Professional Documents
Culture Documents
Quan v. Ty - Complaint
Quan v. Ty - Complaint
Quan v. Ty - Complaint
COMPLAINT
Plaintiffs Shanlian Quan and Kwan Joong Kim, by and through their attorney,
Sang Lee, for their Complaint against the Defendants Ty, Inc. and H TY WARNER
allege as follows:
NATURE OF ACTION
1. This is an action against Ty, Inc. and other defendants for copyright
infringement and patent infringement under the law of the United States and of the
State of Illinois. By this action, Shanlian Quan and Kwan Joong Kim seek, inter alia,
THE PARTIES
residence at Guang dong province Dong guan city Chashan town Lijiang Hua Yuan
8Dong 5A China.
7. This Court has original subject matter jurisdiction over this case for
jurisdiction over Plaintiffs’ claims arising under state law under 28 U.S.C. § 1367.
8. This Court also has original subject matter jurisdiction pursuant to the
patent laws of the United States, Title 35 of the United States Code. This Court has
exclusive subject matter jurisdiction over this case for patent infringement under 28
U.S.C. §§ 1331 and 1338(a), and supplemental jurisdiction over Plaintiffs’ claims
2
Case: 1:17-cv-05683 Document #: 1 Filed: 08/03/17 Page 3 of 16 PageID #:3
(c) because the events giving rise to the claims have occurred and are occurring in
this District and because Defendants are subject to personal jurisdiction in this
District.
11. Plaintiffs have been injured by Defendants’ conduct and have suffered
12. Quan designs plush toys in China and Quan assigned the distribution
or sale rights of her plush toys to Kim and his company, Creatail HK Limited.
14. Kim and his company, Creatail HK Limited, have showed samples to
Defendants in person in the showroom, Kim and his company, Creatail HK Limited,
have sent pictures of the samples in emails to Defendants and Kim and his company,
15. Kim and his company, Creatail HK Limited, received purchase orders from
Defendants in email and Kim with his associates and his contactors have manufactured and
delivered plush toys for sale to Defendants for sale in the U.S.A. until 2015.
16. Upon information and belief, Defendants are also marketers, distributors
3
Case: 1:17-cv-05683 Document #: 1 Filed: 08/03/17 Page 4 of 16 PageID #:4
17. Defendants have paid for some of the outstanding invoices, but have
refused to pay for other outstanding invoices and asked for the cheaper prices.
18. After receiving request for cheaper plush toys from Ty, Quan has set up a
19. Upon information and belief, Defendants cancelled the pending orders with
Kim in 2015 without any compensation and without any explanation for the reasons.
manufacturers in China. Some counterfeit items have been seized by Chinese Port
Authorities for the infringement of the copyrights and the patent rights, but other
21. Kim and his company, Creatail HK Limited, have requested for the
payment of the outstanding invoices for two years through email and by letter, but
Defendants have refused to settle the outstanding invoices with the excuse of the
22. Quan is the owner of copyrights for plush toys in China as in Exhibit C and
4
Case: 1:17-cv-05683 Document #: 1 Filed: 08/03/17 Page 5 of 16 PageID #:5
Kim is the owner of the copyrights in the U.S. by the assignment from Quan, Kim’s
wife, as in Exhibit D and on information and belief, Defendants has had knowledge
and notice and their own infringement of Plaintiffs’ copyrights, since as early as in
August 2015 by virtue of the pending disputes and of the present Complaint.
Exhibit A and on information and belief, Defendants has had knowledge and notice
and their own infringement of Plaintiffs’ patent rights as in Exhibit B, since as early as
in August 2015 by virtue of the pending disputes and of the present Complaint.
24. Shanlian Quan assigned her copyrights in the U.S. to her husband, Kwan
Joong Kim as in Exhibit D and on information and belief, Defendants has had
knowledge and notice and their own infringement of Plaintiffs’ copyrights, since as
early as in August 2015 by virtue of the pending disputes and of the present Complaint.
25. Upon information and belief, Defendants have and are continuing to market
and sell or distribute the counterfeit plush toys of Quan under Ty brand name
worldwide for two years at least. Some, but not all, of the infringements are shown in
Exhibit E.
