00365-20030114 chamerberlain v skylink amd complaint

8/14/2019 00365-20030114 chamerberlain v skylink amd complaint

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IN THE UNITED STATES DISTRICT COURTFOR THE NORnIERN DISTRICT OF ILLINOIS

EASTERN DIVISION

THE CHAMBERLAIN GROUP, INC.,a Connecticut corporation,Plaintiff,

)) Ci"il Action No. 02 C 6376)) The HonorableRebeccaR. Pallmeyer)) MagistrateJudgeEdward A. Bobrick.) JURY TRIAL DEMANDED)))

SKYLINK TECHNOLOGIES, INC.,a foreign corporation,Defendant.

A~n:~DED COMPLAINTPlaintiff, The Chamberlain Group, Inc. ("Chamberlainj, complains against Defendant,

Skylink Technologies, nc. (""Skylink"), as ollows:Chamberlain s a corporation ncorporatedunder he aws of the Stateof Connecticut,

"ith its principal place of business n Elmhurst, illinois.Skylink is a foreign corporation. It hasa principal place of business t 2213 Dunwin.

Drive. Mississauga.Ontario, CanadaL5L IX}'illis is an action for patent nfringementarising under he PatentLaws of the United.

States,35 U.S.C. 271 et seq., for copyright infringement arising under the Copyright Act, 17v.s.c. 1201, and for false description under 15 V.S.C. ] 125. The Court has subject matterjurisdiction over this matter pursuant o 28 V.S.C. 1331~ 338(a),1338(b). nd 15U.S.C. 1121.Also, the matter in controversy exceeds,exclusive of interestsand costs, he sum specified by28 V.S.C. 1332.


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This Court bas personal urisdiction over Skylink. Venue in this judicial disnict is4.proper under 28 U .S.C. 1391

COUNT I .35INFRINGEMENT OF P A~ No. RE. 35.364

On June 7, 1988, U.S. PatentNo.4, 750,118 r'the '118 Patent") entitled "Coding.System or Multiple Transmitters and a Single Receiver or a GarageDoor Opener" was duly andlegally issued o ChamberlainManufacturingCompany,on an application flied by Carl Heitschel,Colin Willmott and Wayne Schindler. On October29. 1996. he '118 Patentwas duly and legallyreissuedas ReissuePatentNo. Re. 35.364 ("the '364 Patent).

Chamberlain s the owner of all righ~ title and nterest n the '364 Patent.6.Skylink has been, and is, willfully infringing the '364 Patent: by making, using,.

offering to sell, and/or selling learning eceiversand usernon-changeable ode tansmitters or use:securitysystems,Modelsn such eceivers, ncluding Model 838 olling codes}'Stems,Model SC[

ED andAD emergency ialer systems,Model 39 transmitters, ndmonitoring stationsystemswithinthe United Statesand within this District; by inducing others o infringe the '364 Patent;and/or bycontributing to the nfringement by othersof the '364 Patent. Unlessenjoinedby the Co~ SkyJink.will continue o infringe, induce he infringementof, and/orcontributorily infringe the '364 Patent.

The required statutory notice has been placed on products manufacturedand sold.under the') 18 Patentand the '364 Patent

COUNT IIINFRINGL~ENT F PATENT No. RE. 36.703On May 16, 2000, the '118 Patentwas duly and egally reissued o Chamberlainas9.

ReissuePatentNo. Re. 36,703 ("the '703 Patent").2


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Chamberlain s the owner of all right, title and nterest n the '703 Patent.Skylink bas been and is willfully infringing the '703 Patent: by making. using,

offering to sell. and/or selling learning eceiversand usernon-changeable ode ransmitters or usein such eceivers, ncluding Model 838 olling codesystem~Model SC[ ] security systems,ModelsED and AD emergency ialer systems,Model 39 transmitters,and monitoring stattonsystemswithinthe United Statesand within this District; by inducing others to infringe the '703 Patent; and bycontributing to the nfringementby othersof the 703 Patent. Unlessenjoinedby the Court, Skylink\\;11continue to infringe, induce the nfringement of, and contributorily infringe the '703 Patent

The required starutorynotice has beenplaced on products manufacturedand sold12.under he '703 Patent.

COUNT III 0. 4 1INFR.INGEMENT OF PATENT No. 4.S0~105

On M8ICh28,1995, U.S. PatentNo. 5,402,105 "the 'IDS Patent") entitled 4'GarageDoor Position Indicating System," was duly and egally issuedon an application iled by MatthewP. Doyle and Patrick J. Bukiri.

Chamberlain s the owner of all right, title and nterest n the ' 105 Patent.14.Skylink has been and s willfully infringing claims 1 and 1 of the '10S Patent:by5.

making. using, offering to sell. and/or selling GarageDoor Monitors within the United Statesandwithin this District; by inducing others to infringe claims 1 and 7 of the '105 Patent; and bycontriburing to the nfringement by othersof claims 1 and 7 of the '105 Patent. UnlessenjoinedbytheCourt, Skylink will continue o infringe~ nduce he nfringement of, and contributorily infringeclaims and 7 of the '105 Patent.

