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1 UNITED STATES DISTRICT COURT DISTRICT OF MINNESOTA CARDONE INDUSTRIES, INC. Plaintiff, v. KPA TURBOS L.L.C. and SILBER SERVICE L.L.C. Defendants. Civil Action No. ________________ COMPLAINT FOR PATENT INFRINGEMENT AND DEMAND FOR JURY TRIAL COMPLAINT Plaintiff Cardone Industries, Inc. files this complaint against Defendants kPa Turbos L.L.C. and Silber Service LLC and states and alleges as follows. NATURE OF THIS ACTION This is an action for patent infringement of United States Patent No. 8,602,652 entitled “Turbocharger Bearing Assembly” (“the ’652 Patent”) under the Patent Laws of the United States, 35 U.S.C. § 1, et seq., and seeking damages, injunctive relief, and other relief as appropriate under 35 U.S.C. § 281, et seq. A true and correct copy of the ’652 Patent is attached as Exhibit 1. PARTIES 1. Plaintiff Cardone Industries, Inc. (“Cardone”) is a Pennsylvania Corporation with its principal place of business at 5501 Whitaker Avenue, Philadelphia, Pennsylvania. CASE 0:18-cv-03401 Document 1 Filed 12/14/18 Page 1 of 35

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Page 1: UNITED STATES DISTRICT COURT DISTRICT OF MINNESOTA · DEMAND FOR JURY TRIAL COMPLAINT ... Cardone is a family-owned company based in Philadelphia, Pennsylvania. 11. For over 45 years,

1

UNITED STATES DISTRICT COURT

DISTRICT OF MINNESOTA

CARDONE INDUSTRIES, INC.

Plaintiff,

v.

KPA TURBOS L.L.C. and SILBER

SERVICE L.L.C.

Defendants.

Civil Action No. ________________

COMPLAINT FOR PATENT

INFRINGEMENT AND

DEMAND FOR JURY TRIAL

COMPLAINT

Plaintiff Cardone Industries, Inc. files this complaint against Defendants kPa Turbos

L.L.C. and Silber Service LLC and states and alleges as follows.

NATURE OF THIS ACTION

This is an action for patent infringement of United States Patent No. 8,602,652

entitled “Turbocharger Bearing Assembly” (“the ’652 Patent”) under the Patent Laws of

the United States, 35 U.S.C. § 1, et seq., and seeking damages, injunctive relief, and other

relief as appropriate under 35 U.S.C. § 281, et seq. A true and correct copy of the ’652

Patent is attached as Exhibit 1.

PARTIES

1. Plaintiff Cardone Industries, Inc. (“Cardone”) is a Pennsylvania Corporation

with its principal place of business at 5501 Whitaker Avenue, Philadelphia, Pennsylvania.

CASE 0:18-cv-03401 Document 1 Filed 12/14/18 Page 1 of 35

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2. Upon information and belief, Defendant kPa Turbos L.L.C. (“kPa”) is a

Minnesota company with its principal place of business at 11091 US HWY 71, Menahga,

Minnesota.

3. Defendant Silber Service L.L.C. (“Silber”) is a Minnesota company with its

principal place of business at 720 Trail Drive, Park Rapids, Minnesota.

JURISDICTION AND VENUE

4. This Court has exclusive subject matter jurisdiction over this action pursuant

to 28 U.S.C. §§ 1331 and 1338(a) because this action for infringement of a United States

patent arises under the Patent Laws of the United States, 35 U.S.C. § 1 et seq., including,

without limitation, 35 U.S.C. §§ 271 and 281-285.

5. This Court has personal jurisdiction over kPa in that kPa has minimum

contacts with the state of Minnesota and has purposefully availed itself of the privileges of

transacting business in Minnesota. kPa has transacted and continues to transact business

in the state of Minnesota and this judicial district. Moreover, kPa is a Minnesota company

with its principal place of business in Minnesota. kPa has also committed and continues

to commit acts of infringement, including selling and offering to sell an infringing product

through approximately eight dealerships located in the state of Minnesota and this judicial

district. Further, kPa has and continues to place infringing products into the stream of

commerce knowing that the infringing products would have ended up in and been sold in

Minnesota. (See Products, http://www.kpaturbos.com/ products, last visited Oct.16, 2018).

kPa’s conduct and connections in the state of Minnesota are such that it could reasonably

foresee being haled into court within the state of Minnesota and this judicial district.

