Trailers Intl LLC v. Mastercraft Tools Florida, INC., et al

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF OREGON

PORTLAND DIVISION

TRAILERS INTL LLC, a Nevada Corporation, and VINCENT L. WEBB, an individual, Plaintiffs, v. MASTERCRAFT TOOLS FLORIDA, INC.,

d/b/a ALTOCRAFT USA, INC., a Florida corporation, BUILD.COM, INC., a California corporation, GLOBAL EQUIPMENT

COMPANY, INC., a New York corporation, HOME DEPOT USA, INC., a Delaware corporation, K-MART CORPORATION, a Michigan corporation, LUNMAR, INC., d/b/a

TRAILER WORLD, a Washington corporation, ORRIN LUNDY, an individual, POWER EQUIPMENT DIRECT INC., a Delaware corporation, SEARS, ROEBUCK

AND COMPANY, a New York corporation, SKY DISTRIBUTORS OF AMERICA, INC., a Florida corporation, STEVEN F.

RESCH, an individual, XUEFENG ZHANG, an individual, and ZHUHAI SHARP-GROUP

ENTERPRISE CO., LTD., a foreign corporation, Defendants.

Civil No. ________________

COMPLAINT FOR COPYRIGHT

INFRINGEMENT, TRADEMARK

INFRINGEMENT, TRADEMARK

COUNTERFEITING, UNFAIR

COMPETITION, FALSE

DESIGNATION OF ORIGIN, COMMON

LAW FRAUD, COMMON LAW

COMMERCIAL DISPARAGEMENT,

BREACH OF CONTRACT,

CONVERSION, and TRADE SECRET

MISAPPROPRIATION

Jury Trial Demanded

Stephen J. Joncus, OSB No. 013072 Email: [email protected] Xavier A. Clark, OSB No. 133287 Email: [email protected]

KLARQUIST SPARKMAN, LLP 121 S.W. Salmon Street, Suite 1600 Portland, Oregon 97204 Telephone: 503-595-5300 Attorneys for Plaintiffs TRAILERS INTL LLC and VINCENT L. WEBB

Case 3:15-cv-00171-BR Document 1 Filed 01/30/15 Page 1 of 68

COMPLAINT Page 1

Plaintiffs Trailers Intl LLC (“Trailers Intl”) and Vincent L. Webb (“Webb”), by their

attorneys, for their Complaint against Defendants, allege as follows:

1. This is an action for copyright infringement, trademark infringement, trademark

counterfeiting, unfair competition, false designation of origin, common law fraud, common law

commercial disparagement, breach of contract, conversion, and trade secret misappropriation.

By this action, Webb and Trailers Intl seek (a) damages arising from Defendants’ past and

present infringement of Webb’s trademark rights and copyrights, and related activities, (b)

injunctive relief against Defendants’ continued importation and or sale of infringing trailers, and

(c) reimbursement of Webb’s and Trailers Intl’s attorney fees and costs incurred in connection

with their efforts to protect their intellectual property rights.

2. This action arises out of the manufacture, importation, offer for sale, sale, and

distribution in the United States of counterfeits of Webb’s and Trailers Intl’s UtilityMate® and

UtilitySport® trailers illegally manufactured by Zhuhai Sharp-Group Enterprise CO. LTD. a/k/a

Jumbo Tools & Equipment (“Jumbo”).

3. Jumbo is a Chinese trading company that was, at one time, authorized to

manufacture trailers for Webb’s Company, Trailers Intl (formerly UtilityMate LLC).

4. Jumbo manufactures counterfeit trailers using Webb’s designs, drawings, tooling,

molds and intellectual property. Jumbo supplies the counterfeit trailers to distributors for

distribution across the United States.

5. Defendant Mastercraft Tools Florida, Inc., d/b/a Altocraft USA, Inc. (“Altocraft”)

is the primary importer and distributor of counterfeit trailers from Jumbo. Mastercraft and

Altocraft are “house brands” of Jumbo.


COMPLAINT Page 2

6. Altocraft distributes the counterfeit trailers in packages bearing Webb’s registered

trademarks and copyrights. Each package includes user manuals and related documentation

which contain text and images copied from Webb’s federally registered copyrighted user

manuals and related documentation.

7. Altocraft passes off the counterfeit trailers as its own and offers them for sale

across the United States, including into Oregon.

8. In some instances, Altocraft removes Webb’s copyrighted material and

trademarks from the infringing trailers and packaging prior to distribution. However, it is not

uncommon for Altocraft customers to receive packages and trailers bearing Webb’s trademarks

that ship with Webb’s copyrighted materials. Altocraft frequently packages and ships its

counterfeit trailers with counterfeit licensing and registration materials bearing Webb’s former

company name UtilityMate LLC. Altocraft even uses Trailers Intl’s unique World Manufacturer

Identifier prefix to create counterfeit Vehicle Identification Numbers for the counterfeit trailers.

Altocraft informs customers that receive products and documentation bearing Webb’s and

Trailers Intl’s company name that Altocraft is affiliated with, or even the same as, Trailers Intl.

9. Defendants’ importation, offers for sale, sales, distribution, and other activities

involving the counterfeit trailers have caused actual harm to Webb and Trailers Intl in the form

of customer confusion as to product origin, reduced sales and lost profits by Trailers Intl, and

damage to Webb’s and Trailers Intl’s reputation for product quality and brand recognition.

10. In addition to actual harm to Webb and Trailers Intl, Defendants’ activities

involving the counterfeit trailers put the public at risk of physical harm. The trailers at issue are

designed to be towed behind automobiles on roads and highways. The trailers are made from

steel, can carry heavy loads, and can be dangerous when operated at high speeds. This is one


COMPLAINT Page 3

reason why product safety and integrity is of the utmost importance to Webb and Trailers Intl.

Webb and Trailers Intl design and build trailers with high quality parts that hold up to use on the

road and do not put customers at risk.

11. The counterfeit trailers at issue are manufactured using inferior parts and

assembly procedures compared to genuine Trailers Intl trailers, and pose a greater risk of failure

and harm. Webb and Trailers Intl face an increased risk of complaints and suits due to

Defendants’ customers using the counterfeit documentation included with the counterfeit trailers,

which names Webb’s former company and predecessor to Trailers Intl, UtilityMate LLC as

manufacturer, to register counterfeit trailers with the Department of Motor Vehicles.

JURISDICTION

12. This is a suit for trademark infringement, trademark counterfeiting, and unfair

competition and false designation of origin under 15 U.S.C. Sections 1051 et seq. ( the “Lanham

Act”), copyright infringement under the United States Copyright Act of 1976, as amended, 17

U.S.C. Sections 101 et seq. (the “Copyright Act”), common law fraud, common law commercial

disparagement, breach of contract, conversion, and trade secret misappropriation. This Court has

subject matter jurisdiction pursuant to 15 U.S.C. § 1121, and 28 U.S.C. §§ 1331 and 1338

(copyright and trademark). This Court has jurisdiction over the Oregon common law claims as

these claims are related to the claims brought under the Lanham Act and the Copyright Act, so

form part of the same case or controversy, and are within the Court’s supplemental jurisdiction

pursuant to 28 U.S.C. § 1367.

13. This Court has personal jurisdiction over Defendants because all of the

Defendants have committed acts in this district or directed at this district constituting or


COMPLAINT Page 4

contributing to the infringement alleged, so that a substantial part of the acts and events giving

rise to the claims occurred in, or were directed at, this judicial district.

PARTIES

14. Plaintiff Vincent L. Webb is an individual who presently resides in Grants Pass,

Oregon. Webb is the President of Trailers Intl LLC, and has been in the business of designing

and manufacturing utility trailer kits since 2004. Webb is the exclusive owner of the federally

registered trademarks UtilityMate® (U.S. Reg. No. 3,226,766), UtilitySport® (U.S. Reg. No.

3,278,153), “BUILD IT AND SAVE”® (U.S. Reg. No. 4,458,788), and “4 in 1”® (U.S. Reg.

No. 4,582,732), and the common law trademark “UtilityDump”™. Webb is also the exclusive

owner of federally registered copyrights for UtilityMate Trailer Owner’s Manuals (Reg. No. TX

7-187-973), and UtilityMate Web Site, Product Catalog, Sales Material & Package Artwork

(Reg. No. TX 7-748-097).

15. Plaintiff Trailers Intl LLC, formerly known as UtilityMate LLC (“UtilityMate”),

is a Nevada corporation with its principal place of business at 2788 Foothill Boulevard, Grants

Pass, Oregon 97526. Trailers Intl is in the business of manufacturing, importing, and selling

high quality utility trailer kits under the brand names UtilityMate® and UtilitySport®. Trailers

Intl is the exclusive licensee of Webb’s intellectual property portfolio, which includes Webb’s

federally registered trademarks, common law trademark, and federally registered copyrights

listed above.

16. Trailers Intl operates and maintains the websites www.trailersintl.com,

www.utilitymate.com, www.utilitysport.com, and www.utilitydump.com, which it uses in

connection with its utility trailer business.


COMPLAINT Page 5

17. Defendant Mastercraft Tools Florida Inc., d/b/a Altocraft USA, Inc., is a Florida

corporation with its principal place of business at 7440 NW 52nd St., Miami, Florida 33166.

Altocraft is a house brand of Chinese contract trailer manufacturer, Jumbo.

18. Altocraft operates and maintains the websites www.altocraft.com and

www.altocrafttrailer.com. Altocraft’s websites incorporate copyrighted text, images, and code

copied directly from Webb’s and Trailers Intl’s websites. Through its websites, Altocraft

advertises, offers for sale, and coordinates distribution of counterfeit trailers across the United

States, including into this district.

19. Altocraft imports counterfeit trailers from China, and advertises, offers for sale,

sells, and distributes the counterfeit trailers across the United States, including into this district.

20. Altocraft sells and distributes or “drop-ships” counterfeit trailers to customers in

this district.

21. Altocraft assists customers with licensing counterfeit trailers across the United

States. Altocraft offers to license counterfeit trailers in Oregon for customers in this district.