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COUNT IVCOPYRIGHT INFRINGEMENT

In 1994,Chamberlain reatedandwrote a computersoftwareprogramentitled "Code16.Guard Rolling Code" (the "original work").

This original work contains a large amount of material, wholly original with17.Chamberlainand s copyrightablesubject matter under he laws of the United States.

On July 26, 200:2,Chamberlaincomplied in all respectswith the Copyright Act of18.1976. 17 U.S.C. la1 e1seq., and all other laws governing copyrights, and secured he exclusive

Certificate of Registrationdatedand dentified as ollows: "July 26,2002, No. TX-5-533-06S."In early 1996, Chamberlain created and \\Tote a modification of1he original work (the19.

"derivative work.').On A~ I, 2002,Chamberlain omplied n all respectswith the Copyright Act and20.

all other laws governingcopyrights, and secured he exclusive rights and privileges in and to the

derivativework and eceived rom the Registerof Copyrightsa Certificate of Registrationdatedandidentified as ollows: ..August I, 2002, No. TX-S-S49-99S."Since he original work and the derivative work were developed,Chamberlainhas21.

placed a copyright notice on all copies of the original work and the derivative work that it hasprodw:ed. Any copiesof the original work and he derivative work publishedby Chamberlain avebeenpublished n strict conformancewith the provisions of the Copyright Act of 1976, 17 U.S.C. 101 et seq., and all other laws governing copyrights.

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The original work and the derivative work contain a technological measure hateffectively controls access o the original work and the derivative work.

Since he creationof the original work and he derivativework, Chamberlain asbeen23.and still is the sole owner of all rights, title and nterest n and to the respectivecopyrights in theoriginal work and the derivative work.

After August 1, 2002~Skylink has made, mported, offered to the public, provided4.and otherwise rafficked in a Model 39 universal Iansmitter hat (a) is designedor produced or thepurposeof circumventing the technologicalmeasure; b) has no commercially significant purposeor useother han to circumvent he technologicalmeasure; nd c) is marketedby Skylink for use ncircumventing he technologicalmeasure, n violation of 17 U.S.C. 1201(a).

Chamberlain has notified Skylink that Skylink is violating section 1201, and Skylink5has continued ts violation.

COUNT VFALSE Dr.SCRIPTION

Chamberlain s. and at all relevant imes hasbeen, n the businessof manufacturingand selling high quality garagedoor openers, ncluding rolling code receiversand rolling codetransmiJters. under the trademark SECURITY+TM. uch garage door openers are sold under the brandnamesChamberlain,Lift-Master, and SearsCraftsman.

Chamberlain has expendedsubstantial monies in advertising and promoting the7.garage ecUrity eaturepro~ided by SECURlTy+TItIaragedoor openers. The security eature s thehOmeowner'sdefense against burglars equipped with hi-tech "code grabber" devices. In thisconnection, each time the homeowner activates the Chamberlain rolling code transmitter, it

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automatically olls the openercodeover o one of over 100billion new codes,never o be repeated.Thus, the stolen code s rendereduseless.

Skyiink is in the business f importing andselling Model 39 Universal Transmitters8.for usewith Chamberlain s rolling code eceivers. The Model 39 Universal Transmitter s sold incompetition with Chamberlain's rolling code ransmittersand universal transmitters

29. Skylink states n its advertisements n the packageof eachof its Model 39 U ni".ersa1Transmitterssold in the United States hat sucha transmitter s "Compatible with the atest RollingCode Technology: Chamberlai~ Liftmaster, Sears,Sectaity+. . . .n (A copy of the advertisementis attached.)

30. This description or representations false or is misleading because he Model 39Univ~ Transmitter js riot compatible with such Rolling Code Technology. The opener codetransmitted by the Model 39 Universal Transmitter is not a rolling code which is different for eachtransmission, but is the same opener code for each transmission. This aJlows the burglar who stealsthe homeowner's opener code to easily defeat die security of Chamberlain's garage door opener.which the homeowner was depending upon.

Such sales by Skylink oria Modc139 Universal Transmitter on packaging containing1.such alse or misleadingdescriptionof fact will damagehe reputationof Chamberlain' garage ooropenersand will result in the loss of salesaJxfprofits.

32. All the oregoing actsof Sky ink havecaused nd,unless estIajnedby this Court willcontinue o cause,serious and rreparable njury, inclOOing, ut not limited to, loss of competitiveadvantage,oss of business eputationand goodwill, loss of salesand profits, and other osse~ orwhich Chamberlainhas no adequate emedyat law.

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The aforesaid wrongful acts of Sky ink consti tute willful violation of the Lanham Act,3]5 V.S.C. 112S.

COUNTVIUNFAIR COMPETITION

Chamberlain eallegcsand ncorporatesherein by referenceparagraphs 6 through4.33 above.

