English Riding Supply v. International Riding Helmets

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    ADAM K. DERMANMELISSA A. SALIMBENEWOLFF & SAMSON PCOne Boland DriveWest Orange, New Jersey 07052Telephone: (973) 325-1500Facsimile: (973) 325-1501Attorneys for PlaintiffEnglish Riding Supply, Inc.

    4187794.3

    UNITED STATES DISTRICT COURT

    DISTRICT OF NEW JERSEY

    ENGLISH RIDING SUPPLY, INC.,

    Plaintiff,

    vs.

    INTERNATIONAL RIDING HELMETS,

    INC.,

    Defendant.

    Civil Action No.:

    COMPLAINT

    Jury Trial Demanded

    Plaintiff English Riding Supply, Inc. (ERS), located at 520 Kane Street, Scranton,

    Pennsylvania, by way of complaint against the Defendant International Riding Helmets, Inc.

    (Defendant), says:

    NATURE OF ACTION

    1. This is an action for patent infringement, trade dress infringement, unfair

    competition, false advertising and other relief arising under the laws of the United States,

    specifically 35 U.S.C.A. 271 (the Patent Act), 15 U.S.C. 1125 (the Lanham Act), and the

    laws of the State of New Jersey, as a result of Defendants manufacturing, distributing, selling,

    advertising and marketing of horseback riding helmets that are imitations of ERSs original,

    patented and/or highly distinctive horseback riding helmets.

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    THE PARTIES

    2. Plaintiff ERS is a corporation organized and existing under the laws of the State

    of Delaware with its principal place of business located at 520 Kane Street, Scranton,

    Pennsylvania.

    3. Upon information and belief, Defendant International Riding Helmets, Inc. is a

    corporation organized and existing under the laws of the State of New Jersey with its principal

    pace of business located at 21 Industrial Drive, Cliffwood Beach, New Jersey.

    JURISDICTION AND VENUE

    4. This Court has subject matter jurisdiction over this action pursuant to 35 U.S.C.

    271 and 28 U.S.C. 1331 and 1338 because ERSs claims arise under the patent and

    trademark laws of the United States. This Court also has supplemental jurisdiction pursuant to

    28 U.S.C. 1338(b) and 1367 over ERSs claims that arise under the laws of the State of New

    Jersey.

    5. This Court has personal jurisdiction over the parties to this action because (i)

    ERSs claims arise in this judicial district, and (ii) Defendant is incorporated in, has its

    principal place of business in and does business in this judicial district.

    6. Venue is proper in this judicial district pursuant to 28 U.S.C. 1391 because

    Defendant is incorporated in, has its principal place of business in and does business in this

    judicial district, witnesses and evidence are located within this judicial district, and the acts

    complained of herein have taken place in this judicial district.

    FACTUAL SUMMARY

    A. ERSs Trade Dress and Design Patent Rights7. ERS is an independent company that markets and sells horseback riding

    products, apparel and equipment, including horseback riding helmets, to retailers throughout

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    the United States and abroad. Since its formation, ERS has sold millions of dollars worth of

    horseback riding products, apparel and equipment and, as a result, ERS has developed a strong

    reputation in the horseback riding products market in the United States.

    8. Many of ERSs horseback riding products, apparel and equipment feature

    distinctive designs and trade dress which customers have come to associate with ERS and

    ERSs product lines.

    9. Among the lines of products ERS markets and sells, are ERSs popular Ovation

    and One-Klines of horseback riding helmets. For several years, ERS has marketed and sold its

    Ovation Deluxe Schooler horseback riding helmet under the Ovation line, and has marketed

    and sold it One-K Defender horseback ridinghelmet under the One-Kline.

    10. ERSs Ovation Deluxe Schoolerand One-K Defenderhelmets feature distinctive

    designs and trade dress that consumers have come to associate with ERS and its brands.

    11. Additionally, ERS is the exclusive licensee of U.S. Design Patent No. US

    D602,640 for Horseback Riding Helmet, issued October 20, 2009 (the Design Patent),

    which covers aspects of ERSs Ovation Deluxe Schoolerhelmet design. ERS is the exclusive

    licensee of the Design Patent through and until the expiration of the Design Patent. A copy of

    the Design Patent is attached hereto as Exhibit A.

