Trailers Intl LLC v. Xiaofei Yang Trademark Complaint

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. XIAOFEI YANG, an individual, Defendant.

Civil No. 15-CV-00767

COMPLAINT FOR COPYRIGHT INFRINGEMENT, TRADEMARK INFRINGEMENT, TRADEMARK COUNTERFEITING, UNFAIR COMPETITION, FALSE DESIGNATION OF ORIGIN, UNFAIR BUSINESS PRACTICES, 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-00767 Document 1 Filed 05/04/15 Page 1 of 40
mailto:[email protected]://sharepoint/pi/lit/WebbvAltocraft/Shared%20Documents/Pleading/[email protected]

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

attorneys, for their Complaint against Defendant XiaoFei Fred Yang (Yang), allege as

follows:

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

counterfeiting, unfair competition, false designation of origin, unfair business practices,

conversion, and trade secret misappropriation. By this action, Webb and Trailers Intl seek (a)

damages arising from Yangs past and present infringement of Webbs trademark rights and

copyrights, and related activities, (b) injunctive relief against Yangs continued importation and

or sale of infringing trailers, and (c) reimbursement of Webbs and Trailers Intls 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 Webbs and Trailers Intls UtilityMate and

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

Jumbo Tools & Equipment (Jumbo) at Yangs direction.

3. Yang is the President and CEO of Jumbo.

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

manufacture trailers for Webbs Company, Trailers Intl (formerly UtilityMate LLC).

5. At Yangs direction, Jumbo manufactures utility trailers using Webbs designs,

drawings, tooling, molds and intellectual property.

6. At Yangs direction, Jumbo supplies the utility trailers to distributors for

distribution across the United States.

7. Jumbo supplies the utility trailers in packages bearing Webbs registered

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

COMPLAINT Page 1


which contain text and images copied from Webbs federally registered copyrighted user

manuals and related documentation.

8. Altocraft USA, Inc. (Altocraft) is the primary importer and distributor of utility

trailers from Jumbo. The trailers are sold under the Altocraft brand.

9. Jumbos website lists Altocraft as one of Jumbos owned brands. Yangs

friend James Zhang is the President of Altocraft.

10. Jumbo and Altocraft advertise the trailers using identical or confusingly similar

product names and terms as Webb and Trailers Intl use in connection the sale of utility trailers.

11. Jumbo published a catalog promoting its trailers in which Altocraft is named as

Jumbos Authorized Agent in U.S.A. The catalog names James Zhang as the contact at

Altocraft.

12. Purchasers of Jumbos utility trailers often receive packages and products bearing

Webbs trademarks that ship with Webbs copyrighted materials. The trailers frequently ship

with licensing and registration materials bearing Webbs former company name UtilityMate

LLC.

13. The trailers and documentation even use Trailers Intls unique World

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

14. On a number of occasions, purchasers of trailers supplied by Jumbo have

contacted Plaintiffs about trailer related issues on account of Plaintiffs former company name,

UtilityMate LLC, being printed on the documentation supplied by Jumbo with the trailers.

15. Yangs participation in the importation, offering for sale, selling, distributing, and

other activities involving the trailers has caused actual harm to Webb and Trailers Intl in the

COMPLAINT Page 2


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

and damage to Webbs and Trailers Intls reputation for product quality and brand recognition.

16. The trailers manufactured and offered for sale by Jumbo are counterfeit.

17. In addition to actual harm to Webb and Trailers Intl, Yangs participation

involving the counterfeit trailers puts 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

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.

18. 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 customers

using the counterfeit documentation included with the counterfeit trailers, which names Webbs

former company and predecessor to Trailers Intl, UtilityMate LLC as manufacturer, to register

counterfeit trailers with the Department of Motor Vehicles.

JURISDICTION

19. 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), unfair business practices, 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

COMPLAINT Page 3


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 Courts supplemental jurisdiction pursuant to 28 U.S.C. 1367.

20. This Court has personal jurisdiction over Yang because he has committed acts in

this district or directed at this district constituting or 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. For example, Yang signed the manufacturing agreement

between Jumbo and Plaintiffs former company UtilityMate LLC, which was deemed entered

into in the State of Oregon. Plaintiffs terminated the manufacturing agreement in Ocober 2011.

After the agreement had been terminated, Yang caused the importation of counterfeit trailers into

the Port of Portland.

