Karl v. Purple Tree Technologies et. al by patentbl

VIEWS: 19 PAGES: 20

									                       IN THE UNITED STATES DISTRICT COURT
                      FOR THE WESTERN DISTRICT OF MISSOURI


MAURICE W. KARL,                           )
                                           )
                         Plaintiff,        )
                                           )
      v.                                   )    Case No. 4:11-cv-598
                                           )
PURPLE TREE TECHNOLOGIES, INC.,            )
  Serve Registered Agent at:               )
           1903 Woodhollow Drive           )
           Columbia, Missouri 65203        )
                                           )
and                                        )
                                           )
DAVID L. FAIFERLICK,                       )
  Serve at: 1263 Darwin Drive              )
            Osage Beach, Missouri 65065    )
                                           )
and,                                       )
                                           )
S. SCOTT STRAUB,                           )
    Serve at: 1207 Peruque Ridge Drive     )
              Wentzville, Missouri 63385   )
                                           )
and,                                       )
                                           )
RICHARD A. MCMILLIAN,                      )
   Serve at: 1903 Woodhollow Drive         )
             Columbia, Missouri 65203      )
                                           )
and,                                       )
                                           )
GREGORY H. WRIGHT,                         )
  Serve at: 55907 Highway HH               )
            Hannibal, Missouri 63401       )
                                           )
                        Defendants.        )
                                         BACKGROUND

               Plaintiff Maurice W. Karl, (“Plaintiff” or “Karl”) for his claims against

Defendants Purple Tree Technologies, Inc., David L. Faiferlick, S. Scott Straub, Richard A.

McMillian and Gregory H. Wright (collectively “Defendants”), states as follows:

               1.      Maurice W. Karl (“Karl”) is an individual and resident of Missouri

residing in Columbia, Missouri.

               2.      On information and belief, Purple Tree Technologies, Inc. (“Purple Tree”)

is a corporation organized under the laws of the State of Missouri with a principle place of

business in Columbia, Missouri.

               3.      On information and belief, David L. Faiferlick (“Faiferlick”) is a resident

and citizen of the State of Missouri.

               4.      On information and belief, S. Scott Straub (“Straub”) is a resident and

citizen of the State of Missouri.

               5.      On information and belief, Richard A. McMillian (“McMillian”) is a

resident and citizen of the State of Missouri.

               6.      On information and belief, Greg Wright (“Wright”) is a resident and

citizen of the State of Missouri.

               7.      Claims I and II arise under federal law and this Court has exclusive

jurisdiction pursuant to 28 U.S.C. §§ 1331 and 1338(a).

               8.      This Court has supplemental jurisdiction pursuant to 28 U.S.C. § 1367

over Claims III and IV.

               9.      On information and belief, Purple Tree’s products that are alleged herein

to infringe were made, used, sold and/or offered for sale in the Western District of Missouri.




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               10.     On information and belief, Faiferlick was President and is or has been a

member of the Board of Directors of Purple Tree.

               11.     On information and belief, Straub was Secretary and is or has been a

member of the Board of Directors of Purple Tree.

               12.     On information and belief, McMillian is President and is or has been

Treasurer and a member of the Board of Directors of Purple Tree.

               13.     On information and belief, Wright is Secretary and a member of the Board

of Directors of Purple Tree.

               14.     On information and belief, Defendants Faiferlick, Straub, McMillian

and/or Wright jointly and/or individually have failed to observe the corporate formalities and are

thus not protected by the corporate veil.

               15.     On information and belief, Defendants Faiferlick, Straub, McMillian

and/or Wright jointly and/or individually have failed to observe the corporate bylaws and are

thus not protected by the corporate veil.

               16.     Venue is proper in the Western District of Missouri pursuant to 28 U.S.C.

§§1391(c) and 1400(b) because Defendants are subject to personal jurisdiction in this judicial

district.

               17.     This cause of action arises under the patent laws of the United States, and

in particular, 35 U.S.C. §§ 271 and 281.

