You are on page 1of 56

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 1 of 56

Page ID#: 1

Parna A. Mehrbani, OSB No. 053235 mehrbanip@lanepowell.com Vicki L. Smith, OSB No. 854410 smithv@lanepowell.com LANE POWELL PC 601 SW Second Avenue, Suite 2100 Portland, Oregon 97204-3158 Telephone: 503.778.2127 Facsimile: 503.778.2200 Attorneys for Pendleton Woolen Mills, Inc.

UNITED STATES DISTRICT COURT DISTRICT OF OREGON PORTLAND DIVISION

PENDLETON WOOLEN MILLS, INC., an Oregon corporation, Plaintiff, v. KRAFFS MENS WEAR CO., INC., a Washington Corporation, DANIEL P. JOHNSON, an individual residing in Washington, and JOHN DOE COMPANIES 1-20 Defendants.

Case No. __________ COMPLAINT (Copyright Infringement, Trademark Infringement, Unfair Competition, Intentional Interference with Economic Relations, Breach of Contract) DEMAND FOR JURY TRIAL

Plaintiff Pendleton Woolen Mills, Inc. (plaintiff or Pendleton) files this Complaint and states as follows: 1. This is an action for copyright infringement arising out of the Copyright Act of

1976, as amended, 17 U.S.C. 101 et seq.; trademark infringement and unfair competition arising out of the Trademark Act of 1946, 15 U.S.C. 1051 et seq. (the Lanham Act); and PAGE 1 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 2 of 56

Page ID#: 2

intentional interference with economic relations and breach of contract arising out of the common law. 2. Defendants Kraffs Mens Wear Co., Inc. and Daniel P. Johnson (collectively,

the Kraffs defendants) are marketing and selling apparel, blankets and other products that infringe Pendletons copyright protected designs, using Pendletons trademark in an infringing manner that misleads consumers into believing they are authorized resellers of Pendletons products, using a label that is confusingly similar to Pendletons trademarks, interfering with Pendletons contractual relationships, and causing Defendants John Doe Companies 1-20 to breach contracts with Pendleton. The Kraffs defendants use of Pendletons copyrights is causing damage to Pendleton, and their use of Pendletons trademarks and trademarks confusingly similar thereto is likely to cause confusion, mistake, or deception as to the affiliation, connection, or association of the Kraffs defendants with Pendleton, or as to the origin of the Kraffs defendants goods and/or retail services, or as to their sponsorship or approval by Pendleton, and is likely to dilute the distinctive quality of Pendletons trademarks. THE PARTIES 3. Plaintiff Pendleton Woolen Mills, Inc. is a corporation organized and existing

under the laws of the state of Oregon, with a principal place of business at 220 NW Broadway, Portland, Oregon, 97209. 4. Defendant Kraffs Mens Wear Co., Inc. (singularly, Kraffs) is a corporation

organized and existing under the laws of the state of Washington, with a principal place of business at 111 S. Toppenish Ave., Toppenish, Washington, 98948. 5. Defendant Daniel P. Johnson (singularly, Johnson) is an individual residing in

the state of Washington at 140 Alteejen Rd., Zillah, Washington 98953, with a mailing address of P.O Box 232, Toppenish, Washington 98948. 6. Upon information and belief, the Kraffs defendants are acting in conjunction

with various John Doe Companies, denoted here as Defendant John Doe Companies 1-20, whose PAGE 2 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 3 of 56

Page ID#: 3

identities are not presently known. When the identities of these parties become known, Plaintiff will amend the Complaint to include the names of these additional companies. Defendant John Doe Companies 1-20 are companies that have contracts with Pendleton and are acting with Kraffs and Johnson to breach those contracts. JURISDICTION AND VENUE 7. This Court has original subject matter jurisdiction over this action under

15 U.S.C. 1116 and 1121 and 28 U.S.C. 1331 and 1338. This Court has supplemental jurisdiction over Pendletons state and common law claims pursuant to 28 U.S.C. 1367. 8. This Court has personal jurisdiction over the Kraffs defendants under 28 U.S.C.

1331 because the Kraffs defendants have distributed, sold, or offered for sale merchandise infringing Pendletons copyrights and trademarks within this state, have engaged in acts or omissions within this state causing injury, and have manufactured, distributed, sold, or offered for sale products used or consumed within this state in the ordinary course of trade. Upon information and belief, the Kraffs defendants infringing activities also arise out of goods or other things of value received in this state by the Kraffs defendants, and their tortious activities arise out of contracts governed by the laws of this state. This Court has personal jurisdiction over Defendant John Doe Companies 1-20 because Defendant John Doe Companies 1-20, by contract, have expressly consented to jurisdiction in this state, and this action arises out of promises made pursuant to contract to purchase goods within this state and to send from this state goods of value. 9. Venue is proper in this District pursuant to 28 U.S.C. 1391 because all of the

defendants are subject to personal jurisdiction in this District. Moreover, a substantial part of the events or omissions giving rise to the claims herein occurred in this District and, upon information and belief, important and relevant records are located in this District.

PAGE 3 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 4 of 56

Page ID#: 4

10.