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    12. ERSs Ovation Deluxe Schoolerhelmet is depicted below:

    13. ERSs Ovation Deluxe Schooler helmet design and trade dress consists of the

    following elements:

    Three decorative boomerang shaped vents within a raised teardrop-shaped ornamental design on the top, center of the helmet, which

    features are protected by the Design Patent;

    Two decorative vertical, elongated, triangular shaped vents on the frontsides of the helmet, which features are protected by the Patent;

    Two decorative vertical, elongated, triangular shaped vents on the backsides of the helmet, which features are protected by the Patent; and

    Placement of the OV Ovation logo on the front, center of the helmet inwhite lettering.

    14. None of the elements of ERSs Ovation Deluxe Schooler helmet design and

    trade dress described above are functional, but instead are all purely decorative features.

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    15. ERSs other helmet at issue, the One-K Defender, is depicted below:

    16. ERSs One-K Defenderhelmet design and trade dress consists of the following

    elements:

    A decorative design of two boomerang shaped vents on the top, front of

    the helmet contained within a curved triangular panel;

    An ornamental design of two parallel lines extending to the back of thehelmet;

    Two decorative horizontal, elongated, triangular shaped mesh vents onthe sides of the helmet;

    Decorative strap design that includes a triangular shape cutout; and

    An ornamental circular medallion containing ERSs Stylized One-K logolocated on the front, center of the helmet.

    17. None of the elements of ERSs One-K Defenderhelmet design and trade dress

    described above are functional, but instead are all purely decorative features.

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    18. ERS has invested a substantial amount of time, money and other resources

    advertising, promoting and marketing its Ovation Deluxe Schoolerand One-K Defenderriding

    helmets, which feature its proprietary designs, throughout the United States. As a result of

    ERSs substantial advertising, marketing and promotional efforts, its proprietary helmet designs

    have acquired substantial consumer recognition and goodwill and have become important

    source indicators which identify the quality horseback riding products, apparel and equipment

    provided by ERS.

    19. ERSs trade dress for its Ovation Deluxe Schoolerand One-K Defenderhelmets

    has acquired secondary meaning and fame, which is further evidenced by the knock-off riding

    helmets that have been manufactured, distributed and sold by Defendant in order to trade off of

    the goodwill and fame associated with ERSs helmets

    20. Indeed, ERSs trade dress for its Ovation Deluxe Schoolerand One-K Defender

    helmets has become extremely well known and highly recognizable as an indicator of source in

    the horseback riding apparel and equipment market and is entitled to the utmost protection,

    such that ERS is entitled to relief against any unauthorized use.

    21. ERSs trade dress for the Ovation Deluxe Schoolerand One-K Defenderhelmets

    is non-functional.

    B. Defendants Infringing Products22. Defendant is engaging in a pattern of manufacturing, advertising, marketing,

    distributing and selling its IRH Equi-Pro and IRH IR4G horseback riding helmets

    (collectively, the Infringing Products) that blatantly misappropriate ERSs patented helmet

    design and trade dress utilized for its Ovation Deluxe Schooler and One-K Defender riding

    helmets.

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    23. Specifically, Defendant is selling its IRH Equi-Pro helmet which product is a

    virtual copy of ERSs Ovation Deluxe Schoolerhelmet and specifically covers all the elements

    covered by the Design Patent as well as the trade dress and overall look and feel of ERSs

    Ovation Deluxe Schooler helmet. Depicted below are side-by-side comparisons of ERSs

    Ovation Deluxe Schoolerhelmet and DefendantsIRH Equi-Pro helmet:

    ERSs Ovation Deluxe Schooler Defendants IRH Equi-Pro

    24. DefendantsIRH Equi-Pro helmet features infringing trade dress including three

    decorative boomerang shaped vents within a raised teardrop-shaped ornamental design on the

    top, center of the helmet, as well as two decorative vertical, elongated, triangular shaped vents

    on the front sides of the helmet and two decorative vertical, elongated, triangular shaped vents

    on the back sides of the helmet, all of which are the exact same features that are included on

    ERSs Ovation Deluxe Schooler helmet and are features covered by the Design Patent.