               18.     Karl is an inventor and sole owner of U. S. Patent No. 7,616,942 (the ‘942

Patent) entitled “Alert System and Personal Apparatus,” a copy of which is attached hereto as

Exhibit A.




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                 19.   The provisional patent application No. 60/603,697, which issued as the

‘942 patent, was filed on August 23, 2004 which was before the formation of Purple Tree.

                 20.   The ‘942 patent is valid, enforceable, and was duly issued on

November 10, 2009 in full compliance with Title 35 of the United States Code.

                 21.   The ‘942 patent will expire on or about August 15, 2025.

                 22.   Karl has complied with 35 U.S.C. § 287.



                           COUNT I: PATENT INFRINGEMENT

                 23.   Karl repeats and incorporates the allegations of the preceding paragraphs.

                 24.   On information and belief, Purple Tree has infringed, and continues to

infringe one or more claims of the ‘942 patent by making, using, selling, and/or offering for sale

products covered by one or more claims of the ‘942 patent in the United States, including this

judicial district.

                 25.   Purple Tree’s actions complained of herein will continue unless enjoined

by this Court.

                 26.   Purple Tree has in the past received notice of both the ‘942 patent and

Karl’s allegations of infringement.

                 27.   Purple Tree’s infringement of the ‘942 patent has been willful.

                 28.   This case is exceptional pursuant to the provisions of 35 U.S.C. § 285.

                 29.   Purple Tree’s actions complained of herein are causing irreparable harm

and monetary damage to Karl and will continue to do so unless and until Purple Tree is enjoined

and restrained by this Court.




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                 COUNT II: CONTRIBUTORY PATENT INFRINGEMENT

                30.     Karl repeats and incorporates the allegations of the preceding paragraphs.

                31.     On information and belief, On information and belief, Purple Tree,

Defendants Faiferlick, Straub, McMillian and Wright jointly or severally have contributorily

infringed, have induced others to infringe, continue to contributorily infringe, and continue to

induce others to infringe one ore more claims of the ‘942 patent by making, using, selling and/or

offering for sale, products covered by one or more claims of the ‘942 patent in the United States,

including this judicial district.

                32.     On information and belief, Defendants Faiferlick, Straub, McMillian and

Wright jointly or severally are the moving, active and conscious force behind Purple Tree’s

infringement.

                33.     On information and belief, Defendants Faiferlick, Straub, McMillian and

Wright jointly or severally have personally taken part in the infringement of the ‘942 patent

and/or directed other agents of Purple Tree to commit infringement.

                34.     On information and belief, Defendants Faiferlick, Straub, McMillian and

Wright jointly or severally stand to directly benefit from the infringement of the ‘942 patent.

                35.     On information and belief, Defendants Faiferlick, Straub, McMillian and

Wright jointly or severally have and continue to actively and knowingly induce Purple Tree to

infringe the ‘942 patent, to cause Purple Tree to commit contributory infringement of the ‘942

patent, and to cause Purple Tree to induce infringement of the ‘942 patent.

                36.     Defendants Faiferlick, Straub, McMillian and Wright jointly or severally

had knowledge of the ‘942 patent prior to the activities complained of herein.




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               37.      On information and belief, Defendants Faiferlick, Straub, McMillian and

Wright jointly or severally intended to cause the acts of Purple Tree complained of herein.

               38.      On information and belief, Defendants Faiferlick, Straub, McMillian and

Wright jointly or severally possessed specific intent to aid and abet Purple Tree in the acts

complained of herein.

               39.      Defendants’ actions complained of herein will continue unless Defendants

Faiferlick, Straub, McMillian and Wright are enjoined by this Court.

               40.      Defendants Faiferlick, Straub, McMillian and Wright jointly or severally

have in the past received notice of both the ‘942 patent and Karl’s allegations of infringement.