Pursuant to Local Rule 3-2(b), venue is proper in this Division because a

substantial part of the events or omissions giving rise to the claims occurred in this Division and the intellectual property at issue is owned by Pendleton and thus resides in this Division. PENDLETONS BUSINESS AND INTELLECTUAL PROPERTY RIGHTS 11. Pendleton is a well-known designer, manufacturer and retailer of fabric, clothing,

accessories and other consumer products. Among other things, Pendleton is well known for its historical relationship with Native Americans, for its high quality wool fabrics and apparel, and for its unique proprietary fabric and blanket designs. 12. Pendleton regularly enters into contracts with wholesale customers, who, in doing

business with Pendleton, agree that The Purchaser will not sell the goods or any part thereof, to another dealer or to any other reseller, and will not sell the goods through the Internet without the written consent of Pendleton Woolen Mills. A true and correct copy of a Sales Order

containing this term is attached hereto as Exhibit 1 and made a part hereof by this reference. 13. Pendletons retail services are offered in a broad array of trade channels, such as

brick and mortar Pendleton retail stores, catalogs, and Pendletons e-commerce website. 14. Pendletons products are sold by its authorized wholesale accounts in a broad

array of trade channels, including third-party retail stores (including but not limited to department stores, boutiques, and specialty retailers), catalogs, authorized third party e-commerce websites, and others. 15. In the city in which the Kraffs defendants are located, Pendleton has two

authorized third party retailers, both are Native American organizations. 16. Pendleton owns numerous federal registrations issued by the U.S. Patent and

Trademark Office (USPTO) for the trademark PENDLETON for use on a variety of goods and retail services. See Certificates of Registration Nos. 4,276,047, 3,574,742, 3,555,536, 3,574,743, 3,568,773, 3,718,175, 3,297,528, 3,049,323, 2,951,453, 1,980,970, 2,059,665, 913,742, and

PAGE 4 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 5 of 56

Page ID#: 5

514,710 true and correct copies of which are attached hereto as Exhibits 2 through 14, and made a part hereof by this reference. 17. Pendleton also owns numerous federal registrations for marks containing the term

PENDLETON, including PENDLETON COLORPLAY, Reg. No. 3,680,928; PENDLETON ESTATE VINEYARDS & WINERY, Reg. No. 3,662,604; PENDLETON ECO-WISE WOOL, Reg. No. 3,638,636; PENDLETON HOME, Reg. No. 2,713,136; PENDLETON HOME COLLECTION, Reg. No. 2,717,244; TRADE MARK PENDLETON HOME COLLECTION, Reg. No. 4,296,236; PENDLETON ORIGINALS, Reg. No. 2,276,567; PENDLETON ORIGINALS BORN IN OREGON, Reg. No. 2,395,884; NORWESTER WEAR BY PENDLETON, Reg. No. 2,276,748; PENDLETON STUDIO, Reg. No. 2,117,014; COUNTRY CLOTHES BY PENDLETON, Reg. No. 800,729; SIR PENDLETON, Reg. No. 715,837; and PENDLETON 49ER, Reg. No. 666,627. See Certificates of Registration, true and correct copies of which are attached hereto as Exhibits 15 through 27, and made a part hereof by this reference. 18. Pendleton also owns numerous federal registrations issued by the USPTO for its

labels, which have been featured in blue and gold since 1895: WARRANTED TO BE A PENDLETON PENDLETON WOOLEN MILLS PORTLAND, OREGON SINCE 1863, Reg. No. 2,053,150 (depicted below as registered, and in color):

PAGE 5 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 6 of 56

Page ID#: 6

WARRANTED TO BE A PENDLETON PENDLETON WOOLEN MILLS SINCE 1863, Reg. No. 4,270,765 (depicted below as registered, and in color):

WARRANTED TO BE A PENDLETON PENDLETON WOOLEN MILLS PORTLAND OREGON, Reg. No. 777,919, Reg. No. 777,908, and Reg. No. 663,602 (depicted below as registered, and in color):

BEAVER STATE, Reg. No. 508,243 (depicted below as registered, and in color):

19.

True and correct copies of Certificates of Registration Nos. 2,053,150, 4,270,765,

777,919, 777,908, and 663,602 are attached hereto as Exhibits 28 through 32, and made a part hereof by this reference. 20. Collectively, all of the PENDLETON trademarks set forth in paragraphs 16

through 19 are referred to herein as the PENDLETON Marks. The subset of PENDLETON

PAGE 6 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 7 of 56

Page ID#: 7

Marks that are labels generally featured in blue and gold are referred to as the Pendleton Warranted Labels. 21. For each of the PENDLETON Marks, the Certificate of Registration and the

public record of the USPTO sets forth in detail the goods and/or services on which the mark is used and the dates of first use of such marks in commerce. 22. As a result of Pendletons long-term use, promotion, and sale of products and

offering of services under the PENDLETON Marks, the PENDLETON Marks have gained significant recognition and goodwill among the purchasing public. 23. As a result of Pendletons long-term use, promotion, and sale of products and

offering of services under the PENDLETON Marks, the PENDLETON Marks have acquired distinctiveness and have developed a strong secondary meaning among consumers and the trade with respect to the products and services sold under them, including but not limited to apparel and blankets. Accordingly, the PENDLETON Marks, both individually and as a family of marks, identify Pendleton as the exclusive source of products bearing the Pendleton Marks and signify goodwill of immense value. 24. As a subset of the PENDLETON Marks, the Pendleton Warranted Labels have

likewise gained significant recognition and goodwill among the purchasing public and have acquired distinctiveness with respect to the products and services sold under them, including but not limited to apparel and blankets. 25. Pendleton owns copyright registrations by the U.S. Copyright Office for various

designs created by Pendleton. Pendleton owns Copyright Registration No. VA 1-788-928 for its Arapaho Trail design, created in 2010. Pendleton later renamed this design Trail Blanket, thus it is referred to as Arapaho/Trail design. Pendleton owns all right, title and interest in and to the Arapaho/Trail design, which constitutes original and copyrightable subject matter under the U.S. Copyright Act. A true and correct copy of Pendletons Copyright Registrati on for the Arapaho/Trail design is attached hereto as Exhibit 33. PAGE 7 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 8 of 56

Page ID#: 8

26.