22. Altocraft sells counterfeit trailers in direct competition with authorized

distributors of genuine Trailers Intl trailers, which are located in this district, by offering

counterfeit trailers for resale at a lower cost to Trailers Intl’s existing retail customers.

23. Defendant Build.com, Inc., (“Build.com”) is a California corporation with its

principal place of business at 12500 Jefferson Avenue, Newport News, Virginia 23602.

24. Build.com operates and maintains the website www.build.com, by which it

advertises, offers for sale, and sells counterfeit trailers across the United States.

25. On information and belief, Build.com has sold and distributed counterfeit trailers

into this district.


COMPLAINT Page 6

26. Defendant Global Equipment Company, Inc., (“Global Industrial”) is a New York

company with a principal place of business at 11 Harbor Park Drive, Port Washington, New

York 11050.

27. Global Industrial operates and maintains the website www.globalindustrial.com,

by which it advertises, offers for sale, and sells counterfeit trailers across the United States.

28. On information and belief, Global Industrial has sold and distributed counterfeit

trailers into this district.

29. Defendant Home Depot USA, Inc., (“Home Depot”) is a Delaware corporation

with its principal place of business at 2455 NW Paces Ferry Road, Atlanta, Georgia 30339-4024.

30. Home Depot operates and maintains the website www.homedepot.com, by which

it advertises, offers for sale, and sells counterfeit trailers across the United States, including into

this district.

31. Home Depot has sold and distributed counterfeit trailers into this district.

32. Home Depot has stores located across the United States, including more than

twenty stores located in this district.

33. Home Depot causes counterfeit Altocraft trailers to be “drop-shipped” from

Altocraft to Home Depot stores for customers to pick up. Altocraft trailers have been “drop-

shipped” to stores located in this district.

34. Defendant K-Mart Corporation, (“K-Mart”) is a Michigan corporation with its

principal place of business at 3333 Beverly Road, Hoffman Estates, Illinois 60179.

35. K-Mart operates and maintains the website www.K-Mart.com, by which it

advertised, offered for sale, and sold counterfeit trailers across the United States.

36. K-Mart has sold and distributed counterfeit trailers into this district.


COMPLAINT Page 7

37. Defendant Lunmar, Inc., d/b/a Trailer World (“Trailer World”), is a Washington

corporation with its principal place of business at 2607 E 5TH ST, Vancouver, Washington,

98668.

38. On multiple occasions Trailer World has purchased, imported, offered for sale,

and sold counterfeit trailers into this district.

39. Defendant Orrin Lundy (“Lundy”) is an individual residing at 1336 51st Street

Washougal, Washington 98671.

40. Lundy is the president of Lunmar, Inc., d/b/a Trailer World.

41. On multiple occasions Lundy has purchased, imported, offered for sale, and sold

counterfeit trailers into this district.

42. Defendant Power Equipment Direct Inc., (“PED”) is a Delaware company with its

principal place of business at 1325 Rodeo Drive, Bolingbrook, Illinois 60490-4933.

43. Defendant PED operates and maintains the websites

www.powerequipmentdirect.com and www.mowersdirect.com, by which it advertises, offers for

sale, and sells counterfeit trailers across the United States.

44. PED has sold and distributed counterfeit trailers into this district.

45. Defendant Sears, Roebuck and Company, (“Sears”) is a New York corporation

with its principal place of business at 3333 Beverly Road, Hoffman Estates, Illinois 60179.

46. Sears operates and maintains the website www.sears.com, by which it advertised,

offered for sale, and sold counterfeit trailers across the United States.

47. Sears has sold and distributed counterfeit trailers into this district.

48. Defendant Sky Distributors of America, Inc., (“Sky Distributors”) is a Florida

corporation with its principal place of business 1690 W 41st Street Hialeah, Florida 33012.


COMPLAINT Page 8

49. Sky Distributors maintains and operates the website www.skydistributors.net, by

which it advertises, offers for sale, and sells counterfeit trailers across the United States.

50. Sky Distributors has sold and distributed counterfeit trailers into this district.

51. Defendant Steven F. Resch (“Resch”) is an individual residing at 29296 SW

Heater Road, Sherwood, Oregon 97140.

52. Resch, at one point in time, worked for Webb in his trailer business.

53. Resch participates in the light duty trailer industry through activities such as

attending trade shows and coordinating the importation and distribution of utility trailers.

54. Resch has relationships with sales representatives for Jumbo. Resch coordinates

the importation and distribution of counterfeit trailers manufactured by Jumbo into the United

States, including into this district.

55. Resch has arranged the sale and importation of counterfeit trailers into this

district.

56. Defendant Xuefeng “James” Xhang (“Zhang”) is an individual residing at 12708

NW 20th Street, Pembroke Pines, Florida, 33028.

57. Zhang is the principal of Mastercraft Tools and Altocraft USA, Inc.

58. Zhang coordinates the manufacture and importation of counterfeit trailers from

China for sale and distribution across the United States, including into this district.

59. Defendant Zhuhai Sharp-Group Enterprise Co., Ltd., a/k/a Jumbo Tools &

Equipment, is a Chinese trading company with a principal place of business at Bldg5, No.800,

Xiayan Rd, Xiasha Town, Shanghai, China. Jumbo is a former contract manufacturer of genuine

Trailers Intl utility trailers. Jumbo owns the brand Altocraft USA, Inc.


COMPLAINT Page 9

60. Jumbo uses Webb’s and Trailers Intl’s design, drawings, blueprints, and tooling to

manufacture counterfeit UtilityMate® and UtilitySport® trailers for export to and sale across the

United States.

BACKGROUND ALLEGATIONS

61. Webb is the President of Trailers Intl LLC. Webb has been in the business of

designing, developing, and selling utility trailer kits since 2004. Webb and Trailers Intl conduct

their utility trailer business primarily from the Trailers Intl office and warehouse facility located

in Grants Pass, Oregon. Webb and Trailers Intl sell genuine utility trailer kits online and at

retailers across the United States under federally registered trademarked brand names, e.g.,

UtilityMate® and UtilitySport®.

62. Webb is the exclusive owner of copyrights related to genuine trailer kits and

possesses copyright registrations with the United States Copyright Office relating to the same,

specifically U.S. Copyright Registration Numbers TX 7-187-973 and TX 7-748-097. The table

below provides details regarding the ’973 and ’097 registrations.

’973 ’097 Reg. No.: TX 7-187-973 Effective Registration Date: 02/05/2010 Title: UtilityMate Trailer Owner’s Manuals Authorship: text, photograph(s), artwork

Reg. No.: TX 7-748-097 Effective Registration Date: 06/18/2013 Title: UtilityMate Web Site, Product Catalog, Sales Material & Package Artwork Authorship: text, photograph(s), computer program, artwork

63. Webb is the exclusive owner of United States Trademark Registration Numbers

3,226,766, 3,278,153, 4,458,788, and 4,582,732 (“Webb’s federally registered marks”). The

table below provides details regarding Webb’s federally registered marks.


COMPLAINT Page 10

Registration Data Mark Mark: UTILITYMATE Filing Date: June 6, 2005 Registration Number: 3226766 Registration Date: April 10, 2007 Goods: Cargo Trailers

Mark: UTILITYSPORT Filing Date: October 2, 2005 Registration Number: 3278153 Registration Date: August 7, 2007 Goods: Cargo Trailers

Mark: BUILD IT AND SAVE Filing Date: May 14, 2013 Registration Number: 4458788 Registration Date: December 13, 2013 Goods: Utility Trailers

Mark: 4 IN 1 Filing Date: May 14, 2013 Registration Number: 4582732 Registration Date: August 12, 2014 Goods: Utility Trailers

64. Trailers Intl is the exclusive licensee of Webb’s federally registered trademarks

and copyrights.

Webb’s and Trailers Intl’s Quality Control and Product Integrity Standards

65. Webb and Trailers Intl began designing utility trailers in response to a

marketplace demand for a high quality, reasonably priced, utility trailer. Webb’s and Trailers

Intl’s utility trailer kits offer many advantages to sellers and buyers, for example, each trailer kit

is delivered and sold in a single box, making it easier to ship, store, and track logistically.

Because Webb’s and Trailers Intl’s utility trailers are sold in “kit” form, they do not require

registration or licensing until fully assembled and road ready.

66. In 2005, at Webb’s direction, production of genuine utility trailers began in

China. Webb’s and Trailers Intl’s genuine utility trailers are designed to comply with the

specification standards of the United States Department of Transportation (“DOT”) including the

best practices of the National Highway Traffic Safety Administration (“NHTSA”).


COMPLAINT Page 11

67. Webb has worked for years to develop a good reputation for Trailers Intl and its

products. Product quality and integrity are priorities for Webb and Trailers Intl, as is customer

safety. In addition to the DOT and NHTSA standards and best practices, Webb and Trailers Intl

have set additional quality control and product integrity standards that each trailer must satisfy

before Webb and Trailers Intl will approve the trailer for sale.

68. Trailers Intl’s genuine trailers and components are manufactured using Trailers

Intl’s custom tooling and are assembled from high quality materials, for example: Trailers Intl’s

tail lights and side markers use LED technology sourced from a NHTSA authorized

manufacturer; Trailers Intl uses tires that meet DOT requirements; Trailers Intl’s wire harnesses

are housed in a protective, insulated sleeve to protect against wear and outside elements; Trailers

Intl’s trailers use pre-threaded lock-nuts to avoid bolts loosening from vibration on the road; and

Trailers Intl’s frames are powder coated and made from corrugated and tubular steel.

69. Webb and Trailers Intl have implemented various quality control measures in an

effort to maintain product integrity. For instance, Webb and Trailers Intl require that all

Manufacturers Statement of Origin certificates and Vehicle Identification Number tags be

designed, printed, and shipped from Trailers Intl’s offices directly to the contract manufacturer in

China, whereby the contract manufacturer will insert the materials into Trailers Intl’s genuine

product packaging prior to export. Webb also travels to China several times each year to inspect

the factories where his utility trailers are manufactured.