PARTIES

21. 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 Owners Manuals (Reg. No. TX

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

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

22. 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

COMPLAINT Page 4


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 assignee of the right to use and license Webbs intellectual property portfolio, which

includes Webbs federally registered trademarks, common law trademark, and federally

registered copyrights listed above.

23. 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.

24. Defendant XiaoFei Fred Yang is an individual residing in the Peoples Republic

of China.

25. Yang is the President and CEO of Zhuhai Sharp-Group Enterprise CO. LTD. a/k/a

Jumbo Tools & Equipment (Jumbo).

26. Yang actively participates in Jumbos tool and equipment production business.

For example, Yang negotiates and enters agreements for Jumbo to produce private label product

lines for importers and retailers around the world, including into this district.

27. Yang also attends industry tradeshows as a representative of Jumbo, such as the

annual National Hardware Show in Las Vegas, Nevada.

28. At Yangs direction, Jumbo uses Webbs and Trailers Intls design, drawings,

blueprints, and tooling to manufacture counterfeit UtilityMate and UtilitySport trailers for

export to and sale across the United States, including into this district.

29. Yang coordinates the manufacture and importation of counterfeit trailers from

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

COMPLAINT Page 5

http://www.trailersintl.com/http://www.utilitymate.com/http://www.utilitysport.com/http://www.utilitydump.com/

30. Yang uses his U.S. contacts to facilitate the importation and sale of counterfeit

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

Yangs U.S. contacts include Steven F. Resch, an individual residing in this district.

31. Yang coordinated the importation and sale of counterfeit trailers seized by U.S.

Customs and Border Protection at the Port of Portland.

32. Yang causes counterfeit trailers to be sold in direct competition with genuine

Trailers Intl trailers, which are located in this district, by offering counterfeit trailers for resale at

a lower cost to Trailers Intls existing retail customers.

BACKGROUND ALLEGATIONS

33. 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.

34. 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 Owners 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

COMPLAINT Page 6


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

3,226,766, 3,278,153, 4,458,788, and 4,582,732 (Webbs federally registered marks). The

table below provides details regarding Webbs federally registered marks.

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

36. Trailers Intl is the exclusive licensee of Webbs federally registered trademarks

and copyrights.

37. In addition to Webbs federally registered copyrights and trademarks, Webb and

Trailers Intl have continuously used a number of names and terms in commerce for the sale of

utility trailers beginning as early as 2005. Specifically, Webb and Trailers Intl have continuously

used the following: UtilityMate and 4 in 1 since at least 2005; Utility Dump and

Powersport since at least 2006; Build it and Save since at least 2009; and Open Dump,

EZ Dump, Multi-Sport and Motor Sport since at least 2011.

COMPLAINT Page 7


Webbs and Trailers Intls Quality Control and Product Integrity Standards

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

marketplace demand for a high quality, reasonably priced, utility trailer. Webbs and Trailers

Intls 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 Webbs and Trailers Intls utility trailers are sold in kit form, they do not require

registration or licensing until fully assembled and road ready.

39. Webbs and Trailers Intls 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).

40. 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.

41. Trailers Intls genuine trailers and components are manufactured using Trailers

Intls custom tooling and are assembled from high quality materials, for example: Trailers Intls

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

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

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

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

Trailers Intls frames are powder coated and made from corrugated and tubular steel.

COMPLAINT Page 8


42. 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 Intls offices directly to the contract manufacturer in

China, whereby the contract manufacturer will insert the materials into Trailers Intls 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.

43. In 2005, at Webbs direction, production of genuine utility trailers began in

China. Webb has suffered continuing problems with the theft of his intellectual property by the

Chinese companies that he has dealt with.

Webbs and Trailers Intls Former Manufacturers and Past Counterfeiting

44. 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.

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

and product integrity standards.

46. On two occasions Webb and Trailers Intl, through Trailers Intls predecessor

UtilityMate LLC, have terminated licensing agreements with Chinese contract manufacturers

based on repeated failures to comply with UtilityMates quality control standards.

47. 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

COMPLAINT Page 9


agreement with Nanxiashu following repeated failures by Nanxiashu to meet UtilityMates

product quality and integrity standards.

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

and Trailers Intl discovered that Nanxiashu was using Webbs and Trailers Intls designs to

manufacture and import counterfeit trailers into the United States.

49. 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.

50. 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

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

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

51. 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.

52. 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.