Pendleton has duly complied with all relevant requirements of the U.S. Copyright

Act with respect to the Arapaho/Trail design. 27. Pendleton owns Copyright Registration No. VA 1-807-820 for its Arrowhead

design, created in 2011. Pendleton owns all right, title and interest in and to the Arrowhead design, which constitutes original and copyrightable subject matter under the U.S. Copyright Act. A true and correct copy of Pendletons Copyright Registration for the Arrowhead design is attached hereto as Exhibit 34. 28. Pendleton has duly complied with all relevant requirements of the U.S. Copyright

Act with respect to the Arrowhead design. 29. Pendleton owns Copyright Registration No. VA 1-807-832 for its Banded

Arrow design, created in 2011. Pendleton owns all right, title and interest in and to the Banded Arrow design, which constitutes original and copyrightable subject matter under the U.S. Copyright Act. A true and correct copy of Pendletons Copyright Registration for the Banded Arrow design is attached hereto as Exhibit 35. 30. Pendleton has duly complied with all relevant requirements of the U.S. Copyright

Act with respect to the Banded Arrow design. 31. Pendleton owns Copyright Registration Nos. VA 1-789-177, VA 1-859-900 and

VA 1-860-640 for its Big Thunder design and WW Big Thunder BW and WW Big Thunder Green variations, created in 2009 (collectively referred to as the Big Thunder designs). Pendleton owns all right, title and interest in and to the Big Thunder designs, which constitute original and copyrightable subject matter under the U.S. Copyright Act. True and correct copies of Pendletons Copyright Registrations for the Big Thunder designs are attached hereto as Exhibits 36, 37 and 38. 32. Pendleton has duly complied with all relevant requirements of the U.S. Copyright

Act with respect to the Big Thunder designs.

PAGE 8 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 9 of 56

Page ID#: 9

33.

Pendleton owns Copyright Registration No. VA 1-807-826 for its Black

Diamond design, created in 2011. Pendleton owns all right, title and interest in and to the Black Diamond design, which constitutes original and copyrightable subject matter under the U.S. Copyright Act. A true and correct copy of Pendletons Copyright Registration for the Black Diamond design is attached hereto as Exhibit 39. 34. Pendleton has duly complied with all relevant requirements of the U.S. Copyright

Act with respect to the Black Diamond design. 35. Pendleton owns Copyright Registration Nos. VA 1-851-970 and VA 1-852-025

for its Coyoacan design and a black and white variation Coyoacan BW, created in 2012 (collectively referred to as the Coyoacan designs). Pendleton owns all right, title and interest in and to the Coyoacan designs, which constitute original and copyrightable subject matter under the U.S. Copyright Act. True and correct copies of Pendletons Copyright Registrations for the Coyoacan designs are attached hereto as Exhibits 40 and 41. 36. Pendleton has duly complied with all relevant requirements of the U.S. Copyright

Act with respect to the Coyoacan designs. 37. Pendleton owns Copyright Registration No. VA 1-789-198 for its Crossroads

design, created in 2010. Pendleton owns all right, title and interest in and to the Crossroads design, which constitutes original and copyrightable subject matter under the U.S. Copyright Act. A true and correct copy of Pendletons Copyright Registration for the Crossroads design is attached hereto as Exhibit 42. 38. Pendleton has duly complied with all relevant requirements of the U.S. Copyright

Act with respect to the Crossroads design. 39. Pendleton owns Copyright Registration No. VA 1-807-811 for its Diamond

Desert design, created in 2011. Pendleton owns all right, title and interest in and to the Diamond Desert design, which constitutes original and copyrightable subject matter under the

PAGE 9 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 10 of 56

Page ID#: 10

U.S. Copyright Act. A true and correct copy of Pendletons Copyri ght Registration for the Diamond Desert design is attached hereto as Exhibit 43. 40. Pendleton has duly complied with all relevant requirements of the U.S. Copyright

Act with respect to the Diamond Desert design. 41. Pendleton owns Copyright Registration No. VA 1-789-197 for its Eagle Rock

Saddle blanket design, created in 2009 (referred to as the Eagle Rock design). Pendleton owns all right, title and interest in and to the Eagle Rock design, which constitutes original and copyrightable subject matter under the U.S. Copyright Act. A true and correct copy of

Pendletons Copyright Registration for the Eagle Rock design is attached hereto as Exhibit 44. 42. Pendleton has duly complied with all relevant requirements of the U.S. Copyright

Act with respect to the Eagle Rock design. 43. Pendleton owns Copyright Registration No. VA 1-807-872 for its Evening Star

design, created in 2011. Pendleton owns all right, title and interest in and to the Evening Star design, which constitutes original and copyrightable subject matter under the U.S. Copyright Act. A true and correct copy of Pendletons Copyright Registration for the Evening Star desi gn is attached hereto as Exhibit 45. 44. Pendleton has duly complied with all relevant requirements of the U.S. Copyright

Act with respect to the Evening Star design. 45. Pendleton owns Copyright Registration No. VA 1-807-870 for its Gannett Peak

design, created in 2011. Pendleton owns all right, title and interest in and to the Gannett Peak design, which constitutes original and copyrightable subject matter under the U.S. Copyright Act. A true and correct copy of Pendletons Copyright Registration for the Gannett Peak design is attached hereto as Exhibit 46. 46. Pendleton has duly complied with all relevant requirements of the U.S. Copyright

Act with respect to the Gannett Peak design.

