Virco Mfg. v. MooreCo - Complaint

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Case 6:19-cv-00637 Document 1 Filed 10/31/19 Page 1 of 9

IN THE UNITED STATES DISTRICT COURT


FOR THE WESTERN DISTRICT OF TEXAS
WACO DIVISION

VIRCO MFG. CORPORATION, §


A Delaware corporation, §
§
Plaintiff, §
§ Civil Action No. 6:19-cv-00637
v. §
§ JURY TRIAL DEMANDED
MOORECO, INC. a Texas corporation, §
§
Defendant. §

PLAINTIFF’S ORIGINAL COMPLAINT

Plaintiff Virco Mfg. Corporation (“Virco” or “Plaintiff”) hereby complains of MooreCo,

Inc. (“MooreCo” or “Defendant”) and alleges as follows:

NATURE OF THE ACTION

1. This is an action for patent infringement based upon the table top design protected

by U.S. Design Patent No. D776,473.

2. Defendant manufactures and sells knock-off table tops to customers, distributors,

and resellers in place of the patented products designed, manufactured, and sold by Virco.

3. As a result of Defendant’s unlawful infringement, Defendant has been wrongfully

enriched, and Virco has been injured through loss of sales and good will, and seeks injunctive and

monetary remedies under the federal patent statutes, 35 U.S.C. §§ 284, 285, and 289.

THE PARTIES

4. Plaintiff Virco is a corporation organized and existing under the laws of the State

of Delaware, having its principal place of business at 2027 Harpers Way, Torrance, California

90501.

PLAINTIFF'S ORIGINAL COMPLAINT PAGE 1


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5. Upon information and belief, Defendant MooreCo is a corporation organized and

existing under the laws of the State of Texas, having its principal place of business at 2885 Lorraine

Avenue, Temple, Texas 76501. Defendant can be served by serving its registered agent CT

Corporation System at 1999 Bryan Street, Suite 900, Dallas, Texas 75201-3136 or wherever else

an officer of Defendant may be found.

JURISDICTION AND VENUE

6. Jurisdiction and venue are proper over Defendant in this district for the reasons set

forth in this Complaint.

7. This Court has original subject matter jurisdiction over the claim in this action

pursuant to, at least, 35 U.S.C. §§ 271 and 281, as this claim arises under the laws of the United

States.

8. This Court has personal jurisdiction over Defendant because Defendant has a

regular and established place of business located at 2885 Lorraine Avenue, Temple, Texas 76501

within this judicial district. Further, Defendant has a continuous, systematic, and substantial

presence within this judicial district, including by selling and/or offering for sale infringing

products in this judicial district, and by committing acts of patent infringement in this judicial

district, including but not limited to selling and offering for sale infringing furniture directly to

customers and consumers in this district, and selling such products into the stream of commerce

knowing such products would be sold in this state and this district, which acts form a substantial

part of the events giving rise to Virco’s claim.

9. Accordingly, venue is proper in this judicial district under 28 U.S.C. § 1400(b)

because Defendant is a company organized and existing under the laws of the State of Texas and

has its principal place of business located within this district, because Defendant has committed

PLAINTIFF'S ORIGINAL COMPLAINT PAGE 2


7299917 v2 (79193.00003.000)
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acts of infringement by selling and/or offering for sale infringing products that infringe Virco’s

patent in this judicial district, and because Defendant has a regular and established place of

business in this district.

FACTUAL BACKGROUND

10. Virco repeats, re-alleges, and incorporates herein by reference, the allegations

stated in paragraphs 1–9 of this Complaint as if set forth fully herein.

11. Virco has been actively engaged in the manufacture and sale of high quality school

furniture since 1950. Through the years, Virco has expanded to become the leading manufacturer

and distributor of school furniture for grades K–12 in the United States.

12. Virco has invested considerable resources in the design of its furniture. One of its

innovative designs is its Molecule Desk series (“Molecule Desks”), which has received positive

publicity and industry recognition since Virco first introduced it.

13. On January 17, 2017, the United States Patent and Trademark Office duly and

lawfully issued United States Design Patent No. D776,473 (the “D473 Patent”), entitled “Table

Top.” Virco is the owner by assignment of all right, title, and interest in the D473 Patent. A true

and correct copy of the D473 Patent is attached hereto as Exhibit 1.

