Nike, Inc. et al v. QiLoo International Limited

Filing 15

AMENDED COMPLAINT with Jury Demand against QiLoo International Limited, filed by Nike, Inc., Converse, Inc.. No changes to parties. Proof of service due by 6/7/2012. (Attachments: # 1 Exhibit A, # 2 Exhibit B, # 3 Exhibit C, # 4 Exhibit D, # 5 Exhibit E, # 6 Exhibit F, # 7 Exhibit G, # 8 Exhibit H, # 9 Exhibit I, # 10 Exhibit J, # 11 Exhibit K, # 12 Exhibit L, # 13 Exhibit M, # 14 Exhibit N, # 15 Exhibit O, # 16 Exhibit P, # 17 Exhibit Q, # 18 Exhibit R, # 19 Exhibit S, # 20 Exhibit T, # 21 Exhibit U, # 22 Exhibit V, # 23 Exhibit W, # 24 Exhibit X, # 25 Exhibit Y, # 26 Exhibit Z, # 27 Exhibit AA, # 28 Exhibit BB, # 29 Exhibit CC, # 30 Exhibit DD, # 31 Exhibit EE, # 32 Exhibit FF, # 33 Exhibit GG, # 34 Exhibit HH, # 35 Exhibit II, # 36 Exhibit JJ, # 37 Exhibit KK, # 38 Exhibit LL, # 39 Exhibit MM, # 40 Exhibit NN, # 41 Exhibit OO, # 42 Exhibit PP, # 43 Exhibit QQ, # 44 Exhibit RR, # 45 Exhibit SS, # 46 Exhibit TT, # 47 Exhibit UU, # 48 Exhibit VV, # 49 Exhibit WW, # 50 Exhibit XX, # 51 Exhibit YY, # 52 Exhibit ZZ, # 53 Exhibit AAA, # 54 Exhibit BBB, # 55 Exhibit CCC, # 56 Exhibit DDD, # 57 Exhibit EEE, # 58 Exhibit FFF, # 59 Exhibit GGG) (Fountain, Jonathan)

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1 Michael J. McCue (Nevada Bar #6055) MMcCue@LRLaw.com 2 Jonathan W. Fountain (Nevada Bar #10351) JFountain@LRLaw.com 3 Lewis and Roca LLP 3993 Howard Hughes Parkway, Suite 600 4 Las Vegas, Nevada 89109 Telephone: (702) 949-8224 5 Facsimile: (702) 949-8363 6 Christopher J. Renk Erik S. Maurer 7 Michael J. Harris Azuka C. Dike 8 Banner & Witcoff, Ltd. 10 South Wacker Drive, Suite 3000 9 Chicago, Illinois 60606 Telephone: (312) 463-5000 10 Facsimile: (312) 463-5001 (Pro Hac Vice to be Submitted) 11 12 Attorneys for Plaintiffs, NIKE, Inc. and Converse Inc. 13 UNITED STATES DISTRICT COURT 14 DISTRICT OF NEVADA 15 NIKE, INC. ) ) ) ) ) ) ) ) ) ) ) ) 16 and 17 CONVERSE INC., 18 Plaintiffs, 19 vs. 20 QILOO INTERNATIONAL LIMITED 21 Case No. 2:12-cv-00191-GMN-GWF FIRST AMENDED COMPLAINT Jury Trial Demanded Defendant. 22 23 24 Plaintiffs, NIKE, Inc. and Converse Inc., for their First Amended Complaint against Defendant, QiLoo International Limited, state as follows: 25 I. PARTIES 26 27 28 1. NIKE, Inc. is a corporation organized under the laws of the State of Oregon and has a principal place of business at One Bowerman Drive, Beaverton, Oregon 97005. 1 1 2. Converse Inc. is a wholly owned subsidiary of NIKE and has a principal place of 2 business at One High Street #6, Andover, Massachusetts 01845. 3 3. Defendant QILOO International Limited (“QiLoo”) is a Chinese company with a 4 principal place of business at 2-2303 (2-2358), No. 2 Bldg., Fuxin Garden Castle, Fengze Street, 5 6 QuanZhou, 362000, Fujian, China. II. JURISDICTION & VENUE 7 8 4. This is an action for patent and trademark infringement arising under 35 U.S.C. § 9 1, et seq. and 15 U.S.C. §1501, et seq. 10 11 5. This Court has jurisdiction over this action under 15 U.S.C. §§ 1119 and 1121 and 28 U.S.C. §§ 1331, 1338, and 1367. 12 6. This Court may exercise personal jurisdiction over QiLoo based upon QiLoo’s 13 14 contacts with this forum, including QiLoo’s regularly and intentionally doing business here and 15 having committed acts of infringement within this forum by promoting, distributing, offering to 16 sell and selling products covered by Plaintiffs’ design patents and trademarks, at least at the 17 twice annual World Shoe Association (“WSA”) trade shows in Las Vegas, Nevada. 18 19 7. Venue is proper in this judicial district pursuant to 28 U.S.C. §§ 1391(b), (c), (d), and 1400(b), because QiLoo does business, has committed acts of infringement, and is subject to 20 21 personal jurisdiction here. III. GENERAL ALLEGATIONS 22 23 A. NIKE’s Design Patents 24 8. For many years, NIKE has continuously engaged in the development, 25 manufacture, and sale of a wide array of athletic and fashion footwear, apparel, and sports 26 equipment. 27 9. Over the years, NIKE has taken steps to protect its innovative footwear designs. 28 2 1 For example, NIKE is the owner of various United States design patents relating to its footwear 2 designs. In particular, NIKE is and has been the owner of all right, title, and interest to each of 3 the United States design patents identified in Table 1 (hereafter, the “NIKE Design Patents”) 4 since the date each patent duly and legally issued to NIKE. A copy of each NIKE Design Patent 5 6 is attached to this Complaint as indicated in Table 1. 