5
Case: 1:17-cv-05683 Document #: 1 Filed: 08/03/17 Page 6 of 16 PageID #:6
COUNT I
26. Plaintiffs incorporate herein by reference each and every averment contained
27. Through their conduct averred herein, Defendants have infringed Plaintiffs’
and Section 501 of the Copyright Act. 17 U.S.C. §§ 106 et seq., and 501 .
not all, of the infringements are shown in Exhibit E, constitutes a separate and
31. Alternatively, Plaintiffs are entitled to the maximum statutory damages in the
6
Case: 1:17-cv-05683 Document #: 1 Filed: 08/03/17 Page 7 of 16 PageID #:7
amount of $150,000 with respect to each work infringed, or for such other
32. Plaintiffs further are entitled to recover their attorneys’ fees and full costs
33. As a direct and proximate result of the foregoing acts and conduct, Plaintiffs
COUNT II
7
Case: 1:17-cv-05683 Document #: 1 Filed: 08/03/17 Page 8 of 16 PageID #:8
authorization in violation of Sections 106 et seq. and Section 501 of the Copyright Act.
17 U.S.C. §§ 106 et seq., and 501. Notwithstanding such knowledge, Defendants have
failed to take simple measures, readily available to Defendants, that could prevent
but not all, of the infringements are shown in Exhibit E, constitutes a separate and
the amount of $150,000 with respect to each work infringed, or for such other amounts
40. Plaintiffs further are entitled to recover their attorneys’ fees and full costs
41. As a direct and proximate result of the foregoing acts and conduct,
Plaintiffs have sustained and will continue to sustain substantial, immediate and
irreparable injury, for which there is no adequate remedy at law. Unless enjoined and
restrained by this Court, Defendants will continue to infringe Plaintiffs’ rights in their
8
Case: 1:17-cv-05683 Document #: 1 Filed: 08/03/17 Page 9 of 16 PageID #:9
relief.
COUNT III
43. Defendants have the right and ability to supervise and/or control the
materially contributed to, intentionally induced, and/or caused its employees to infringe
plush toys without authorization in violation of Sections 106 et seq. and Section 501 of
the Copyright Act. 17 U.S.C. §§ 106 et seq., and 501. Notwithstanding such
but not all, of the infringements are shown in Exhibit E, constitutes a separate and
9
Case: 1:17-cv-05683 Document #: 1 Filed: 08/03/17 Page 10 of 16 PageID #:10
the amount of $150,000 with respect to each work infringed, or for such other amounts
48. Plaintiffs further are entitled to recover their attorneys’ fees and full costs
49. As a direct and proximate result of the foregoing acts and conduct,
Plaintiffs have sustained and will continue to sustain substantial, immediate and
irreparable injury, for which there is no adequate remedy at law. Unless enjoined and
restrained by this Court, Defendants will continue to infringe Plaintiffs’ rights in their
relief.
COUNT IV
but not all, of the infringements are shown in Exhibit E, Plaintiffs are entitled to
10
Case: 1:17-cv-05683 Document #: 1 Filed: 08/03/17 Page 11 of 16 PageID #:11
recover all proceeds and other compensation received or to be received arising from the
been unjustly enriched and Plaintiffs have been damaged in an amount to be proven at
trial which damages and/or restitution and disgorgement is appropriate. Such damages
and/or restitution and disgorgement should include a declaration by this Court that
Defendants are constructive trustees for the benefit of Plaintiffs, and an order that
Defendants convey to Plaintiffs all the gross receipts received or toe be receive that are
54. Through its conduct, Defendants are guilty of oppression, fraud or malice;
Plaintiffs, in addition to their actual damages, are by reason thereof entitled to recover
55. As a direct and proximate result of the foregoing acts and conduct, Plaintiffs
have sustained and will continue to sustain substantial, immediate and irreparable
injury, for which there is no adequate remedy at law. Unless enjoined and restrained by
