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
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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
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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
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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.
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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
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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.
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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.
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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
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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,
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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.
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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
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mailto:[email protected]:[email protected]:dgha