CASE 0:18-cv-03401 Document 1 Filed 12/14/18 Page 2 of 35

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6. This Court has personal jurisdiction over Silber in that Silber has minimum

contacts with the state of Minnesota and has purposefully availed itself of the privileges of

transacting business in Minnesota. Silber transacts business in the state of Minnesota and

this judicial district. Moreover, Silber is a Minnesota company with its principal place of

business in Minnesota. Silber has also committed and continues to commit acts of

infringement, including selling and offering to sell an infringing product through

approximately eight dealerships located in the state of Minnesota and this judicial district.

Further, Silber has and continues to place infringing products into the stream of commerce

knowing that the infringing products would have ended up in and been sold in Minnesota.

(See https://www.silberturbos.com/collections/polaris-axys-turbo-parts/ products/kpa-

turbocharger, last visited Oct. 16, 2018; Ski-Doo G4 850 Turbo Kit,

https://www.silberturbos.com/collections/ski-doo-snowmobile/products/2016-skidoo-

850-etec-turbo-kit, last visited Dec. 6, 2018). Silber’s conduct and connections in the state

of Minnesota are such that it could reasonably foresee being haled into court within the

state of Minnesota and this judicial district.

7. Venue is proper in this District as to kPa pursuant to 28 U.S.C. §§ 1391 and

1400(b). On information and belief, kPa is incorporated in Minnesota and has a place of

business within the District of Minnesota. On information and belief, from and within this

District kPa has committed at least a portion of the infringements at issue in this case.

8. Venue is proper in this District as to Silber pursuant to 28 U.S.C. §§ 1391

and 1400(b). Silber is incorporated in Minnesota and has a place of business within the

CASE 0:18-cv-03401 Document 1 Filed 12/14/18 Page 3 of 35

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District of Minnesota. On information and belief, from and within this District Silber has

committed at least a portion of the infringements at issue in this case.

9. For these reasons, personal jurisdiction exists and venue is proper in this

Court under 28 U.S.C. § 1400(b).

FACTUAL BACKGROUND

10. Cardone is a family-owned company based in Philadelphia, Pennsylvania.

11. For over 45 years, Cardone has been a leading provider of new and

remanufactured aftermarket auto parts and products, including turbochargers.

12. A turbocharger is a turbine-driven forced induction device that increases an

internal combustion engine's efficiency and power output by forcing extra compressed air

into the combustion chamber. This improvement over a naturally aspirated engine’s power

output is due to the fact that the compressor can force more air—and proportionately more

fuel—into the combustion chamber than atmospheric pressure (and for that matter, ram air

intakes).

13. The turbocharger has three main components: (1) the turbine, (2) the

compressor, and (3) the center housing/hub rotating assembly.

14. The center hub rotating assembly houses the shaft that connects the

compressor impeller and turbine. It also contains a bearing system to suspend the shaft,

allowing it to rotate at very high speed with minimal friction.

15. While turbochargers and turbocharger shaft bearings were well-known, due

to the incredibly high rotational speeds and forces exerted upon these members, failure of

the bearings within turbochargers has historically been a problem.

CASE 0:18-cv-03401 Document 1 Filed 12/14/18 Page 4 of 35

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THE ’652 PATENT

16. Joshua Bradshaw is the inventor of the ’652 Patent, entitled “Turbocharger

Bearing Assembly.” The ’652 Patent was duly and legally issued by the United States

Patent and Trademark Office on December 10, 2013, from United States Patent

Application No. 13/426486. The ’652 Patent claims the benefit of United States

Provisional Patent Application No. 61/454,615, filed on March 21, 2011.

17. The inventions of the ’652 Patent relate to an improved turbocharger bearing

assembly, which has shown through testing to be very effective in providing an axially

balanced load turbocharger bearing that solves the failure of the bearings within

turbochargers.