Webb’s and Trailers Intl’s Former Manufacturers and Past Counterfeiting

70. Webb, through his company Trailers Intl (and formerly UtilityMate LLC),

contracts with Chinese trading companies (“contract manufacturers”) to source parts for and

assemble genuine Trailers Intl trailer kits.


COMPLAINT Page 12

71. Trailers Intl requires the contract manufacturers to comply with its quality control

and product integrity standards.

72. On two occasions Webb and Trailers Intl, through Trailers Intl’s predessesor

UtilityMate LLC, have terminated licensing agreements with Chinese contract manufacturers

based on repeated failures to comply with UitlityMate’s quality control standards.

73. First, in November 2008 UtilityMate terminated its licensing agreement with

contract manufacturer Changzhou Nanxiashu Tool Co., Ltd. (“Nanxiashu”). Nanxiashu was

authorized to manufacture UtilityMate® kit trailers from 2005-2007. UtilityMate terminated its

agreement with Nanxiashu following repeated failures by Nanxiashu to meet UtilityMate’s

product quality and integrity standards.

74. After termination of the agreement between UtilityMate and Nanxiashu, Webb

and Trailers Intl discovered that Nanxiashu was using Webb’s and Trailers Intl’s designs to

manufacture and import counterfeit trailers into the United States.

75. The counterfeit trailers manufactured and imported by Nanxiashu were nearly

identical in appearance to genuine Trailers Intl trailers, but were made from inferior materials

and did not comply with DOT standards. Nanxiashu sold the counterfeit trailers in direct

competition with genuine Trailers Intl trailers, but at a lower price.

76. The Nanxiashu counterfeit trailers harmed Webb and Trailers Intl by causing

customer confusion as to the origin of the trailers. Due to their inferior and non-compliant

manufacture and assembly, they had the potential to cause harm to consumers, which could have

led to complaints and suits against Webb and Trailers Intl. In June, 2011, Webb brought a

complaint against Nanxiashu in this District. Nanxiashu failed to appear, and in August 2011


COMPLAINT Page 13

Judge Brown entered a default judgment and permanent injunction against Nanxiashu. (Case

No. 3:11-cv-00747-BR, Dkt. No. 16.)

77. After terminating the agreement with Nanxiashu, Webb, through UtilityMate,

entered into a manufacturing and distribution agreement with a different Chinese contract

manufacturer, Zhuhai Sharp-Group Enterprise CO. LTD. a/k/a Jumbo Tools & Equipment.

78. Jumbo is a Chinese power tool and equipment supplier that produces private label

and/or OEM products for retailers and importers. Jumbo also owns a number of “house brands,”

such as Altocraft USA, Inc., which sell products supplied by Jumbo.

79. In June 2011, Jumbo and UtilityMate LLC entered into a supplemental agreement

by which UtilityMate LLC would be importer of record for 100% of trailer sales shipped by

Jumbo to the United States or Canada. Per the supplemental agreement, UtilityMate LLC was to

be the sole and exclusive importer of UtilityMate® trailers manufactured by Jumbo.

80. When the products being manufactured by Jumbo failed to meet the quality and

regulatory standards agreed upon by the parties, UtilityMate LLC sent Jumbo a first notice of

default, in accordance with the parties’ agreement. Jumbo did not correct or otherwise address

the notice of default, and as a result UtilityMate LLC sent Jumbo second and third notices of

default in August and October 2011, respectively.

81. UtilityMate LLC terminated the agreement with Jumbo in October 2011 as a

result of Jumbo’s failure to cure or otherwise respond to the multiple notices of default. Upon

termination of the agreement, Jumbo was no longer authorized to manufacture, import, offer for

sale, sell, distribute, or otherwise deal in trailers made from Webb’s or Trailers Intl’s designs.

Also upon termination of the agreement, Jumbo no longer had any right to use any of Webb’s

intellectual property, including his federally registered trademarks and copyrights. Per notice of


COMPLAINT Page 14

termination, Jumbo was required to return all Trailers Intl blueprints, tooling, and dies used to

manufacture genuine UtilityMate® trailers, as well as all manuals, packaging, and marketing

materials.

82. After termination of the agreement with Jumbo, Webb and Trailers Intl updated

the World Manufacturer Identifier (“WMI”) used on genuine Trailers Intl trailer kits to list

Trailers Intl LLC as the manufacturer of record. The WMI is the first three characters of a

Vehicle Identification Number (“VIN”) and is a unique identifier assigned to vehicle

manufacturers. UtilityMate LLC’s WMI was “52Z.” After the update, Trailers Intl’s WMI is

“52Z.”

83. Another change Webb and Trailers Intl implemented following termination of the

Jumbo agreement was the production of licensing and registration documents. Webb and

Trailers Intl now design, print, and ship all Manufacturers Statement of Origin certificates and

Vehicle Identification Number tags from the Trailers Intl office in the United States to the

contract manufacturer in China, whereby the contract manufacturer inserts the materials into

genuine Trailers Intl product packaging prior to export.

84. Webb, acting through Trailers Intl, also hired a new contract manufacturer, STC

International (“STC”), based out of Shanghai, China to oversee quality control and assembly of

genuine Trailers Intl trailer kits. Currently, STC is the only authorized assembler of genuine

Trailers Intl utility trailers.

Ongoing Counterfeiting and Intellectual Property Infringement

85. In February 2012, Webb and Trailers Intl learned that Altocraft was offering for

sale in the United States, via its website at www.altocrafttrailer.com, utility trailers that appeared

to be the same as Trailers Intl trailers. At the time, the designs, photographs, descriptions,


COMPLAINT Page 15

specifications, and even model numbers of the trailers offered for sale by Altocraft were

identical, or nearly so, to those on Webb’s and Trailers Intl’s genuine websites. See Figure 1,

below.

Figure 1: Images from Trailers Intl’s website (“AUTHENTIC”) and unauthorized copies of the same images displayed on Altocraft’s website (“INFRINGING”), circa 2012.

86. Figure 1, above, demonstrates Altocraft’s unauthorized use on its website of

Webb’s copyrighted images copied directly from Webb’s and Trailers Intl’s websites. Some of

the images even display Webb’s personal property. Examples of Altocraft’s copying include:


COMPLAINT Page 16

a) Image one (1) displays Trailers Intl’s UM6096 trailer loaded with Webb’s personal all-terrain vehicle, and hitched to Webb’s personal pick-up truck. Altocraft uses a mirror image copy of image one (1) on its website;

b) Image two (2) displays Trailers Intl’s MC583 trailer in three positions. Altocraft uses an identical copy of image two (2) on its website;

c) Image three (3) displays Trailers Intl’s UD5806 “4 in 1”® trailer. This image was created by Webb specifically to provide a visual affect showing the various positions that the UD5806 can be used in. Altocraft uses an identical copy of image three (3) on its website and in documentation it distributes;

d) Image four (4) displays Trailers Intl’s HD4872EZ trailer. Altocraft uses an identical copy of image four (4) on its website;

e) Image five (5) displays Trailers Intl’s HD4872 trailer loaded with Webb’s personal lawnmower. Altocraft uses an identical copy of image five (5) on its website.

Altocraft’s Counterfeit Vehicle Registration Documents

87. In addition to using Webb’s registered intellectual property to advertise and sell

counterfeit trailers, Altocraft also uses the “52Z” WMI belonging to Trailers Intl to create

counterfeit Manufacturers Statement of Origin certificates and Vehicle Identification Numbers

for the counterfeit trailers it imports.

88. United States Customs and Border Protection requires that vehicles imported into

the United States include a Manufacturer’s Statement of Origin (“MSO”, sometimes referred to

as a Certificate of Origin) and a Vehicle Identification Number. Vehicles that do not include

both the MSO and VIN are not allowed into the United States. Hence, Altocraft is required to

include a MSO and VIN tag for each counterfeit trailer it imports into the United States.

89. Altocraft issues counterfeit MSOs and VIN tags using the “52Z” WMI that

belongs to Trailers Intl.

90. Webb’s and Trailers Intl’s websites provides trailer licensing instructions to help

customers comply with DMV requirements. Altocraft blatantly copies Webb’s and Trailers


COMPLAINT Page 17

Intl’s licensing guidance on its website. The text of Altocraft’s “Trailer Licensing Instructions”

is copied verbatim from Webb’s and Trailers Intl’s websites. (Figure 2.)

AUTHENTIC

INFRINGING

Text copied verbatim from Plaintiffs’ websites (left).

Figure 2: Webb’s and Trailers Intl’s licensing information compared to Altocraft’s infringing copies (http://altocrafttrailer.com/license-your-trailer/ and http://altocrafttrailer.com/licensing-instructions/) (Home Depot also provides the infringing licensing instructions for download: http://www.homedepot.com/catalog/pdfImages/f8/f865bab1-c6a4-49d9-95fa-eeb236efc9eb.pdf).

91. In order to register a trailer, a customer must present the Bill of Sale and MSO to

the Department of Motor Vehicles (“DMV”). The DMV clerk is supposed to inspect both the

Bill of Sale and MSO to make sure that each describes the same vehicle. If the Bill of Sale and

MSO do not match, then the DMV will not allow the customer to register the trailer.


COMPLAINT Page 18

92. The DMV does not always notice discrepancies on the documents, however, and

many of Defendants’ customers have successfully registered trailers with a Bill of Sale for an

Altocraft trailer and a counterfeit MSO. In these instances the counterfeit Altocraft trailers are

registered as though they were manufactured by Trailers Intl.

93. Sometimes, the customer notices the discrepancies between the Bill of Sale and

the trailer registration documentation, and will call Altocraft for guidance. In these instances,

Altocraft has informed customers that it is the same company as Trailers Intl, and even offers to

license the counterfeit trailers for customers.

94. Indeed, Trailers Intl frequently receives inquiries from customers who have

successfully registered counterfeit “Altocraft” trailers. These customers believe that Trailers Intl

is the actual manufacturer of the counterfeit trailers based on the counterfeit registration

documents.

95. This confusion harms Trailers Intl because customers who experience quality or

performance issues with a counterfeit trailer may believe Trailers Intl to be the manufacturer of

the inferior product.