    Defendant even goes so far as to place its IRH logo in the same exact position on the IRH

    Equi-Pro helmet that ERSs OV Ovation logo is placed on the Ovation Deluxe Schooler

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    helmet and uses the same white lettering for its logo that ERS uses for its logo. (See side by

    side comparison in 23 above).

    25. In addition, another of Defendants helmets, the IRH IR4G helmet, is a virtual

    copy of the design and overall look and feel of ERSs One-K Defenderhelmet. Depicted below

    are side-by-side comparisons of ERSs One-K Defender helmet and Defendants IRH IR4G

    helmet:

    ERSs One-K Defender Helmet Defendants IRH IR4G

    26. Defendants IRH IR4G helmet features infringing trade dress including a

    decorative design of three boomerang shaped vents on the top, front of the helmet contained

    within a curved triangular panel, with an ornamental design of two parallel lines extending to

    the back of the helmet, and two decorative horizontal, elongated, triangular shaped mesh vents

    on the sides of the helmet, which design is confusingly similar to the design of ERSs One-K

    Defender helmet. The decorative design of the straps for Defendants IRH IR4G is also

    confusingly similar to the design of the straps on ERSs One-K Defender. Moreover,

    Defendants IRH IR4G helmet includes an ornamental circular medallion containing an IR

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    logo, which medallion is identical in shape, design and placement as the medallion containing

    the ERSs stylized One-K logo on the One-K Defenderhelmet. (See side by side comparison

    in 25 above). Upon information and belief, Defendant does not use such a circular medallion

    of its logo on any of its other helmets in the marketplace, just on the one that is confusingly

    similar in design to ERSs One-K Defender helmet. Also upon information and belief,

    Defendant does not use the IR logo on any of its other products, but rather uses and IRH

    logo for International Riding Helmets. (See for example, the logo on Defendants IRH Equi-

    Pro helmet in 23 above). Only here, where the IR logo design is confusingly similar to

    ERSs stylized One-K logo, does Defendant suddenly use this shortened IR logo.

    27. Defendant is selling its infringing helmets side by side with ERSs identical

    helmets in horseback riding supply stores and via the Internet through major third-party online

    retailers of horseback riding supplies.

    28. There is no question that Defendant has blatantly and willfully copied ERSs

    trade dress and design elements covered by the Design Patent in order to trade upon the

    popularity and goodwill associated with ERSs Ovation and One-Kproduct lines, including the

    Ovation Deluxe Schooler and One-K Defender helmets. As a result of Defendants

    appropriation of ERSs above-depicted trade dress and design elements covered by the Design

    Patent, when an ordinary consumer encounters Defendants Infringing Products in the

    marketplace, they will believe that the Infringing Products and ERSs helmets are substantially

    the same, and the resemblance is such that the consumer will be induced to purchase

    Defendants products, believing that they are part of ERSs Ovation and One-K lines of

    products.

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    29. In addition, by producing helmets comprised of the aforementioned knock-off

    designs, Defendant has appropriated the novelty which distinguishes ERSs proprietary helmet

    designs from that of other designs. Defendants use of ERSs trade dress and design elements

    covered by the Design Patent will suggest to consumers a sponsorship with or approval of

    Defendants goods by ERS which Defendant does not have and unquestionably constitutes an

    infringement of ERSs valuable rights.

    30. Upon information and belief, Defendant has directly and indirectly benefited

    from its infringing conduct and the Infringing Products described above and is engaging in

    unfair competition by appropriating the goodwill associated with ERSs well known trade dress

    and design elements covered by the Design Patent. Defendants sale of its Infringing Products

    has caused and is likely to cause damage to the exclusivity of ERSs designs by flooding the

    market with copies of ERS helmet designs in the form of imitations.

    C. ERSs Notice to Defendant of the Infringing Conduct and Products31. Immediately after ERS learned about Defendants marketing and sale of the

    Infringing Products, counsel for ERS sent a cease and desist letter to Defendant dated

    September 12, 2013. In that letter, ERS advised that it was the exclusive licensee of the Design

    Patent which covers aspects of ERSs Ovation Deluxe Schoolerhelmet and notified Defendant

    that it was engaging in a pattern of infringing upon ERSs Design Patent and trade dress rights

    in its Ovation Deluxe Schoolerand One-K Defenderhelmets. ERS demanded that Defendant

    cease manufacturing and selling the Infringing Products.