7 TABLE 1: NIKE DESIGN PATENTS United States Design Patent No. Issue Date of Patent Complaint Exhibit D361,884 September 5, 1995 A D429,877 August 29, 2000 B 12 D462,830 September 17, 2002 C 13 D475,523 June 10, 2003 D 14 D494,353 August 17, 2004 E D499,247 December 7, 2004 F D500,585 January 11, 2005 G D500,917 January 18, 2005 H 19 D523,618 June 27, 2006 I 20 D524,028 July 4, 2006 J 21 D524,529 July 11, 2006 K D532,600 November 28, 2006 L D546,541 July 17, 2007 M 25 D547,541 July 31, 2007 N 26 D555,332 November 20, 2007 O 27 D573,338 July 22, 2008 P 8 9 10 11 15 16 17 18 22 23 24 28 3 1 TABLE 1: NIKE DESIGN PATENTS 2 Issue Date of Patent 3 United States Design Patent No. Complaint Exhibit 4 D573,339 July 22, 2008 Q 5 D575,046 August 19, 2008 R 6 D578,294 October 14, 2008 S 7 D579,186 October 28, 2008 T D580,636 November 18, 2008 U D580,646 November 18, 2008 V 11 D586,548 February 17, 2009 W 12 D641,968 July 26, 2011 FFF 13 D642,369 August 2, 2011 GGG 8 9 10 14 15 B. Plaintiffs’ Asserted Trademarks 16 10. As a result of continuous and long-standing promotion, substantial sales, and 17 consumer recognition of certain of their footwear designs, Plaintiffs have developed trademark 18 19 20 rights in the ornamental appearance of those designs. Specifically, Converse and NIKE own common law and registered trademark rights in the appearance of the footwear designs identified 21 in Table 2 (hereafter, the “Converse and NIKE Trademarks”). A copy of the registration 22 certificates for each of the Converse and NIKE Trademarks is attached to this Complaint as 23 indicated in Table 2. 24 Table 2: CONVERSE AND NIKE TRADEMARKS 25 26 27 28 United States Trademark Reg. No. Registration No. 1,588,960 Trademark Trademark Registration Date Complaint Exhibit Chuck Taylor Outsole Design March 27, 1990 X 4 1 2 Table 2: CONVERSE AND NIKE TRADEMARKS Trademark Trademark Registration Date Complaint Exhibit Chuck Taylor Outsole Design Air Force One Low Design Chuck Taylor Low Design Chuck Taylor High Design July 3, 2007 Y June 24, 2008 Z November 29, 2011 AA 8 United States Trademark Reg. No. Registration No. 3,258,103 Registration No. 3,451,905 Registration No. 4,062,112 Registration No. 4,065,482 December 6, 2011 BB 9 Registration No. 1,998,884 Jack Purcell Toe Smile September 10, 1996 EEE 3 4 5 6 7 10 11 C. 11. 12 QiLoo’s Infringing Activities Without Plaintiffs’ authorization, QiLoo has made, used, offered to sell, 13 promoted, distributed, sold, and/or imported into the United States numerous shoes, including 14 15 shoes having designs that are substantially the same as the designs covered by the NIKE Design 16 Patents and that are counterfeits of the Converse and NIKE Trademarks (hereafter, the 17 “Infringing Shoes”). 18 12. On information and belief, Defendant imports Infringing Shoes into the United 19 States, and promotes, distributes, offers to sell, and sells the Infringing Shoes at the WSA show 20 in Las Vegas, Nevada. According to the WSA’s website, the WSA “is the most comprehensive 21 footwear and accessories show in the world. The twice-yearly event gathers exhibitors 22 23 showcasing, thousands of brands, attracting category leaders, industry newsmakers, top 24 designers, as well as retailers from every market segment, retail and distribution channel.” 25 (Compl. Ex. MM, http://www.wsashow.com/media_information/landing, last visited February 3, 26 2012). 27 13. Plaintiffs’ representatives visit the WSA trade shows in Las Vegas and have 28 5 1 observed QiLoo promoting and offering to sell Infringing Shoes. Pursuant to 35 U.S.C. § 287, 2 Plaintiffs notified QiLoo that it is infringing Plaintiffs’ rights by promoting and offering to sell 3 Infringing Shoes, including shoes identified by QiLoo Model Numbers: QL-20756, QL-21126, 4 QL-21193, QL-21212, QL-21533, QL-21784, QL-21810, QL-23416, QL-23548, QL-23550, QL5 6 23832, QL-23860, QL-24108, QL-24213, QL-24297, QL-24715, QL-25322, QL-25470, QL- 7 25472, QL-25216, QL-25733, QL-26294, QL-27141, QL-27188, QL-28504, QL-28529, QL8 28607, and QL-28608. Many of the infringing models are shown in the QiLoo catalog excerpts 9 attached as Complaint Exhibits JJ, KK, and LL, and specific examples of Infringing Shoes are 10 compared to NIKE Patents and Converse and NIKE Trademarks in Table 3 below. Notably, 11 however, because QiLoo does not provide identifying indicia on all of its Infringing Shoes and 12 because Plaintiffs have not been able to secure an image of each Infringing Shoe, Table 3 does 13 14 not set forth all of QiLoo’s infringements. 15 /// 16 /// 17 /// 18 /// 19 /// 20 /// 21 /// 22 /// 23 /// 24 /// 25 /// 26 /// 27 /// 28 6 1 2 3 Table 3: QILOO’S INFRINGEMENTS Plaintiffs’ Asserted Patent/Trademark QiLoo’s Infringing Shoes D429,877 QL-21810 4 5 6 7 8 9 QL-21810 has appeared in QiLoo catalogs during at least the August 2007 WSA show. (See Compl. Ex. JJ, at p.19). See Compl. Ex. B 10 11 12 13 14 15 16 QL-21533 D462,830 See Compl. Ex. C QL-21553 has appeared in QiLoo catalogs during at least the August 2007 WSA show. (See Compl. Ex. JJ, at p.30). 