18. Cardone is the assignee of all right, title and interest in the ’652 Patent,

including all rights to enforce and prosecute actions for infringement and to collect

damages for all relevant times against infringers of the ’652 Patent. Accordingly, Cardone

possesses the exclusive right and standing to prosecute the present action for infringement

of the ’652 Patent by Defendants.

DEFENDANTS’ KNOWLEDGE OF THE ’652 PATENT

19. In 2018, Cardone became aware that kPa and Silber were making, using,

offering to sell, selling an infringing product in the United States, and/or importing

turbochargers that infringe at least one claim of the ’652 Patent.

20. On or about October 30, 2018, Cardone sent a cease and desist letter through

its counsel to kPa advising that kPa’s turbochargers, including without limitation

turbocharger product number kPa2252BB, kPa2860, kPa2863B, and kPa2868BB infringed

CASE 0:18-cv-03401 Document 1 Filed 12/14/18 Page 5 of 35

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the ’652 Patent and requested that kPa cease and desist sales of the Accused kPa Products.

(See Ex. 2, Corr. from T. Appledorn to kPa, dated Oct. 30, 2018; Products,

http://www.kpaturbos.com/products, last visited Oct.16, 2018).

21. Similarly, on or about October 30, 2018, Cardone sent a cease and desist

letter through its counsel to Silber advising that Silber’s kPa Ball Bearing Turbocharger

(the “Accused Silber Product”) infringed the ’652 Patent and requested that Silber cease

and desist sales of the Accused Silber Product. (See Ex. 3, Corr. from T. Appledorn to

Silber, dated Oct. 30, 2018; https://www.silberturbos.com/ collections/polaris-axys-turbo-

parts/products/kpa-turbocharger, last visited Oct. 16, 2018; Ski-Doo G4 850 Turbo Kit,

https://www.silberturbos.com/collections/ski-doo-snowmobile/products/2016-skidoo-

850-etec-turbo-kit, last visited Dec. 6, 2018).

22. On or about November 12, 2018, counsel for Defendants responded claiming

that prior art existed and that:

Your October, 2018 letters to kPa Turbos and Justin Silber

Turbos resulted in kPa Turbos shutting down its website and in

Justin Silber Turbos removing images of kPa Turbo

turbochargers from its website. I have now told them that such

is unnecessary. The basis for my advice is exactly what is

found in this letter.

* * *

Please be advised that litigation is not part of my practice. I

refer cases out to firms that handle litigation. I am sure that a

litigator will be able to do a much better job than I as to "proof"

of 35 U.S.C. 102(b).

I now consider this matter closed. Any further accusations will

result in further proof and an opening of a can of worms for

U.S. Patent No. 8,602,652.

CASE 0:18-cv-03401 Document 1 Filed 12/14/18 Page 6 of 35

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(See Ex. 4, Corr. from R. Jacobson to T. Appledorn, dated Nov. 12, 2018.)

23. Accordingly, upon information and belief, kPa and Silber intend to continue

to commit the above-alleged acts of infringement of one or more claims of the ’652 Patent.

COUNT I

Patent Infringement of U.S. Patent No. 8,602,652 against kPa

24. Cardone repeats and realleges all allegations set forth above in paragraphs 1-

23 as if they were stated in full and incorporated herein.

25. Cardone owns and holds all legal title, interest, and rights in the ’652 Patent.

26. kPa did not, and does not, have authority or permission to make, use, offer

to sell, sell, or import into the United States the subject matter claimed in the ’652 Patent.

27. kPa has had knowledge of the’652 Patent at least as of, on, or about October

30, 2018, when Cardone sent a cease and desist letter through its counsel.

28. In violation of 35 U.S.C. § 271, kPa has directly and/or indirectly infringed

and continues to infringe one or more claims, including at least claim 1 of the ’652 Patent,

either literally or under the doctrine of equivalents, by making, using, offering to sell,

selling an infringing product in the United States, and/or importing an infringing product

into the United States. Infringing products made, used, offered for sale, sold, and/or

imported into the United States by kPa include, but are not limited to, kPa turbochargers

with product numbers kPa2252BB, kPa2860, kPa2863B, and kPa2868BB (the “Accused

kPa Products”).