    32. By letter dated September 18, 2013, counsel for Defendant responded by merely

    stating that it was in receipt of the September 12, 2013 letter and that ERSs allegations will

    be reviewed and responded to in due course.

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    33. To date, however, Defendant has provided no substantive response to

    Defendants September 12, 2013 letter. Upon information and belief, Defendant has failed to

    comply with any of the demands set forth in ERSs September 12, 2013 letter, and has

    continued to manufacture, market and sell the Infringing Products.

    COUNT I

    TRADE DRESS INFRINGEMENTUNDER THE LANHAM

    ACT, 15 U.S.C. 1125(a)

    34. ERS repeats and reallages each and every allegation contained in the proceeding

    paragraphs of the Complaint as if they were set forth in full herein.

    35. Defendants unauthorized use of ERSs trade dress used in connection with

    ERSs Ovation Deluxe Schooler and One-K Defender helmets, as described and depicted

    above, falsely indicates that Defendant is connected with, sponsored, endorsed, authorized,

    approved by or affiliated with ERS, which it is not.

    36. Defendants use of ERSs trade dress in connection with DefendantsIRH Equi-

    Pro andIRH IR4G riding helmets, as described and depicted above, is likely to cause, and has

    already caused confusion, mistake or deception as to the source or affiliation of Defendants

    goods.

    37. Defendants unauthorized use of ERSs trade dress allows Defendant to receive

    the benefit of ERSs goodwill, which ERS has established at great labor and expense, and

    further allows Defendant to gain acceptance of its goods, based not upon its own quality and

    ingenuity, but on the reputation, investment, hard work and goodwill of ERS.

    38. The acts of Defendant complained of herein constitute an infringement of ERSs

    trade dress in violation of Section 43(a) of the Lanham Act, 15 U.S.C. 1125(a).

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    39. Upon information and belief, Defendants infringement of ERSs trade dress has

    been willful and deliberate, and designed to trade on ERSs goodwill associated with the trade

    dress.

    40. As a result of Defendants actions, Defendant is being unjustly enriched and

    ERS has been and is being injured and damaged both in terms of lost sales and loss of control

    over its valuable brands and goodwill, and ERS has been harmed in an amount to be

    determined at trial and will continue to be harmed and will suffer irreparable injury unless

    Defendant is enjoined from the foregoing actions.

    COUNT II

    DESIGN PATENT INFRINGEMENT

    41. ERS repeats and reallages each and every allegation contained in the proceeding

    paragraphs of the Complaint as if they were set forth in full herein.

    42. Defendant, through its conduct as described above, has infringed and continues

    to infringe the Design Patent by making, using, selling and/or offering for sale its IRH Equi-

    Pro helmet bearing the identical or virtually identical design elements covered by the Design

    Patent (as shown next to ERSs Ovation Deluxe Schoolerin 23 above).

    43. Upon information and belief, Defendants infringement of the Design Patent has

    been willful.

    44. ERS has been damaged and irreparably harmed, and if Defendants conduct is

    not enjoined, ERS will continue to be damaged and irreparably harmed by Defendants

    infringement of the Design Patent.

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    COUNT III

    UNFAIR COMPETITION UNDER 15 U.S.C. 1125, THE

    LANHAM ACT

    45. ERS repeats and reallages each and every allegation contained in the proceeding

    paragraphs of the Complaint as if they were set forth in full herein.

    46. Defendant, through its conduct as described above, is marketing and selling in

    commerce the Infringing Products which infringe on and are imitations of ERSs trade dress

    and Design Patent rights, and which are or have been likely to cause confusion or mistake

    and/or to deceive in violation of Section 43(a) of the Lanham Act (15 U.S.C. 1125).

    47. Defendant has committed such acts willfully and with full knowledge of ERSs

    prior use of and rights in its trade dress and Design Patent rights.

    48. As a result of the Defendants acts of unfair competition, ERS has suffered and

    will continue to suffer serious harm.

    COUNT IV

    UNFAIR COMPETITION UNDER N.J.S.A. 56:4-1

    49. ERS repeats and reallages each and every allegation contained in the proceeding

    paragraphs of the Complaint as if they were set forth in full herein.