COMPLAINT Page 10


53. Yang signed the agreement on Jumbos behalf. The agreement, per its terms, was

deemed entered in the State of Oregon.

54. Yang is the President and CEO of Jumbo. Yang was Plaintiffs principal contact

at Jumbo, and represented Jumbo in negotiating all agreements with Plaintiffs.

55. While under contract with Plaintiffs, Yang had access to Plaintiffs competitively

sensitive business materials, including information relating to pricing and product design.

56. When Jumbo failed to abide by specific terms in the agreement and the products

being manufactured by Jumbo failed to meet the standards agreed upon by the parties,

UtilityMate LLC sent Yang and Jumbo a first notice of default in April 2011, in accordance with

the parties agreement.

57. The first notice of default provided Yang and Jumbo with details as to each

contractual violation, including a number of violations related to the quality of the trailers being

manufactured, such as: Jumbos failure to manufacture trailers in accordance with the trailer

designs provided by UtilityMate; Jumbos failure to allow UtilityMate to perform contractually

agreed upon product quality control inspections; Jumbos refusal to pay parts suppliers; and

Jumbos failure to maintain and provide the insurance coverage agreed upon by the parties.

58. Yang and Jumbo did not correct or otherwise address the first notice of default.

59. 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.

60. Despite the supplemental agreement, Yang and Jumbo still had not cured the

defects listed in the first notice of default, and the additional products being manufactured by

COMPLAINT Page 11


Jumbo continued to fail to meet the agreed upon requirements. As a result, UtilityMate LLC sent

Yang and Jumbo second and third notices of default in August and October 2011, respectively.

61. The second and third notices of default provided Yang and Jumbo with details of

the violations initially noticed by the first notice of default, as well as details of subsequent

violations, the most serious of which included: Jumbo sourced trailer kit samples to a known

competitor of UtilityMate; Jumbo solicited other companies to purchase competing trailers made

from UtilityMates designs, but with UtilityMates name removed; and Jumbo failed to import

trailers that complied with the vehicle laws and regulations of the geographic areas where

UtilityMate trailers were being sold.

62. The third notice of default warned Yang and Jumbo that a failure to address or

cure the noticed defaults would result in termination of the parties agreement.

63. Despite UtilityMates warning, Yang and Jumbo still did not correct the products

or address the notices of default.

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

result of Yangs and Jumbos 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 Webbs or Trailers

Intls designs. Also upon termination of the agreement, Jumbo no longer had any right to use

any of Webbs intellectual property, including his federally registered trademarks and

copyrights. Per notice of 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.

COMPLAINT Page 12


65. 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 LLCs WMI was 52Z. After the update, Trailers Intls WMI is

52Z.

66. 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.

67. 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.

Yangs Participation in Counterfeiting and Intellectual Property Infringement Damaged the Market for Plaintiffs Genuine Trailers

68. At Yangs direction, Jumbo illegally uses Webbs and Trailers Intls designs,

drawings, blueprints, and tooling to manufacture and advertise counterfeit Trailers Intl trailers

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

69. At Yangs direction, Jumbo offers customers counterfeit trailers from under its

Altocraft brand in direct competition with genuine UtilityMate and UtilitySport trailers, but

at significantly lower prices.

COMPLAINT Page 13


70. The counterfeit trailers made by Jumbo and sold under the Altocraft brand are

advertised using identical or confusingly similar names and terms as Webb and Trailers Intl use

in connection with the sale of genuine utility trailers. (Figures 1 and 2, below.)

Figure 1.

COMPLAINT Page 14


Figure 2: Jumbo used the term 4 in 1 and the name Utility Dump on its website.

71. Figure 1, above, demonstrates the use on Altocrafts trailers website of identical

or confusingly similar product names and terms, and even images, copied directly from Webbs

and Trailers Intls websites. Some of the images even display Webbs personal property.

Examples of copying on Altocrafts trailers website include:

x Image one (1) displays Trailers Intls UM6096 trailer from its Open Dump line loaded with Webbs personal all-terrain vehicle, and hitched to Webbs personal pick-up truck. Altocraft uses a mirror image copy of image one (1) on its website;

x Image two (2) displays Trailers Intls MC583 trailer from its PowerSport line in three positions. Altocraft uses an identical copy of image two (2) and the name Power Sport on its website;

x Image three (3) displays Trailers Intls UD5806 4 in 1 trailer from its Utility Dump line. 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) and the name Utility Dump on its website and in documentation it and Jumbo distribute;

x Image four (4) displays Trailers Intls HD4872EZ trailer from its Open Dump line. Altocraft uses an identical copy of image four (4) and the confusingly similar name EZ Dump on its website;

COMPLAINT Page 15


x Image five (5) displays Trailers Intls HD4872 trailer from its Open Dump line loaded with Webbs personal lawnmower. Altocraft uses an identical copy of image five (5) and the name Open Dump on its website.

