Advanced Steel Recovery v. X-Body Equipment et. al

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Advanced Steel Recovery v. X-Body Equipment et. al Powered By Docstoc
					            1    GIBSON, DUNN & CRUTCHER LLP
                 Wayne Barsky, SBN 116731
            2      wbarsky@gibsondunn.com
                 Casey J. McCracken, SBN 271202
            3      cmccracken@gibsondunn.com
                 333 S. Grand Avenue
            4    Los Angeles, CA 90071-3197
                 Telephone: 213.229.7000
            5    Facsimile: 213.229.7520

            6    Attorneys for Plaintiff,
                 Advanced Steel Recovery, LLC
            7

            8                                    UNITED STATES DISTRICT COURT

            9                                   EASTERN DISTRICT OF CALIFORNIA

           10    ADVANCED STEEL RECOVERY, LLC,
                                                                      COMPLAINT
           11                           Plaintiff,
                                                                      JURY TRIAL DEMANDED
           12             v.
           13    X-BODY EQUIPMENT, INC., PALADIN
                 BRANDS GROUP, INC., and JEWELL
           14    ATTACHMENTS, LLC,
           15                           Defendants.
           16

           17

           18                             COMPLAINT FOR PATENT INFRINGEMENT

           19             Plaintiff Advanced Steel Recovery, LLC (“ASR”), for its complaint against X-Body

           20    Equipment, Inc., Paladin Brands Group, Inc., and Jewell Attachments, LLC (collectively

           21    “Defendants”), alleges as follows:

           22                                                    PARTIES

           23             1.     Plaintiff Advanced Steel Recovery, LLC (“ASR”) is a California limited liability

           24    company that maintains its principal place of business at 14451 Whittram Ave., Fontana, California

           25    92335.

           26             2.     ASR is the owner of all right, title and interest in United States Patent No. 8,061,950

           27    (“the ’950 patent”) entitled “Container Packer System And Method,” which duly and legally issued

           28    on November 22, 2011. The ’950 patent is presumed to be and is valid and enforceable. A copy of

Gibson, Dunn &
Crutcher LLP

                                                                               ADVANCED STEEL RECOVERY, LLC’S COMPLAINT
            1    the ’950 patent is attached hereto as Exhibit A.

            2           3.      Defendant X-Body Equipment, Inc. (“X-Body”) is a California corporation that

            3    maintains its principal place of business at 4804 Granite Dr. Bldg. F-3 Suite #293, Rocklin,

            4    California 95677.

            5           4.      Defendant Paladin Brands Group, Inc. is a Delaware corporation that maintains its

            6    principal place of business at 5825 Council St. N.E., Cedar Rapids, Iowa 52402. Upon information

            7    and belief, Paladin Brands Group, Inc. is a parent of and/or affiliated with Jewell Attachments, LLC.

            8           5.      Defendant Jewell Attachments, LLC is a Delaware limited liability company that

            9    maintains its principal place of business at 5825 Council St. N.E., Cedar Rapids, Iowa 52402. Upon

           10    information and belief, Jewell Attachments, LLC is a subsidiary of and/or affiliated with Paladin

           11    Brands Group, Inc. Paladin Brands Group, Inc. and Jewell Attachments, LLC are hereinafter

           12    collectively referred to as “the Paladin Entities.”

           13                                                JURISDICTION

           14           6.      This is an action for patent infringement under 35 U.S.C. § 271 et seq. This Court has

           15    subject matter jurisdiction over this action under 28 U.S.C. §§ 1331 and 1338(a).

           16           7.      Personal jurisdiction exists generally over X-Body because X-Body resides in and

           17    maintains its principal place of business in the State of California and this district. Additionally, X-

           18    Body has committed and continues to commit acts of infringement in violation of 35 U.S.C. § 271 in

           19    this forum and places infringing products into the stream of commerce, with the knowledge or

           20    understanding that such products are used in the State of California, including in this District.

           21           8.      Personal jurisdiction exists generally over the Paladin Entities because they have

           22    committed and continue to commit acts of infringement in violation of 35 U.S.C. § 271 in this forum

           23    and place infringing products into the stream of commerce, with the knowledge or understanding that

           24    such products are used or sold in the State of California, including in this District. Additionally, the

           25    Paladin entities have conducted commercial business in this forum by entering into an ongoing

           26    contractual or business relationship with X-Body in this district, whereby the Paladin Entities

           27    manufacture, use, sell, and/or offer to sell products that infringe the ’950 patent for X-Body, to X-

           28    Body or on X-Body’s behalf.

Gibson, Dunn &
Crutcher LLP

                                                                       2       ADVANCED STEEL RECOVERY, LLC’S COMPLAINT
            1            9.        Venue is proper in this Court under 28 U.S.C. §§ 1391(b) and (c) and 1400(b).