96. Furthermore, Webb and Trailers Intl are at an increased risk of complaints and

suits against them as a result of Altocraft’s counterfeiting. If a counterfeit Altocraft trailer is

involved in an accident or otherwise causes harm to a person, the counterfeit vehicle registration

falsely names UtilityMate as the manufacturer, unjustly making Webb and Trailers Intl the

possible targets for liability claims.

Home Depot’s Infringement

97. In December 2010, Webb began negotiations with Home Depot to sell Trailers

Intl trailers in Home Depot stores across the United States. Home Depot planned to launch a


COMPLAINT Page 19

trailer kit program selling UtilityMate® trailer kits in its stores nationwide by the Spring of 2012

under the brand UtilityDump™.

98. By the end of 2011 Webb and Home Depot were in the final stages of preparing

for the UtilityDump™ launch. Webb negotiated for Home Depot to stock two models of steel

UtilityDump™ trailer kits, and one model of an aluminum UtilitySport® trailer kit. Webb

traveled to China at Home Depot’s request to meet with manufacturers to tie-up loose ends

related to shipping logistics and package integrity. Home Depot created SKU numbers for each

model of UtilityDump™ trailer kit to be sold. Webb created detailed flyers for Home Depot to

use to educate its store managers about UtilityDump™ trailer kits. (Figure 3, below.)

Figure 3: Trailer Kit flyers created for presentation to Home Depot store managers.

99. By early 2012 Home Depot estimated it would stock 9 UtilityDump™ trailers in

each of its 600 stores. Accordingly, Home Depot estimated it would order 5,400 UtilityDump™


COMPLAINT Page 20

trailer kits for nearly $4.2 million for the UtilityDump™ launch. Home Depot planned to sell

UtilityDump™ trailers in stores across the United States beginning in April 2012.

100. In February 2012, Altocraft contacted Defendant Home Depot to discuss selling

counterfeit Altocraft trailers in Home Depot stores. Altocraft offered its counterfeit trailers at a

lower cost to Home Depot than genuine Trailers Intl UtilityMate® trailer kits.

101. Home Depot contacted Webb via e-mail to inquire about the competitive stance of

Altocraft in relation to Trailers Intl and its products.

102. Webb warned Home Depot in writing that Altocraft did not have any rights to

make or sell any of Trailers Intl’s products or use Webb’s designs or intellectual property to

make or sell similar products.

103. On February 29, 2012, through his attorneys, Webb sent a second notice warning

Home Depot that the Altocraft trailers were counterfeit, and that the importation and sale of

Altocraft trailers violated Webb’s intellectual property rights.

104. On March 9, 2012, through his attorneys, Webb sent a letter to Altocraft and

Zhang, notifying them of Altocraft’s infringement and demanding that Altocraft cease and desist

its infringing activities.

105. Despite Webb’s demand, on information and belief Altocraft persisted its

discussions with Home Depot regarding selling counterfeit Altocraft trailers at Home Depot.

106. By April 2012, UtilityDump™ trailer kits were not being sold in Home Depot

stores as planned. Home Depot never made the nearly $4.2 million initial order of

UtilityDump™ trailers it had estimated making.

107. On May 9, 2012, Webb sent a series of e-mails to Home Depot’s in-house

intellectual property counsel further notifying Home Depot of its violations of his intellectual


COMPLAINT Page 21

property. At Home Depot’s request, Webb provided documentation of the alleged violations,

including: screen captures from Jumbo’s website which show that Altocraft is a brand owned by

Jumbo; screen captures from Altocraft’s website displaying product images, descriptions, and

specifications copied from Webb’s and Trailers Intl’s websites; a genuine UtilityMate® product

catalog (Figure 4, below), and a counterfeit product catalog circulated by Jumbo (Figure 5,

below), nearly identical to Trailers Intl’s genuine UtilityMate® catalog.

AUTHENTIC

Figure 4.

COUNTERFEIT

Figure 5.

108. Home Depot acknowledged receipt of Webb’s e-mail and documentation via

return e-mail from its in-house intellectual property counsel the following day.

109. Through a series of correspondence including letters, e-mails, and telephone calls,

Home Depot was fully aware of Webb’s federally registered intellectual property rights, and that

Altocraft’s activities constituted infringement of said rights.


COMPLAINT Page 22

110. Home Depot had actual knowledge of Webb’s registered trademarks and

copyrighted material in 2012.

111. Home Depot had actual knowledge in 2012 that Altocraft did not have the right to

make, import or sell trailers using Webb’s designs or marks.

112. Home Depot had actual knowledge in 2012 that Altocraft’s activities of

importing, offering for sale, selling, and distributing counterfeit trailers constituted Lanham Act

violations.

113. The trailer kit launch that Webb had spent more than eighteen months negotiating

with Home Depot never occurred.

114. Instead, despite Home Depot’s actual knowledge, Home Depot proceeded to offer

counterfeit Altocraft trailers for sale through its website at www.homedepot.com.

115. On information and belief, Altocraft offered to supply Home Depot with

counterfeit trailers at a significantly lower cost than Trailers Intl’s UtilityMate® trailers.

116. Home Depot initially offered counterfeit Altocraft trailers for sale at a

significantly lower price than Trailers Intl sells genuine UtilityMate® trailers. However, since

Altocraft successfully substituted its counterfeit products in place of genuine Trailers Intl

products, the price of counterfeit Altocraft trailers offered by Home Depot has steadily risen.

117. Home Depot’s sales of counterfeit Altocraft trailers have caused damage to

Trailers Intl in the form of reduced sales and lost profits.

118. Despite Home Depot’s actual knowledge, Home Depot continues to offer

counterfeit Altocraft trailers for sale on its website today. See, e.g., Figure 6, below.


COMPLAINT Page 23

Figure 6.

Sears’ and K-Mart’s Infringement

119. Sears and K-Mart, at one time, were authorized to sell, and did in fact sell,

genuine Trailers Intl UtilityMate® trailers through their websites. (Figure 7.)


COMPLAINT Page 24

Figure 7: Website captures of Sears’ and K-Mart’s genuine UtilityMate® listings, circa 2012.

120. Sears and K-Mart acquired genuine UtilityMate® trailers from a Trailers Intl

authorized distributor, Scotsco, Inc. (“Scotsco”). Scotsco had an agreement with Trailers Intl by

which genuine Trailers Intl trailers would be supplied to Scotsco, and Scotsco would distribute

the genuine trailers to retailers such as Sears, K-Mart, and WalMart.

121. On information and belief, Altocraft had knowledge of Trailers Intl’s agreement

with Scotsco. On further information and belief, Altocraft offered to supply Sears and K-Mart

with counterfeit trailers at a significantly lower cost than they paid for Trailers Intl’s genuine

UtilityMate® trailers.

122. By December 2012, Sears and K-Mart were selling Altocraft’s counterfeit trailers

on their websites. Sears and K-Mart used Webb’s copyrighted images and descriptions on their

counterfeit Altocraft trailer web pages. At some time, Sears and K-Mart stopped buying genuine

UtilityMate® trailers.


COMPLAINT Page 25

Figure 8: Captures showing UtilityMate® trailers as sold out (above), and Altocraft counterfeit trailers offered for sale using Webb’s “4 in 1” trademark and copyrighted material (below).

123. Within a matter of months, Sears and K-Mart had completely replaced Trailers

Intl’s genuine UtilityMate® trailers in favor of Altocraft’s counterfeit trailers, and searches for

UtilityMate® trailers on the Sears and K-Mart websites only returned listings for Altocraft’s

counterfeit trailers. (Figure 9.)


COMPLAINT Page 26

Figure 9: A counterfeit Altocraft trailer returned by a search for Trailers Intl’s trailer. The counterfeit listing uses Webb’s “4 in 1”® trademark and copyrighted product description.

124. Sears’ and K-Mart’s sales of counterfeit Altocraft trailers have caused damage to

Trailers Intl in the form of reduced sales and lost profits.

Port of Portland U.S. Customs and Border Protection Seizure

125. In October 2012, U.S. Customs and Border Protection (“CBP”) informed Webb

that a shipment of suspected infringing trailers from China had attempted entry at the Port of

Portland. The declared manufacturer of the suspect trailers was Jumbo.

126. The container of trailers arrived at the Port of Portland on October 29, 2012, and

was detained and examined by CBP shortly thereafter. During the first week of December 2012,

CBP officers provided Webb with photographs of the suspect trailers for review. The suspect

trailers were clearly marked with Webb’s trademarks. Moreover, Webb observed multiple

indications that the suspect trailers were not genuine UtilityMate® trailers, including the overall

inferior quality of the suspect trailers compared to the quality of genuine UtilityMate® trailers.

For example, the trailer lights on the suspect trailers were not LED lights, and those trailers had

bare wiring not housed in an insulated harness.


COMPLAINT Page 27

127. Webb submitted an affidavit to CBP on December 11, 2012, in which he provided

details explaining why the trailers were not genuine UtilityMate® trailers. Webb subsequently

received a letter from CBP dated December 18, 2012, informing him that CBP seized the suspect

trailers on December 13, 2012, under case number 2013-2904-000018, because the trailers bore

marks that constituted counterfeit copies of Webb’s registered UtilityMate® trademark.

128. In January 2013, Steven Resch wrote to Trailers Intl urging Webb to authorize the

release of the seized counterfeit trailers at the Port of Portland.

129. In February 2013, Orrin Lundy sent an e-mail to Webb requesting the release of

the counterfeit trailers seized at the Port of Portland.

130. Lundy is the President of Trailer World.

131. Lundy had ordered the shipment of counterfeit trailers seized at the Port of

Portland.

132. Trailer World was listed as the importer of record of the counterfeit trailers seized

at the Port of Portland.

133. Lundy, through his company Trailer World, is an importer and distributor of

trailers, and a previous violator of Webb’s intellectual property rights.

134. In 2011, Lundy and Trailer World entered into a settlement agreement with Webb

in resolution of the prior dispute concerning Lundy’s and Trailer World’s importation of

counterfeit utility trailers made from Webb’s designs.

135. In the agreement, Lundy and Trailer World expressly agreed that in the future

neither would purchase any trailers that infringed Webb’s intellectual property. In exchange,

Webb agreed to release Lundy and Trailer World from any liability stemming from their

infringement of his intellectual property rights up to the date of the settlement.