PAGE 10 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 11 of 56

Page ID#: 11

47.

Pendleton owns Copyright Registration Nos. VA 1-789-180 and VA 1-865-495

for its Gatekeeper design and a variation MW Gatekeeper BW, created in 2009 and 2012 respectively (collectively referred to as the Gatekeeper designs). Pendleton owns all right, title and interest in and to the Gatekeeper designs, which constitute original and copyrightable subject matter under the U.S. Copyright Act. True and correct copies of Pendletons Copyright

Registrations for the Gatekeeper designs are attached hereto as Exhibits 47 and 48. 48. Pendleton has duly complied with all relevant requirements of the U.S. Copyright

Act with respect to the Gatekeeper designs. 49. Pendleton owns Copyright Registration No. VA 1-266-785 for its Los Ojos

design, created in 2001. Pendleton owns all right, title and interest in and to the Los Ojos design, which constitutes original and copyrightable subject matter under the U.S. Copyright Act. A true and correct copy of Pendletons Copyright Registration for the Los Ojos design is attached hereto as Exhibit 49. 50. Pendleton has duly complied with all relevant requirements of the U.S. Copyright

Act with respect to the Los Ojos design. 51. Pendleton owns Copyright Registration Nos. VA 1-852-017 and VA 1-852-032

for its North Star design and a black and white variation North Star BW, created in 2012 (collectively referred to as the North Star designs). Pendleton owns all right, title and interest in and to the North Star designs, which constitute original and copyrightable subject matter under the U.S. Copyright Act. True and correct copies of Pendletons Copyright Registrat ions for the North Star designs are attached hereto as Exhibits 50 and 51. 52. Pendleton has duly complied with all relevant requirements of the U.S. Copyright

Act with respect to the North Star designs. 53. Pendleton owns Copyright Registration No. VA 1-308-829 for its San Miguel

design, created in 2002. Pendleton owns all right, title and interest in and to the San Miguel design, which constitutes original and copyrightable subject matter under the U.S. Copyright PAGE 11 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 12 of 56

Page ID#: 12

Act. A true and correct copy of Pendletons Copyright Registration for the San Miguel design is attached hereto as Exhibit 52. 54. Pendleton has duly complied with all relevant requirements of the U.S. Copyright

Act with respect to the San Miguel design. 55. Pendleton owns Copyright Registration Nos. VA 1-852-900 and VA 1-852-023

for its Santa Fe Saxony design and a black and white variation Santa Fe Saxony BW, created in 2012 (collectively referred to as the Santa Fe Saxony designs). Pendleton owns all right, title and interest in and to the Santa Fe Saxony designs, which constitute original and copyrightable subject matter under the U.S. Copyright Act. True and correct copies of

Pendletons Copyright Registrations for the Santa Fe Saxony designs are attached hereto as Exhibits 53 and 54. 56. Pendleton has duly complied with all relevant requirements of the U.S. Copyright

Act with respect to the Santa Fe Saxony designs. 57. Pendleton owns Copyright Registration No. VA 1-405-129 for its Aspen Pendleton later renamed this design Silver Bark and filed

design, created in 2006.

Supplementary Copyright Registration No. VA 1-433-158. This design is referred to herein as the Aspen/Silver Bark design. Pendleton owns all right, title and interest in and to the Aspen/Silver Bark design, which constitutes original and copyrightable subject matter under the U.S. Copyright Act. True and correct copies of Pendletons Copyright Registration and

Supplementary Registration for the Aspen/Silver Bark design are attached hereto as Exhibits 55 and 56. 58. Pendleton has duly complied with all relevant requirements of the U.S. Copyright

Act with respect to the Aspen/Silver Bark design. 59. Pendleton owns Copyright Registration No. VA 1-788-999 for its Spirit of the

Peoples design, created in 2008. Pendleton owns all right, title and interest in and to the Spirit of the Peoples design, which constitutes original and copyrightable subject matter under the U.S. PAGE 12 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 13 of 56

Page ID#: 13

Copyright Act. A true and correct copy of Pendletons Copyright Registration for the Spirit of the Peoples design is attached hereto as Exhibit 57. 60. Pendleton has duly complied with all relevant requirements of the U.S. Copyright

Act with respect to the Spirit of the Peoples design. 61. Pendleton owns Copyright Registration No. VA 1-308-788 for its Storm design,

created in 1998. Pendleton owns all right, title and interest in and to the Storm design, which constitutes original and copyrightable subject matter under the U.S. Copyright Act. A true and correct copy of Pendletons Copyright Registration for the Storm design is attached hereto as Exhibit 58. 62. Pendleton has duly complied with all relevant requirements of the U.S. Copyright

Act with respect to the Storm design. 63. Pendleton owns Copyright Registration No. VA 1-807-857 for its Suwanee

Stripe design, created in 2011. Pendleton owns all right, title and interest in and to the Suwanee Stripe design, which constitutes original and copyrightable subject matter under the U.S. Copyright Act. A true and correct copy of Pendletons Copyright Registration for the Suwanee Stripe design is attached hereto as Exhibit 59. 64. Pendleton has duly complied with all relevant requirements of the U.S. Copyright

Act with respect to the Suwanee Stripe design. 65. Pendleton owns Copyright Registration No. VA 1-852-903 for its Toadlena

design, created in 2012. Pendleton owns all right, title and interest in and to the Toadlena design, which constitutes original and copyrightable subject matter under the U.S. Copyright Act. A true and correct copy of Pendletons Copyright Registration for the Toadlena design is attached hereto as Exhibit 60. 66. Pendleton has duly complied with all relevant requirements of the U.S. Copyright

Act with respect to the Toadlena design.