            2                                                  COUNT ONE

            3                                   (INFRINGEMMENT AGAINST X-BODY)

            4            10.       ASR incorporates and realleges paragraphs 1 through 9 of this Complaint.

            5            11.       X-Body has infringed and continues to infringe, directly and indirectly through

            6    contributory and/or induced infringement, one or more claims of the ’950 patent by making, using,

            7    selling, and/or offering to sell in the United States and/or importing into the United States, without

            8    authority or license from ASR, infringing container packer systems, including the Acculoader

            9    container loader.

           10            12.       Upon information and belief, X-Body has had knowledge of the ’950 patent through

           11    its participation in the container packing and loading industry. Upon information and belief, X-Body

           12    has been and is infringing the ’950 patent despite an objectively high likelihood that its actions

           13    constitute infringement of the ’950 patent. Thus, X-Body’s infringement of the ’950 patent has been

           14    and is willful.

           15            13.       Upon information and belief, X-Body has entered into and continues to enter into a

           16    contractual or business relationship with the Paladin Entities whereby the Paladin Entities

           17    manufacture, sell, offer to sell and/or import infringing container packer systems, including the

           18    Acculoader container packer system, at X-Body’s direction and/or on its behalf, and/or sell or offer to

           19    sell such infringing products to X-Body. X-Body in turn uses, sells or offers to sell infringing

           20    container packer systems, including the Acculoader product, manufactured or imported on its behalf

           21    by the Paladin Entities.

           22            14.       X-Body has been and is contributing to the infringement of the ’950 patent by others

           23    in this district and the United States by selling, offering to sell, an/or importing into the United States

           24    infringing container packer systems, and components thereof, including the Acculoader product and

           25    its components. The direct infringement occurs by the activities of, at least, X-Body’s customers. X-

           26    Body was willfully blind, knew, or should have known that its infringing container packer systems,

           27    including the Acculoader container loader, and the components thereof, were especially made and/or

           28    specifically adapted for use in infringing the ’950 patent and are not staple articles suitable for

Gibson, Dunn &
Crutcher LLP

                                                                      3         ADVANCED STEEL RECOVERY, LLC’S COMPLAINT
            1    substantial non-infringing use.

            2           15.      X-Body has induced and is inducing infringement of the ’950 patent by, at least, its

            3    customers by selling and offering to sell its infringing container packer systems, including the

            4    Acculoader container loader, and by intentionally, knowingly, and actively providing advertising

            5    materials, instructions, and directions regarding their use to practice the inventions of the ’950 patent.

            6    X-Body was willfully blind, knew, or should have known that its acts were and are inducing

            7    infringement.

            8           16.      Upon information and belief, X-Body has induced and is inducing infringement of the

            9    ’950 patent by the Paladin Entities by entering into a business or contractual relationship with the

           10    Paladin Entities whereby X-Body actively induced, directed, and encouraged the Paladin Entities to

           11    commit direct infringement of the ’950 patent by manufacturing, using, selling, offering to sell,

           12    and/or importing into the United States infringing container packer systems, including the Acculoader

           13    container loader, at X-Body’s direction and for X-Body’s benefit.

           14           17.      ASR has sustained damages as a direct and proximate result of X-Body’s infringement

           15    of the ’950 patent.

           16           18.      ASR will suffer and is suffering irreparable harm from X-Body’s infringement of the

           17    ’950 patent. Unless enjoined, X-Body will continue to infringe the ’950 patent.

           18                                                 COUNT TWO

           19                          (INFRINGEMMENT AGAINST THE PALADIN ENTITIES)

           20           19.      ASR incorporates and realleges paragraphs 1 through 18 of this Complaint.

           21           20.      The Paladin Entities have infringed and continue to infringe, directly and indirectly

           22    through contributory and/or induced infringement, one or more claims of the ’950 patent by making,

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

           24    without authority or license from ASR, infringing container packer systems, including the

           25    Acculoader container loader.

           26           21.      Upon information and belief, the Paladin Entities have had knowledge of the ’950

           27    patent through their participation in the container packing and loading industry. Upon information

           28    and belief, the Paladin Entities have been and are infringing the ’950 patent despite an objectively

Gibson, Dunn &
Crutcher LLP

                                                                     4         ADVANCED STEEL RECOVERY, LLC’S COMPLAINT
            1    high likelihood that their actions constitute infringement of the ’950 patent. Thus, the Paladin