               41.      Defendants’ infringement of the ‘942 patent has been willful.

               42.      This case is exceptional pursuant to the provisions of 35 U.S.C. § 285.

               43.      Defendants’ actions complained of herein are causing irreparable harm

and monetary damage to Karl and will continue to do so unless and until Defendants Faiferlick,

Straub, McMillian and Wright are enjoined and restrained by this Court.



            COUNT III: BREACH OF EXCLUSIVE LICENSE AGREEMENT

               44.      Karl repeats and incorporates the allegations of the preceding paragraphs.

               45.      On February 5, 2010 Karl and Purple Tree executed an exclusive license

agreement (“Exclusive License Agreement”), which granted Purple Tree an exclusive license

under the ‘942 patent and pending applications (“Licensed Technology”), a copy of which is

attached hereto as Exhibit B.

               46.      The term of the Exclusive License Agreement lasts at least until the

expiration of the ‘942 patent. Exhibit B, ¶2, p. 1.




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               47.     The Exclusive License Agreement requires Purple Tree to make a

minimum royalty payment of $10,000 each calendar quarter for the first two years after the ‘942

patent issued. Exhibit B, ¶3F, p. 2; Schedule A, ¶4, p. 9.

               48.     The Exclusive License Agreement requires Purple Tree to make a

minimum royalty payment of $15,000 each calendar quarter for years 3-5 after the ‘942 patent

issued. Exhibit B, ¶3F, p. 2; Schedule A, ¶4, p. 9.

               49.     The Exclusive License Agreement requires Purple Tree to make a

minimum royalty payment of $20,000 each calendar quarter for years 6-10 after the ‘942 patent

issued. Exhibit B, ¶3F, p. 2; Schedule A, ¶4, p. 9.

               50.     The Exclusive License Agreement requires Purple Tree to make a

minimum royalty payment of $25,000 each calendar quarter for year 11 after the ‘942 patent

issued until at least the ‘942 patent expires. Exhibit B, ¶3F, p. 2; Schedule A, ¶4, p. 9.

               51.     The Exclusive License Agreement requires Purple Tree to make a

minimum royalty payment of $5,000 each calendar quarter after at least the ‘942 patent expires.

Exhibit B, ¶3F, p. 2; Schedule A, ¶4, p. 9.

               52.     The Exclusive License Agreement requires Purple Tree to make payment

no later than 30 days after the end of the preceding full quarterly period. Exhibit B, ¶3B, p. 2.

               53.     The Exclusive License Agreement requires Purple Tree to provide a

written royalty statement, certified as accurate, for each quarterly period. Exhibit B, ¶3C, p. 2.

               54.     The Exclusive License Agreement requires Purple Tree to pay a 10%

interest penalty per month for any late royalty payment. Exhibit B, ¶3J, p. 2.




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               55.    The Exclusive License Agreement requires Purple Tree to pay all costs

and expenses for prosecution of the ‘942 patent and any related patent applications. Exhibit B,

¶6, p. 3.

               56.    The Exclusive License Agreement requires that Purple Tree is solely

responsible for the manufacture, production, sale, distribution and/or sublicensing of the

Licensed Technology and that Purple Tree will pay all costs associated therewith. Exhibit B,

¶7C, p. 4.

               57.    Implied in an exclusive license agreement is a duty to use best efforts to

exploit the licensed technology.

               58.    The Exclusive License Agreement requires that all improvements to the

Licensed Technology made by Purple Tree shall become the property of Karl. Exhibit B, ¶7D,

p. 4.

               59.    The Exclusive License Agreement provides that Purple Tree agrees to

execute any and all documents necessary to perfect Karl’s rights in such improvements to the

Licensed Technology made by Purple Tree. Exhibit B, ¶7D, p. 4.

               60.    The Exclusive License Agreement provides for immediate termination of

the Exclusive License Agreement by giving written notice to Purple Tree if Purple Tree

discontinues its business. Exhibit B, ¶9A.1, p. 4.

               61.    The Exclusive License Agreement provides for termination of the

Exclusive License Agreement upon 30 days’ written notice to the other party in the event of a

breach of any provision of the Exclusive License Agreement, provided that, during the 30-day

period, the breaching party fails to cure such breach. Exhibit B, ¶9B.