PAGE 13 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 14 of 56

Page ID#: 14

67.

Pendleton owns Copyright Registration No. VA 1-355-883 for its Iroquois

Turtle design, created in 2005. Pendleton later renamed this design Heritage Turtle, thus it is referred to as Iroquois/Heritage Turtle design. Pendleton owns all right, title and interest in and to the Iroquois/Heritage Turtle design, which constitutes original and copyrightable subject matter under the U.S. Copyright Act. A true and correct copy of Pendletons Copyright

Registration for the Iroquois/Heritage Turtle design is attached hereto as Exhibit 61. 68. Pendleton has duly complied with all relevant requirements of the U.S. Copyright

Act with respect to the Iroquois/Heritage Turtle design. 69. Pendleton owns Copyright Registration No. VA 1-256-338 for its Yavapai

design, created in 2002. Pendleton later renamed this design Basketmaker, thus it is referred to as Yavapai/Basketmaker design. Pendleton owns all right, title and interest in and to the Yavapai/Basketmaker design, which constitutes original and copyrightable subject matter under the U.S. Copyright Act. A true and correct copy of Pendletons Copyright Registration for the Yavapai/Basketmaker design is attached hereto as Exhibit 62. 70. Pendleton has duly complied with all relevant requirements of the U.S. Copyright

Act with respect to the Yavapai/Basketmaker design. 71. Pendleton owns Copyright Registration No. VA 1-789-170 for its Zapotec

design, created in 2008. Pendleton owns all right, title and interest in and to the Zapotec design, which constitutes original and copyrightable subject matter under the U.S. Copyright Act. A true and correct copy of Pendletons Copyright Registration for the Zapotec design is attached hereto as Exhibit 63. 72. Pendleton has duly complied with all relevant requirements of the U.S. Copyright

Act with respect to the Zapotec design. 73. Pendleton owns Copyright Registration No. VA 1-807-816 for its Zigzag

design, created in 2011. Pendleton owns all right, title and interest in and to the Zigzag design, which constitutes original and copyrightable subject matter under the U.S. Copyright Act. A true PAGE 14 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 15 of 56

Page ID#: 15

and correct copy of Pendletons Copyright Registration for the Zigzag design is attached hereto as Exhibit 64. 74. Pendleton has duly complied with all relevant requirements of the U.S. Copyright

Act with respect to the Zigzag design. 75. Pendleton manufactures, markets, and sells apparel and blankets using each of its

copyrighted designs. 76. In 2012, Pendleton instituted an express company-wide policy related to its Pendleton Woolen Mills Fabric and Blankets bear

copyright-protected fabric designs:

exclusive copyrighted designs. These designs are protected by Federal Copyright Registrations and cannot be used in Interstate Commerce without Pendleton Woolen Mills express permission. CONDUCT OF DEFENDANT JOHN DOE COMPANIES 1-20 77. In order to do business with Pendleton, Defendant John Doe Companies 1-20

agreed with Pendletons Sales Order terms as follows: The Purchaser will not sell the goods or any part thereof, to another dealer or to any other reseller, and will not sell the goods through the Internet without the written consent of Pendleton Woolen Mills. This provision has been part of Pendletons Sales Order since at least as early as 2004, and for many years before that. 78. Pendleton is not aware of any written consent given to any of Defendant John Doe

Companies 1-20 to sell goods to another dealer or to any other reseller. 79. Pendleton did not give written consent to any of Defendant John Doe Companies

1-20 to sell goods to the Kraffs defendants. 80. Upon information and belief, in direct violation of the above-referenced

provision, each of Defendant John Doe Companies 1-20 either has or is continuing to sell Pendleton products to the Kraffs defendants.

PAGE 15 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 16 of 56

Page ID#: 16

CONDUCT OF DEFENDANTS KRAFFS AND JOHNSON 81. Defendant Kraffs is a retailer operating a clothing store that markets and sells

apparel, blankets, and related products. 82. Defendant Johnson is defendant Kraffs principal owner, and is personally

responsible for all actions of Kraffs. 83. From approximately 1941 until 2006, Kraffs was a wholesale customer of

Pendleton. As such, the Kraffs defendants have been fully aware of the PENDLETON Marks, the goodwill associated therewith, and the proprietary and copyright-protected value of Pendletons blanket and fabric designs. 84. As a former wholesale customer, the Kraffs defendants are likewise fully a ware

of the terms of Pendletons Sales Order contracts, namely, that The Purchaser will not sell the goods or any part thereof, to another dealer or to any other reseller, and will not sell the goods through the Internet without the written consent of Pendleton Woolen Mills. A true and correct copy of a Sales Order contract between Kraffs and Pendleton from 2005 is attached hereto as Exhibit 65 and made a part hereof by this reference. 85. The Kraffs defendants have purchased and continue to purchase Pendleton

products from one or more of Defendant John Doe Companies 1-20, causing and/or aiding Defendant John Doe Companies 1-20 to breach their contracts with Pendleton. 86. Upon information and belief, knowing of the prohibition in Pendletons Sales