COMPLAINT Page 28

136. Lundy’s and Trailer World’s 2012 attempt to import counterfeit trailers

constituted a breach of the settlement agreement with Webb.

137. In its February 2013 e-mail, Lundy acknowledged the settlement agreement with

Webb, claiming that he had not intended to once again purchase infringing trailers. Lundy

further stated that he had relied on the representation of Steven Resch in August, 2012, that

Webb was no longer in the trailer business.

138. According to Lundy, Resch represented that at the time of the offer Trailers Intl

(as its predecessor UtilityMate) still had a valid agreement with Jumbo, and that the counterfeit

trailers were genuine UtilityMate® trailers that Jumbo was offering as a closeout.

139. Resch knowingly made these false statements to Lundy.

140. Resch had actual knowledge of Webb’s registered trademarks and copyrights.

141. Resch had actual knowledge that at the time of the sale to Lundy, Jumbo did not

have the right to make, import or sell trailers using Webb’s designs or marks.

142. Resch has offered and continues to offer to supply counterfeit trailers

manufactured by Jumbo to buyers across the United States.

143. Resch makes false representations that cause others to violate Webb’s intellectual

property rights.

Undercover Purchase and Miami Customs and Border Protection Seizure

144. After U.S. Customs and Border Protection seized the counterfeit trailers at the

Port of Portland, Webb researched shipping data on the PIERS commercial trade database at

www.piers.com (“PIERS”) in search of additional unauthorized shipments by Jumbo.

145. The PIERS reports revealed that Jumbo had continued to import unauthorized

containers of trailers. The PIERS reports further revealed that Altocraft was the importer of


COMPLAINT Page 29

many of the unauthorized containers from Jumbo, despite Webb’s demand that Altocraft cease

and desist its infringing activity.

146. Webb retained a private investigator to investigate Altocraft. In January 2013,

Webb’s investigator met with Altocraft’s principal, Xuefeng “James” Zhang, at Altocraft’s

warehouse in Miami, Florida, and purchased two counterfeit trailers from the warehouse.

147. Altocraft’s warehouse inventory included stacks of boxed counterfeit trailers.

(Figure 10.) The package art of the unassembled trailers displayed Webb’s registered

UtilityMate®, BUILD IT AND SAVE®, and 4 in 1® trademarks, as well as Webb’s copyrighted

material. (Figure 11.)

Figure 10: Stacks of boxed counterfeit trailers inside Altocraft’s Miami, Florida warehouse.


COMPLAINT Page 30

Figure 11: Boxed counterfeit trailers with labels bearing Webb’s registered marks and copyrighted material.

148. Zhang provided Webb’s investigator with a counterfeit “Jumbo” product catalog

nearly identical to Trailers Intl’s authentic UtilityMate® catalog. The counterfeit catalog

contained Webb’s registered trademarks and copyrighted material throughout. (Figure 12.)

AUTHENTIC COUNTERFEIT

Figure 12.


COMPLAINT Page 31

149. Webb’s investigator purchased a UtilityMate® 4 in 1® trailer (UM5806) and an

“Altocraft” 4 in 1® trailer directly from Altocraft’s warehouse. The Altocraft package bore a

crudely affixed label attempting to cover any reference to Trailers Intl’s brand. (Figure 13.)

Figure 13. Altocraft labels affixed to packages to conceal UtilityMate® information on counterfeit trailers purchased by Webb’s investigator (left) and on counterfeit trailers seized by Customs and Border Protection (right).

150. Altocraft employees helped Webb’s investigator load the counterfeit trailers into a

moving truck. (Figure 14.)


COMPLAINT Page 32

Figure 14: Loading the counterfeit trailers into the moving truck.

151. Altocraft was even using a counterfeit trailer bearing Webb’s registered

UtilityMate® trademark at its warehouse at the time of the investigator’s purchase. (Figure 15.)

Figure 15.

152. Following the investigator’s purchase of counterfeit trailers from Altocraft, Webb

provided an intellectual property product identification guide to U.S. Customs and Border

Protection to help law enforcement officers identify Webb’s registered trademarks and

copyrights, and identify infringing shipments of imported products. The guide provided details

regarding Webb’s registered marks, copyrighted material, genuine packaging, products, and

product registration material.


COMPLAINT Page 33

153. In August 2013, CBP informed Webb it was reviewing a suspect shipment of

trailers. Per photographs provided by CBP to Webb, CBP’s examination of the suspect shipment

revealed that the shipping cartons containing the suspect trailers bore Webb’s UtilityMate®

trademark, but the label bearing Webb’s mark was either concealed behind another label,

crossed-out by black marker (e.g., Figure 16), or removed and replaced with another label.

Figure 16: Webb’s and Trailers Intl’s UtilityMate name and model number crossed out with black marker and replaced with a counterfeit “Altocraft” model number.

154. Webb submitted an infringement analysis to CBP on August 16, 2013 in which he

provided details explaining why the trailers were not genuine UtilityMate® trailers. On October

15, 2013, CBP informed Webb that it had seized a container of trailers under case number 2013-

5201-001147 because the trailers bore marks that constituted counterfeit copies of Webb’s

registered UtilityMate® trademark. The seized trailers also bore Webb’s registered copyrighted

safety sticker on the trailer tongue.1 (Figure 17.) The seized container of counterfeit trailers was

destined for Altocraft’s warehouse.

1 To date, every counterfeit Altocraft trailer seized by CBP has borne Webb’s copyrighted safety sticker.


COMPLAINT Page 34

Figure 17: Webb’s copyrighted safety sticker on a counterfeit trailer seized by CBP in Miami.

155. Altocraft has actual knowledge of Webb’s registered trademarks and copyrights.

156. Altocraft has actual knowledge that its activities constitute violations of Webb’s

intellectual property rights.

157. Altocraft has actual knowledge of Webb’s demand that Altocraft cease and desist

its infringing activities.

158. Altocraft has imported and continues to import counterfeit trailers into the United

States for sale and distribution across the United States. The counterfeit trailers Altocraft

imports and distributes are manufactured using Webb’s and Trailers Intl’s designs, use Webb’s

and Trailers Intl’s marks, and are accompanied by documentation which infringes Webb’s

federally registered copyrights and trademarks.

159. Altocraft attempts to remove Webb’s UtilityMate® and UtilitySport® marks from

the packaging for the counterfeit trailers it imports and distributes.

160. Many customers who order Altocraft trailers receive products bearing Webb’s

marks. The counterfeit trailers are shipped with counterfeit licensing and registration documents

that improperly use Trailers Intl’s valid and unique World Manufacturer Identifier prefix.

161. Altocraft informs customers that Altocraft and Trailers Intl are the same company,

and that there is no difference between Altocraft and Trailers Intl products.

162. Altocraft offers to license counterfeit trailers for customers.


COMPLAINT Page 35

163. Altocraft has offered to license counterfeit trailers in this district for customers

located in this district.

164. Altocraft imports, offers for sale, sells, and distributes counterfeit trailers across

the United States.

165. Altocraft’s counterfeit trailers are sold in direct competition with genuine

UtilityMate® and UtilitySport® trailers, but at significantly lower prices.

166. Altocraft sells the counterfeit trailers at a lower price because they are

manufactured from parts and materials that are inferior to those used in genuine Trailers Intl

trailers.

167. Altocraft induces others to infringe Webb’s registered trademarks and copyrights

by supplying counterfeit trailers to retailers across the United States for resale.

168. Webb and Trailers Intl have been, and continue to be, harmed by Defendants’ past

and continued manufacture, import, offers for sale, sale, and distribution of counterfeit trailers.

169. Defendants’ infringement has caused economic harm to Trailers Intl in the form

of reduced sales and lost profits.

170. Defendants’ infringement has caused customer confusion, has damaged Webb’s

and Trailers Intl’s reputation for offering a quality product, and has put customers at risk of

physical harm due to the inferior craftsmanship of the counterfeit trailers.

171. Webb or Trailers Intl face increased risk of complaints and suits as a direct result

of Defendants’ activities related to the importation, sale, and distribution of counterfeit trailers.


COMPLAINT Page 36

Additional Examples of Defendants’ Infringement

172. Defendants’ violations of Webb’s intellectual property rights are ongoing and

pervasive. The paragraphs that follow are intended as merely a representative sample of

Defendants’ infringement.

173. Jumbo illegally uses Webb’s and Trailers Intl’s design, drawings, blueprints, and

tooling to manufacture and advertise counterfeit Trailers Intl trailers for export and sale,

including into and across the United States. (Figure 18, below.)

Figure 18: Jumbo’s website displaying the counterfeit trailers it manufactures.

174. Altocraft imports, offers for sale, sells, and distributes counterfeit utility trailers

that are nearly identical to genuine Trailers Intl utility trailers.

175. Altocraft advertises the infringing trailers using photographs and descriptions that

are identical in appearance or confusingly similar to those Webb and Trailers Intl use on their

websites, and that infringe Webb’s registered copyrights and trademarks. See Figures 1-2,

above, and Figures 19-20, below, for examples of Altocraft’s infringement.


COMPLAINT Page 37

AUTHENTIC INFRINGING

Figure 19: Captures from Webb’s and Trailers Intl’s websites (left) and Altocraft’s website (right) displaying nearly identical images, model numbers, descriptions, and specifications.

AUTHENTIC INFRINGING

Figure 20: Webb’s and Trailers Intl’s websites (left) and Altocraft’s website (right) displaying nearly identical images, model numbers, specifications, and using Webb’s “4 in 1” trademark.

176. Through its website, Altocraft makes available for download manuals, guides, and

other documentation related to utility trailers that contain text and images that violate Webb’s

registered copyrights and trademarks. (Figure 21.)


COMPLAINT Page 38

AUTHENTIC

INFRINGING

Figure 21: Webb’s and Trailers Intl’s website (left) and Altocraft’s website (right) displaying Webb’s and Trailers Intl’s copyrighted manuals, which bear Webb’s UtilitySport® trademark.