17 18 19 20 21 22 QL-21810 D475,523 23 See Compl. Ex. D QL-21810 has appeared in QiLoo catalogs during at least the August 2007 WSA show. (See Compl. Ex. JJ, at p.19). 24 25 26 27 28 7 1 Table 3: QILOO’S INFRINGEMENTS 2 Plaintiffs’ Asserted Patent/Trademark QiLoo’s Infringing Shoes 8 D494,353 QL-21193 9 See Compl. Ex. E QL-21193 was first noticed of infringement on February 2, 2007, and has appeared in QiLoo catalogs during at least the August 2007 WSA show. (See Compl. Exs. CC and JJ at p.13). 3 4 5 6 7 10 11 12 13 14 15 16 QL-21712 17 D499,247 18 See Compl. Ex. F QL-21712 has appeared in QiLoo catalogs during at least the August 2007 WSA show. (See Compl. Ex. JJ, at p.36). 19 20 21 22 23 24 25 26 QL-21712 D500,585 QL-21712 has appeared in QiLoo catalogs during at least the August 2007 WSA show. (See Compl. Ex. JJ, at p.36). See Compl. Ex. G 27 28 8 1 Table 3: QILOO’S INFRINGEMENTS 2 Plaintiffs’ Asserted Patent/Trademark 3 QiLoo’s Infringing Shoes 4 5 6 7 8 QL-21712 D532,600 9 QL-21712 has appeared in QiLoo catalogs during at least the August 2007 WSA show. (See Compl. Ex. JJ, at p.36). See Ex. L 10 11 12 . 13 14 15 QL-24715 16 D555,332 17 See Compl. Ex. O QL-24715 has appeared in QiLoo catalogs during at least the Feb. 2010 WSA show (See Compl. Ex. KK, at p.23); and July 2011 WSA show. (See Compl. Ex. LL, at p.23). 18 19 20 21 22 23 24 QL-26294 D586,548 25 26 QL-26294 has appeared in QiLoo catalogs during at least the Feb. 2010 WSA show (See Compl. Ex. KK, at p.1); and July 2011 WSA show. (See Compl. Ex. LL, at p.1). See Compl. Ex. W 27 28 9 1 Table 3: QILOO’S INFRINGEMENTS 2 3 Plaintiffs’ Asserted Patent/Trademark QiLoo’s Infringing Shoes 4 5 6 7 8 TM Reg. No. 1,588,960 9 See Compl. Ex. X QL-25472; QL-27141; QL-27188; QL-23860 10 QiLoo models QL-27188, QL-25472, QL27141, and QL-23860 have appeared in QiLoo catalogs during at least the Feb. 2010 WSA show (See Compl. Ex. KK, at p.23-24); and July 2011 WSA show. (See Compl. Ex. LL, at p.23-24). 11 12 13 14 15 16 TM Reg. No. 3,258,103 See Compl. Ex. Y 17 18 19 20 21 22 QL-23416 23 TM Reg. No. 3,451,905 24 See Compl. Ex. Z 25 QL-23416 has appeared in QiLoo catalogs during at least the Feb. 2010 WSA show (See Compl. Ex. KK, at p.20); and July 2011 WSA show (See Compl. Ex. LL, at p.20). 26 27 28 10 1 Table 3: QILOO’S INFRINGEMENTS 2 3 Plaintiffs’ Asserted Patent/Trademark QiLoo’s Infringing Shoes 4 5 6 7 8 QL-25216; QL-25472; QL-27188; QL-27141 9 TM Reg. No. 4,062,112 10 See Compl. Ex. AA 11 QiLoo models QL-25472, QL-25216, QL7188, and QL-27141 have appeared in QiLoo catalogs during at least the Feb. 2010 WSA show (See Compl. Ex. KK, at p.23-25); and July 2011 WSA show. (See Compl. Ex. LL, at p.23-25). 12 13 14 15 16 17 18 19 QL-23860 TM Reg. No. 4,065,482 20 See Compl. Ex. BB 21 22 QL-23860 has appeared in QiLoo catalogs during at least the Feb. 2010 WSA show (See Compl. Ex. KK, at p.23); and July 2011 WSA show. (See Compl. Ex. LL, at p.23). 23 24 25 26 14. A detailed history of Plaintiffs’ infringement notices to QiLoo follows. On February 2, 2007, NIKE hand delivered a first notice letter to QiLoo representatives at the QiLoo booth at the WSA Show in Las Vegas, Nevada, and sent a copy of the letter to QiLoo’s business 27 28 address in China. The letter attached as Complaint Exhibit CC, gave the Defendant notice under 11 1 35 U.S.C. § 287 that various shoes the Defendant promoted, offered to sell, and was selling at the 2 WSA trade show, including model numbers QL-21212, QL-20756, QL-21784, QL-21193, QL3 21533, and QL-21810 infringe one or more of NIKE’s U.S. Pat Nos. D532,599; D532,600; 4 D500,585; D499,247; D500,917; D361,884; D494,353; D475,523; D429,877; D524,529; 5 6 7 D523,618; and D462,830. 15. On July 30, 2008, NIKE hand delivered a second notice letter to QiLoo 8 representatives at the QiLoo booth at the WSA Show in Las Vegas, Nevada, and sent a copy of 9 the letter to QiLoo’s business address in China. The letter attached as Complaint Exhibit DD, 10 gave the Defendant notice under 35 U.S.C. § 287 that various shoes the Defendant promoted, 11 offered to sell and was selling at the WSA trade show, including model numbers QL-23832, QL- 12 25733, QL-24108, and QL-25322 infringe one or more of NIKE’s U.S. Pat Nos. D499,247; 13 14 15 D500,585; D546,541; and D547,541. 