Order contracts, the Kraffs defendants either induced and/or conspired with Defendant John Doe Companies 1-20 to breach their contracts with Pendleton so that the Kraffs defendants could continue selling Pendleton products, although not authorized to do so, and to divert consumers from authorized Pendleton resellers to Kraffs. 87. Despite not being an authorized reseller of Pendletons products, the Kraffs

defendants use the PENDLETON Marks, including but not limited to the Pendleton Warranted

PAGE 16 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 17 of 56

Page ID#: 17

Labels, in such a way as to represent Kraffs as an authorized reseller of Pendleton products, or otherwise associated with or sponsored by Pendleton. 88. The Kraffs defendants use the Pendleton Warranted Labels in a more distinctive,

larger format than even the Kraffs name, for example:

PAGE 17 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 18 of 56

Page ID#: 18

89.

In addition to using the Pendleton Warranted Labels in a prominent manner,

Kraffs About Us page prominently refers to Pendleton in the headline:

90.

In a further effort to appear to be an authorized Pendleton reseller, the Kraffs

defendants use the PENDLETON Marks in store signage. 91. In a further effort to appear to be an authorized Pendleton reseller, the Kraffs

defendants copy the text descriptions of Pendletons products from Pendletons website, www.pendletonusa.com and use strikingly similar variations thereof on the Kraffs website at www.kraffs.com. 92. Kraffs also attempts to align itself with Pendleton and Pendletons historical

relationship with Native American tribes by regularly using the terms Native and Native American with Pendletons products, using Native American tribal names with Pendleton PAGE 18 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 19 of 56

Page ID#: 19

products, and using the same terms to describe non-Pendleton products without indicating the origin or manufacturer. 93. The manner in which Kraffs uses Native and Native American phrasing to

describe Pendletons products will confuse, deceive, and mislead consumers into believing that the products are made by Native Americans, when they are not. 94. The Kraffs defendants target Native American customers all over the country, for

example, by traveling to events popular with Native Americans and focused on Native American traditions, such as powwows, in various jurisdictions. 95. Upon information and belief, the Kraffs defendants activities in purchasing and

selling Pendleton products from Defendant John Doe Companies 1-20 and making Kraffs appear as an authorized reseller of Pendletons products has negatively affected Pendletons authorized resellers, including but not limited to those authorized resellers located in the area of Washington state in which the Kraffs defendants are located, has negatively affected and caused damage to Pendleton and its relationship with its authorized resellers, and has negatively affected and caused damage to Pendletons relationships with actual and potential third parties with whom it enters or may enter into product collaborations. 96. The Kraffs defendants are also in the business of manufacturing apparel products

such as jackets and robes. The Kraffs defendants manufacture, offer for sale, and sell products made out of Pendleton fabrics bearing Pendletons copyrighted fabric designs. Such products are unauthorized derivative works. 97. For several years, Pendleton, as the copyright owner of its designs, allowed

Kraffs to create derivative works from its copyrighted designs, and sell such derivative works so long as Kraffs accurately referred to Pendleton as the source of the copyrighted fabric designs. 98. On September 18, 2012, Pendleton informed Kraffs of its policy (set forth in

paragraph 76 above) and expressly revoked and withdrew the prior permission given to Kraffs to use Pendletons copyright-protected fabric and blanket designs in any commercial manner. In PAGE 19 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 20 of 56

Page ID#: 20

a subsequent letter dated December 4, 2012, Pendleton allowed Kraffs a firm one (1) year sell through period to exhaust its inventory of products manufactured using Pendletons fabric and copyrighted designs and informed Kraffs that any subsequent sales would be considered infringement of Pendletons copyrights. 99. After expiration of the sell-through period on December 5, 2013, the Kraffs

defendants continued, and currently continue, to sell products manufactured using Pendletons copyright-protected fabric designs, that is, derivative works, without authorization from Pendleton. 100. The Kraffs defendants are selling unauthorized derivative works created using

Pendletons copyright-protected fabric designs, including the following designs: Arapaho/Trail, Arrowhead, Banded Arrow, Big Thunder, Black Diamond, Coyoacan, Crossroads, Diamond Desert, Eagle Rock, Evening Star, Gannett Peak, Gatekeeper, Los Ojos, North Star, San Miguel, Santa Fe Saxony, Aspen/Silver Bark, Spirit of the Peoples, Storm, Suwanee Stripe, Toadlena, Iroquois/Heritage Turtle, Yavapai/Basketmaker, Zapotec, and Zigzag. Copies of pages from Kraffs website featuring some representative examples of these products are attached hereto as Exhibit 66, and incorporated herein by this reference. Exhibit 66 represents just a sampling of the infringing products sold by the Kraffs defendants bearing Pendletons copyright -protected designs, and other infringing products have been and are being sold by the Kraffs defendants as well. 101. The Kraffs defendants activities in selling unauthorized derivative works created

using Pendletons copyright-protected fabric designs has negatively affected Pendletons authorized resellers, including but not limited to those authorized resellers located in the area of Washington state in which the Kraffs defendants are located, has negatively affected and caused damage to Pendleton and its relationship with its authorized resellers, and has negatively affected and caused damage to Pendletons relationships with actual and potential third parties with whom it enters or may enter into product collaborations. PAGE 20 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 21 of 56

Page ID#: 21

102.