72. Yang offers the counterfeit trailers from Jumbo at a lower price because they are

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

trailers, and do not meet Trailers Intls quality control standards.

73. Yang informs customers that Jumbo and Plaintiffs still have a valid

manufacturing agreement in order to induce customers to purchase counterfeit trailers from

Jumbo, despite his knowledge that the agreement was terminated in October 2011.

74. Although Yang informs customers that Jumbo and Plaintiffs still have a valid

agreement, Yang behaves as if the agreement was terminated, which it was in 2011. Yang has

not operated within the scope of the agreement or suggested he will abide by its terms since prior

to the second notice of default.

75. Yang misleads customers as to the quality and origin of the counterfeit trailers by

distributing Jumbo product catalogs that contain Webbs registered trademarks and

copyrighted materials. (Figure 3.)

COMPLAINT Page 16


AUTHENTIC COUNTERFEIT

Figure 3.

76. Yang induces others to infringe Webbs registered trademarks and copyrights by

supplying counterfeit trailers from Jumbo to distributors and retailers across the United States.

77. Webb and Trailers Intl have been, and continue to be, harmed by Yangs

participation in the manufacture, import, offer for sale, sale, and distribution of counterfeit

trailers.

Loss of Business with Home Depot

78. In February 2012, Webb and Trailers Intl learned that Jumbos U.S. brand

Altocraft was offering for sale in the United States utility trailers that appeared to be the same as

Trailers Intl trailers. At the time, the designs, photographs, descriptions, specifications, and even

COMPLAINT Page 17


model numbers of the trailers offered for sale by Altocraft were identical, or nearly so, to those

on Webbs and Trailers Intls genuine websites.

79. At this time, Webb was in the final stages of negotiations with Home Depot to sell

Trailers Intl trailers in Home Depot stores across the United States. Webb began discussions

with Home Depot in December 2010 about selling UtilityMate trailers in Home Depot stores.

Home Depot planned to launch a trailer kit program selling UtilityMate trailer kits in its stores

nationwide by the Spring of 2012 under the brand UtilityDump. Home Depot estimated it

would order 5,400 UtilityDump trailer kits for nearly $4.2 million for the UtilityDump

launch.

80. Shortly after Plaintiffs learned that Altocraft was offering counterfeit trailers for

sale, Home Depot contacted Webb via e-mail to inquire about the competitive stance of Altocraft

in relation to Trailers Intl and its products. In its e-mail to Webb, Home Depot noted that

Altocraft offered the counterfeit trailers at a lower price than the wholesale price of Plaintiffs

genuine trailers.

81. Despite Webbs warning to Home Depot that Altocraft did not have any rights to

make or sell any of Trailers Intls products or use Webbs designs or intellectual property to

make or sell similar products, Home Depot never completed its agreement to buy trailers from

Trailers Intl, and instead purchased counterfeit trailers from Altocraft.

Loss of Existing Business with Sears and K-mart

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

genuine Trailers Intl UtilityMate trailers through their websites.

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

authorized distributor based in Oregon, Scotsco, Inc. (Scotsco). Scotsco had an agreement

COMPLAINT Page 18


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.

84. Yang communicated directly with buyers from Scotsco regarding the sale and

shipment of genuine UtilityMate trailers while the agreement between Plaintiffs and Jumbo

was still in force. Yang even approached Scotsco about supplying other Jumbo products to

Scotsco, in Oregon, and selling the products through Scotscos distribution channels.

85. Yang had detailed knowledge of Trailers Intls agreement and dealings with

Scotsco, including competively sensitive information pertaining to pricing and customers.

86. On information and belief, after Plaintiffs terminated the agreement with Jumbo,

Yang arranged to supply Sears and K-Mart with counterfeit trailers distributed through Altocraft

at a significantly lower cost than they paid for Trailers Intls genuine UtilityMate trailers.

