defendants’ infringements, Kryptek has

    sustained and will continue to sustain substantial, immediate and irreparable injury, for which

    there is no adequate remedy at law. Unless enjoined and restrained by this Court, Defendants

    will continue to infringe Kryptek’s rights in the Kryptek Copyrights and thus Kryptek is entitled

    to injunctive relief.

    Count 14: Inducing Copyright Infringement Under 17 U.S.C. § 501

    180.  Plaintiff repeats the allegations above as if fully set forth herein.

    181.  Defendants have infringed the Kryptek Copyrights by inducing Defendants’

    manufacturers, distributors, retailers, and/or customers to reproduce, prepare derivative works,

    and/or distribute to the public copies and/or derivative works based on the Kryptek Copyrights

    without authorization in violation of 17 U.S.C. § 106 et seq and § 501.

    182.  Each infringement of the Kryptek Copyrights by Defendants constitutes a separate

    and distinct act of infringement.

    183.  As a direct and proximate result of Defendants’ infringements, Kryptek is entitled

    to damages and Defendants’ profits. 

    184.  Alternatively, Kryptek is entitled to the maximum statutory damages in the

    amount of $150,000 with respect to each work infringed, or for such other amounts as may be

     proper un 17 U.S.C. § 504.

    185.  Kryptek is further entitled to recover its attorney’s fees and costs pursuant to 17

    U.S.C. § 505.

    186.  Defendants are each jointly and severally liable for damages resulting from the

    acts of infringement, as well as for Kryptek’s attorney’s fees and costs. 

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    187.  As a direct and proximate result of Defendants’ infringements, Kryptek has

    sustained and will continue to sustain substantial, immediate and irreparable injury, for which

    there is no adequate remedy at law. Unless enjoined and restrained by this Court, Defendants

    will continue to infringe Kryptek’s rights in the Kryptek Copyrights and thus Kryptek is entitled

    to injunctive relief.

    Count 15: Vicarious Copyright Infringement Under 17 U.S.C. § 501

    188.  Plaintiff repeats the allegations above as if fully set forth herein.

    189.  Defendant Thomas J. De Sernia, as President and majority shareholder of both

    Defendants Salt Armour and Apha Defense, has vicariously infringed the Kryptek Copyrights

     because he has the right and ability to supervise and/or control the infringing conduct of

    Defendants Salt Armour and Apha Defense. De Sernia has directly participated in and/or refused

    to exercise his ability to supervise and control Defendants Salt Armour and Apha Defense to the

    extent required by law. De Sernia was and is a moving active conscious force behind the

    infringement of Defendants Salt Armour and Apha Defense. As a direct and proximate result of

    such refusal, Defendants Salt Armour and Apha Defense, as well as Defendants’ manufacturers,

    distributors, retailers, and/or customers have infringed the Kryptek Copyrights, including by

    reproducing, preparing derivative works, and/or distributing to the public copies and/or

    derivative works based on the Kryptek Copyrights without authorization in violation of 17

    U.S.C. § 106 et seq and § 501.

    190.  Defendant De Sernia derives a direct financial benefit and has a direct financial

    interest in the infringing activity, including but not limited to obtaining financial compensation

    from Defendants Salt Armour and Apha Defense, including financial compensation flowing from

    the sale of infringing goods, including Defendants’ Infringing Products by Defendants. Upon

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    information and belief, Defendant De Sernia is the majority and/or sole shareholder in both

    corporations, Salt Armour and Apha Defense. Accordingly, his financial interest in Defendants

    Salt Armour and Apha Defense is directly related to the infringing activity.

    191.  Based on the above, Defendant De Sernia is vicariously and joint and severally

    liable for an award of damages based on the infringement of himself, and/or the infringement of

    Defendants Salt Armour and Apha Defense.

    Count 16: Federal Trade Dress Infringement Under 15 U.S.C. § 1125(a)

    192.  Plaintiff repeats the allegations above as if fully set forth herein.

    193. 

    This is a claim for trade dress infringement under 15 U.S.C. § 1125(a).