On information and belief, in connection with its sale of its products made out of

fabric bearing Pendletons copyright-protected designs, the Kraffs defendants display such products on hangers that bear the PENDLETON Marks and in connection with signage bearing the PENDLETON Marks. 103. On information and belief, in connection with its sale of its products made out of

fabric bearing Pendletons copyright-protected designs, the Kraffs defendants use the following blue and gold label, or a variation or variations thereof:

104.

When used as a label on derivative clothing and accessory products created using

Pendletons copyright-protected fabric designs, the use of this blue and gold label is intended to, and does, mislead consumers into believing that the products are associated with, sponsored by, or affiliated with Pendleton. 105. The Kraffs defendants activities are likely to cause confusion, mistake, and

deception as to the affiliation, connection, or association of the Kraffs defendants with Pendleton, and as to the origin, sponsorship, or approval of the Kraffs defendants goods, retail services, or other commercial activities. 106. By causing such a likelihood of confusion, mistake, and deception, the Kraffs

defendants are inflicting irreparable harm to the goodwill symbolized by the PENDLETON Marks, for which Pendleton has no adequate remedy at law.

PAGE 21 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 22 of 56

Page ID#: 22

FIRST CLAIM FOR RELIEF (Copyright Infringement 17 U.S.C. 501 / Arapaho/Trail Design) Against the Kraffs Defendants 107. Pendleton repeats and realleges each of the allegations set forth in paragraphs 1

through 106 above as if fully set forth herein. 108. Pendleton is the owner of a U.S. copyright registration for the Arapaho/Trail

design, which registration is in full force and effect. 109. The Kraffs defendants, without authorization from Pendleton, and after

Pendleton created and first used the Arapaho/Trail design on its products, have manufactured, imported, exported, distributed, supplied, advertised, promoted, sold, and/or offered for sale products created from Pendleton fabric bearing the Arapaho/Trail design that are unauthorized derivative works. 110. The Kraffs defendants have, after receiving notification of the infringement and

since December 5, 2013, willfully infringed and are continuing to willfully infringe Pendletons copyright in the Arapaho/Trail design. 111. Upon information and belief, by their acts, the Kraffs defendants have made and

will make substantial profits and gains to which they are not in law or in equity entitled. 112. Upon information and belief, the Kraffs defendants intend to continue their

willful conduct and will continue to willfully infringe Pendletons copyright in the Arapaho/Trail design, and to act in bad faith, unless restrained by this Court. 113. As a result of the Kraffs defendants conduct, Pendleton has suffered irreparable

injury and damage to its business and/or property, and other damages in an amount to be proven at trial.

PAGE 22 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 23 of 56

Page ID#: 23

SECOND CLAIM FOR RELIEF (Copyright Infringement 17 U.S.C. 501 / Arrowhead Design) Against the Kraffs Defendants 114. Pendleton repeats and realleges each of the allegations set forth in paragraphs 1

through 113 above as if fully set forth herein. 115. Pendleton is the owner of a U.S. copyright registration for the Arrowhead design,

which registration is in full force and effect. 116. The Kraffs defendants, without authorization from Pendleton, and after

Pendleton created and first used the Arrowhead design on its products, have manufactured, imported, exported, distributed, supplied, advertised, promoted, sold, and/or offered for sale products created from Pendleton fabric bearing the Arrowhead design that are unauthorized derivative works. 117. The Kraffs defendants have, after receiving notification of the infringement and

since December 5, 2013, willfully infringed and are continuing to willfully infringe Pendletons copyright in the Arrowhead design. 118. Upon information and belief, by their acts, the Kraffs defendants have made and

will make substantial profits and gains to which they are not in law or in equity entitled. 119. Upon information and belief, the Kraffs defendants intend to continue their

willful conduct and will continue to willfully infringe Pendletons copyright in the Arrowhead design, and to act in bad faith, unless restrained by this Court. 120. As a result of the Kraffs defendants conduct, Pendleton has suffered irreparable

injury and damage to its business and/or property, and other damages in an amount to be proven at trial.

PAGE 23 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 24 of 56

Page ID#: 24

THIRD CLAIM FOR RELIEF (Copyright Infringement 17 U.S.C. 501 / Banded Arrow Design) Against the Kraffs Defendants 121. Pendleton repeats and realleges each of the allegations set forth in paragraphs 1

through 120 above as if fully set forth herein. 122. Pendleton is the owner of a U.S. copyright registration for the Banded Arrow

design, which registration is in full force and effect. 123. The Kraffs defendants, without authorization from Pendleton, and after

Pendleton created and first used the Banded Arrow design on its products, have manufactured, imported, exported, distributed, supplied, advertised, promoted, sold, and/or offered for sale products created from Pendleton fabric bearing the Banded Arrow design that are unauthorized derivative works. 124. The Kraffs defendants have, after receiving notification of the infringement and

since December 5, 2013, willfully infringed and are continuing to willfully infringe Pendletons copyright in the Banded Arrow design. 125. Upon information and belief, by their acts, the Kraffs defendants have made and

will make substantial profits and gains to which they are not in law or in equity entitled. 126. Upon information and belief, the Kraffs defendants intend to continue their

willful conduct and will continue to willfully infringe Pendletons copyright in the Banded Arrow design, and to act in bad faith, unless restrained by this Court. 127. As a result of the Kraffs defendants conduct, Pendleton has suffered irreparable

injury and damage to its business and/or property, and other damages in an amount to be proven at trial.