14. Defendant makes, uses, sells, offers for sale and/or imports furniture products that

infringe Virco’s intellectual property rights literally and/or under the doctrine of equivalents.

Examples of such furniture products include the Harmony Desk series (“Harmony Desks”). The

product listing for one example is shown in Exhibit 2.

15. Defendant has been selling the Harmony Desks since at least June 23, 2017, as

shown in Exhibit 3.

PLAINTIFF'S ORIGINAL COMPLAINT PAGE 3


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Case 6:19-cv-00637 Document 1 Filed 10/31/19 Page 4 of 9

16. Defendant’s infringement of the D473 patent was willful, intentional, and knowing.

Defendant has been aware of the D473 patent since at least August 30, 2019. On that date, Virco

sent Defendant a cease and desist letter identifying and providing the D473 Patent. In its letter,

Virco identified Defendant’s Harmony Desks as infringing the D473 Patent. Despite receiving the

cease and desist letter, Defendant has refused to stop infringing the D473 Patent.

CAUSES OF ACTION

A. Patent Infringement - 35 U.S.C. § 271

17. Virco repeats, re-alleges, and incorporates herein by reference, the allegations

stated in paragraphs 1–16 of this Complaint as if set forth fully herein.

18. This cause of action arises under the patent laws of the United States and, in

particular, under 35 U.S.C. §§ 271, et seq.

19. Virco is the owner by assignment of the D473 Patent with sole rights to enforce the

D473 Patent and sue infringers.

20. The D473 Patent is valid, enforceable, and was duly issued in full compliance with

Title 35 of the U.S. Code.

21. Defendant, through its agents, employees and/or servants, has and continues to

knowingly, intentionally, and willfully infringe the D473 Patent by making, using, selling offering

for sale, and/or importing furniture having a design that would appear to an ordinary observer to

be substantially similar to the claim of the D473 Patent, for example, Defendant’s Harmony Desks,

as shown below.

PLAINTIFF'S ORIGINAL COMPLAINT PAGE 4


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Case 6:19-cv-00637 Document 1 Filed 10/31/19 Page 5 of 9

Harmony Desk FIG. 12 from the D473 Patent

22. Defendant has infringed the D473 Patent without permission or license from Virco,

and continues to infringe the D473 Patent in violation of 35 U.S.C. § 271.

23. Upon information and belief, Defendant’s infringement of the D473 Patent is and

has been willful, deliberate, and intentional by committing these acts of infringement with

knowledge and/or constructive knowledge of the D473 Patent and, thus, acting in reckless

disregard of Virco’s patent rights. Defendant’s actions constitute willful and intentional

infringement of the D473 Patent. Moreover, MooreCo willfully and intentionally continues sales

of its Harmony desks in spite of Virco’s August 30, 2019 cease and desist letter indicating to

MooreCo that the sales of the Harmony desks constitute infringement.

24. Further, Virco’s Molecule Desks and its iconic design are well known throughout

the desk industry, and Defendant’s Harmony Desks are a nearly identical copy of Virco’s patent

rights. Defendant knew, or it was so obvious that Defendant should have known, that its actions

PLAINTIFF'S ORIGINAL COMPLAINT PAGE 5


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would constitute infringement of the D473 Patent. Defendant’s acts of infringement of the D473

Patent were not consistent with the standards of commerce for its industry.

25. As a direct and proximate result of Defendant’s acts of infringement, Defendant

has derived and received gains, profits, and advantages in an amount that is not presently known

to Virco.

26. Pursuant to 35 U.S.C. § 284, Virco is entitled to damages for Defendant’s infringing

acts and treble damages together with interests and costs as fixed by this Court.

27. Pursuant to 35 U.S.C. § 285, Virco is entitled to reasonable attorneys’ fees for the

necessity of bringing this claim.

28. Pursuant to 35 U.S.C. § 289, Virco is entitled to total profits from Defendant’s

infringement of the D473 Patent.

29. Defendant’s actions complained of herein will continue unless Defendant is

enjoined by this Court.