    194.  After the use and adoption of the Kryptek Trade Dress, without authorization

    Defendants have designed, developed, manufactured, imported, advertised and/or sold products,

    including Defendants’ Infringing Products, which directly copy the Kryptek Trade Dress, and/or

    use trade dress confusingly similar to the Kryptek Trade Dress. See below for an example:

    Krypek Trade Dress Defendants’ Infringing Product 

    195.  Defendants’ use of the Kryptek Trade Dress in connection with its goods is likely

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

    association of Defendants with Kryptek.

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    196.  Kryptek is informed and believes, and thereon alleges, that Defendants’ acts of

    trade dress infringement were undertaken willfully with the express intent to cause confusion,

    and to mislead and deceive the purchasing public.

    197.  Kryptek is informed and believes, and thereon alleges, that Defendant has derived

    and received, and will continue to derive and receive, gains, profits, and advantages from

    Defendants’  trade dress infringement in an amount that is not presently known to Kryptek. By

    reason of Defendants’ actions, constituting trade dress infringement, Kryptek has been damaged

    and is entitled to monetary relief in an amount to be determined at trial.

    198. 

    Due to Defendants’  actions, constituting trade dress infringement, Kryptek has

    suffered and continues to suffer great and irreparable injury, for which Kryptek has no adequate

    remedy at law.

    199.  In view of the egregious nature of Defendants’  infringement, this is an

    exceptional case within the meaning of 15 U.S.C. § 1117(a) and Kyptek is entitled to damages

    for Defendants’ infringing acts, up to three times actual damages, and its attorney’s fees.

    Count 17: Federal Unfair Competition, Passing Off, and False Designation

    Of Origin Under 15 U.S.C. § 1125(a)

    200.  Plaintiff repeats the allegations above as if fully set forth herein.

    201.  This is a claim for unfair competition, passing off, and false designation of origin

    under Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a).

    202.  Defendants’ use of the Kryptek Marks and Kryptek Trade Dress without

    Kryptek’s consent constitutes a false designation of origin, which is which is likely to cause

    confusion, or to cause mistake, or to deceive as to the affiliation, connection, or association of

    Defendants with Kryptek, or as to the origin, sponsorship, or approval of Defendants’  goods

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    and/or commercial activities by Kryptek in violation of 15 U.S.C. § 1125(a) and constitutes

    unfair competition with Kryptek.

    203.  Defendants’  use of the Kryptek Marks and Kryptek Trade Dress without

    Kryptek ’s consent constitutes a false designation of origin, which in commercial advertising or

     promotion, misrepresents the nature, characteristics, qualities, or geographic origin of

    Defendants’ goods or commercial activities in violation of 15 U.S.C. § 1125(a) and constitutes

    unfair competition with Kryptek.

    204.  Such conduct by Defendants is likely to confuse, mislead, and deceive

    Defendants’ customers, purchasers, and members of the public as to the origin of the Kryptek

    Marks and/or Kryptek Trade Dress or cause said persons to believe that Defendants and/or its

     products have been sponsored, approved, authorized, or licensed by Kryptek or are in some way

    affiliated or connected with Kryptek, all in violation of 15 U.S.C. § 1125(a) and constitutes

    unfair competition with Kryptek.

    205.  Kryptek is informed and believes, and thereon alleges, that Defendants’  actions

    were undertaken willfully with full knowledge of the falsity of such designation of origin and

    false descriptions or representations.

    206.  Kryptek is informed and believes, and thereon alleges, that Defendants have

    derived and received, and will continue to derive and receive, gains, profits, and advantages from

    Defendants’ unfair competition and false designation of origin in an amount that is not presently

    known to Kryptek. By reason of Defendants’ actions, constituting unfair competition and false

    designation of origin, Kryptek has been damaged and is entitled to monetary relief in an amount

    to be determined at trial.

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    207.  Due to Defendants’ actions, constituting unfair competition and false designation

    of origin, Kryptek has suffered and continues to suffer great and irreparable injury, for which

    Kryptek has no adequate remedy at law.