16. On August 1, 2009, NIKE hand delivered a third notice letter to QiLoo 16 representatives at the QiLoo booth at the WSA Show in Las Vegas, Nevada, and sent a copy of 17 the letter to QiLoo’s business address in China. The letter attached as Complaint Exhibit EE, 18 19 gave the Defendant notice under 35 U.S.C. § 287 that various shoes the Defendant promoted, offered to sell and was selling at the WSA trade show, including model numbers QL-25322 and 20 21 22 QL-26294 infringe one or more of NIKE’s U.S. Pat Nos. D578,294; D586,548; and D579,186. This letter also notified QiLoo as to NIKE’s ownership of U.S. Trademark Registrations for the 23 appearance of its Air Force 1 shoes, including Air Force 1 “low” shoe design (U.S. Reg. No. 24 3,451,905). 25 26 17. On February 3, 2010, NIKE hand delivered a fourth notice letter to QiLoo representatives at the QiLoo booth at the WSA Show in Las Vegas, Nevada, and sent a copy of 27 the letter to QiLoo’s business address in China. The letter attached as Complaint Exhibit FF, 28 12 1 gave the Defendant notice under 35 U.S.C. § 287 that various shoes the Defendant promoted, 2 offered to sell and was selling at the WSA trade show, including model number QL-26294 3 infringe one or more of NIKE’s U.S. Pat Nos. D573,338; D573,339; D575,046; D580,636; 4 D580,646; D586,548; and D575,045. This letter also notified QiLoo that its model number QL5 6 23416 bears a confusingly similar design to Plaintiffs’ U.S. Trademark Reg. No. 3,451,905 7 relating to the Air Force 1 “low” shoe design. 8 18. On August 11, 2010, NIKE hand delivered a fifth notice letter to QiLoo 9 representatives at the QiLoo booth at the WSA Show in Las Vegas, Nevada, and sent a copy of 10 the letter to QiLoo’s business address in China. The letter attached as Complaint Exhibit GG, 11 gave the Defendant notice under 35 U.S.C. § 287 that various shoes the Defendant promoted, 12 offered to sell and was selling at the WSA trade show, including model numbers QL-24715 and 13 14 QL-26294 infringe one or more of NIKE’s U.S. Pat Nos. D555,332 and D586,548. This letter 15 also notified QiLoo that its model numbers QL-27141, QL-27188, QL-23860, QL-25472, QL16 23416 bear a confusingly similar design to Plaintiffs’ U.S. Trademark Reg. Nos. 1,588,960, 17 3,258,103, and 3,451,905, directed to the Chuck Taylor All Star outsole tread designs and Air 18 19 Force 1 “low” design. 19. On February 9, 2011, NIKE hand delivered a sixth notice letter to QiLoo 20 21 22 representatives at the QiLoo booth at the WSA Show in Las Vegas, Nevada, and sent a copy of the letter to QiLoo’s business address in China. The letter attached as Complaint Exhibit HH, 23 gave Defendant notice under 35 U.S.C. § 287 that various shoes Defendant promoted, offered to 24 sell and was selling at the WSA trade show infringe NIKE’s U.S. Pat. No. D524,028 and 25 Converse’s common law trademark rights and U.S. Trademark Reg. Nos. 1,588,960, 3,258,103, 26 directed to the Chuck Taylor All Star outsole tread designs. 27 20. On July 28, 2011, NIKE hand delivered a seventh notice letter to QiLoo 28 13 1 representatives at the QiLoo booth at the WSA Show in Las Vegas, Nevada, and sent a copy of 2 the letter to QiLoo’s business in China. The letter attached as Complaint Exhibit II, gave QiLoo 3 notice that it was infringing the Converse and NIKE Trademarks. 4 21. On information and belief, QiLoo ignored Plaintiffs’ repeated warnings and 5 6 continued to import into the United States, promote, distribute, offer to sell, and sell Infringing 7 Shoes. 8 22. QiLoo’s knowing and repeated infringements of the NIKE Design Patents and the 9 Converse and NIKE Trademarks has been and continues to be intentional and willful. 10 11 23. On February 7, 2012, pursuant to this Court’s Emergency Ex Parte Temporary Restraining Order and Seizure Order (CM/ECF Dckt. No. 12), Plaintiffs’ counsel identified 12 “Additional Infringing Shoes” that QiLoo was promoting and offering to sell at its Booth No. 13 14 12736 at the WSA Trade Show in Las Vegas, NV. Specifically, QiLoo was promoting and 15 offering to sell the following: 16 a. Models QL-21103274A, QL-21103630A, and QL-21104050A bearing upper 17 designs that are substantially identical to Converse’s Chuck Taylor All Star high 18 19 design shown in U.S. Trademark Reg. No. 4,065,482; b. Models QL-21103472A and QL-21103929A bearing upper designs that are 20 21 22 substantially identical to Converse’s Chuck Taylor All Star low design shown in U.S. Trademark Reg. No. 4,062,112; 23 c. Models QL-21103274A, QL-21103631A, QL-21103631B, and QL-21104050A 24 bearing outsole designs that are substantially identical to Converse’s Chuck 25 Taylor All Star outsole designs shown in U.S. Trademark Reg. Nos. 1,588,960 26 and 3,258,103; 27 d. Models QL-21103631A and QL-21103631B bearing toe cap designs that are 28 14 1 substantially identical to Converse’s Jack Purcell “Toe Smile” cap design that is 2 shown in incontestable U.S. Trademark Reg. No. 1,998,884 owned by Converse; 3 Converse has used its Toe Smile design trademark in connection with its 4 promotion, distribution, offers to sell, and sales of millions of pairs of Jack Purcell 5 shoe designs throughout the United States since the 1930s; and 6 7 e. Model QL-21103107A bearing an upper design that is substantially identical to 8 the upper designs claimed in NIKE’s U.S. Design Patent Numbers D641,968 and 9 D642,369 that are owned by NIKE and that are presumed valid and enforceable 10 11 since their issuance in 2011. 