                                                -8-
               62.     The Exclusive License Agreement provides that upon termination of the

Exclusive License Agreement, Purple Tree shall cease all further use of the Licensed

Technology. Exhibit B, ¶10, p. 5.

               63.     The Exclusive License Agreement provides that upon termination of the

Exclusive License Agreement, all rights granted to Purple Tree under the Exclusive License

Agreement shall forthwith terminate. Exhibit B, ¶10, p. 5.

               64.     The Exclusive License Agreement provides that upon termination of the

Exclusive License Agreement, all rights granted to Purple Tree under the Exclusive License

Agreement shall immediately revert to Karl. Exhibit B, ¶10, p. 5.

               65.     The Exclusive License Agreements provides that a party which receives

Confidential Information from a disclosing party will not disclose the Confidential Information

to any third party. Exhibit B, ¶13C, p. 6.

               66.     The Exclusive License Agreement provides that the Confidential

Information disclosed to the receiving party shall remain the sole property of the disclosing

party. Exhibit B, ¶13C, p. 6.

               67.     The Exclusive License Agreement provides that the receiving party of

Confidential Information will take all reasonable precautions to prevent any unauthorized

disclosure of the Confidential Information. Exhibit B, ¶13C, p. 6.

               68.     The Exclusive License Agreement provides that no license shall be

granted by the disclosing party to the receiving party with respect to the Confidential Information

unless otherwise expressly provided in the Exclusive License Agreement. Exhibit B, ¶13C, p. 6.




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                69.      The Exclusive License Agreement provides that upon request of the

disclosing party, the receiving party will promptly return all Confidential Information furnished

under the Exclusive License Agreement and all copies thereof. Exhibit B, ¶13D, p. 6.

                70.      The Exclusive License Agreement provides that if a party breaches any of

its obligations with respect to confidentiality and unauthorized use of Confidential Information,

the non-breaching party shall be entitled to equitable relief to protect its interest in the

Confidential Information, including but not limited to injunctive relief, and money damages.

Exhibit B, ¶13F, p. 6.

                71.      Karl developed and possessed certain Confidential Information (trade

secrets) including but not limited to, know-how, techniques, methods, processes, test results,

knowledge based on experiments and tests and other information relating to the Licensed

Technology.

                72.      Karl’s Confidential Information comprises information that: (i) derived

independent economic value, actual or potential, from not being generally known to, and not

being readily ascertainable by proper means by, other persons who can obtain economic value

from its disclosure or use, and (ii) is the subject of efforts that are reasonable under the

circumstances to maintain its secrecy.

                73.      The board of directors of Purple Tree approved the Exclusive License

Agreement on or before February 5, 2010.

                74.      Faiferlick signed the Exclusive License Agreement on February 5, 2010.

                75.      The Exclusive License Agreement is a valid contract.

                76.      Karl has performed his obligations under the Exclusive License

Agreement.




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               77.     Purple Tree has failed to perform its obligations under the Exclusive

License Agreement.

               78.     On or about August 4, 2010, Karl put Purple Tree on notice of breach of

the Exclusive License Agreement.

               79.     On information and belief, at least on or before or as of August 4, 2010,

Purple Tree has ceased doing business.

               80.     On or about August 4, 2010, Karl requested return of the Confidential

Information from Purple Tree in writing.

               81.     On information and belief, Purple Tree has no paid employees.

               82.     On information and belief, Purple Tree has no accounts receivable.

               83.     On information and belief, Purple Tree made no sales related to the

Licensed Technology in 2010 or so far in 2011.

               84.     On information and belief, Purple Tree has no prospective business for the

Licensed Technology.

               85.     On information and belief, Purple Tree has no ongoing business contracts

with any third party for the Licensed Technology.

               86.     Purple Tree is on notice of breach of the Exclusive License Agreement.

               87.     Purple Tree has failed to make payment no later than 30 days after the end

of the preceding full quarterly period.