    208.  Pursuant to 15 U.S.C. § 1117, Kryptek is entitled to damages for Defendants’ acts

    constituting false designation of origin and unfair competition, up to three times actual damages,

    and reasonable attorney’s fees.

    Count 18: Common Law Trade Dress Infringement

    209.  Plaintiff repeats the allegations above as if fully set forth herein.

    210. 

    The acts of Defendants complained of herein constitute trade dress infringement

    in violation of the common law of this State.

    211.  As a direct and proximate result of Defendants’ conduct, Kryptek has suffered

    damages to its valuable Kryptek Trade Dress, and other damages in an amount to be proved at

    trial.

    Count 19: Common Law Unfair Competition

    212. 

    Plaintiff repeats the allegations above as if fully set forth herein.

    213.  The acts of Defendants complained of herein constitute unfair competition in

    violation of the common law of this State.

    Count 20: Federal Trademark Dilution

    214.  Plaintiff repeats the allegations above as if fully set forth herein.

    215.  The acts of Defendants complained of herein constitute dilution of the Kryptek

    Marks and Kryptek Trade Dress in violation of 15 U.S.C. § 1125(c).

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    216.  Defendants willfully intended to trade on the recognition of the Kryptek Marks

    and/or the Kryptek Trade Dress and/or to harm the reputation of the Kryptek Marks and Kryptek

    Trade Dress.

    217.  As a direct and proximate result of Defendants’   conduct, Kryptek has suffered

    damages to its valuable Kryptek Marks and Kryptek Trade Dress, and other damages in an

    amount to be proved at trial.

    Count 21: Texas Trademark Law

    218.  Plaintiff repeats the allegations above as if fully set forth herein.

    219. 

    The acts of Defendants complained of herein are in violation of Texas Business

    and Commerce Code § 16.103.

    220.  As a direct and proximate result of Defendants’ conduct, Kryptek has suffered

    damages to its valuable Kryptek Marks and Kryptek Trade Dress, and other damages permitted

     by Texas Business and Commerce Code § 16.104, in an amount to be proved at trial.

    Count 22: Unjust Enrichment

    221. 

    Plaintiff repeats the allegations above as if fully set forth herein.

    222.  The acts of Defendants complained of herein constitute unjust enrichment of

    Defendants at the expense of Kryptek.

    223.  Defendants’ acts complained of herein have caused and continue to cause damage

    to Kryptek.

    VIII. DEMAND FOR A JURY TRIAL

    224.  Pursuant to Rule 38(b) of the Federal Rules of Civil Procedure, Kryptek

    respectfully requests a trial by jury of all issues properly triable by jury. 

    IX.  PRAYER FOR RELIEF

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    225.  WHEREFORE, Plaintiff requests entry of judgment in its favor and against

    Defendants including the following:

    a.  A judgment declaring that Defendants infringe the ‘099 Patent;

     b.  A judgment declaring that Defendants infringe the ‘999 Patent; 

    c.  A judgment declaring that Defendants infringe the ‘000 Patent;

    d.  Enter a preliminary and permanent injunction to enjoin Defendants and their

    officers, agents, attorneys and employees, and those acting in privity or concert

    with them, from infringing the ‘099 Patent for the full term thereof;

    e. 

    Enter a preliminary and permanent injunction to enjoin Defendants and their

    officers, agents, attorneys and employees, and those acting in privity or concert

    with them, from infringing the ‘999 Patent for the full term thereof;

    f.  Enter a preliminary and permanent injunction to enjoin Defendants and their

    officers, agents, attorneys and employees, and those acting in privity or concert

    with them, from infringing the ‘000 Patent for the full term thereof;

    g. 

    Award Plaintiff damages against Defendants adequate to compensate Plaintiff for

    the infringement of the ‘099 Patent pursuant to 35 U.S.C. § 284 and/or 35 U.S.C.

    § 289;

    h.  Award Plaintiff damages against Defendants adequate to compensate Plaintiff for

    the infringement of the ‘999 Patent pursuant to 35 U.S.C. § 284 and/or 35 U.S.C.