30. Due to the aforesaid infringing acts performed by Defendant constituting patent

infringement, Virco has suffered, and continues to suffer, great and irreparable injury, for which

Virco has no adequate remedy at law. On information and belief, Defendant’s ongoing sales create

a possibility of confusion among consumers and users regarding the source of the products, causing

irreparable damage to Virco’s reputation, which reputation includes providing products meeting

Virco’s high standards of quality and safety in educational environments.

31. Defendant will continue to infringe Virco’s patent rights to the great and irreparable

harm and monetary damage to Virco, and will continue to do so unless and until Defendant is

enjoined and restrained by this Court.

PLAINTIFF'S ORIGINAL COMPLAINT PAGE 6


7299917 v2 (79193.00003.000)
Case 6:19-cv-00637 Document 1 Filed 10/31/19 Page 7 of 9

JURY DEMAND

32. Virco repeats, re-alleges, and incorporates herein by reference, the allegations

stated in paragraphs 1–31 of this Complaint as if set forth fully herein.

33. Virco hereby demands a trial by jury on all issues raised in Virco’s Complaint that

are so triable.

PRAYER FOR RELIEF

WHEREFORE, Virco prays for judgment in its favor and against Defendant MooreCo,

including, but not limited to, the following relief:

A. An Order adjudging Defendant to have infringed, and willfully infringed, the D473

Patent under 35 U.S.C. § 271;

B. A preliminary and permanent injunction enjoining Defendant, its respective

officers, directors, agents, servants, employees, customers, and attorneys, and those persons in

active concert or participation with Defendant, from infringing the D473 Patent in violation of 35

U.S.C. § 271, including, for example through the manufacture, use, sale, offer for sale, and/or

importation into the United States of Defendant’s Harmony Desks, and any products that are not

colorably different from the Harmony Desks;

C. An Order requiring Defendant to account for all gains, profits, and advantages

derived through Defendant’s infringement of the D473 Patent in violation of 35 U.S.C. § 271, and

requiring Defendant to pay to Virco all damages suffered by Virco of at least a reasonable royalty

and/or Defendant’s total profit from such infringement pursuant to 35 U.S.C. §§ 284 and 289;

D. An Order adjudging that this is an exceptional case;

E. An Order for a trebling of damages and/or exemplary damages because of

Defendant’s willful conduct pursuant to 35 U.S.C. § 284;

PLAINTIFF'S ORIGINAL COMPLAINT PAGE 7


7299917 v2 (79193.00003.000)
Case 6:19-cv-00637 Document 1 Filed 10/31/19 Page 8 of 9

F. An award to Virco of the attorneys’ fees, expenses, and costs incurred by Virco in

connection with this action pursuant to 35 U.S.C. § 285;

G. An award of pre-judgment and post-judgment interest against Defendant; and

H. Such other and further relief as this Court may deem just and proper.

October 31, 2019 Respectfully submitted,

KANE RUSSELL COLEMAN LOGAN PC

/s/ Bruce Morris


Bruce C. Morris
Texas State Bar No. 14469850
bmorris@krcl.com
5051 Westheimer Road, 10th Floor
Houston, TX 77056
Telephone: (713) 425-7450
Facsimile: (713) 425-7700

Michael A. Logan
Texas State Bar. No. 12497500
mlogan@krcl.com
John R. Sigety
Texas State Bar No. 24083853
jsigety@krcl.com
901 Main Street, Suite 5200
Dallas, Texas 75202
Telephone: (214) 777-4200
Facsimile: (214) 777-4299

ATTORNEYS-IN-CHARGE
FOR PLAINTIFF VIRCO MFG. CORPORATION

PLAINTIFF'S ORIGINAL COMPLAINT PAGE 8


7299917 v2 (79193.00003.000)
Case 6:19-cv-00637 Document 1 Filed 10/31/19 Page 9 of 9

OF COUNSEL:

Michael K. Friedland*
Lauren Keller Katzenellenbogen*
David M. Cohen*
KNOBBE, MARTENS, OLSON & BEAR LLP
2040 Main Street, Fourteenth Floor
Irvine, CA 92614
Telephone: (949) 760-0404
Facsimile: (949) 760-9502
Michael.Friedland@knobbe.com
Lauren.Katzenellenbogen@knobbe.com
David.Cohen@knobbe.com
Litigation@kmob.com

* - Pro Hac Vice motions to be filed with the Court.