177. For example, the AT6096 Assembly Guide downloaded from Altocraft’s website

contains a nearly identical wiring diagram to that in Webb’s and Trailers Intl’s copyrighted

manuals. (Figure 22.)


Figure 22: Nearly identical wiring diagrams contained in many of Webb’s and Trailers Intl’s copyrighted manuals (left), and in manuals available for download from Altocraft (right).

178. Figure 10 of Altocraft’s AT6096 Assembly Guide displays an identical image of a

VIN tag on a trailer tongue as used in many of Webb’s and Trailers Intl’s copyrighted materials.


COMPLAINT Page 39

The pictured VIN tag displays UTILITYMATE LLC as the manufacturer. The first three digits

of the VIN number are “52Z,” Trailers Intl’s unique World Manufacturer Identifier. (Figure 23.)

Figure 23: Figure 10 from Altocraft’s AT6096 Assembly Guide, downloaded from Altocraft’s website. The VIN tag on the trailer tongue lists UTILITYMATE LLC as the manufacturer, and uses Trailers Intl’s unique, three-digit, WMI prefix in the VIN number.

179. Altocraft uses Trailers Intl’s “52Z” WMI to create counterfeit vehicle registration

documents, including counterfeit VIN tags, which it imports with its counterfeit trailers.

180. Altocraft is not authorized to manufacture, import, offer for sale, sell, distribute,

or otherwise deal in trailers made from Webb’s and Trailers Intl’s designs.

181. Home Depot offers for sale and sells counterfeit utility trailers that are nearly

identical to genuine Trailers Intl utility trailers.

182. Home Depot advertises the counterfeit trailers using photographs, product

numbers, and descriptions that are identical or confusingly similar to those Webb and Trailers

Intl use on their websites, and that infringe Webb’s registered copyrights and trademarks. See

Figure 6, above, and Figure 24, below, for examples of Home Depot’s infringement.


COMPLAINT Page 40

INFRINGING (Home Depot)

AUTHENTIC (UtilityMate®)

Figure 24: Home Depot AT5288M product page (top) displaying a nearly identical trailer image to Trailers Intl’s UM5806 trailer (bottom), and using Webb’s “4 in 1” trademark and copyrighted text in the product overview section.

183. Home Depot’s sales and distribution of counterfeit trailers bearing Webb’s

trademarks and which appear identical to Webb’s and Trailers Intl’s designs causes customer

confusion. The customer reviews on Home Depot’s website reflect that customers receive

different trailers than they order. A customer image uploaded to Home Depot’s website shows

the customer received a counterfeit “Altocraft” trailer bearing Webb’s UtilityMate® trademark.

(http://homedepot.ugc.bazaarvoice.com/1999m/284719/photo.jpg; See also Figure 25.)


COMPLAINT Page 41

COUNTERFEIT (received by customer) AUTHENTIC

Figure 25: Customer image (left) of “Altocraft” trailer which appears to bear Webb’s UtilityMate® mark. Compare to trademark location on Trailers Intl’s UD4872 trailer (right).

184. Through its website, Home Depot offers for download manuals, guides, and other

documentation related to utility trailers that violate Webb’s copyrights and infringe on his

trademarks, and in some cases even contain photographs of products bearing Webb’s and

Trailers Intl’s trademarked UtilityMate® brand name.

185. For example, the AT6096 Assembly Guide downloaded from Home Depot’s

website at http://www.homedepot.com/catalog/pdfImages/62/622d9d9c-e687-43f5-bdf3-

426a04ff2489.pdf contains a nearly identical wiring diagram to that in Webb’s and Trailers Intl’s

copyrighted manuals. (Figure 26.)


COMPLAINT Page 42


Figure 26: Nearly identical wiring diagrams contained in many of Webb’s and Trailers Intl’s copyrighted manuals (left), and in manuals available for download from Home Depot (right).

186. Figure 10 of the Altocraft AT6096 Assembly Guide downloaded from Home

Depot’s website displays an identical image of a VIN tag on a trailer tongue as displayed in

many of Webb’s and Trailers Intl’s copyrighted materials. The pictured VIN tag displays

UTILITYMATE LLC as the manufacturer. The first three digits of the VIN number are “52Z,”

Trailers Intl’s unique World Manufacturer Identifier. (Figure 27.)

Figure 27: Figure 10 from Altocraft’s AT6096 Assembly Guide, downloaded from Home Depot’s website. The VIN tag on the tongue lists UTILITYMATE LLC as the manufacturer.


COMPLAINT Page 43

187. By its sales and distribution of counterfeit trailers, Home Depot distributes to

customers counterfeit vehicle registration documents, including counterfeit VIN tags.

188. Home Depot makes available for download through its website, e.g., at

http://www.homedepot.com/catalog/pdfImages/f8/f865bab1-c6a4-49d9-95fa-eeb236efc9eb.pdf,

trailer licensing instructions that are copied verbatim from Webb’s and Trailers Intl’s registered

copyrighted websites. (Figure 28.)

Text copied verbatim from Plaintiffs’ websites (left).

Figure 28.

189. Home Depot causes customers to register counterfeit trailers purchased from

Home Depot using counterfeit registration documents which incorrectly name UtilityMate as the

manufacturer of the counterfeit trailers.

190. Home Depot is not authorized to manufacture, import, offer for sale, sell,

distribute, or otherwise deal in trailers made from Webb’s and Trailers Intl’s designs.

191. Sears offered for sale and sold counterfeit utility trailers that were nearly identical

to genuine Trailers Intl utility trailers.


COMPLAINT Page 44

192. Sears advertised the counterfeit utility trailers using photographs, product

numbers, and descriptions identical or confusingly similar to those Webb or Trailers Intl use on

their websites, and that infringe Webb’s registered copyrights and trademarks.

Figure 29: Captures from Sears’ website displaying trailer images and text nearly identical to Webb’s copyrighted images and text, and displaying Webb’s “4 in 1®” trademark.

193. Sears has actual knowledge of Webb’s registered trademarks and copyrights.

194. Sears is not authorized to manufacture, import, offer for sale, sell, distribute, or

otherwise deal in counterfeit trailers made from Webb’s and Trailers Intl’s designs.

195. K-Mart offered for sale and sold counterfeit utility trailers that were nearly



COMPLAINT Page 45

196. K-Mart advertised the counterfeit utility trailers using photographs, product

numbers, and descriptions identical or confusingly similar to those Webb and Trailers Intl use on

their websites, and that infringe Webb’s registered copyrights and trademarks.

Figure 30: Captures from K-Mart’s website displaying trailer images and text nearly identical to Webb’s copyrighted images and text, and displaying Webb’s “4 in 1®” trademark.

197. K-Mart is not authorized to manufacture, import, offer for sale, sell, distribute, or

otherwise deal in counterfeit trailers made from Webb’s and Trailers Intl’s designs.


COMPLAINT Page 46

198. PED offers for sale and sells counterfeit utility trailers that are nearly identical to

genuine Trailers Intl utility trailers.

199. PED advertises the infringing trailers using photographs, brand names,

descriptions, and model numbers identical or confusingly similar to those Webb and Trailers Intl

use on their websites, and that infringe Webb’s registered copyrights and trademarks. See

Figures 31 and 32.

Figure 31: Capture from PED’s website displaying trailer image and model number nearly identical to Webb’s copyrighted images and model numbers.

Figure 32: Capture from PED’s website displaying trailer image and model number nearly identical to Webb’s copyrighted images and model numbers and using variations of Webb’s UtilitySport® and UtilityDump™ trademarks.


COMPLAINT Page 47

200. PED has actual knowledge of Webb’s registered trademarks and copyrights.

201. PED is not authorized to manufacture, import, offer for sale, sell, distribute, or

otherwise deal in trailers made from Webb’s and Trailers Intl’s designs.

202. Global Industrial offers for sale and sells counterfeit utility trailers that are nearly


203. Global Industrial advertises the counterfeit trailers using photographs and

descriptions identical or confusingly similar to those Webb and Trailers Intl use on their

websites, and that infringe Webb’s registered copyrights and trademarks. See Figure 33, below.

Figure 33: Capture from Global Industrial’s website displaying trailer images and text nearly identical to Webb’s copyrighted images and text, and displaying Webb’s “4 in 1®” trademark.

204. Global Industrial is not authorized to manufacture, import, offer for sale, sell,


205. Build.com offered for sale and sold counterfeit utility trailers that are nearly



COMPLAINT Page 48

206. Build.com advertised the counterfeit trailers using photographs and model

numbers nearly identical to those Webb and Trailers Intl use on their websites, and that infringe

Webb’s registered copyrights.

Figure 34: Capture from Build.com’s website displaying trailer image and model number nearly identical to Webb’s copyrighted material.

207. Build.com is not authorized to manufacture, import, offer for sale, sell, distribute,

or otherwise deal in trailers made from Webb’s and Trailers Intl’s designs.

208. Sky Distributors offers for sale and sells counterfeit utility trailers that are nearly


209. Sky Distributors advertises the counterfeit trailers using photographs and

descriptions identical or confusingly similar to those Webb and Trailers Intl use on their

websites, and that infringe Webb’s registered copyrights and trademarks. See Figure 35, below.


COMPLAINT Page 49

Figure 35: Sky Distributors’ website captures displaying images and text copied from Webb’s copyrighted images and text, and using Webb’s registered and common law trademarks.

210. Sky Distributors is not authorized to manufacture, import, offer for sale, sell,


CLAIM ONE – COPYRIGHT INFRINGEMENT

(Against all Defendants)

211. Webb and Trailers Intl repeat and reallege each of the allegations contained in

paragraphs 1 through 210 above as if fully set forth herein.

212. Defendants’ acts constitute copyright infringement in violation of 17 U.S.C. §

501.

213. Webb is the author and copyright holder of copyrighted material for his utility

trailers. Webb has registered the owner’s manual and contents, web site, product catalog, sales

material and package artwork associated with his utility trailers with the U.S. Copyright Office.