               88.     Purple Tree has failed to provide a written royalty statement, certified as

accurate, for each quarterly period.

               89.     Purple Tree has failed to pay a 10% interest penalty per month for any late

royalty payment.




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               90.     Purple Tree has failed to pay all costs and expenses for prosecution of the

‘942 patent and any related patent applications.

               91.     Purple Tree has failed to pay all costs associated the manufacture,

production, sale, distribution and/or sublicensing of the Licensed Technology.

               92.     Purple Tree has failed to execute any and all documents necessary to

perfect Karl’s rights in any alleged improvements to the Licensed Technology allegedly made by

Purple Tree.

               93.     Purple Tree has failed to cease all further use of the Licensed Technology.

               94.     Upon termination of the Exclusive License Agreement Purple Tree has

failed to relinquish all rights granted to Purple Tree under the Exclusive License Agreement.

               95.     Upon termination of the Exclusive License Agreement, Purple Tree has

failed to relinquish to Karl all rights granted to Purple Tree under the Exclusive License

Agreement.

               96.     Defendants have refused to return to Karl all Confidential Information

furnished by Karl under the Exclusive License Agreement to Purple Tree and all copies thereof.

               97.     On information and belief, Defendants jointly or severally have disclosed

the Confidential Information to third parties.

               98.     Purple Tree has failed to cure breach of any provision of the Exclusive

License Agreement.

               99.     Purple Tree’s failure to perform its obligations under the Exclusive

License Agreement has damaged Karl.




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               100.    Purple Tree and/or one or more of Defendants Faiferlick, Straub,

McMillian and/or Wright have interfered with Karl’s attempt to mitigate damages caused by

Purple Tree’s breach of the Exclusive License Agreement.

               101.    As a result of Purple Tree’s breach of the Exclusive License Agreement,

Karl has been damaged.



                COUNT IV: BREACH OF EMPLOYMENT AGREEMENT

               102.    Karl repeats and incorporates the allegations of the preceding paragraphs.

               103.    On February 5, 2010 Karl and Purple Tree entered into an Employment

Agreement, a copy of which is attached hereto as Exhibit C.

               104.    The Employment Agreement is a valid contract.

               105.    Karl has performed his obligations under the Employment Agreement.

               106.    The Employment Agreement provides that Purple Tree shall compensate

Karl for his services. Exhibit C, ¶3, p. 1.

               107.    The Employment Agreement provides that Purple Tree shall pay Karl an

annual salary in an amount to be determined from time to time by the Board of Directors,

payable in monthly or more frequent installments, with an annual cost of living increase, subject

to such additional increases as may from time to time be determined by the Board of Directors of

Purple Tree. Exhibit C, ¶3(a), p. 1.

               108.    The Employment Agreement provides that Purple Tree shall pay the cost

of a standard healthcare plan for Karl. Exhibit C, ¶3(b), p. 1.

               109.    The Employment Agreement provides that if the Employment Agreement

is terminated for any reason prior to December 31, 2014, then Purple Tree shall pay Karl




                                                -13-
               110.    The Employment Agreement provides that if the Employment Agreement

is terminated prior to December 31, 2014, Karl shall have the right to convert the Exclusive

License Agreement into a Nonexclusive License Agreement. Exhibit C, ¶8(f), p. 3.

               111.    The Employment Agreement provides that it is the entire understanding of

Purple Tree and Karl, and revokes and supersedes all prior employment agreements between

Purple Tree and Karl. Exhibit C, ¶16, p. 4.

               112.    The Employment Agreement provides that the Employment Agreement

shall not be modified or amended except in writing signed by Purple Tree and Karl. Exhibit C,

¶16, p. 4.

               113.    At the time of entering into the Employment Agreement, Karl’s annual

salary was $150,000.

               114.    The Board of Directors has not changed Karl’s annual salary since Purple

Tree entered into the Employment Agreement with Karl.