87. By December 2012, Sears was selling counterfeit Altocraft trailers on its website.

Sears used Webbs copyrighted images and descriptions on its counterfeit Altocraft trailer web

pages. At some time, both Sears and K-Mart stopped buying genuine UtilityMate trailers.

88. Within a matter of months, Sears had completely replaced Trailers Intls genuine

UtilityMate trailers in favor of Altocrafts counterfeit trailers, and searches for UtilityMate

trailers on Sears website only returned listings for counterfeit Altocraft trailers.

89. By November 2013, K-Mart was also selling counterfeit Altocraft trailers on its

website.

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

90. 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.

COMPLAINT Page 19


91. 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 Webbs 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.

92. 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 Webbs registered UtilityMate trademark.

93. In February 2013, Orrin Lundy (Lundy) sent an e-mail to Webb requesting the

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

of counterfeit trailers seized at the Port of Portland. Lundy is the owner of Trailer World in

Vancouver, Washington, a previous violator of Webbs intellectual property rights, and a

Defendant in Webbs concurrent lawsuit pending in this district.

94. On information and belief, Yang arranged for the sale to Lundy and importation

of the counterfeit trailers into the Port of Portland with the assistance of Steven F. Resch

(Resch).

95. Resch interacted directly with Yang as a sales representative for UtilityMate

trailers while the agreement between Plaintiffs and Jumbo was still in force. During this period,

COMPLAINT Page 20


Resch earned commissions from Jumbo for sales of genuine UtilityMate trailers. Resch resides

in this district, and is also a defendant in Webbs concurrent lawsuit pending in this district.

96. According to Lundy, Resch represented that the counterfeit trailers were genuine

UtilityMate trailers that Jumbo was offering as a closeout, and that Trailers Intl (as its

predecessor UtilityMate) still had a valid agreement with Jumbo.

97. Also according to Lundy, Yang [took] responsibility for the situation and

refunded most of [Lundys] purchase price less shipping charges as compensation for Lundys

losses suffered as a result of the seizure of the counterfeit trailers by CBP.

Undercover Purchase and Miami Customs and Border Protection Seizure

98. 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.

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

containers of trailers. The PIERS reports further revealed that Jumbos owned brand Altocraft

was the importer of many of the unauthorized containers from Jumbo.

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

Webbs investigator met with Altocrafts principal, Xuefeng James Zhang, at Altocrafts

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

101. At the time of sale, Zhang provided Webbs investigator with a counterfeit

Jumbo product catalog nearly identical to Trailers Intls authentic UtilityMate catalog. The

counterfeit catalog contained Webbs registered trademarks and copyrighted material throughout,

and listed Altocraft as Jumbos U.S. agent. (Figures 4 and 5.)

COMPLAINT Page 21

http://www.piers.com/

AUTHENTIC COUNTERFEIT

Figure 4.

Figure 5.

102. Following the investigators 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 Webbs registered trademarks and

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

regarding Webbs registered marks, copyrighted material, genuine packaging, products, and

product registration material.

COMPLAINT Page 22


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

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

revealed that the shipping cartons containing the suspect trailers bore Webbs UtilityMate

trademark, but the label bearing Webbs mark was either concealed behind another label,

crossed-out by black marker, or removed and replaced with another label.

104. 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 Webbs

registered UtilityMate trademark. The seized trailers also bore Webbs registered copyrighted

safety sticker on the trailer tongue.1 (Figure 6.) The seized container of counterfeit trailers was

shipped by Jumbo and destined for Altocrafts warehouse.

Figure 6: Webbs copyrighted safety sticker on a counterfeit trailer seized by CBP in Miami.

105. Yangs infringement of Webbs intellectual property rights is ongoing and

pervasive.

106. Yang continues to cause the importation of counterfeit trailers into the U.S. As

recently as February 27, 2015, Customs and Border Patrol in Miami seized a container of trailers

that CBP determined infringed Plaintiffs intellectual property rights. The counterfeit trailers

1 To date, every counterfeit trailer supplied by Jumbo seized by CBP has borne Webbs copyrighted safety sticker. COMPLAINT

Page 23


were destined for James Zhang at Starlight New Energy LLC. Starlight New Energy LLC is a

fictitious name registered with the Florida Secretary of State by James Zhang. Per the

registration, Starlight New Energy LLC has an identical business address as Altocraft. On

information and belief, the counterfeit trailers were shipped by Jumbo.

107. Yangs infringement involving counterfeit trailers has caused damage to Trailers

Intl in the form of actual and future reduced sales and lost profits.