COMPLAINT Page 50

214. Webb has complied with 17 U.S.C. § 101 et seq., and has secured the exclusive

rights and privileges in and to the copyrights of the owner’s manual and contents, web site,

product catalog, sales material and package artwork associated with his utility trailers. Webb is,

and has been, the sole owner of the rights, title, and interest in and to the copyrights in their

respective works as referenced above.

215. Trailers Intl is the exclusive licensee of Webb’s intellectual property, including

Webb’s federally registered copyrights.

216. Each Defendant distributed utility trailers that included manuals containing

Webb’s and Trailers Intl’s copyrighted material.

217. Home Depot’s, Sears’, K-Mart’s, Build.com’s, Global Industrial’s Power

Equipment Direct’s, Sky Distributors’, and Jumbo’s websites displayed Webb and Trailers Intl’s

copyrighted images.

218. Defendants’ activities described hereinabove violate Webb’s and Trailers Intl’s

exclusive rights and privileges, conferred pursuant to 17 U.S.C. § 101 et seq., including without

limitation 17 U.S.C. § 106, of Webb’s registered copyright in the owner’s manual and contents,

web site, product catalog, sales material and package artwork associated with Trailers Intl utility

trailers.

219. Defendants have realized and continue to realize profits and other benefits

rightfully belonging to Webb or Trailers Intl as a result of their violations of Webb’s and Trailers

Intl’s exclusive rights in the copyrighted material.

220. Defendants’ violations of Webb’s and Trailers Intl’s exclusive rights in his

copyrighted material has caused and is likely to cause Webb and Trailers Intl to sustain monetary

damages, loss, and injury in an amount to be determined in this action.


COMPLAINT Page 51

221. Defendants’ use of Webb’s copyrighted material is without Webb’s and Trailers

Intl’s consent or permission.

222. Defendants’ violations of Webb’s and Trailers Intl’s exclusive rights in his

copyrighted material was made with actual or constructive knowledge of Webb’s and Trailers

Intl’s exclusive rights. Webb and Trailers Intl are therefore entitled to the maximum damages

allowable.

CLAIM TWO – TRADEMARK INFRINGEMENT




224. Defendants’ acts constitute trademark infringement in violation of 15 U.S.C. §

1114(1).

225. Webb’s UtilityMate®, UtilitySport®, BUILD IT AND SAVE®, and 4 in 1®

trademarks are valid, federally registered trademarks owned by Webb.

226. The registration of Webb’s marks on the Principal Register constitutes prima facie

evidence of the validity of Webb’s marks, as well as Webb’s ownership and exclusive rights to

use the marks in commerce, pursuant to 15 U.S.C. § 1115.


Webb’s federally registered trademarks.

228. Webb and Trailers Intl, as the owner and licensee of all right, title, and interest to

the registered marks, have standing to maintain an action for trademark infringement under 15

U.S.C. § 1114.

229. Webb and Trailers Intl have continuously used the UtilityMate®, UtilitySport®,

and 4 in 1® marks in commerce for the sale of utility trailers since at least 2005. And, Webb and


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Trailers Intl have continuously used the BUILD IT AND SAVE® mark in commerce for the sale

of utility trailers since at least 2009.

230. Defendants have used and continue to use Webb’s federally registered marks in

connection with the sale of utility trailers, which is identical to the goods in connection with

which Webb and Trailers Intl use and have used the federally registered marks since at least

2005 and 2009, respectively, and to the goods listed in Webb’s incontestable Federal

Registration for his federally registered marks.

231. Each Defendant sold utility trailers bearing Webb and Trailers Intl’s marks.

232. Defendants’ use of Webb’s federally registered marks as alleged above has

caused, and is likely to further cause confusion, mistake, or deception as to the source, or

approval of the products and services of Defendants in that others are likely to believe that

Defendants’ goods and services are in some way legitimately connected with, sponsored or

licensed by, or otherwise related to Webb and Trailers Intl.

233. Defendants’ use of Webb’s federally registered marks is without Webb’s and

Trailers Intl’s consent or permission.

234. Defendants’ infringement has caused and is likely to cause damage to Webb’s and

Trailers Intl’s reputation and goodwill among consumers and will divert sales and opportunities

away from Trailers Intl and to Defendants.

235. Defendants’ acts of trademark infringement, unless enjoined, are likely to cause

Webb and Trailers Intl to sustain monetary damages, loss, and injury in an amount to be

determined in this action.

236. Webb and Trailers Intl are without an adequate remedy at law because

Defendants’ infringement of Webb’s federally registered marks has caused irreparable injury to


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Webb and Trailers Intl, and unless said acts are enjoined by this Court, they will continue and

Webb and Trailers Intl will continue to suffer irreparable injury.

237. Defendants’ violations of Webb’s and Trailers Intl’s exclusive rights in the

federally registered marks are with actual or constructive knowledge of Webb’s and Trailers


allowable.

CLAIM THREE – TRADEMARK COUNTERFEITING




239. Defendants’ acts constitute trademark counterfeiting in violation of 15 U.S.C. §

1114(1) and 1116(d).


marks are valid, federally registered marks owned by Webb.








Trailers Intl have continuously used the BUILD IT AND SAVE® mark in commerce for the

sale of utility trailers since at least 2009.


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244. Defendants have used and continue to use marks that are identical to or

indistinguishable from Webb’s federally registered marks in connection with the sale of utility

trailers, which use is identical to the goods in connection with which Webb and Trailers Intl use

and have used the federally registered marks since at least 2005 and 2009, respectively, and to

the goods listed in Webb’s incontestable Federal Registration for the federally registered marks.

245. Defendants have used marks that are identical to or indistinguishable from

Webb’s federally registered marks knowing that they are counterfeit in connection with the

advertisement, promotion, offer for sale, sale, and distribution of utility trailers

246. Defendants’ use of Webb’s federally registered marks in commerce as alleged

herein has caused and is likely to cause confusion, mistake, or deception as to the affiliation,

connection, or association of Defendants with Webb and Trailers Intl or as to the origin or

approval of the products of Defendants and those of Webb and Trailers Intl, and misrepresents

the nature, characteristics, and qualities of these products.



248. Defendants’ activities have caused and are likely to cause damage to Webb’s and


away from Webb and Trailers Intl and to Defendants.

249. Defendants’ acts of trademark counterfeiting have caused, and, unless enjoined,

are likely to further cause Webb and Trailers Intl to sustain monetary damages, loss, and injury

in an amount to be determined in this action.


Defendants’ use of Webb’s federally registered marks has caused irreparable injury to Webb and


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Trailers Intl, and unless said acts are enjoined by this Court, they will continue and Webb and

Trailers Intl will continue to suffer irreparable injury.




allowable.

CLAIM FOUR – FALSE DESIGNATION OF ORIGIN


252. Webb and Trailers Intl repeat and realleges each of the allegations contained in


253. Defendants’ acts constitute false designation of origin in violation of 15 U.S.C. §

1125(a)(1).













COMPLAINT Page 56


connection with the importation and sale of utility trailers into and across the United States,

which is identical to the goods in connection with which Webb and Trailers Intl use and have

used the federally registered marks since at least 2005 and 2009, respectively, and to the goods

listed in Webb’s incontestable Federal Registration for his federally registered marks.

259. Defendants’ use of Webb’s federally registered marks has caused and is likely to

cause confusion, mistake, or deception as to the source, affiliation, or approval of the goods and

services of Defendants because others are likely to believe that Defendants’ goods and services

in some way are connected with, licensed by, associated with, affiliated with, or otherwise

related to Webb and Trailers Intl.





away from Webb and Trailers Intl and to Defendants.

262. Defendants’ acts which constitute false designation of origin have caused, and,

unless enjoined, are likely to further cause Webb and Trailers Intl to sustain monetary damages,

loss, and injury in an amount to be determined in this action.






COMPLAINT Page 57




allowable.

CLAIM FIVE – UNFAIR COMPETITION (PASSING OFF)

(Against All Defendants)



266. Defendants’ acts constitute unfair competition in violation of 15 U.S.C. §

1125(a)(1).












271. Defendants import, offer for sale, sell, and distribute utility trailers across the

United States.


COMPLAINT Page 58

272. Defendants represent to potential and actual customers that the utility trailers

Defendants import, offer for sale, sell, and distribute across the United States are Altocraft brand.

273. Customers who order Altocraft trailers receive trailers that bear Webb’s federally

registered trademarks, and which are packaged with documentation that consists of Webb’s

federally registered copyrighted material and includes licensing and registration certificates

bearing Trailers Intl’s predecessor business name and World Manufacturer Identifier.


connection with the importation and sale of utility trailers into and across the United States,

which is identical to the goods in connection with which Webb and Trailers Intl use and have

used the federally registered marks since at least 2005 and 2009, respectively, and to the goods

listed in Webb’s incontestable Federal Registration for the federally registered marks.

275. Defendants’ use of Webb’s federally registered marks has caused and is likely to

cause confusion, mistake, or deception as to the source, affiliation, or approval of the goods and

services of Defendants because others are likely to believe that Defendants’ goods and services

in some way are connected with, licensed by, associated with, affiliated with, or otherwise

related to Webb and Trailers Intl.

276. Defendants’ use of Webb’s federally registered marks is without Webb’s or




away from Trailers Intl and to Defendants.


COMPLAINT Page 59

278. Defendants’ acts which constitute “passing off” unfair competition have caused,

and, unless enjoined, are likely to further cause Webb and Trailers Intl to sustain monetary

damages, loss, and injury in an amount to be determined in this action.








allowable.

CLAIM SIX – COMMON LAW FRAUD

(Against Defendant Steven Resch)

281. Webb and Trailers Intl repeats and realleges each of the allegations contained in


282. In August 2012, Resch falsely represented to Lundy and Trailer World that

Webb’s and Trailers Intl’s trailer business had shut down.

283. In August 2012, Resch falsely represented to Lundy and Trailer World that

genuine UtilityMate® trailers were available at closeout prices.

284. In August 2012, Resch falsely represented to Lundy and Trailer World that the

manufacturing agreement between Trailers Intl and Jumbo was valid and not terminated.

285. Resch made the representations listed above knowing that each such

representation was false.


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286. Resch knowingly made the false representations listed above with the intent to

induce Lundy and Trailer World to purchase and import counterfeit trailers.