CASE 0:18-cv-03401 Document 1 Filed 12/14/18 Page 7 of 35

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kPa2252BB

kPa2860

kPa2863B

kPa2868BB

(See Products, http://www.kpaturbos.com/ products, last visited October 16, 2018).

29. As recited in claim 1 of the ’652 Patent, the Accused kPa Products have a

turbocharger housing having an inner cavity and a shaft, as shown below:

Turbocharger housing

Inner cavity of turbocharger

CASE 0:18-cv-03401 Document 1 Filed 12/14/18 Page 8 of 35

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Shaft of turbocharger

30. As recited in claim 1 of the ’652 Patent, the Accused kPa Products have a

first annular bearing assembly having an outer surface that engages a surface of the inner

cavity, as shown below:

First annular bearing assembly

First annular bearing assembly inside

turbocharger

In the Accused kPa Products the outer surface of the first annular bearing assembly engages

the surface of the turbocharger’s inner cavity.

31. As recited in claim 1 of the ’652 Patent, the Accused kPa Products have a

second annular bearing assembly having an outer surface that engages a surface of the inner

cavity, as shown below:

CASE 0:18-cv-03401 Document 1 Filed 12/14/18 Page 9 of 35

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In the Accused kPa Products, the second annular bearing assembly also has an outer surface

that is in contact with the surface of the turbocharger’s inner cavity.

32. As recited in claim 1 of the ’652 Patent, the Accused kPa Products have an

outer spacer having an outer diameter substantially the same as an outer diameter of both

the first annular bearing assembly and the second annular bearing assembly, the outer

spacer in contact with facing surfaces of the first annular bearing assembly and the second

annular bearing assembly, as shown below:

Outer spacer (side 1)

Outer spacer (side 2)

CASE 0:18-cv-03401 Document 1 Filed 12/14/18 Page 10 of 35

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First annular bearing assembly and annular bearing assembly

Outer spacer (middle), first annular bearing assembly (top), and second annular

bearing assembly (bottom)

33. As recited in claim 1 of the ’652 Patent, the Accused kPa Products have an

inner spacer having an inner diameter substantially the same as an inner diameter of both

the first annular bearing assembly and the second annular bearing assembly, the inner

spacer in contact with facing surfaces of the first annular bearing assembly and the second

annular bearing assembly, as shown below:

CASE 0:18-cv-03401 Document 1 Filed 12/14/18 Page 11 of 35

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Inner spacer

Inner spacer and first annular bearing

assembly

Inner diameter of inner spacer alignment with inner diameter of first annular

bearing assembly

34. As recited in claim 1 of the ’652 Patent, in the Accused kPa Products the

inner diameter of the inner spacer, and the inner diameter of both the first annular bearing

assembly and the second annular bearing assembly are substantially the same as an outer

diameter of the shaft, as shown below:

CASE 0:18-cv-03401 Document 1 Filed 12/14/18 Page 12 of 35

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Inner spacer fit on shaft

In the Accused kPa Products the outer diameter of the shaft is substantially the same as the

inner diameter of the inner spacer. Similarly, in the Accused kPa Products the inner spacer

and the first annular bearing assembly fit perfectly on the shaft as well. In the Accused

kPa Products, the second annular bearing assembly is the same size as the first annular

bearing assembly and therefore fits perfect on the shaft as well (the turbocharger housing,

the outer spacer, and the second annular bearing assembly are omitted from view).

35. As recited in claim 1 of the ’652 Patent, the Accused kPa Products have the

outer spacer fixed in place relative to the turbocharger housing, as shown below:

In the Accused kPa Products, the outer spacer can be inserted inside the turbocharger,

CASE 0:18-cv-03401 Document 1 Filed 12/14/18 Page 13 of 35

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rendering it fixed in a place relative to the turbocharger housing.

36. As recited in claim 1 of the ’652 Patent, the Accused kPa Products have the

inner spacer rotates with the shaft, as shown below:

In the Accused kPa Products, the inner spacer fits perfectly on the shaft and rotates with it.