            2    Entities’ infringement of the ’950 patent has been and is willful.

            3           22.     Upon information and belief, the Paladin Entities have entered into and continue to

            4    enter into an ongoing contractual or business relationship with X-Body whereby the Paladin Entities

            5    manufacture, sell, offer to sell and/or import infringing container packer systems, including the

            6    Acculoader container loader, at X-Body’s direction and/or on its behalf, and/or sell or offer to sell

            7    such infringing products to X-Body. X-Body in turn uses, sells or offers to sell infringing container

            8    packer systems, including the Acculoader product, manufactured or imported on its behalf by the

            9    Paladin Entities.

           10           23.     The Paladin Entities have been and are contributing to the infringement of the ’950

           11    patent by others in this district and the United States by selling, offering to sell, or importing into the

           12    United States infringing container packer systems, and components thereof, including the Acculoader

           13    product and its components. The direct infringement occurs by the activities of, at least, the Paladin

           14    Entities’ customers. The Paladin Entities were willfully blind, knew, or should have known that their

           15    infringing container packer systems, including the Acculoader container loader, and the components

           16    thereof, were especially made and/or specifically adapted for use in infringing the ’950 patent and are

           17    not staple articles suitable for substantial non-infringing use.

           18           24.     The Paladin Entities have induced and are inducing infringement of the ’950 patent

           19    by, at least, their customers by selling and offering to sell their infringing container packer systems,

           20    including the Acculoader container loader, inducing others to practice the inventions of the ’950

           21    patent. The Paladin Entities were willfully blind, knew, or should have known that their acts were

           22    and are inducing infringement.

           23           25.     Upon information and belief, the Paladin Entities have induced and are inducing

           24    infringement of the ’950 patent by X-Body by entering into an ongoing business or contractual

           25    relationship with X-Body whereby the Paladin Entities actively induce and encourage X-body to

           26    directly infringe the ’950 patent by using, selling, and/or offering to sell infringing container packer

           27    systems, including the Acculoader container loader, knowing that such acts constitute infringement.

           28           26.     ASR has sustained damages as a direct and proximate result of the Paladin Entities’

Gibson, Dunn &
Crutcher LLP

                                                                      5          ADVANCED STEEL RECOVERY, LLC’S COMPLAINT
            1    infringement of the ’950 patent.

            2             27.     ASR will suffer and is suffering irreparable harm from the Paladin Entities’

            3    infringement of the ’950 patent. Unless enjoined, the Paladin Entities will continue to infringe the

            4    ’950 patent.

            5                                            PRAYER FOR RELIEF

            6             WHEREFORE, Plaintiff ASR respectfully requests that this Court enter judgment against

            7    each of Defendants as follows:

            8          A. That each of Defendants has infringed, contributorily infringed, and/or induced infringement

            9             of the ’950 patent;

           10          B. That each of the Defendants’ infringement, contributory infringement, and/or induced

           11             infringement of the ’950 patent has been and is willful;

           12          C. An injunction entered against each Defendant preventing further infringement, contributory

           13             infringement, and/or induced infringement of the ’950 patent;

           14          D. An award of damages entered against each Defendant adequate to compensate ASR for the

           15             patent infringement that has occurred, together with pre-judgment interest and costs;

           16          E. An award of all other damages entered against each Defendant permitted by 35 U.S.C. § 284,

           17             including increased damages up to three times the amount of compensatory damages found

           18             for infringement of the ’950 patent;

           19          F. That this is an exceptional case and an award to ASR of its costs and reasonable attorneys’

           20             fees incurred in this action as provided by 35 U.S.C. § 285; and

           21          G. Such other relief as this Court deems just and proper.

           22    ///

           23    ///

           24    ///

           25    ///

           26    ///

           27    ///

           28    ///

Gibson, Dunn &
Crutcher LLP

                                                                     6         ADVANCED STEEL RECOVERY, LLC’S COMPLAINT
            1                                            DEMAND FOR JURY TRIAL

            2             Pursuant to Rule 38(b) of the Federal Rules of Civil Procedure, ASR hereby demands trial by

            3    jury on all issues triable to a jury.

            4    Dated: April 16, 2012

            5                                                  GIBSON, DUNN & CRUTCHER LLP
                                                               WAYNE BARSKY
            6                                                  CASEY J. MCCRACKEN
            7

            8
                                                               By: /s/ Casey McCracken
            9                                                      Casey J. McCracken
           10                                                  Attorneys for Plaintiff,
                                                               ADVANCED STEEL RECOVERY, LLC
           11
                 101269586.3
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Gibson, Dunn &
Crutcher LLP

                                                                   7         ADVANCED STEEL RECOVERY, LLC’S COMPLAINT

				
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