this Court, Defendants will continue to infringe Plaintiffs’ rights in their copyrighted
COUNT V
11
Case: 1:17-cv-05683 Document #: 1 Filed: 08/03/17 Page 12 of 16 PageID #:12
57. The acts and conduct of Defendants constitute an appropriation and invasion
of the property rights of Plaintiffs in the copyrighted works, and constitute unfair
but not all, of the infringements are shown in Exhibit E, Plaintiffs are entitled to
recover all proceeds and other compensation received or to be received arising from the
been unjustly enriched and Plaintiffs have been damaged in an amount to be proven at
trial which damages and/or restitution and disgorgement is appropriate. Such damages
and/or restitution and disgorgement should include a declaration by this Court that
Defendants are a constructive trustee for the benefit of Plaintiffs, and an order that
Defendants convey to Plaintiffs all the gross receipts received or toe be receive that are
60. Through its conduct, Defendants are guilty of oppression, fraud or malice;
Plaintiffs, in addition to their actual damages, are by reason thereof entitled to recover
61. As a direct and proximate result of the foregoing acts and conduct, Plaintiffs
have sustained and will continue to sustain substantial, immediate and irreparable
injury, for which there is no adequate remedy at law. Unless enjoined and restrained by
12
Case: 1:17-cv-05683 Document #: 1 Filed: 08/03/17 Page 13 of 16 PageID #:13
this Court, Defendants will continue to infringe Plaintiffs’ rights in their copyrighted
COUNT VI
62. As its seventh ground for relief, Plaintiffs hereby allege infringement of
Plaintiffs’ Patent. Plaintiffs repeat and allege the allegations of paragraphs 1 through
producing and selling the counterfeit plush toys as in Exhibit B for two years at least.
65. On information and belief, Defendants has had knowledge and notice of
August 2015 by virtue of the existing disputes and the present Complaint.
infringement of the patent would be at least 10% of Defendants’ revenue resulting from
67. Defendants’ infringement of the Patent has been and continues to be willful.
68. Defendants’ infringement of the Patent renders this case exceptional within
13
Case: 1:17-cv-05683 Document #: 1 Filed: 08/03/17 Page 14 of 16 PageID #:14
1. That defendants pay for all the profits in such amount as may be found;
alternatively, for maximum statutory damages in the amount of $150,000 with respect
to each copyrighted work infringed either directly or indirectly, or for such other
2. That defendants pay for all the profits and damages to compensate for
infringement.
trust.
and assigns, and all those in active or participation with them, be forthwith
a. Selling or distributing the counterfeit plush toys or any other similar toys
14
Case: 1:17-cv-05683 Document #: 1 Filed: 08/03/17 Page 15 of 16 PageID #:15
b. Doing any other act or thing likely to induce the mistaken belief that
current inventory of products, and related materials that utilize Plaintiffs’ plush toys or
approximations or simulations thereof, and remove the same from any and all retail
monetary relief in an amount to be fixed by the Court in its discretion as just, including:
a. All profits received by defendants from sales and revenues of any kind
exemplary and other damages, including pre- and post-judgment interest, suffered as a
9. That defendants file with the Court and serve upon Plaintiffs within thirty
(30) days after issuance of an injunction, a report in writing and under oath setting forth
in detail the manner and form in which defendants have complied with the injunction.
10. That because of the exceptional nature of this case, resulting from
defendant’s deliberate and willful infringement, this Court award Plaintiffs its
15
Case: 1:17-cv-05683 Document #: 1 Filed: 08/03/17 Page 16 of 16 PageID #:16
11. That Plaintiffs shall have such other and further relief as this Court may
deem just.