37. As recited in claim 1 of the ’652 Patent, in the Accused kPa Products the

turbocharger housing comprises an oil port in fluid communication with an oil source

external of the turbocharger housing, as shown below:

Oil port (without locator pin)

CASE 0:18-cv-03401 Document 1 Filed 12/14/18 Page 14 of 35

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Locator pin

Locator pin inserted into oil port

In the Accused kPa Products, the oil port is in fluid communication with the external oil

source through the pin.

38. As recited in claim 1 of the ’652 Patent, in the Accused kPa Products the

turbocharger housing comprises at least one turbocharger housing oil channel providing

fluid communication between the oil port and the outer spacer, as shown below:

CASE 0:18-cv-03401 Document 1 Filed 12/14/18 Page 15 of 35

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Oil channels in turbocharger housing

Locator pin two channels that

correspond with turbocharger housing

oil channels

Locator pin on turbocharger housing

Outer spacer in turbocharger housing

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Locator pin connected to outer spacer

39. As recited in claim 1 of the ’652 Patent, in the Accused kPa Products the

outer spacer comprises at least one outer spacer oil channel therethrough, aligned with the

turbocharger housing oil channel, as shown below:

Close-up of turbocharger housing

(two oil channels)

Two oil channels located on outer spacer,

aligned with housing oil channels

Locator pin locked with outer spacer in place inside turbocharger housing

CASE 0:18-cv-03401 Document 1 Filed 12/14/18 Page 17 of 35

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40. Upon information and belief, in conjunction with the sale of the Accused kPa

Products, and same or similar products, kPa acts with specific intent to actively induce its

dealers (such as Silber) and/or customers to directly infringe, either literally or under the

doctrine of equivalents, at least claim 1 of the ’652 Patent. Upon information and belief,

kPa intentionally and actively induces its dealers (such as Silber) and/or customers to

directly infringe claims of the ’652 Patent by providing instructions and written material,

such as owner’s manuals, installation manuals, marketing brochures, and/or service and

repair manuals, which encourage and direct the installation and use of the Accused kPa

Products, and any same or similar products, such that their dealers (such as Silber) and/or

customers directly infringe claims of the ’652 Patent. kPa knowingly engages in such

inducement, at least as of, on, or about October 30, 2018, when Cardone sent a cease and

desist letter through its counsel, and has done so with knowledge that such activity

encourages dealers (such as Silber) and customers of the Accused kPa Products, to offer to

sell, sell, install, and/or use those products in a manner that directly infringes the ’652

Patent. For example, upon information and belief, kPa instructs its dealers (such as Silber)

and/or customers to offer to sell, sell, install, and/or use the Accused kPa Products such

that dealers (such as Silber) and/or customers directly infringe at least claim 1 of the ’652

Patent, as set forth in paragraphs 28-39.

41. Upon information and belief, and not by way of limitation, the Accused kPa

Products are being installed and used by dealers (such as Silber) and/or customers to

directly infringe at least claim 1 of the ’652 Patent, as set forth in paragraphs 28-39.

CASE 0:18-cv-03401 Document 1 Filed 12/14/18 Page 18 of 35

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42. On information and belief, kPa’s infringement of the ’652 Patent is willful

because kPa has had knowledge of the ’652 Patent, and has known that the Accused kPa

Products infringe the ’652 Patent, at least as of, on, or about October 30, 2018, when

Cardone sent a cease and desist letter through its counsel. But kPa continues to make, use,

offer to sell, sell, and/or import into the United States its infringing Accused kPa Products,

and thereby directly infringes or indirectly infringes, by actively inducing its dealers (such

as Silber) and/or customers to infringe the ’652 Patent, in objective and subjective reckless

disregard of the ’652 Patent and the rights conferred by the ’652 Patent to Cardone.

43. Cardone has been injured and suffered significant financial damage as a

direct and proximate result of kPa’s infringement of the ’652 Patent.

44. kPa’s infringement of the ’652 Patent has and will continue to cause

irreparable injury and damage to Cardone unless and until the Court enjoins kPa from

committing further infringing acts.