    50. Defendant has and continues to, among other things, sell the Infringing Products

    utilizing the identical trade dress that is utilized by ERS in connection with ERSs Ovation

    Deluxe Schoolerand One-K Defenderhelmets. In addition, Defendant is selling itsIRH IR4G

    helmet utilizing the identical designs of the Design Patent that is exclusively licensed to and

    utilized by ERS.

    51. Defendants unauthorized use of ERSs trade dress and design elements covered

    by the Design Patent, as described and depicted above, falsely indicates that Defendant is

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    connected with, sponsored, endorsed, authorized, approved by or affiliated with ERS, which it

    is not.

    52. Defendants use of ERSs trade dress and design elements covered by the

    Design Patent in connection with the Infringing Products, is likely to cause confusion, mistake

    or deception as to the source or affiliation of Defendants goods.

    53. Defendants unauthorized use of ERSs trade dress and design elements covered

    by the Design Patent in connection with the Infringing Products allows Defendant to receive

    the benefit of ERSs goodwill, which ERS has established at great labor and expense and

    further allows Defendant to gain acceptance of its goods, based not upon its own quality and

    ingenuity, but on the reputation, investment, hard work and goodwill of ERS.

    54. The acts of Defendant complained of herein constitute unfair competition in

    violation of the New Jersey Unfair Competition Statute (N.J.S.A. 56:4-1) and the common

    law of the State of New Jersey.

    55. The acts of Defendant complained of herein were committed willfully.

    56. As a result of Defendants actions, Defendant is being unjustly enriched and

    ERS has been harmed in an amount to be determined at trial and will continue to be harmed

    and will suffer irreparable injury unless Defendant is enjoined from the foregoing actions.

    COUNT V

    UNFAIR COMPETITION UNDER THE COMMON LAW

    OF THE STATE OF NEW JERSEY

    57. ERS repeats and reallages each and every allegation contained in the proceeding

    paragraphs of the Complaint as if they were set forth in full herein.

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    58. Defendant, through the above-described conduct, has engaged in misleading and

    deceptive practices in order to unfairly compete with ERS in violation of the common law of

    the State of New Jersey.

    59. Defendant has and continues to, among other things, sell the Infringing Products

    utilizing the identical trade dress and design elements covered by the Design Patent that is

    utilized by ERS in connection with ERSs Ovation Deluxe Schooler and One-K Defender

    helmets. In addition, Defendant is selling itsIRH IR4G helmet utilizing the identical designs of

    the Design Patent that is exclusively licensed to and utilized by ERS.

    60.

    Defendants unfair competitive actions as set forth above were knowing,

    intentional, willful and malicious, and designed to inflict immediate and irreparable injury upon

    ERS as well as to cause ERS to suffer substantial damages.

    61. As a direct and proximate result of Defendants actions, ERS has been harmed

    in an amount to be determined at trial and will continue to be harmed and will suffer irreparable

    injury unless Defendant is enjoined from the foregoing actions.

    COUNT VI

    VIOLATION OF THE NEW JERSEY FAIR TRADE ACT

    62. ERS repeats and reallages each and every allegation contained in the proceeding

    paragraphs of the Complaint as if they were set forth in full herein.

    63. ERSs claims hereunder arise under the New Jersey Fair Trade Act, N.J.S.A.

    56:4-1 (the Fair Trade Act).

    64. Defendants use of ERSs trade dress and design elements covered by the

    Design Patent is likely to cause confusion, mistake or deception as to the source or affiliation of

    Defendants goods.

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    65. The aforesaid acts by Defendant constitute the appropriation of ERSs brands,

    reputation and goodwill in violation of the Fair Trade Act.

    66. As a direct and proximate result of Defendants actions, ERS has been harmed

    in an amount to be determined at trial and will continue to be harmed and will suffer irreparable

    injury unless Defendant is enjoined from the foregoing actions.

    PRAYER FOR RELIEF

    WHEREFORE, ERS demands judgment in its favor and against Defendant as follows:

    1. Declaring that Defendant has infringed ERSs Design Patent rights in violation

    of 35 U.S.C. 271;

    2. Declaring that Defendant has infringed ERSs distinctive and source identifying

    trade dress associated with Defendants infringing helmets in violation of Section 43(a) of the

    Lanham Act, 15 U.S.C. 1125(a), and the common law of the State of New Jersey, and have

    unfairly competed with ERS under Section 43(a) of the Lanham Act, 15 U.S.C. 1125(a), and

    have engaged in false advertising in violation of Section 43(a) of the Lanham Act, 15 U.S.C.

