Susan K. Eggum, OSB No. 824576 eggums@lanepowell.com Brenna K. Legaard, OSB No. 001658 legaardb@lanepowell.

com LANE POWELL PC 601 SW Second Avenue, Suite 2100 Portland, Oregon 97204-3158 Telephone: 503.778.2165 Facsimile: 503.778.2200 Attorneys for Plaintiff

UNITED STATES DISTRICT COURT DISTRICT OF OREGON PORTLAND DIVISION

WORLD CLASS TECHNOLOGY CORPORATION, an Oregon corporation, Plaintiff, v. ORMCO CORPORATION, a Delaware corporation, Defendant.

Case No. __________ COMPLAINT - DECLARATORY JUDGMENT ACTION (PATENT CASE) (28 U.S.C. §§ 2201-02)

For its complaint, plaintiff World Class Technology Corporation (“WCT”) alleges as follows: NATURE OF THE ACTION 1. This is a declaratory judgment action brought under the Federal Declaratory

Judgment Act, 28 U.S.C. §§ 2201-02 seeking a declaration that WTC does not infringe any valid claim of Defendant Ormco Corporation’s (“Ormco”) patents 7,416,408 (the “408 patent”); 7,267,545 (the “‘545 patent”); 7,704,072 (the “’072 patent”); 7,909,603 (the “’603 patent”); and PAGE 1 - COMPLAINT - DECLARATORY JUDGMENT ACTION (PATENT CASE)
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8,033,824 (the “’824 patent”) (collectively, the “Ormco patents”). True and correct copies of the Ormco patents are attached as Exhibit 1. PARTIES 2. Plaintiff WCT is an Oregon corporation with its headquarters in McMinnville,

Oregon, and does business as Ortho Classic (hereinafter collectively referred to as “WCT”). WCT designs and manufactures orthodontic brackets in Oregon, and sells its brackets in Oregon, nationally and internationally. WCT is launching the sale of its self-ligating orthodontic bracket H4 (hereinafter “the H4”). 3. Defendant Ormco is a Delaware corporation and is registered to do business in

Oregon. Ormco’s principal place of business is in Orange, California. On information and belief, Ormco designs, manufactures and sells orthodontic brackets to purchasers in Oregon, nationally and internationally. JURISDICTION AND VENUE 4. This Court has subject matter jurisdiction over WCT’s claims asserted herein

pursuant to 28 U.S.C. §§ 1331 and 1338(a) because those claims arise under the patent laws of the United States, 35 U.S.C. § 1, et seq., and under the Federal Declaratory Judgment Act, 28 U.S.C. §§2201 and 2202. There is a substantial controversy of sufficient immediacy and reality between WTC and Ormco regarding non-infringement of the Ormco patents to warrant the issuance of a declaratory judgment. 5. This Court has personal jurisdiction over Ormco. On information and belief,

Ormco has continuous and systemic contacts with the state of Oregon and this judicial district. 6. This declaratory judgment action arises out of Ormco’s contention and threat of

suit that WCT’s H4 is an unlawful copy of brackets manufactured and sold by Ormco. This action further arises out of Ormco’s assertion that the H4 infringes Ormco’s patent rights, its demand for delivery of WCT’s proprietary H4 for inspection and, absent delivery, Ormco’s threat of legal action. PAGE 2 - COMPLAINT - DECLARATORY JUDGMENT ACTION (PATENT CASE)
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7.

Venue is proper in this judicial district pursuant to 28 U.S.C. §§ 1391(b) and (c)

and 28 U.S.C. § 1400(b). FACTUAL BACKGROUND 8. WCT’s self-ligating H4 is a new orthodontic bracket presently in its initial

product launch phase for sales. Ormco competes with WCT for sales of orthodontic brackets. 9. On February 12, 2013, WTC received a letter (the “February 2013 letter”) from

attorney John W. Speigel on behalf of Ormco. A true and correct copy of the February 2013 letter is attached as Exhibit 2. 10. The February 2013 letter accused WTC, along with its corporate officers,

directors, and investors, of multiple tortious acts with respect to the development and planned introduction of the H4 bracket, including misappropriation of Ormco’s trade secrets and inducement of third parties to breach their non-disclosure agreements with Ormco. 11. The February 2013 letter demanded, inter alia, that WTC immediately cease

making, selling, offering for sale, distributing, reproducing and/or displaying the H4 bracket in the United States; immediately withdraw all marketing materials associated with the H4 bracket in the United States; provide Ormco with an accounting of all sales of the H4 bracket; immediately cancel all outstanding orders for the H4 bracket; and recall all H4 brackets that had already been shipped. 12. The February 2013 letter asserts WCT’s H4 bracket is a “shameless knockoff of

Ormco’s celebrated Damon self-ligating bracket.” The “Damon self-ligating bracket” referred to in the February 2013 letter is the Ormco Damon Q passive self-ligating bracket (the “Damon Q bracket”). 13. Ormco’s February 2013 letter concluded with the following statement: “Your

signature on the line indicated below signifies your acceptance of the [demands listed above.] Should we not receive a positive response from you with five (5) business days of the date of this letter, we shall proceed with all steps necessary to protect our client’s interests, including PAGE 3 - COMPLAINT - DECLARATORY JUDGMENT ACTION (PATENT CASE)
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initiating legal proceedings against Ortho Classic and any relevant individuals and affiliates to enjoin its unlawful conduct and to recover Ormco’s damages.” 14. WTC responded to the February 2013 threat of suit by filing on February 15,