Dated: Chicago, IL
PLAINTIFFS,
16
Case: 1:17-cv-05683 Document #: 1-1 Filed: 08/03/17 Page 1 of 10 PageID #:17
Reg#-2015-F-
42107 Sitting Lion 201530325757.3 2015-08-27 Shanlian Quan 7/7/2014 9/24/2014 8/22/2014
00208068
Reg#-2015-F-
42105/42106 Sitting Tiger 201530325894.7 2015-08-27 Shanlian Quan 7/7/2014 9/24/2014 8/22/2014
00208060
Reg#-2015-F-
42108/42109 Sitting Bear 201530325812.9 2015-08-27 Shanlian Quan 7/19/2014 9/24/2014 8/22/2014
00208061
Reg#-2015-F-
42110 Sitting Panda 201530325811.4 2015-08-27 Shanlian Quan 7/9/2014 9/24/2014 8/22/2014
00208062
Reg#-2015-F-
42111 Sitting Monkey 201530325779.X 2015-08-27 Shanlian Quan 7/4/2014 9/24/2014 8/22/2014
00208063
Reg#-2015-F-
42123 Sitting Gorilla 201530328311.6 2015-08-28 Shanlian Quan 3/25/2015 Cancelled order 6/23/2015
00208069
Reg#-2015-F-
42128 Sittal Koala 201530328618.6 2015-08-28 Shanlian Quan 3/25/2015 Cancelled order 6/23/2015
00208067
Reg#-2015-F-
42129 Sitting Siamese Cat 201530328469.3 2015-08-28 Shanlian Quan 3/27/2014 Cancelled order 6/23/2015
00208072
Reg#-2015-F-
42130 Sitting Cat 201530328156.8 2015-08-28 Shanlian Quan 1/10/2015 Cancelled order 6/23/2015
00208075
Reg#-2015-F-
42131 Sitting Dog 201530328238.2 2015-08-28 Shanlian Quan 3/25/2015 Cancelled order 6/23/2015
00208071
Reg#-2015-F-
42132 Grey Seal 201530328562.4 2015-08-28 Shanlian Quan 5/22/2015 Cancelled order 6/23/2015
00208065
Reg#-2015-F-
42117 Sitting Racoon 201530336420.2 2015-09-02 Shanlian Quan 7/21/2014 Cancelled order 8/22/2014
00208064
Reg#-2015-F-
42119 Sitting Elephant 201530336386.9 2015-09-02 Shanlian Quan 7/9/2014 Cancelled order 8/22/2014
00208076
Reg#-2015-F-
42120 Sitting Cheetah 201530336572.2 2015-09-02 Shanlian Quan 7/4/2014 Cancelled order 8/22/2014
00208073
Reg#
NA Sitting Husky Shanlian Quan -2016-F- 2014 No order 8/22/2014
00330598
Reg#
NA Sitting Beagle Shanlian Quan -2016-F- 2015 No order 2015-02-10(Email)
00330597
Case: 1:17-cv-05683 Document #: 1-3 Filed: 08/03/17 Page 2 of 3 PageID #:29
Exhibit C - Plaintiffs' Copyright Registration Status in China
Reg#
NA Sitting Fox Shanlian Quan -2016-F- 2014 No order 8/22/2014
00330595
NA Sitting Tiger Shanlian Quan Did not apply 2015 No order 2015
Reg#
NA Black Cat Shanlian Quan -2016-F- 2015 No order 2015-2-10(Email)
00330596
Reg#-2016-F-
NA Sitting Pug 201530419153.5' Shanlian Quan 00267865
2015 No order 2015-2-10(Email)
Reg#-2016-F-
NA Mountain dog Shanlian Quan 2015 No order 6/23/2015
00267862
Reg#-2016-F-
NA Fabric Shanlian Quan 2014 No order 6/13/2015
00269127
Reg#-2016-F-
NA Labrador Shanlian Quan 00267864
2015 No order
Reg#-2016-F-
NA Rottweiler Shanlian Quan 00267863
2015 No order NA
Reg#-2016-F-
NA Bull Terrier Shanlian Quan 00267860
2015 No order NA
Reg#-2013-F-
NA Sparkle Pet - Tiger 201230460457.2 2012.9.25 Kwan Joong Kim
2339270
2012 No order NA
Reg#-2013-F-
NA Sparkle Pet - Cat 20120460443.0 2012.9.25 Kwan Joong Kim
2341516
2012 No order NA
Reg#-2013-F-
NA Sparkle Pet - Lamb 201230460447.9 2012.9.25 Kwan Joong Kim
2343049
2012 No order NA
Reg#-2013-F-
NA Sparkle Pet - Lion 201230460461.9 2012.9.25 Kwan Joong Kim
2337032
2012 No order NA
* Publication and Completion Dates are the same as Those Dates in the Registered Copyrights in China
Case: 1:17-cv-05683 Document #: 1-4 Filed: 08/03/17 Page 2 of 2 PageID #:32
* Publication and Completion Dates are the same as Those Dates in the Registered Copyrights in China
Case: 1:17-cv-05683 Document #: 1-5 Filed: 08/03/17 Page 1 of 1 PageID #:33