287. Lundy purchased and Trailer Word imported a carton of counterfeit trailers in

reliance on the false representations made by Resch.

288. Webb learned of the false representations made by Resch on February 17, 2013,

through an e-mail Lundy sent to Webb.

289. Resch’s false representations caused damage to Webb and Trailers Intl in the form

of reduced sales and lost profits, and by interjecting competing counterfeit trailers into the

marketplace in which Trailers Intl participates.

290. Resch’s conduct relating to the sale of counterfeit trailers as described above

constitutes common law fraud.

CLAIM SEVEN – COMMON LAW COMMERCIAL DISPARAGEMENT

(Against Defendants Altocraft and Xuefeng Zhang)



292. In August 2014, Altocraft falsely represented to a customer that Altocraft and

UtilityMate are the same company.

293. In August 2014, Altocraft falsely represented to a customer that there is no

difference between Altocraft and UtilityMate® trailers.

294. In August 2014, Altocraft falsely represented to a customer that Altocraft is the

name of its new model trailers, and that UtilityMate® is just the old model of the same trailers.

295. Altocraft made the representations listed above knowing that each such

representation was false.


COMPLAINT Page 61

296. Altocraft made the false representations listed above with the intent and

knowledge that such false statements would result in harm to Webb and Trailers Intl.

297. Altocraft’s false statements result in the sale of counterfeit Altocraft trailers

instead of genuine Trailers Intl trailers because customers believe the trailers to be the same.

298. Altocrat and Zhang have in the past, and continue to, falsely represent to

customers that Altocraft and Trailers Intl are the same company.

299. Altocraft and Zhang have in the past, and continue to, falsely represent to

customers that Altocraft and Trailers Intl make the same products.

300. Altocraft and Zhang make such false representations knowing that they are false.

301. Altocraft and Zhang make such false representations with the intent and

knowledge that such false statements will result in harm to Webb and Trailers Intl.

302. Altocraft trailers are manufactured from parts and materials that are inferior to

those used in genuine Trailers Intl trailers.

303. Altocraft’s and Zhang’s false statements have resulted in harm to Webb and

Trailers Intl in the form of damage to reputation, reduced sales, and lost profits.

304. Altocraft’s and Zhang’s conduct relating to the sale of counterfeit trailers as

described above constitutes common law commercial disparagement.

CLAIM EIGHT – BREACH OF CONTRACT

(Against Defendants Orrin Lundy and Trailer World)



306. Webb entered into a settlement agreement with Orrin Lundy and Trailer World on

August 12, 2011.


COMPLAINT Page 62

307. By the settlement agreement, Webb released Lundy and Trailer World from any

claims arising from any acts of infringement of Webb’s intellectual property by Lundy or Trailer

World committed on or before the date of the settlement agreement.

308. By the settlement agreement, Lundy and Trailer World agreed not to purchase at

any time in the future trailers that in any way infringe any of Webb’s intellectual property rights.

309. Webb has not brought any claims against Lundy or Trailer World arising from

any acts of infringement of Webb’s intellectual property committed on or before the date of the

settlement agreement.

310. To date, Webb has not breached the settlement agreement, and has fully

performed his obligations under the settlement agreement.

311. On or about August 1, 2012, Lundy purchased a container of counterfeit trailers

that violated Webb’s trademark rights and copyrights.

312. Lundy’s purchase of the counterfeit trailers constitutes a breach of the settlement

agreement.

313. Lundy’s breach of the settlement agreement has caused damaged to Webb and

Trailers Intl in the form of reduced sales and lost profits, and by interjecting competing

counterfeit trailers into the marketplace in which Trailers Intl participates.

314. In or about October 2012, Trailer World caused the importation into this district

of counterfeit trailers that violate Webb’s trademark rights and copyrights.

315. Trailer World’s importation of the counterfeit trailers constitutes a breach of the

settlement agreement.


COMPLAINT Page 63

316. Trailer World’s breach of the settlement agreement has caused damaged to Webb

and Trailers Intl in the form of reduced sales and lost profits, and by interjecting competing

counterfeit trailers into the marketplace in which Trailers Intl participates.

CLAIM NINE – CONVERSION

(Against Defendant Zhuhai Sharp-Group Enterprise Co., Ltd., a/k/a Jumbo)



318. Webb and Trailers Intl own all blueprints, tooling, and dies used to manufacture

genuine Trailers Intl trailers.

319. Upon termination of its agreement with Webb and Trailers Intl, Jumbo was

required to return all blueprints, tooling, dies, and any copies of the same, used to manufacture


320. Jumbo does not have the right to use or possess Webb’s and Trailers Intl’s

blueprints, tooling, and dies, or copies of the same.

321. Jumbo knowingly and illegally has manufactured and continues to manufacture

counterfeit utility trailers using Webb’s and Trailers Intl’s blueprints, tooling, and dies, or copies

of the same.

322. Jumbo tortiously obtained possession of Webb’s and Trailers Intl’s blueprints,

tooling, and dies, or copies of the same, and by its acts of manufacturing counterfeit trailers has

wrongfully converted Webb’s and Trailers Intl’s blueprints, tooling, and dies, or copies of the

same, to its own use and benefit.

323. Jumbo’s activities described hereinabove constitute conversion of Webb’s and

Trailers Intl’s blueprints, tooling, and dies, or copies of the same.


COMPLAINT Page 64

324. Webb and Trailers Intl have been damaged and inconvenienced by Jumbo’s

conversion of their blueprints, tooling, and dies, or copies of the same.

CLAIM TEN – TRADE SECRET MISAPPROPRIATION

(Against Defendant Zhuhai Sharp-Group Enterprise Co., Ltd., a/k/a Jumbo)



326. Webb and Trailers Intl own all blueprints, tooling, and dies used to manufacture


327. Webb’s and Trailers Intl’s blueprints, tooling, and dies used to manufacture

genuine Trailers Intl trailers are Webb’s and Trailers Intl’s secret and proprietary materials.

328. Webb and Trailers Intl only disclose and allow the use of their blueprints, tooling,

and dies used to manufacture genuine Trailers Intl trailers to contract manufacturers that they

authorize.

329. Upon termination of its agreement with Webb and Trailers Intl, Jumbo was no

longer an authorized contract manufactutrer of genuine Trailers Intl trailers, and was required to

return all blueprints, tooling, dies, and any copies of the same, used to manufacture genuine

Trailers Intl trailers.

330. Webb and Trailers Intl demanded that Jumbo return all blueprints, tooling, dies,

and any copies of the same, used to manufacture genuine Trailers Intl trailers.

331. Jumbo does not have the right to use or possess Webb’s and Trailers Intl’s


332. Jumbo knowingly and illegally has used and continues to use Webb’s and Trailers

Intl’s blueprints, tooling, and dies, or copies of the same to manufacture counterfeit trailers.


COMPLAINT Page 65

333. Jumbo’s activities described hereinabove constitute misappropriation of Webb’s

and Trailers Intl’s blueprints, tooling, and dies, or copies of the same.

334. Webb and Trailers Intl have been damaged by Jumbo’s misappropriation of their


PRAYER FOR RELIEF

WHEREFORE, Plaintiffs Vincent L. Webb and Trailers Intl LLC pray for the following

relief:

A. A judgment for Plaintiffs against Defendants that Defendants are liable for

Federal Copyright infringement, Federal Trademark infringement, Federal Unfair Competition

and False Designation of Origin under Federal Law;

B. A judgment for Plaintiffs against Defendant Steven F. Resch that he is liable for

damages caused by common law fraud;

C. A judgment for Plaintiffs against Defendant Altocraft that it is liable for damages

caused by common law commercial disparagement;

D. A judgment for Plaintiffs against Defendant Lundy and Trailer World that Lundy

and Trailer World are liable for damages caused by breach of contract;

E. A judgment for Plaintiffs against Defendant Jumbo that is liable for damages

caused by its conversion of Plaintiffs’ blueprints, tooling, and dies, or copies of the same;

F. A judgment for Plaintiffs against Defendant Jumbo that is liable for damages

caused by its misappropriation of Plaintiffs’ blueprints, tooling, and dies, or copies of the same;

G. A grant of permanent injunction against Defendants enjoining them from using

Plaintiffs’ blueprints, tooling, and dies, or copies of the same;


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H. A grant of permanent injunction against Defendants enjoining them from using

Webb’s federally registered copyrights and trademarks, or any confusingly similar variation

thereof in connection with utility trailers, pursuant to 17 U.S.C. § 502 and 15 U.S.C. § 1116;

I. A judgment awarding Plaintiffs compensatory and/or statutory damages as a

result of Defendants’ actions, together with interest and costs, including enhanced and treble

damages, pursuant to 17 U.S.C. § 504, and 15 U.S.C. § 1117(a)-(d);

J. A judgment awarding Plaintiffs damages in an amount to be determined at trial to

be paid by Steven F. Resch as a result of his fraudulent conduct;

K. A judgment awarding Plaintiffs damages in an amount to be determined at trial to

be paid by Altocraft as a result of its commercial disparagement of Plaintiffs’ products;

L. An award to Plaintiffs of their costs, disbursements, and reasonable attorneys’

fees incurred in this action, together with interest, including prejudgment interest, pursuant to 17

U.S.C. § 505, and 15 U.S.C. § 1117(b), and the equity powers of this Court; and

M. Such other and further relief as may be deemed just and appropriate.

DEMAND FOR JURY TRIAL

Pursuant to Fed. R. Civ. P. 38(b), Plaintiff requests a trial by jury on all issues properly

triable by a jury.

Respectfully submitted,

Dated: January 30, 2015 By: s/ Stephen J. Joncus

Stephen J. Joncus, OSB No. 013072 Email: [email protected] Xavier A. Clark, OSB No. 133287 Email: [email protected]

KLARQUIST SPARKMAN, LLP


COMPLAINT Page 67

121 S.W. Salmon Street, Suite 1600 Portland, Oregon 97204 Telephone: 503-595-5300

Attorneys for Plaintiffs

VINCENT L. WEBB and TRAILERS INTL LLC