24. Example images of the Additional Infringing Shoes and relevant Converse 12 Trademarks and NIKE Design Patents are shown in Table 4 below. Images of the Additional 13 14 Infringing Shoes, their hang tags (where available), and the relevant Converse Trademarks and 15 NIKE Design Patents are appended to this First Amended Complaint as indicated in Table 4. 16 Table 4: QILOO’s ADDITIONAL INFRINGING SHOES 17 18 Additional Alleged Infringing Product and Model Number(s) Asserted Converse/NIKE Trademarks/Patents QL-21103274A and QL-21104050A, Compl. Exs. NN-SS U.S. Reg. No. 4,065,482, Compl. Ex. BB 19 20 21 22 23 24 25 26 27 28 15 1 2 3 Table 4: QILOO’s ADDITIONAL INFRINGING SHOES Additional Alleged Infringing Product and Model Number(s) Asserted Converse/NIKE Trademarks/Patents 4 5 6 7 8 9 10 11 U.S. Reg. No. 4,065,482, Compl. Ex. BB 12 13 14 15 QL-21103630A, Compl. Exs. TT-UU 16 17 18 19 20 21 22 QL-21103472A, Compl. Exs. VV-WW 23 24 25 26 27 28 16 U.S. Reg. No. 4,062,112, Compl. Ex. AA 1 2 3 Table 4: QILOO’s ADDITIONAL INFRINGING SHOES Additional Alleged Infringing Product and Model Number(s) Asserted Converse/NIKE Trademarks/Patents QL-21103929A, Compl. Exs. XX-YY U.S. Reg. No. 4,062,112, Compl. Ex. AA 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 QL-21103274A; QL-21103631A; QL-21103631B; and QL-21104050A, Compl. Ex. QQ 24 25 26 27 28 17 U.S. Reg. No. 1,588,960, Compl. Ex. X; U.S. Reg. No. 3,258,103, Compl. Ex. Y 1 2 3 Table 4: QILOO’s ADDITIONAL INFRINGING SHOES Additional Alleged Infringing Product and Model Number(s) Asserted Converse/NIKE Trademarks/Patents 4 5 6 7 8 9 U.S. Reg. No. 1,998,884, Compl. Ex. EEE 10 11 12 13 QL-21103631A and QL-21103631B, Compl. Exs. ZZ-BBB 14 15 16 17 U.S. Pat. D641,968, Compl. Ex. FFF 18 19 20 21 22 U.S. Pat. D642,369, Compl. Ex. GGG 23 24 QL-21103107A, Compl. Exs. CCC and DDD 25 26 27 28 18 1 COUNT I: PATENT INFRINGEMENT 2 3 25. Plaintiffs re-allege each and every allegation set forth in paragraphs 1 through 24 4 above, inclusive, and incorporate them by reference herein. 5 26. Defendant has made, used, offered to sell, sold, and/or imported into the United 6 States, and still is making, using, offering to sell, selling, and/or importing into the United States, 7 shoes having designs that infringe NIKE Design Patents without NIKE’s authorization. 8 27. Upon information and belief, Defendant has been and still is inducing others to 9 10 11 infringe the NIKE Design Patents. 28. Defendant’s infringements have been intentional and willful, making this an 12 exceptional case. 13 14 29. NIKE has been and will continue to be irreparably harmed by Defendant’s infringements of the NIKE Design Patents. 15 16 17 18 COUNT II: TRADEMARK INFRINGEMENT UNDER SECTION 32(1) OF THE LANHAM ACT 30. Plaintiffs re-allege each and every allegation set forth in paragraphs 1 through 29 19 above, inclusive, and incorporate them by reference herein. 20 31. Defendant has knowingly used and continues to use in commerce the Converse 21 and NIKE Trademarks, including counterfeits, reproductions, copies, or colorable imitations 22 thereof, in connection with shoes Defendant manufactures, advertises, promotes, and sells in the 23 United States. Defendant has used the Converse and NIKE Trademarks with the knowledge of, 24 25 and the intent to call to mind and create a likelihood of confusion with regard to, and/or trade off 26 Plaintiffs’ fame and the registered Converse and NIKE Trademarks. 27 32. Plaintiffs have given notice of its registrations and claimed trademark rights 28 pursuant to section 29 of the Lanham Act, 15 U.S.C. § 1111. Nevertheless, Defendant continues 19 1 to use the Converse and NIKE Trademarks. 2 3 33. Defendant’s use of the Converse and NIKE Trademarks (A) constitutes trademark counterfeiting, (B) is likely to confuse, mislead, or deceive customers, purchasers, and members 4 of the general public as to the origin, source, sponsorship, or affiliation of Defendant and 5 6 Plaintiffs and/or Defendant’s products and Plaintiffs’ products, and (C) is likely to cause such 7 people to believe in error that Defendant's products have been authorized, sponsored, approved, 8 endorsed, or licensed by Plaintiffs or that the Defendant is in some way affiliated with Plaintiffs. 