45. Cardone is entitled to recover damages from kPa as a result of kPa’s wrongful

acts of infringement in an amount subject to proof at trial.

COUNT II

Patent Infringement of U.S. Patent No. 8,602,652 against Silber

46. Cardone repeats and realleges all allegations set forth above in paragraphs

1-45 as if they were stated in full and incorporated herein.

47. Cardone owns and holds all legal title, interest, and rights in the ’652

Patent.

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48. Silber did not and does not have authority or permission to make, use, offer

to sell, sell, or import into the United States the subject matter claimed in the ’652 Patent.

49. Silber has had knowledge of the’652 Patent at least as of, on, or about

October 30, 2018, when Cardone sent a cease and desist letter through its counsel.

50. In violation of 35 U.S.C. § 271, Silber has directly and/or indirectly

infringed and continues to infringe one or more claims, including at least claim 1 of the

’652 Patent, either literally or under the doctrine of equivalents, by making, using,

offering to sell, selling an infringing product in the United States, and/or importing an

infringing product into the United States. Infringing products made, used, offered for

sale, sold, and/or imported into the United States by Silber include, but are not limited to,

the Accused kPa Products (as described above) sold by Silber (including, but not limited

to, the Accused kPa Products with product numbers kPa2252BB, kPa2860, kPa2863B,

and kPa2868BB) and utilized in Silber’s Ski-Doo G4 850 Turbo Kit (the “Accused Silber

Products”).

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Silber Ski-Doo G4 850 Turbo Kit

(See https://www.silberturbos.com/collections/polaris-axys-turbo-parts/products/kpa-

turbocharger, last visited Oct. 16, 2018; Ski-Doo G4 850 Turbo Kit,

https://www.silberturbos.com/collections/ski-doo-snowmobile/products/2016-skidoo-

850-etec-turbo-kit, last visited Dec. 6, 2018).

51. As recited in claim 1 of the ’652 Patent, the Accused Silber Products have a

turbocharger housing having an inner cavity and a shaft, as shown below:

Turbocharger housing

Inner cavity of turbocharger

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Shaft of turbocharger

52. As recited in claim 1 of the ’652 Patent, the Accused Silber Products have a

first annular bearing assembly having an outer surface that engages a surface of the inner

cavity, as shown below:

First annular bearing assembly

First annular bearing assembly inside

turbocharger

In the Accused Silber Products the outer surface of the first annular bearing assembly

engages the surface of the turbocharger’s inner cavity.

53. As recited in claim 1 of the ’652 Patent, the Accused Silber Products have a

second annular bearing assembly having an outer surface that engages a surface of the inner

cavity, as shown below:

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In the Accused Silber Products, the second annular bearing assembly also has an outer

surface that is in contact with the surface of the turbocharger’s inner cavity.

54. As recited in claim 1 of the ’652 Patent, the Accused Silber Products have an

outer spacer having an outer diameter substantially the same as an outer diameter of both

the first annular bearing assembly and the second annular bearing assembly, the outer

spacer in contact with facing surfaces of the first annular bearing assembly and the second

annular bearing assembly, as shown below:

Outer spacer (side 1)

Outer spacer (side 2)

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First annular bearing assembly and annular bearing assembly

Outer spacer (middle), first annular bearing assembly (top), and second annular

bearing assembly (bottom)

55. As recited in claim 1 of the ’652 Patent, the Accused Silber Products have an

inner spacer having an inner diameter substantially the same as an inner diameter of both

the first annular bearing assembly and the second annular bearing assembly, the inner

spacer in contact with facing surfaces of the first annular bearing assembly and the second

annular bearing assembly, as shown below:

CASE 0:18-cv-03401 Document 1 Filed 12/14/18 Page 24 of 35

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Inner spacer

Inner spacer and first annular bearing

assembly

Inner diameter of inner spacer alignment with inner diameter of first annular

bearing assembly

56. As recited in claim 1 of the ’652 Patent, in the Accused Silber Products the

inner diameter of the inner spacer, and the inner diameter of both the first annular bearing

assembly and the second annular bearing assembly are substantially the same as an outer

diameter of the shaft, as shown below:

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Inner spacer fit on shaft

In the Accused Silber Products the outer diameter of the shaft is substantially the same as

the inner diameter of the inner spacer. Similarly, in the Accused Silber Products the inner

spacer and the first annular bearing assembly fit perfectly on the shaft as well. In the

Accused Silber Products, the second annular bearing assembly is the same size as the first

annular bearing assembly and therefore fits perfect on the shaft as well (the turbocharger

housing, the outer spacer, and the second annular bearing assembly are omitted from view).