108. Yangs infringement has caused customer confusion, has damaged Webbs and

Trailers Intls reputation for offering a quality product, and has put customers at risk of physical

harm due to the inferior craftsmanship of the counterfeit trailers.

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

of Yangs participation the importation, sale, and distribution of counterfeit trailers.

CLAIM ONE COPYRIGHT INFRINGEMENT

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

paragraphs 1 through 94 above as if fully set forth herein.

111. Yangs acts constitute copyright infringement in violation of 17 U.S.C. 501.

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

trailers. Webb has registered the owners manual and contents, web site, product catalog, sales

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

113. 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 owners 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.

COMPLAINT Page 24


114. Trailers Intl is the exclusive licensee of Webbs intellectual property, including

Webbs federally registered copyrights.

115. Yang caused the distribution of counterfeit utility trailers that included manuals

containing Webbs and Trailers Intls copyrighted material.

116. At Yangs direction, Jumbos website displayed Webb and Trailers Intls

copyrighted images.

117. Yangs activities described hereinabove violate Webbs and Trailers Intls

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

limitation 17 U.S.C. 106, of Webbs registered copyright in the owners manual and contents,

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

trailers.

118. Yang has realized and continues to realize profits and other benefits rightfully

belonging to Webb or Trailers Intl as a result of his violations of Webbs and Trailers Intls

exclusive rights in the copyrighted material.

119. Yangs violations of Webbs and Trailers Intls exclusive rights in Webbs

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.

120. Yangs use of Webbs copyrighted material is without Webbs and Trailers Intls

consent or permission.

121. Yangs violations of Webbs and Trailers Intls exclusive rights in Webbs

copyrighted material was made with actual or constructive knowledge of Webbs and Trailers

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

allowable.

COMPLAINT Page 25


CLAIM TWO TRADEMARK INFRINGEMENT



123. Yangs acts constitute trademark infringement of Plaintiffs registered marks in

violation of 15 U.S.C. 1114(1).

124. Webbs UtilityMate, UtilitySport, BUILD IT AND SAVE, and 4 in 1

trademarks are valid, federally registered trademarks owned by Webb.

125. The registration of Webbs marks on the Principal Register constitutes prima facie

evidence of the validity of Webbs marks, as well as Webbs ownership and exclusive rights to

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


Webbs federally registered trademarks.

127. 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.

128. 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

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

of utility trailers since at least 2009.

129. Yang has used and continues to use Webbs federally registered marks in

connection with the sale of utility trailersthe same goods sold by Trailers Intl under these

federally registered marks and the same goods listed in Webbs Federal Registration for his

registered marks.

COMPLAINT Page 26


130. Yang sold utility trailers bearing marks identical or confusingly similar to Webb

and Trailers Intls marks.

131. Yangs use of Webbs 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 Yang, in that others are likely to believe that Yangs goods and services

are in some way legitimately connected with, sponsored or licensed by, or otherwise related to

Webb and Trailers Intl.

132. Yangs use of Webbs federally registered marks is without Webbs and Trailers

Intls consent or permission.

133. Yangs infringement has caused and is likely to cause damage to Webbs and

Trailers Intls reputation and goodwill among consumers and will divert sales and opportunities

away from Trailers Intl and to Yang.

134. Yangs 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.

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

infringement of Webbs federally registered marks has caused irreparable injury to 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.

136. Yangs violations of Webbs and Trailers Intls exclusive rights in the federally

registered marks are with actual or constructive knowledge of Webbs and Trailers Intls

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

allowable.

COMPLAINT Page 27


CLAIM THREE TRADEMARK COUNTERFEITING



138. Yangs 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.










143. Yang has used and continues to use marks that are identical or substantially

indistinguishable, and confusingly similar, to Webbs federally registered marks in connection

with the sale of utility trailersthe same goods sold by Trailers Intl under these federally

registered marks and the same goods listed in Webbs Federal Registration for his registered

marks.

144. Yang has used marks that are identical or substantially indistinguishable, and

confusingly similar, to Webbs federally registered marks knowing that they are counterfeit in

COMPLAINT Page 28


connection with the advertisement, promotion, offer for sale, sale, and distribution of utility

trailers

145. Yangs use of Webbs 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 Yang with Webb and Trailers Intl or as to the origin or approval of

the products of Yang and those of Webb and Trailers Intl, and misrepresents the nature,

characteristics, and qualities of these products.