               115.    On or about July 23, 2010, Purple Tree paid Karl a gross salary of

$713.65.

               116.    On or about July 31, 2010, Purple Tree ceased paying the cost of the

standard healthcare plan for Karl

               117.    On or about September 15, 2010, Purple Tree was put on notice of breach

of the Employment Agreement.

               118.    On or about September 15, 2010, Karl demanded payment in the amount

of $736,786.35 pursuant to Paragraph 8(e) of the Employment Agreement.




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                119.    Purple Tree has refused to pay Karl’s salary.

                120.    Purple Tree has refused to pay for Karl’s healthcare plan.

                121.    Purple Tree has failed to perform its obligations under the Employment

Agreement.

                122.    Purple Tree’s failure to perform its obligations under the Employment

Agreement has damaged Karl.

                123.    As a result of Purple Tree’s breach of the Employment Agreement, Karl

has been damaged.

                                 COUNT V: QUANTUM MERUIT

                124.    Karl repeats and incorporates the allegations of the preceding paragraphs.

                125.    Karl has rendered services to Purple Tree since its formation by Karl in

2005.

                126.    As a direct result of Karl’s many hours of labor, a benefit was conferred to

Purple Tree.

                127.    From on or about June 1, 2009, Purple Tree accepted the benefit of Karl’s

labor, but has refused to pay for it.

                128.    From on or about June 1, 2009, Purple Tree has been unjustly enriched by

retaining the benefit conferred upon it without payment for the reasonable value of the services that

have been provided by Karl to Purple Tree.

                129.    Karl has been damaged by Purple Tree’s refusal to pay the value for the

services rendered.

                130.    Karl is entitled to recover the reasonable value of his services provided to

Purple Tree.




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                COUNT VI: MISAPPROPRIATION OF TRADE SECRETS

                131.     Karl repeats and incorporates the allegations of the preceding paragraphs.

                132.     The Exclusive License Agreements provides that a party which receives

Confidential Information from a disclosing party will not disclose the Confidential Information

to any third party. Exhibit B, ¶13C, p. 6.

                133.     The Exclusive License Agreement provides that the Confidential

Information disclosed to the receiving party shall remain the sole property of the disclosing

party. Exhibit B, ¶13C, p. 6.

                134.     The Exclusive License Agreement provides that the receiving party of

Confidential Information will take all reasonable precautions to prevent any unauthorized

disclosure of the Confidential Information. Exhibit B, ¶13C, p. 6.

                135.     The Exclusive License Agreement provides that no license shall be

granted by the disclosing party to the receiving party with respect to the Confidential Information

unless otherwise expressly provided in the Exclusive License Agreement. Exhibit B, ¶13C, p. 6.

                136.     The Exclusive License Agreement provides that upon request of the

disclosing party, the receiving party will promptly return all Confidential Information furnished

under the Exclusive License Agreement and all copies thereof. Exhibit B, ¶13D, p. 6.

                137.     The Exclusive License Agreement provides that if a party breaches any of

its obligations with respect to confidentiality and unauthorized use of Confidential Information,

the non-breaching party shall be entitled to equitable relief to protect its interest in the

Confidential Information, including but not limited to injunctive relief, and money damages.

Exhibit B, ¶13F, p. 6.




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               138.    Karl developed and possessed certain Confidential Information (trade

secrets) including but not limited to, know-how, techniques, methods, processes, test results,

knowledge based on experiments and tests and other information relating to the Licensed

Technology.

               139.    Karl’s Confidential Information comprises information that: (i) derived

independent economic value, actual or potential, from not being generally known to, and not

being readily ascertainable by proper means by, other persons who can obtain economic value

from its disclosure or use, and (ii) is the subject of efforts that are reasonable under the

circumstances to maintain its secrecy.

               140.    On or about August 4, 2010, Karl requested return of the Confidential

Information from Purple Tree in writing.

               141.    Defendants have refused to return to Karl all Confidential Information

furnished by Karl under the Exclusive License Agreement to Purple Tree and all copies thereof.