57. As recited in claim 1 of the ’652 Patent, the Accused Silber Products have

the outer spacer fixed in place relative to the turbocharger housing, as shown below:

In the Accused Silber Products, the outer spacer can be inserted inside the turbocharger,

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rendering it fixed in a place relative to the turbocharger housing.

58. As recited in claim 1 of the ’652 Patent, the Accused Silber Products have

the inner spacer rotate with the shaft, as shown below:

In the Accused Silber Products, the inner spacer fits perfectly on the shaft and rotates with

it.

59. As recited in claim 1 of the ’652 Patent, in the Accused Silber Products the

turbocharger housing comprises an oil port in fluid communication with an oil source

external of the turbocharger housing, as shown below:

Oil port (without locator pin)

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Locator pin

Locator pin inserted into oil port

In the Accused Silber Products, the oil port is in fluid communication with the external oil

source through the pin.

60. As recited in claim 1 of the ’652 Patent, in the Accused Silber Products the

turbocharger housing comprises at least one turbocharger housing oil channel providing

fluid communication between the oil port and the outer spacer, as shown below:

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Oil channels in turbocharger housing

Locator pin two channels that

correspond with turbocharger housing

oil channels

Locator pin on turbocharger housing

Outer spacer in turbocharger housing

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Locator pin connected to outer spacer

61. As recited in claim 1 of the ’652 Patent, in the Accused Silber Products the

outer spacer comprises at least one outer spacer oil channel therethrough, aligned with the

turbocharger housing oil channel, as shown below:

Close-up of turbocharger housing

(two oil channels)

Two oil channels located on outer spacer,

aligned with housing oil channels

Locator pin locked with outer spacer in place inside turbocharger housing

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62. Upon information and belief, in conjunction with the sale of the Accused

Silber Products, and same or similar systems, Silber acts with specific intent to actively

induce customers to directly infringe, either literally or under the doctrine of equivalents,

at least claim 1 of the ’652 Patent. Upon information and belief, Silber intentionally and

actively induces its customers to directly infringe claims of the ’652 Patent by providing

instructions and written material, such as owner’s manuals, installation manuals, marketing

brochures, and/or service and repair manuals, which encourage and direct the installation

and use of the Accused Silber Products and any same or similar products, such that their

customers directly infringe claims of the ’652 Patent. (See

https://www.silberturbos.com/collections/polaris-axys-turbo-parts/products/kpa-

turbocharger, last visited Oct. 16, 2018; Ski-Doo G4 850 Turbo Kit,

https://www.silberturbos.com/collections/ski-doo-snowmobile/products/2016-skidoo-

850-etec-turbo-kit, last visited Dec. 6, 2018; Video: Silber Turbo install on a 2018 Ski Doo

850, https://youtu.be/bZiOXryGWek, last visited on Dec. 6, 2018.) Silber knowingly

engages in such inducement, at least as of, on, or about October 30, 2018, when Cardone

sent a cease and desist letter through its counsel, and has done so with knowledge that such

activity encourages customers of its Accused Silber Products, to offer to sell, sell, install,

and/or use those products in a manner that directly infringes the ’652 Patent. For example,

upon information and belief, Silber instructs its customers to offer to sell, sell, install,

and/or use the Accused Silber Products such that customers directly infringe at least claim

1 of the ’652 Patent, as set forth in paragraphs 50-61.

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63. Upon information and belief, and not by way of limitation, the Accused

Silber Products, are being installed and used by customers to directly infringe at least claim

1 of the ’652 Patent, as set forth in paragraphs 50-61.