    1125(a).

    3. That Defendant, and its members, officers, agents, servants, distributors,

    affiliates, employees, attorneys and representatives and all those in privity or acting in concert

    with Defendant, and each of them, be permanently enjoined and restrained from, directly or

    indirectly:

    (a) Engaging in further acts that infringe upon ERSs trade dress and Design

    Patent rights by, among other things, manufacturing or selling the

    Infringing Products identified above;

    (b) Engaging in further acts that are likely to cause confusion as to whether

    Defendants helmets originate from the same source as ERSs helmets, or

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    as to an association, affiliation or connection between ERS and Defendant

    or their respective products, including but not limited to the sale, marketing

    or manufacture of Defendants Infringing Products described herein;

    (c) Falsely designating the origin, sponsorship, or affiliation of Defendants

    products in any manner;

    (d) Otherwise competing unfairly with ERS in any manner;

    (e) Using any words, names, styles, designs, titles, designations, or marks

    which create a likelihood of injury to the business reputation of ERS and

    the goodwill associated therewith;

    (f) Using any trade practices whatsoever including those complained of herein,

    which tend to unfairly compete with or injure ERSs business and goodwill

    pertaining thereto; and

    (g) Continuing to perform in any manner whatsoever any of the acts

    complained of in this Complaint.

    4. Declaring that Defendant has infringed ERSs rights in violation of the New

    Jersey Unfair Competition Statute (N.J.S.A. 56:4-1) and the New Jersey Fair Trade Act (N.J.S.A.

    56:4-1).

    5. That Defendant be required to pay to ERS compensatory damages for the

    injuries sustained by ERS in consequence of the unlawful acts alleged herein pursuant to 35

    U.S.C. 284 and 15 U.S.C. 1117, and that such damages be trebled as provided by applicable

    law because of the willful and unlawful acts as alleged herein.

    6. That Defendant be required to account for and pay over to ERS all gains, profits

    and advantages derived by Defendant from the unlawful activities alleged herein pursuant to 35

    U.S.C. 289 and 15 U.S.C. 1117.

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    7. That Defendant, pursuant to 15 U.S.C. 1118, shall deliver for destruction or

    show proof of said destruction, all products, stationary, signs, advertisements, promotional

    flyers, cards, brochures, menus, promotional materials, packaging, labels and any other written

    materials in the possession, custody or control of Defendant bearing ERSs distinctive trade

    dress or which infringes ERSs above-referenced trade dress and Design Patent rights, together

    with all plates, molds, matrices and other means and materials for making or reproducing the

    same.

    8. That Defendant be required to recall from any and all channels of distribution any

    and all advertisements which include false or misleading statements about Defendants Infringing

    Products.

    9. That Defendant be required to engage in advertising to correct the false and

    misleading statements about Defendants Infringing Products.

    10. That Defendant be required to pay to ERS all of its litigation expenses, including

    but not limited to reasonable attorneys fees and the costs of this action pursuant to 35 U.S.C.

    285 and 15 U.S.C. 1117.

    11. That ERS be awarded such other and further relief as the Court may deem just

    and proper.

    WOLFF &SAMSON PC

    Attorneys for Plaintiff

    English Riding Supply, Inc.

    By: s/ Adam K. Derman

    ADAM K. DERMANDated: October 9, 2013

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    JURY DEMAND

    ERS demands trial by jury of all claims and defenses in this action so triable.

    WOLFF &SAMSON PC

    Attorneys for Plaintiff

    English Riding Supply, Inc.

    By: s/ Adam K. Derman

    ADAM K. DERMAN

    Dated: October 9, 2013

    LOCAL RULE 11.2 CERTIFICATION

    The matter in controversy is not the subject of any other action pending in any other

    court or any pending arbitration or administrative proceeding.

    WOLFF &SAMSON PC

    Attorneys for Plaintiff

    English Riding Supply, Inc.

    By: s/ Adam K. Derman

    ADAM K. DERMANDated: October 9, 2013

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    EXHIBIT A

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