9 34. Plaintiffs have no control over the nature and quality of the goods or services 10 Defendant offers, and Plaintiffs’ reputation and goodwill will be damaged – and the value of the 11 Converse and NIKE Trademarks jeopardized – by Defendant’s continued use of the Converse 12 and NIKE Trademarks and colorable imitations thereof. Because of the likelihood of confusion 13 14 between Defendant’s designs and the Converse and NIKE Trademarks, any defects, objections, 15 or faults found with Defendant’s products will negatively reflect upon and injure the reputation 16 that Plaintiffs have established for the product and services it offers in connection with the 17 Converse and NIKE Trademarks. As such, Defendant is liable to Plaintiffs for infringement of 18 19 their registered marks under 15 U.S.C. §1114. 35. Defendant’s acts alleged above have caused, and if not enjoined will continue to 20 21 22 cause, irreparable and continuing harm to Plaintiffs’ trademarks, business, reputation, and goodwill. Plaintiffs have no adequate remedy at law as monetary damages are inadequate to 23 compensate Plaintiffs for the injuries caused by Defendant. 24 36. As a direct and proximate result of Defendant’s conduct, Plaintiffs have suffered 25 damages to the valuable Converse and NIKE Trademarks, and other damages in an amount to be 26 proved at trial. 27 37. Defendant’s infringement of Plaintiffs’ registered trademarks is deliberate, 28 20 1 willful, fraudulent and without any extenuating circumstances, and constitutes a knowing use of 2 the Converse and NIKE Trademarks, and an exceptional case within the meaning of 15 U.S.C. § 3 1117(b). 4 38. Plaintiffs are entitled to injunctive relief, a seizure order, and Plaintiffs are also 5 6 entitled to recover QiLoo’s profits, actual damages, enhanced profits and damages, costs, and 7 reasonable attorney fees under 15 U.S.C. §§ 1114, 1116, and 1117. 8 9 10 11 COUNT III: FALSE DESIGNATION OF ORIGIN/UNFAIR COMPETITION UNDER SECTION 43(a) OF THE LANHAM ACT 39. Plaintiffs re-allege each and every allegation set forth in paragraphs 1 through 38 12 above, inclusive, and incorporate them by reference herein. 13 14 15 40. QiLoo’s use, promotion, offers to sell, sale, and/or importation of Infringing Shoes violates Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a). 41. The Converse and NIKE Trademarks are federally registered, and are entitled to 16 17 18 protection under both federal and common law. The Converse and NIKE Trademarks have distinctive appearances with unique and non-functional design. Plaintiffs have extensively and 19 continuously promoted and used the Converse and NIKE Trademarks for many decades in the 20 United States and worldwide. Through that extensive and continuous use, the Converse and 21 NIKE Trademarks have become famous and well-known indicators of the origin and quality of 22 NIKE footwear. The Converse and NIKE Trademarks have also acquired substantial secondary 23 meaning in the marketplace. 24 25 42. QiLoo’s use of colorable imitations of the Converse and NIKE Trademarks 26 constitutes a false designation of origin that is likely to cause consumer confusion, mistake, or 27 deception as to the origin, sponsorship, or approval of the Infringing Shoes by creating the false 28 and misleading impression that the Infringing Shoes are manufactured by, authorized by, or 21 1 otherwise associated with Plaintiffs. 2 3 43. QiLoo’s use of colorable imitations of the Converse and NIKE Trademarks has caused, and unless enjoined, will continue to cause substantial and irreparable injury to Plaintiffs 4 for which Plaintiffs have no adequate remedy at law, including at least substantial and 5 6 irreparable injury to the goodwill and reputation for quality associated with the Converse and 7 NIKE Trademarks. 44. 8 On information and belief, QiLoo’s use of colorable imitations of the Converse 9 and NIKE Trademarks has been intentional and willful. QiLoo’s bad faith is evidenced at least 10 by the identical similarity of the Infringing Shoes to the Converse and NIKE Trademarks as well 11 as by QiLoo’s repeated refusal to acknowledge or abide by Plaintiffs’ infringement notices. 12 45. Plaintiffs are entitled to injunctive relief, and Plaintiffs are also entitled to recover 13 14 QiLoo’s profits, actual damages, enhanced profits and damages, costs, and reasonable attorney 15 fees under 15 U.S.C. §§ 1125(a), 1116, and 1117. 16 COUNT IV: DILUTION UNDER SECTION 43(c) OF THE LANHAM ACT 17 18 19 46. Plaintiffs re-allege each and every allegation set forth in paragraphs 1 through 45 above, inclusive, and incorporate them by reference herein. 