146. Yangs use of Webbs federally registered marks is without Webbs and Trailers

Intls consent or permission.

147. Yangs activities have caused and are likely to cause damage to Webbs and


away from Webb and Trailers Intl and to Yang.

148. Yangs 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.

149. Webb and Trailers Intl are without an adequate remedy at law because Yangs use

of Webbs federally registered marks has caused irreparable injury to 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.




allowable.

COMPLAINT Page 29


CLAIM FOUR FALSE DESIGNATION OF ORIGIN

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


152. Yangs acts constitute false designation of origin in violation of 15 U.S.C.

1125(a)(1).

153. Webb and Trailers Intl have continuously used the name UtilityMate and the

term 4 in 1 in commerce for the sale of utility trailers since at least 2005. Webb and Trailers

Intl have continuously used the names Utility Dump and Powersport in commerce for the

sale of utility trailers since at least 2006. Webb and Trailers Intl have continuously used the

term Build it and Save in commerce for the sale of utility trailers since at least 2009. And,

Webb and Trailers Intl have continuously used the names Open Dump, EZ Dump, Multi-

Sport and Motor Sport in commerce for the sale of utility trailers since at least 2011.










157. Yang has used and continues to use identical or confusingly similar names and

terms as Webb and Trailers Intl use, as well as Webbs federally registered marks, in connection

COMPLAINT Page 30


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

names and terms, and federally registered marks, and to the goods listed in Webbs Federal

Registration for his registered marks.

158. Yangs use of identical or confusingly similar names and terms as Webb and

Trailers Intl use, as well as Yangs use of Webbs 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 Yang because others are likely to believe that Yangs goods and services

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

related to Webb and Trailers Intl.


Trailers Intl use, as well as Yangs use of Webbs federally registered marks, is without Webbs

and Trailers Intls consent or permission.



away from Webb and Trailers Intl and to Yang.

161. Yang 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.


of identical or confusingly similar names and terms as Webb and Trailers Intl use, as well as

Yangs use of Webbs federally registered marks, has caused irreparable injury to Webb and

COMPLAINT Page 31







allowable.

CLAIM FIVE UNFAIR COMPETITION (PASSING OFF)



165. Yangs acts constitute unfair competition in violation of 15 U.S.C. 1125(a)(1).

166. Webb and Trailers Intl have continuously used the name UtilityMate and the

term 4 in 1 in commerce for the sale of utility trailers since at least 2005. Webb and Trailers

Intl have continuously used the names Utility Dump and Powersport in commerce for the

sale of utility trailers since at least 2006. Webb and Trailers Intl have continuously used the

term Build it and Save in commerce for the sale of utility trailers since at least 2009. And,

Webb and Trailers Intl have continuously used the names Open Dump, EZ Dump, Multi-

Sport and Motor Sport in commerce for the sale of utility trailers since at least 2011.






COMPLAINT Page 32








171. Yang imports, offers for sale, sells, and distributes utility trailers across the

United States.

172. Yang represents to potential and actual customers that the utility trailers Yang

imports, offers for sale, sells, and distributes across the United States are Altocraft brand,

supplied by Jumbo.

173. Customers who order Altocraft trailers receive trailers that bear Webbs federally

registered trademarks, bear identical or similar names and terms as Webb and Trailers Intl use,

and which are packaged with documentation that consists of Webbs federally registered

copyrighted material and includes licensing and registration certificates bearing Trailers Intls

predecessor business name and World Manufacturer Identifier.

174. Yang has used and continues to use identical or confusingly similar names and

terms as Webb and Trailers Intl use, as well as Webbs federally registered marks in 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

Webbs Federal Registration for his registered marks.

COMPLAINT Page 33



Trailers Intl use, as well as Yangs use of Webbs 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 Yang because others are likely to believe that Yangs goods and services

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

related to Webb and Trailers Intl.


Trailers Intl use, as well as Yangs use of Webbs federally registered marks is without Webbs

or Trailers Intls consent or permission.



away from Trailers Intl and to Yang.

178. Yangs 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.


of identical or confusingly similar names and terms as Webb and Trailers Intl use, as well as

Yangs use of Webbs federally registered marks has caused irreparable injury to Webb and





COMPLAINT Page 34



allowable.