               142.    On information and belief, Defendants jointly or severally have disclosed

the Confidential Information to third parties.

               143.    On information and belief, Defendants jointly or severally have threatened

to disclose the Confidential Information to other third parties.

               144.    As a direct and proximate result of Defendants’ actions, Karl has been and

will continue to be damaged.

               145.    As a direct and proximate result of Defendants’ actions, Purple Tree

and/or Defendants have been unjustly enriched.

               146.    The misappropriation of Karl’s confidential information is outrageous

because of Defendants’ evil motive or reckless indifference to the rights of Karl.




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               147.    Purple Tree’s and/or Defendants’ misappropriation of Karl’s Confidential

Information is in violation of The Missouri Uniform Trade Secrets Act Sections 417.450 et seq.


                                    PRAYER FOR RELIEF

               WHEREFORE, Maurice W. Karl respectfully requests judgment as follows:

               A.      Enter judgment for Maurice W. Karl on all claims;

               B.      Enjoin Defendants, their agents, officers, servants, employees, attorneys

and all persons in active concert or participation with Defendants jointly and severally, who

receive notice of the order from further infringement of U. S. Patent No. 7,616,942;

               C.      Award Plaintiff damages resulting from Defendants’ infringement

pursuant to 35 U.S.C. § 284;

               D.      Treble the damages in pursuant to 35 U.S.C. § 284;

               E.      Find the case to be exceptional pursuant to 35 U.S.C. § 285;

               F.      Award Plaintiff’s reasonable attorneys’ fees pursuant to 35 U.S.C. § 285;

               G.      Order the impounding and destruction of all of Defendants’ products that

infringe the ‘942 patent;

               H.      Award Plaintiff damages in the amount of $1,240,000 for breach of the

Exclusive License Agreement;

               I.      Award Plaintiff damages in the amount of $736,786.35 for breach of the

Employment Agreement;

               J.      Award Plaintiff damages in an amount yet to be determined for unpaid

healthcare costs in breach of the Employment Agreement;

               K.      Award Plaintiff the reasonable value of the services rendered from June 1,

2009 to the date of the court’s order for which Plaintiff has not paid;



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                 L.     Enjoin Defendants, their agents, officers, servants, employees, attorneys

and all persons in active concert or participation with Defendants jointly and severally, who

receive notice of the order from further misappropriation, use and disclosure of Plaintiff’s

Confidential Information pursuant to RSMo. 417.455.

                 M.     Award Plaintiff actual damages for misappropriation;

                 N.     Award Plaintiff damages for unjust enrichment for misappropriation;

                 O.     Award Plaintiff punitive damages for misappropriation for Defendants’

evil motive or reckless indifference to the rights of Plaintiff;

                 P.     Award Plaintiff his reasonable attorneys’ fees incurred in this matter;

                 Q.     Award Plaintiff his costs to enforce the Agreements;

                 R.     Award Plaintiff pre- and post-judgment interest as permitted by law; and

                 S.     Grant Plaintiff such other and further relief as this court deems meet, just

and right under the circumstances.


                            DESIGNATION OF PLACE OF TRIAL

                 Plaintiff hereby designates Kansas City, Missouri as the place of trial of the above-

styled matter.




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                                     JURY TRIAL REQUEST

               Pursuant to Rule 38 of the Federal Rules of Civil Procedure, Plaintiff Karl

demands a jury trial on all issues so triable.

                                                 Respectfully submitted,

                                                 By: /s/ James J. Kernell
                                                    James J. Kernell, MO Bar #48,850
                                                    ERICKSON, KERNELL, DERUSSEAU
                                                    & KLEYPAS, LLC
                                                    800 West 47th Street, Suite 401
                                                    Kansas City, Missouri 64112
                                                    Telephone: 816-753-6777
                                                    Facsimile: 816-753-6888
                                                    Email: jjk@kcpatentlaw.com

                                                    Attorney for
                                                    Plaintiff Maurice W. Karl




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