20 47. 21 22 The Converse and NIKE Trademarks have become famous throughout the United States as a result of the duration, extent, and geographical reach of advertising and publicity, the 23 amount, volume, and geographical extent of Plaintiffs’ sales and trading areas, their channels of 24 trade, their degree of recognition, and registration of the marks. 25 The Converse and NIKE Trademarks became famous before Defendant used the 49. 26 48. Because Plaintiffs’ products bearing the Converse and NIKE Trademarks have marks. 27 28 22 1 gained a reputation synonymous with fashion, quality, styling, and authenticity, the Converse 2 and NIKE Trademarks have gained substantial renown. 3 50. Defendant has used and continues to use in commerce the Converse and NIKE 4 Trademarks in connection with the advertisement, promotion, and sale of Defendant’s products. 5 6 51. Defendant’s use of the Converse and NIKE Trademarks, and colorable imitations 7 thereof, is likely to cause, has caused, and continues to cause irreparable injury to and dilution of 8 the distinctive quality of the Converse and NIKE Trademarks in violation of Plaintiffs’ rights 9 under 15 U.S.C. § 1125(c). Defendant’s wrongful use of the Converse and NIKE Trademarks is 10 likely to cause dilution by blurring and the whittling away of the distinctiveness and fame of the 11 Converse and NIKE Trademarks. 12 52. Defendant’s acts alleged above have caused, and if not enjoined will continue to 13 14 cause, irreparable and continuing harm to Plaintiffs’ trademarks, business, reputation, and 15 goodwill. Plaintiffs have no adequate remedy at law because monetary damages are inadequate 16 to compensate for the injuries Defendant is causing. 17 18 19 53. As a direct and proximate result of Defendant’s conduct, NIKE has suffered damages to the valuable Converse and NIKE Trademarks, and other damages in an amount to be proved at trial. 20 21 22 54. Defendant’s wrongful use of the Converse and NIKE Trademarks is deliberate, and constitutes a willful intent to trade on the recognition of the Converse and NIKE 23 Trademarks, making this an exceptional case within the meaning of 15 U.S.C. § 1117. 24 55. Plaintiffs are entitled to injunctive relief, and Plaintiffs are also entitled to recover 25 QiLoo’s profits, actual damages, enhanced profits and damages, costs, and reasonable attorney 26 fees under 15 U.S.C. §§ 1125(c), 1116, and 1117. 27 28 23 1 2 3 COUNT V: COMMON LAW TRADEMARK INFRINGEMENT AND UNFAIR COMPETITION 56. Plaintiffs re-allege each and every allegation set forth in paragraphs 1 through 55 4 above, inclusive, and incorporate them by reference herein. 5 57. Plaintiffs were the first to use the Converse and NIKE Trademarks. As a result of 6 Plaintiffs’ continuous promotion and sales of products bearing the Converse and NIKE 7 Trademarks for many decades, the Converse and NIKE Trademarks have become widely known 8 and Plaintiffs have been identified in the public mind as the manufacturer of the products to 9 10 11 which the Converse and NIKE Trademarks are applied. 58. As a result of the experience, care, and service of Plaintiffs in producing the 12 products to which the Converse and NIKE Trademarks are applied, these products have become 13 widely known and have acquired a worldwide reputation for fashion, quality, styling, and 14 15 authenticity. Moreover, the Converse and NIKE Trademarks have come to symbolize Plaintiffs’ reputation for quality and excellence. The Converse and NIKE Trademarks have also acquired 16 17 18 secondary meaning in the marketplace, and are non-functional. 59. Defendant, with knowledge of and with intentional disregard of Plaintiffs’ rights, 19 continues to advertise, promote, and sell products using the Converse and NIKE Trademarks, or 20 colorable and confusing imitations thereof. Defendant’s acts are likely to cause, have caused, 21 and will continue to cause confusion as to the source and/or sponsorship of Plaintiffs’ products 22 and services. 23 60. Defendant’s acts alleged herein and specifically, without limitation, Defendant’s 24 25 use, manufacture, promotion, offers to sell, selling, and/or importing into the United States 26 numerous products that are confusingly similar to products bearing the Converse and NIKE 27 Trademarks, infringe Plaintiffs’ exclusive trademark rights in violation of the common law. 28 61. Defendant’s acts alleged above have caused, and if not enjoined will continue to 24 1 cause, irreparable and continuing harm to Plaintiffs’ trademarks, business, reputation, and 2 goodwill. Plaintiffs have no adequate remedy at law because monetary damages are inadequate 3 to compensate Plaintiffs for the injuries caused by Defendant. 