CLAIM SIX UNFAIR BUSINESS PRACTICES (ORS 646.608(1)(b-c))



182. Yangs sales of counterfeit trailers which are nearly identical in appearance to

Plaintiffs UtilityMate and UtilitySport trailers constitutes an unfair business practice under

ORS 646.608(1)(b-c).

183. Under ORS 646.608(1), [a] person engages in an unlawful practice if in the

course of the persons business, vocation or occupation the person does any of the following:

(b) Causes likelihood of confusion or of misunderstanding as to the source,

sponsorship, approval, or certification of real estate, goods or services.

(c) Causes likelihood of confusion or of misunderstanding as to affiliation,

connection, or association with, or certification by, another.

184. Yangs participation in the manufacture, importation, sale, distribution and other

activities involving counterfeit trailers manufacturing by Jumbo using Plaintiffs designs,

drawings, blueprints, tooling, and dies creates confusion as to the association, sponsorship,

approval, affiliation, connection, and source of the counterfeit trailers.

185. Yangs violation of ORS 646.608(1)(b) and (c) has caused Plaintiffs to suffer

lost sales to companies that sell utility trailers in Oregon, including but not limited to Home

Depot, Sears, and K-Mart.

COMPLAINT Page 35


186. Plaintiffs are entitled to recover their actual damages or statutory damages,

punitive damages, and reasonable attorneys fees, pursuant to ORS 646.638(1) and (3), and to

injunctive relief under ORS 646.636.

CLAIM SEVEN CONVERSION



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

genuine Trailers Intl trailers.

189. Webb and Trailers Intl demanded that Yang return all blueprints, tooling, dies,

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

190. Yang does not have the right to use or possess Webbs and Trailers Intls

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

191. Yang knowingly and illegally has caused and continues to cause the manufacture

of counterfeit utility trailers using Webbs and Trailers Intls blueprints, tooling, and dies, or

copies of the same.

192. Yang tortiously obtained possession of Webbs and Trailers Intls blueprints,

tooling, and dies, or copies of the same, and by his acts of directing Jumbo to manufacture

counterfeit trailers has wrongfully converted Webbs and Trailers Intls blueprints, tooling, and

dies, or copies of the same, to his own use and benefit.

193. Yangs activities described hereinabove constitute conversion of Webbs and

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

194. Webb and Trailers Intl have been damaged and inconvenienced by Yangs

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

COMPLAINT Page 36


CLAIM EIGHT TRADE SECRET MISAPPROPRIATION



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

genuine Trailers Intl trailers.

197. Webbs and Trailers Intls blueprints, tooling, and dies used to manufacture

genuine Trailers Intl trailers are Webbs and Trailers Intls secret and proprietary materials.

198. 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.

199. Webb and Trailers Intl demanded that Yang return all blueprints, tooling, dies,

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

200. Yang does not have the right to use or possess Webbs and Trailers Intls


201. Yang knowingly and illegally has used and continues to use Webbs and Trailers

Intls blueprints, tooling, and dies, or copies of the same to manufacture counterfeit trailers.

202. Yangs activities described hereinabove constitute misappropriation of Webbs

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

203. Webb and Trailers Intl have been damaged by Yangs misappropriation of their


COMPLAINT Page 37


PRAYER FOR RELIEF

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

relief:

A. A judgment for Plaintiffs against Yang that Yang is 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 Yang that Yang is liable for unfair business

practices pursuant to ORS 646.608(1)(b) and (c);

C. A judgment for Plaintiffs against Yang that Yang is liable for damages caused by

his conversion of Plaintiffs blueprints, tooling, and dies, or copies of the same;

D. A judgment for Plaintiffs against Yang that Yang is liable for damages caused by

his misappropriation of Plaintiffs blueprints, tooling, and dies, or copies of the same;

E. A grant of permanent injunction against Yang enjoining him from using

Plaintiffs blueprints, tooling, and dies, or copies of the same;

F. A grant of permanent injunction against Yang enjoining him from using Webbs

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;

G. A judgment awarding Plaintiffs compensatory and/or statutory damages as a

result of Yangs 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);

H. 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

COMPLAINT Page 38


I. 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: May 4, 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 121 S.W. Salmon Street, Suite 1600 Portland, Oregon 97204 Telephone: 503-595-5300 Attorneys for Plaintiffs TRAILERS INTL LLC and VINCENT L. WEBB

COMPLAINT Page 39

mailto:[email protected]://sharepoint/pi/lit/WebbvAltocraft/Shared%20Documents/Pleading/[email protected]