64. On information and belief, Silber’s infringement of the ’652 Patent is willful

because Silber has had knowledge of the ’652 Patent, and has known that the Accused

Silber Products infringe the ’652 Patent, at least as of, on, or about October 30, 2018, when

Cardone sent a cease and desist letter through its counsel. But Silber continues to make,

use, offer to sell, sell, and/or import into the United States its infringing Accused Silber

Products, and thereby directly infringes or indirectly infringes, by actively inducing its

customers to infringe the ’652 Patent, in objective and subjective reckless disregard of the

’652 Patent and the rights conferred by the ’652 Patent to Cardone.

65. Cardone has been injured and suffered significant financial damage as a

direct and proximate result of Silber’s infringement of the ’652 Patent.

66. Silber’s infringement of the ’652 Patent has and will continue to cause

irreparable injury and damage to Cardone unless and until the Court enjoins Silber from

committing further infringing acts.

67. Cardone is entitled to recover damages from Silber as a result of Silber’s

wrongful acts of infringement in an amount subject to proof at trial.

REQUEST FOR RELIEF

Cardone respectfully requests the following relief:

1. A judgment that kPa has infringed, and is infringing, one or more claims of

the ’652 Patent, and are liable to Cardone for damages caused by such infringement;

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2. A judgment that Silber has infringed and is infringing one or more claims of

the ’652 Patent, and are liable to Cardone for damages caused by such infringement;

3. An award of damages, including lost profits, or in the alternative, not less

than a reasonable royalty, including pre-judgment and post-judgment interest and costs, in

an amount adequate to compensate Cardone for kPa’s infringement of the ’652 Patent;

4. An award of damages, including lost profits, or in the alternative, not less

than a reasonable royalty, including pre-judgment and post-judgment interest and costs, in

an amount adequate to compensate Cardone for Silber’s infringement of the ’652 Patent;

5. A judgment that kPa’s infringement of the ’652 Patent is willful and that

damages shall be increased under 35 U.S.C. § 284 to three times the amount found or

measured;

6. A judgment that Silber’s infringement of the ’652 Patent is willful and that

damages shall be increased under 35 U.S.C. § 284 to three times the amount found or

measured;

7. An order permanently enjoining kPa from infringing the ’652 Patent;

8. An order permanently enjoining Silber from infringing the ’652 Patent;

9. If a permanent injunction is not granted as to kPa, a judicial determination of

the conditions for future infringement by kPa such as an ongoing royalty;

10. If a permanent injunction is not granted as to Silber, a judicial determination

of the conditions for future infringement by Silber such as an ongoing royalty;

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11. A post-judgment equitable accounting of damages owed by kPa for the

period of infringement of the ’652 Patent following the period of damages established at

trial;

12. A post-judgment equitable accounting of damages owed by Silber for the

period of infringement of the ’652 Patent following the period of damages established at

trial;

13. A finding that this case against kPa is “exceptional” and an award of

attorneys’ fees, expenses, and costs incurred in this action, pursuant to 35 U.S.C. § 285;

14. A finding that this case against Silber is “exceptional” and an award of

attorneys’ fees, expenses, and costs incurred in this action, pursuant to 35 U.S.C. § 285;

and

15. Such other and further relief at law or in equity as the Court deems just and

proper.

DEMAND FOR JURY TRIAL

Cardone demands a trial by jury on all issues so triable, pursuant to Federal Rule of

Civil Procedure 38 and Local Rule 38.1.

Dated: December 14, 2018 Respectfully submitted,

By: /s/ Christopher E. Hanba

Christopher E. Hanba (pro hac vice pending)

Honigman Miller Schwartz and Cohn LLP

315 East Eisenhower Parkway

Suite 100

Ann Arbor, MI 48108-3330

Telephone Number: (734) 418-4278

Fax Number: (734) 418-4279

[email protected]

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BROWNSON NORBY, PLLC

Robert D. Brownson (#12245)

Olivia M. Cooper (#0398322)

4800 Capella Tower

225 South Sixth Street

Minneapolis, MN 55402

(612) 332-4020

(612) 332-4025 (Facsimile)

[email protected]

[email protected]

CASE 0:18-cv-03401 Document 1 Filed 12/14/18 Page 35 of 35