The aforesaidwrongful actsof SkyLinkconstimte villful unfair competition under5.lllinois law.

COUNT VIICONSUMER FRAUD AND DECEPrIVE BUSINESS PRACTICES ACT

Chamberlmn eallegesand incorporatesherein by referenceparagraphs 6 through6.33 above

31. The aforesaid wrongful acts of Skylink constitute willful violation of the IllinoisConsumerFraud and Deceptive BusinessPracticesAct, 815 n..CS5OS/2.

COUNT VllIUNIFORM DECEPTIVE TRADE PRACTICES ACT

Chamberlain ealleges nd ncorporates erein by reference aragraph 6 through331.above.

39. The aforesaid wrongful acts of Skyiink constitute willful violation of the IllinoisUniform DeceptiveTrade PracticesAct, 815 n..cS 510/2.

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PRA YER FOR RELIEFWHEREFORE. Chamberlain prays for:

Judgment hat the '364 and 703 Patentsand c)aims and 7 oftbe '105 Patentarevalid, enforceableand nfringed by Skylink;

A preliminary and permanent njunction enjoining Skylink, its officers, agents,.employees nd hosepersonsacting n active concertor participation with Skylink from infringing.inducing nfringementof, or contributorily infringing the '364 and 703 Patentsand claims 1 and 7of tile ~lOSPatent;

An award of damages rising out of Skylink's infringement, nducing infringement.or contributory nfringement of the .364 and .703 Patentsand claims I and 7 of the .105 Patent,togetherwith interest;

A preliminary and permanent njunction enjoining Skyl~ its officers~ agen~.servants,employeesand those personsacting n active concert or participation \\ith Skyiink fromviolating Section 1201by selling its Model 39 transmitter;

An order mpounding all Model 39 transmitters n the custodyor control of Skylink.that are nvolved in the violation by Skylink of Section 1201;

Judgmentawarding damages o Chamberlain, ncluding statutory damages nd/or.suchdamages s Chamberlainhassustained s a result of the violation by Skylink of Section 120 ;

Judgmentawarding to Chamberlainall profits of Skylink that areattributable o theviolation by Skylink of Section 1201;

Skylink be required o deliver up to be mpoundedduring the pendency f this action.all Model 39 transmitters n Skylink's custody or control that the Court has reasonable ause o

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believe was nvolved in violation of Section 1201, and to deliver up for destructionall Model 39transmitters;

An order for the destructionof any Model 39 Universal Transmitter nvolved in the.violation of section 1201 n Skylink's custodyor control, or has been mpoundedunder paragraphSj

A preliminary and pennanent njunction ordering that SkyJink, ts officers~agents,0.servants nd employees, ndall thosepersonsn active concertor participation ~ith them, shall notuse, directly or indirectly, any advertisementstating that the Model 39 Universal Transmitter scompatible, n words or effect, with the Chamberlain olling code receivers;

A preliminary and pemlancnt njunction ordering that Skylink place on all packages1of its Model 39 Universal Transmitter a warning that, if used \\ith Chamberlai11olling codereceivers. he transmitter will defeat he security eaturesof suchreceivers.

An order that all advertisements nd packagesbearing the representation hat is2.subject o the violation of IS U.S.C. 112S(a) n Skylink's custodyor control be delivered up anddestroyed;

An a'Ward f Skylink' s profits and damages ustainedby Chamberlainas a result of3.Skylink's violation of 15 V.S.C. 1125(a)and violation ofll1inois law.

Judgment hat the damages o adjudgedbe trebled;4.IS. Judgment that Chamberlain be awarded ts attorney's fees, costs and expenses

incurred n this action; andSuch other and further relief as he Court may deem ust and proper.6.

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JURY DEMANDChamberlaindemands rial by ury of all issues riable of right by a ury.

~ a;. .~,I ~:- (7 ; / ..:~~., ..'~r ~Date: October 16. 2002 John ...Karl R. FinkRudy . KratzFITCH. EVEN. T ABIN &; FLANNERY120 South LaSalle StreetSuite 1600Chicago. llinois 60603-3406312/577-1000Attorneys or Plaintiff. 1ne Chamberlain Group, Inc.n1

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CERTIFICATE OF SERVICEI hereby certify that a copy of the foregoing AMENDEDCOMPLAINTwas caused o be served

as ollows upon:1\1 Hand D~Jiv~rv

CharlesA. Laff, Esq.Michael A. Stiegcl, Esq.Brian Lum, Esq.MJCHAEL,. BEST & FRIEDRICH401 North Michigan Avenue. Suite 1900Chicago, llinois 60611

B.. Facsimile &; First Clars MailAndra BarmasbGreene,Esq.David Nimmer, Esq.PeterT. Christensen,Esq.IRELL& MANELLA LP840 Newport Center Drive, Suite 400Newport Beach,California 92660Facsimile: 949n60-5200

Attorneys for Defendant, his 16m ay of October.2002.

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00365-20030114 chamerberlain v skylink amd complaint