    § 289;

    i.  Award Plaintiff damages against Defendants adequate to compensate Plaintiff for

    the infringement of the ‘000 Patent pursuant to 35 U.S.C. § 284 and/or 35 U.S.C.

    § 289;

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     j.  Find that the Defendants’ infringement is deliberate and willful, and  that the

    damages awarded to Plaintiff be trebled pursuant to 35 U.S.C. § 284;

    k.  A declaration that this is an exceptional case and an award of attorney’s fees,

    disbursements, and costs of this action pursuant to 35 U.S.C.§ 285;

    l.  A judgement declaring that Defendants have infringed Plaintiff’s trademarks

    under state and federal law;

    m.  A judgement awarding Plaintiff damages as a result of Defendants’ tr ademark

    infringement with interests and costs;

    n. 

    A judgment declaring that Defendants’ infringement of the marks has been willful

    and deliberate;

    o. 

    A judgment holding Defendants joint and severally liable;

     p.  A grant of permanent injunction enjoining the Defendants from further acts of

    trademark infringement and unfair competition;

    q.  A judgement declaring that Defendants have infringed Plaintiff’s copyrights; 

    r. 

    A judgment declaring that Defendants’ infringement of Plaintiff’s copyrights is

    intentional and willful;

    s.  A judgment awarding Plaintiff damages and Defendants’ profits, in such amount

    as may be found; alternatively, for maximum statutory damages with respect to

    each copyrighted work infringed either directly or indirectly, or for such other

    amounts as may be proper under 17 U.S.C. § 504(c);

    t.  Enter a preliminary and permanent injunction pursuant to 17 U.S.C. § 502 to

    enjoin Defendants and their officers, agents, attorneys and employees, and those

    acting in privity or concert with them, from (a) directly or indirectly reproducing,

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     preparing derivative works, or distributing to the public copies and/or derivative

    works based on the Kryptek Copyrights, whether now in existence or hereinafter

    created; (b) causing, contributing to, inducing, facilitating, enabling, or

     participating in the infringement of the Kryptek Copyrights;

    u.  Issue and order pursuant to 17 U.S.C. § 503 directing the United States Marshal’s

    Service to (a) impound all copies of goods that infringe the Kryptek Copyrights in

     possession of Defendants, their agents or contractors during the pendency of this

    lawsuit; and (b) upon final disposition of this case, to destroy or otherwise dispose

    of those copies.

    v.  A judgment declaring that Defendants’ use of the Kryptek Trade Dress constitutes

    trademark infringement under 15 U.S.C. § 1125, is prohibited under 15 U.S.C. §

    1125 and Texas Business and Commerce Code § 16.103, constitutes unfair

    competition under state and federal law, and also that Defendants’ acts constitute

    willful infringement under 15 U.S.C. § 1117;

    w. 

    A judgment ordering that Defendant be ordered to pay any and all damages

    available under 15 U.S.C. § 1117, including court costs, expenses, enhanced

    damages, statutory damages to the extent permissible, and attorney’s fees; 

    x.  A grant of a permanent injunction enjoining the Defendant from further acts of

    trade dress infringement and unfair competition as well as use of the Kryptek

    Trade Dress;

    y.  A judgement for Plaintiff on all other counts asserted herein;

    z.  Any other accounting for damages;

    aa. Any other appropriate interest and costs; and

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     bb. For such other and further relief as the Court deems just and proper.

    DATED this 9th day of September, 2015. Respectfully submitted,

    /s/ Stewart N. Mesher  Stewart N. MesherTX Bar No. [email protected] F. GhavimiTX Bar No. 24072114 [email protected] CONLEY ROSE, P.C.

    13413 Galleria Circle, Suite 100Austin, TX 78738

    Kristin Jordan HarkinsTX Bar No. [email protected] CONLEY ROSE, P.C.5601 Granite Parkway, Suite 500Plano, TX 75024

    Attorneys For Kr yptek Outdoor Group, LLC

    Case 1:15-cv-00348-RC Document 1 Filed 09/09/15 Page 47 of 47 PageID #: 47

    mailto:[email protected]:[email protected]:dgha