PLAINTIFF'S ORIGINAL COMPLAINT PAGE 9


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EXHIBIT 1
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EXHIBIT 2
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EXHIBIT 3
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Case 6:19-cv-00637 Document 1-4 Filed 10/31/19 Page 1 of 2
JS 44 (Rev. 06/17) CIVIL COVER SHEET
The JS 44 civil cover sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or other papers as required by law, except as
provided by local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, is required for the use of the Clerk of Court for the
purpose of initiating the civil docket sheet. (SEE INSTRUCTIONS ON NEXT PAGE OF THIS FORM.)

I. (a) PLAINTIFFS DEFENDANTS


VIRCO MFG. CORPORATION, a Delaware corporation MOORECO, INC., a Texas corporation

(b) County of Residence of First Listed Plaintiff County of Residence of First Listed Defendant
(EXCEPT IN U.S. PLAINTIFF CASES) (IN U.S. PLAINTIFF CASES ONLY)
NOTE: IN LAND CONDEMNATION CASES, USE THE LOCATION OF
THE TRACT OF LAND INVOLVED.

(c) Attorneys (Firm Name, Address, and Telephone Number) Attorneys (If Known)

Bruce C. Morris - Kane Russell Coleman Logan PC


5051 Westheimer Road,10th Floor, Houston, TX 77056 (713) 425-7450
II. BASIS OF JURISDICTION (Place an “X” in One Box Only) III. CITIZENSHIP OF PRINCIPAL PARTIES (Place an “X” in One Box for Plaintiff
(For Diversity Cases Only) and One Box for Defendant)
’ 1 U.S. Government ’ 3 Federal Question PTF DEF PTF DEF
Plaintiff (U.S. Government Not a Party) Citizen of This State ’ 1 ’ 1 Incorporated or Principal Place ’ 4 ’ 4
of Business In This State

’ 2 U.S. Government ’ 4 Diversity Citizen of Another State ’ 2 ’ 2 Incorporated and Principal Place ’ 5 ’ 5
Defendant (Indicate Citizenship of Parties in Item III) of Business In Another State