4 62. On information and belief, QiLoo’s use of colorable imitations of the Converse 5 6 and NIKE Trademarks has been intentional and willful. QiLoo’s bad faith is evidenced at least 7 by the similarity of the Infringing Shoes to the Converse and NIKE Trademark. 8 63. Plaintiffs are entitled to injunctive relief, and Plaintiffs are also entitled to recover 9 QiLoo’s profits, actual damages, punitive damages, costs, and reasonable attorney fees. 10 PRAYER FOR RELIEF 11 12 WHEREFORE, Plaintiffs respectfully pray for 13 A. 14 15 Judgment that Defendant has (i) willfully infringed the NIKE Design Patents in violation of 35 U.S.C. §§ 271 (a) and (b), (ii) willfully infringed the Converse and NIKE Trademarks in violation of §1114 of Title 15 in the United States Code, (iii) willfully used false 16 17 18 designations of origin/unfair competition in violation of § 1125(a) of Title 15 in the United States Code, (iv) willfully diluted the Converse and NIKE Trademarks in violation of § 1125(c) 19 of Title 15 in the United States Code, and (v) willfully violated Plaintiffs’ common law rights in 20 the Converse and NIKE Trademarks; 21 22 B. A preliminary and permanent injunction against further infringement, direct and indirect, of the NIKE Design Patents and colorable imitations thereof by Defendant, its officers, 23 agents, servants, employees, and attorneys, and all others in active concert or participation with 24 25 26 any of them; C. A preliminary and permanent injunction against further infringement, false 27 designation of origin, unfair competition, and dilution of the Converse and NIKE Trademarks by 28 25 1 QiLoo, its officers, agents, servants, employees, and attorneys, and all others in active concert or 2 participation with any of them; 3 D. An order directing the destruction of all Infringing Shoes and Additional 4 Infringing Shoes, or any other products that use a copy, reproduction, or colorable imitation of 5 6 the Converse or NIKE Trademarks in QiLoo’s possession or control, including the destruction of 7 all advertising materials related to the Infringing Shoes and Additional Infringing Shoes in 8 QiLoo’s possession or control, including on the Internet; 9 E. An award of damages adequate to compensate NIKE for the patent infringements 10 that have occurred pursuant to 35 U.S.C. § 284, which shall be trebled as a result of Defendant’s 11 willful patent infringement, or an award of Defendant’s profits from its infringements pursuant to 12 35 U.S.C. § 289, whichever is greater, together with prejudgment interest and costs; 13 14 F. An assessment of costs, including reasonable attorney fees and expenses, pursuant 15 to 35 U.S.C. § 285, with prejudgment interest; 16 G. An award of QiLoo’s profits, actual damages, enhanced profits and damages, 17 costs, and reasonable attorney fees under 15 U.S.C. §§ 1114, 1116, and 1117 for QiLoo’s 18 19 trademark infringements and dilution; and H. Such other and further relief as this Court deems just and proper. 20 IV. DEMAND FOR JURY TRIAL 21 22 Pursuant to Fed. R. Civ. P. 28, Plaintiffs hereby demand a trial by jury on all issues for 23 which a trial by jury may be had. 24 Dated: February 8, 2012 Respectfully submitted, 25 26 27 28 /s/ Jonathan W. Fountain Michael J. McCue MMcCue@LRLaw.com Jonathan W. Fountain (Nevada Bar #10351) JFountain@LRLaw.com Lewis and Roca, LLP 26 1 2 3993 Howard Hughes Parkway, Suite 600 Las Vegas, Nevada 89109 Telephone: (702) 949-8224 Facsimile: (702) 949-8363 3 4 5 6 7 8 Christopher J. Renk Erik S. Maurer Michael J. Harris Azuka C. Dike Banner & Witcoff, Ltd. 10 South Wacker Drive Suite 3000 Chicago, Illinois 60606 Telephone: (312) 463-5000 Facsimile: (312) 463-5001 (Pro Hav Vice to be Submitted) 9 10 Attorneys for Plaintiffs, NIKE, Inc. and Converse Inc. 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 27 CERTIFICATE OF SERVICE 1 2 I, Erik S. Maurer, hereby certify that on February 8, 2012, I caused a copy of the 3 foregoing document entitled FIRST AMENDED COMPLANT along with Exhibits NN, MM, 4 OO, PP, QQ, RR, SS, TT< UU, VV, WW, XX, YY, ZZ, AAA, BBB, CCC, DDD, EEE, FFF, 5 and GGG, to be served as follows: 6 By Hand Delivery To: By International Federal Express: 7 QiLoo International Limited World Shoe Association Tradeshow 8 Booth #12736 Sands Expo & Convention Center 9 201 Sands Avenue Las Vegas, Nevada 89169 10 11 12 13 QiLoo International Limited 2-2303 (2-2358), No. 2 Bldg., Fuxin Garden Castle, Fengze Street, QuanZhou, 362000, Fujian, China Dated: this 8th day of February, 2012. /s/ Erik S. Maurer Erik S. Maurer 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 28

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