2013 an action in the Multnomah County Circuit Court for the State of Oregon declaring, inter alia, that the H4 bracket was not designed or developed using any trade secrets owned by Ormco (the “trade secret suit”). A true and correct copy of the Complaint and Amended Complaint in the trade secret suit is attached as Exhibit 3. 15. Then, on March 6, 2013, WTC’s litigation counsel received a letter (the “March

2013 letter”) from a Rajiv Yadav, Chief Intellectual Property Counsel for Ormco. A true and correct copy of the March 2013 letter is attached as Exhibit 4. The March 2013 letter references the pending trade secret suit and asserts that Ormco additionally owns patent rights and that, if WTC maintains that the H4 “is not covered by Ormco’s patent rights,” then WTC should provide Ormco with “samples of the H4 product by no later than March 11, 2013.” (emphasis in original). Ormco then indicates that if WCT refuses to deliver its H4 product within the two business day deadline dictated, then Ormco will assume infringement and “act accordingly.” This threat of suit is substantially similar to Ormco’s threat in its February 2013 letter that, if the H4 is not withheld from the marketplace, then Ormco will be “initiating legal proceedings.” 16. Ormco and/or its agents operate, maintain and/or control an Internet website

wherein Ormco and/or its agents provide patent marking information about the Ormco Damon Q passive self-ligating bracket. The website identifies the Ormco patents in such a manner that, pursuant to 35 U.S.C. § 287, generally referred to as the “marking statute,” Ormco has marked the Damon Q bracket with the Ormco patents. 17. The ‘408 patent is entitled “Aesthetic Self-Ligating Orthodontic Bracket” and

issued on August 28, 2008. 18. The ‘545 patent is entitled “Self-Ligating Orthodontic Bracket” and issued on

September 11, 2007. PAGE 4 - COMPLAINT - DECLARATORY JUDGMENT ACTION (PATENT CASE)
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19. 20.

The ‘072 patent is entitled “Orthodontic Bracket” and issued on April 27, 2010. The ‘603 patent is entitled “Self-Ligating Orthodontic Bracket,” issued on March

22, 2011, and issued from a continuation application of the ‘545 patent. 21. The ‘824 patent is entitled “Self-Ligating Orthodontic Bracket and Devices for

Deploying Same” and issued October 11, 2011. 22. Because Ormco believes the Ormco patents cover the Damon Q bracket, that the

WCT H4 bracket is a “shameless knockoff” of the Damon Q bracket, and that the WCT H4 bracket infringes Ormco’s patent rights, Ormco has accused the H4 bracket of infringing one or more of the Ormco patents. 23. WTC has performed a full analysis of the claims of the Ormco patents and

determined that the H4 bracket does not infringe any claims of the Ormco patents. WCT has the right to engage in sales of the H4. 24. The facts alleged herein show that a substantial controversy exists between WCT

and Ormco, that the parties have adverse legal interests regarding the non-infringement of the Ormco patents, and that this controversy is of sufficient immediacy and reality to warrant the issuance of declaratory judgment. CLAIM FOR RELIEF (Declaratory Judgment of Non-Infringement) 25. WTC incorporates by reference Paragraphs 1 through 24, inclusive, as though

fully set forth herein. 26. WTC has not infringed and is not infringing —whether directly or indirectly,

contributorily or by inducement, or literally or under the doctrine of equivalents—any claim of the Ormco patents. 27. Ormco’s February 2013 threats of legal action, and Ormco’s March 6, 2013

assertion and threat of suit concerning whether WTC’s H4 bracket violates Ormco’s patent rights

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creates a substantial controversy between parties having adverse legal interests of sufficient immediacy and reality to warrant the issuance of a declaratory judgment. 28. Accordingly, an actual and justiciable controversy has arisen and exists between

WTC and Ormco relating to the non-infringement of the Ormco patents. WTC seeks a judicial declaration of the respective rights and duties of the parties herein. Such a determination and declaration is necessary and appropriate at this time to enable the parties to ascertain their respective rights and duties. PRAYER FOR RELIEF WHEREFORE, Plaintiff WTC requests entry of judgment in its favor and against Defendant Ormco as follows: 1. A declaration that WTC has not infringed, willfully infringed, induced others to

infringe, or contributed to the infringement of any claim of the Ormco patents; 2. A permanent injunction restraining Ormco from asserting, stating, or otherwise

suggesting that WTC infringes the Ormco patents; 4. A declaration that this is an “exceptional case” under 35 U.S.C. § 285 and an

award granting WTC its costs and reasonable attorneys’ fees as permitted under that statute; and 5. Any other and further relief that this Court may deem just and proper.

DATED: March 8, 2013 LANE POWELL PC

By s/ Susan K. Eggum Susan K. Eggum, OSB No. 824576 Brenna Legaard, OSB No. 001658 Telephone: 503.778.2100 Facsimile: 503.778.2200 Attorneys for Plaintiff

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710216.0003/5621105.1

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