Citizen or Subject of a ’ 3 ’ 3 Foreign Nation ’ 6 ’ 6


Foreign Country
IV. NATURE OF SUIT (Place an “X” in One Box Only) Click here for: Nature of Suit Code Descriptions.
CONTRACT TORTS FORFEITURE/PENALTY BANKRUPTCY OTHER STATUTES
’ 110 Insurance PERSONAL INJURY PERSONAL INJURY ’ 625 Drug Related Seizure ’ 422 Appeal 28 USC 158 ’ 375 False Claims Act
’ 120 Marine ’ 310 Airplane ’ 365 Personal Injury - of Property 21 USC 881 ’ 423 Withdrawal ’ 376 Qui Tam (31 USC
’ 130 Miller Act ’ 315 Airplane Product Product Liability ’ 690 Other 28 USC 157 3729(a))
’ 140 Negotiable Instrument Liability ’ 367 Health Care/ ’ 400 State Reapportionment
’ 150 Recovery of Overpayment ’ 320 Assault, Libel & Pharmaceutical PROPERTY RIGHTS ’ 410 Antitrust
& Enforcement of Judgment Slander Personal Injury ’ 820 Copyrights ’ 430 Banks and Banking
’ 151 Medicare Act ’ 330 Federal Employers’ Product Liability ’ 830 Patent ’ 450 Commerce
’ 152 Recovery of Defaulted Liability ’ 368 Asbestos Personal ’ 835 Patent - Abbreviated ’ 460 Deportation
Student Loans ’ 340 Marine Injury Product New Drug Application ’ 470 Racketeer Influenced and
(Excludes Veterans) ’ 345 Marine Product Liability ’ 840 Trademark Corrupt Organizations
’ 153 Recovery of Overpayment Liability PERSONAL PROPERTY LABOR SOCIAL SECURITY ’ 480 Consumer Credit
of Veteran’s Benefits ’ 350 Motor Vehicle ’ 370 Other Fraud ’ 710 Fair Labor Standards ’ 861 HIA (1395ff) ’ 490 Cable/Sat TV
’ 160 Stockholders’ Suits ’ 355 Motor Vehicle ’ 371 Truth in Lending Act ’ 862 Black Lung (923) ’ 850 Securities/Commodities/
’ 190 Other Contract Product Liability ’ 380 Other Personal ’ 720 Labor/Management ’ 863 DIWC/DIWW (405(g)) Exchange
’ 195 Contract Product Liability ’ 360 Other Personal Property Damage Relations ’ 864 SSID Title XVI ’ 890 Other Statutory Actions
’ 196 Franchise Injury ’ 385 Property Damage ’ 740 Railway Labor Act ’ 865 RSI (405(g)) ’ 891 Agricultural Acts
’ 362 Personal Injury - Product Liability ’ 751 Family and Medical ’ 893 Environmental Matters
Medical Malpractice Leave Act ’ 895 Freedom of Information
REAL PROPERTY CIVIL RIGHTS PRISONER PETITIONS ’ 790 Other Labor Litigation FEDERAL TAX SUITS Act
’ 210 Land Condemnation ’ 440 Other Civil Rights Habeas Corpus: ’ 791 Employee Retirement ’ 870 Taxes (U.S. Plaintiff ’ 896 Arbitration
’ 220 Foreclosure ’ 441 Voting ’ 463 Alien Detainee Income Security Act or Defendant) ’ 899 Administrative Procedure
’ 230 Rent Lease & Ejectment ’ 442 Employment ’ 510 Motions to Vacate ’ 871 IRS—Third Party Act/Review or Appeal of
’ 240 Torts to Land ’ 443 Housing/ Sentence 26 USC 7609 Agency Decision
’ 245 Tort Product Liability Accommodations ’ 530 General ’ 950 Constitutionality of
’ 290 All Other Real Property ’ 445 Amer. w/Disabilities - ’ 535 Death Penalty IMMIGRATION State Statutes
Employment Other: ’ 462 Naturalization Application
’ 446 Amer. w/Disabilities - ’ 540 Mandamus & Other ’ 465 Other Immigration
Other ’ 550 Civil Rights Actions
’ 448 Education ’ 555 Prison Condition
’ 560 Civil Detainee -
Conditions of
Confinement
V. ORIGIN (Place an “X” in One Box Only)
’ 1 Original ’ 2 Removed from ’ 3 Remanded from ’ 4 Reinstated or ’ 5 Transferred from ’ 6 Multidistrict ’ 8 Multidistrict
Proceeding State Court Appellate Court Reopened Another District Litigation - Litigation -
(specify) Transfer Direct File
Cite the U.S. Civil Statute under which you are filing (Do not cite jurisdictional statutes unless diversity):
35 U.S.C. § 271
VI. CAUSE OF ACTION Brief description of cause:
Patent Infringement
VII. REQUESTED IN ’ CHECK IF THIS IS A CLASS ACTION DEMAND $ CHECK YES only if demanded in complaint:
UNDER RULE 23, F.R.Cv.P. TBD ’ Yes ’ No
COMPLAINT: JURY DEMAND:
VIII. RELATED CASE(S)
(See instructions):
IF ANY JUDGE DOCKET NUMBER
DATE SIGNATURE OF ATTORNEY OF RECORD
10/31/2019 /s/Bruce C. Morris
FOR OFFICE USE ONLY

RECEIPT # AMOUNT APPLYING IFP JUDGE MAG. JUDGE

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JS 44 Reverse (Rev. 06/17) Case 6:19-cv-00637 Document 1-4 Filed 10/31/19 Page 2 of 2
INSTRUCTIONS FOR ATTORNEYS COMPLETING CIVIL COVER SHEET FORM JS 44
Authority For Civil Cover Sheet

The JS 44 civil cover sheet and the information contained herein neither replaces nor supplements the filings and service of pleading or other papers as
required by law, except as provided by local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, is
required for the use of the Clerk of Court for the purpose of initiating the civil docket sheet. Consequently, a civil cover sheet is submitted to the Clerk of
Court for each civil complaint filed. The attorney filing a case should complete the form as follows:

I.(a) Plaintiffs-Defendants. Enter names (last, first, middle initial) of plaintiff and defendant. If the plaintiff or defendant is a government agency, use
only the full name or standard abbreviations. If the plaintiff or defendant is an official within a government agency, identify first the agency and
then the official, giving both name and title.
(b) County of Residence. For each civil case filed, except U.S. plaintiff cases, enter the name of the county where the first listed plaintiff resides at the
time of filing. In U.S. plaintiff cases, enter the name of the county in which the first listed defendant resides at the time of filing. (NOTE: In land
condemnation cases, the county of residence of the "defendant" is the location of the tract of land involved.)
(c) Attorneys. Enter the firm name, address, telephone number, and attorney of record. If there are several attorneys, list them on an attachment, noting
in this section "(see attachment)".

II. Jurisdiction. The basis of jurisdiction is set forth under Rule 8(a), F.R.Cv.P., which requires that jurisdictions be shown in pleadings. Place an "X"
in one of the boxes. If there is more than one basis of jurisdiction, precedence is given in the order shown below.
United States plaintiff. (1) Jurisdiction based on 28 U.S.C. 1345 and 1348. Suits by agencies and officers of the United States are included here.
United States defendant. (2) When the plaintiff is suing the United States, its officers or agencies, place an "X" in this box.
Federal question. (3) This refers to suits under 28 U.S.C. 1331, where jurisdiction arises under the Constitution of the United States, an amendment
to the Constitution, an act of Congress or a treaty of the United States. In cases where the U.S. is a party, the U.S. plaintiff or defendant code takes
precedence, and box 1 or 2 should be marked.
Diversity of citizenship. (4) This refers to suits under 28 U.S.C. 1332, where parties are citizens of different states. When Box 4 is checked, the
citizenship of the different parties must be checked. (See Section III below; NOTE: federal question actions take precedence over diversity
cases.)

III. Residence (citizenship) of Principal Parties. This section of the JS 44 is to be completed if diversity of citizenship was indicated above. Mark this
section for each principal party.

IV. Nature of Suit. Place an "X" in the appropriate box. If there are multiple nature of suit codes associated with the case, pick the nature of suit code
that is most applicable. Click here for: Nature of Suit Code Descriptions.

V. Origin. Place an "X" in one of the seven boxes.


Original Proceedings. (1) Cases which originate in the United States district courts.
Removed from State Court. (2) Proceedings initiated in state courts may be removed to the district courts under Title 28 U.S.C., Section 1441.
When the petition for removal is granted, check this box.
Remanded from Appellate Court. (3) Check this box for cases remanded to the district court for further action. Use the date of remand as the filing
date.
Reinstated or Reopened. (4) Check this box for cases reinstated or reopened in the district court. Use the reopening date as the filing date.
Transferred from Another District. (5) For cases transferred under Title 28 U.S.C. Section 1404(a). Do not use this for within district transfers or
multidistrict litigation transfers.
Multidistrict Litigation – Transfer. (6) Check this box when a multidistrict case is transferred into the district under authority of Title 28 U.S.C.
Section 1407.
Multidistrict Litigation – Direct File. (8) Check this box when a multidistrict case is filed in the same district as the Master MDL docket.
PLEASE NOTE THAT THERE IS NOT AN ORIGIN CODE 7. Origin Code 7 was used for historical records and is no longer relevant due to
changes in statue.

VI. Cause of Action. Report the civil statute directly related to the cause of action and give a brief description of the cause. Do not cite jurisdictional
statutes unless diversity. Example: U.S. Civil Statute: 47 USC 553 Brief Description: Unauthorized reception of cable service

VII. Requested in Complaint. Class Action. Place an "X" in this box if you are filing a class action under Rule 23, F.R.Cv.P.
Demand. In this space enter the actual dollar amount being demanded or indicate other demand, such as a preliminary injunction.
Jury Demand. Check the appropriate box to indicate whether or not a jury is being demanded.

VIII. Related Cases. This section of the JS 44 is used to reference related pending cases, if any. If there are related pending cases, insert the docket
numbers and the corresponding judge names for such cases.

Date and Attorney Signature. Date and sign the civil cover sheet.

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