PAGE 24 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 25 of 56

Page ID#: 25

FOURTH CLAIM FOR RELIEF (Copyright Infringement 17 U.S.C. 501 / Big Thunder Designs) Against the Kraffs Defendants 128. Pendleton repeats and realleges each of the allegations set forth in paragraphs 1

through 127 above as if fully set forth herein. 129. Pendleton is the owner of U.S. copyright registrations for the Big Thunder

designs, which registrations are in full force and effect. 130. The Kraffs defendants, without authorization from Pendleton, and after

Pendleton created and first used the Big Thunder designs on its products, have manufactured, imported, exported, distributed, supplied, advertised, promoted, sold, and/or offered for sale products created from Pendleton fabric bearing the Big Thunder designs that are unauthorized derivative works. 131. The Kraffs defendants have, after receiving notification of the infringement and

since December 5, 2013, willfully infringed and are continuing to willfully infringe Pendletons copyrights in the Big Thunder designs. 132. Upon information and belief, by their acts, the Kraffs defendants have made and

will make substantial profits and gains to which they are not in law or in equity entitled. 133. Upon information and belief, the Kraffs defendants intend to continue their

willful conduct and will continue to willfully infringe Pendletons copyrights in the Big Thunder designs, and to act in bad faith, unless restrained by this Court. 134. As a result of the Kraffs defendants conduct, Pendleton has suffered irreparable

injury and damage to its business and/or property, and other damages in an amount to be proven at trial.

PAGE 25 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 26 of 56

Page ID#: 26

FIFTH CLAIM FOR RELIEF (Copyright Infringement 17 U.S.C. 501 / Black Diamond Design) Against the Kraffs Defendants 135. Pendleton repeats and realleges each of the allegations set forth in paragraphs 1

through 134 above as if fully set forth herein. 136. Pendleton is the owner of a U.S. copyright registration for the Black Diamond

design, which registration is in full force and effect. 137. The Kraffs defendants, without authorization from Pendleton, and after

Pendleton created and first used the Black Diamond design on its products, have manufactured, imported, exported, distributed, supplied, advertised, promoted, sold, and/or offered for sale products created from Pendleton fabric bearing the Black Diamond design that are unauthorized derivative works. 138. The Kraffs defendants have, after receiving notification of the infringement and

since December 5, 2013, willfully infringed and are continuing to willfully infringe Pendletons copyright in the Black Diamond design. 139. Upon information and belief, by their acts, the Kraffs defendants have made and

will make substantial profits and gains to which they are not in law or in equity entitled. 140. Upon information and belief, the Kraffs defendants intend to continue their

willful conduct and will continue to willfully infringe Pendletons copyright in the Black Diamond design, and to act in bad faith, unless restrained by this Court. 141. As a result of the Kraffs defendants conduct, Pendleton has suffered irreparable

injury and damage to its business and/or property, and other damages in an amount to be proven at trial.

PAGE 26 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 27 of 56

Page ID#: 27

SIXTH CLAIM FOR RELIEF (Copyright Infringement 17 U.S.C. 501 / Coyoacan designs) Against the Kraffs Defendants 142. Pendleton repeats and realleges each of the allegations set forth in paragraphs 1

through 141 above as if fully set forth herein. 143. Pendleton is the owner of U.S. copyright registrations for the Coyoacan designs,

which registrations are in full force and effect. 144. The Kraffs defendants, without authorization from Pendleton, and after

Pendleton created and first used the Coyoacan designs on its products, have manufactured, imported, exported, distributed, supplied, advertised, promoted, sold, and/or offered for sale products created from Pendleton fabric bearing the Coyoacan designs that are unauthorized derivative works. 145. The Kraffs defendants have, after receiving notification of the infringement and

since December 5, 2013, willfully infringed and are continuing to willfully infringe Pendletons copyrights in the Coyoacan designs. 146. Upon information and belief, by their acts, the Kraffs defendants have made and

will make substantial profits and gains to which they are not in law or in equity entitled. 147. Upon information and belief, the Kraffs defendants intend to continue their

willful conduct and will continue to willfully infringe Pendletons copyrights in the Coyoacan designs, and to act in bad faith, unless restrained by this Court. 148. As a result of the Kraffs defendants conduct, Pendleton has suffered irreparable

injury and damage to its business and/or property, and other damages in an amount to be proven at trial.

PAGE 27 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 28 of 56

Page ID#: 28

SEVENTH CLAIM FOR RELIEF (Copyright Infringement 17 U.S.C. 501 / Crossroads Design) Against the Kraffs Defendants 149. Pendleton repeats and realleges each of the allegations set forth in paragraphs 1

through 148 above as if fully set forth herein. 150. Pendleton is the owner of a U.S. copyright registration for the Crossroads design,

which registration is in full force and effect. 151. The Kraffs defendants, without authorization from Pendleton, and after

Pendleton created and first used the Crossroads design on its products, have manufactured, imported, exported, distributed, supplied, advertised, promoted, sold, and/or offered for sale products created from Pendleton fabric bearing the Crossroads design that are unauthorized derivative works. 152. The Kraffs defendants have, after receiving notification of the infringement and

since December 5, 2013, willfully infringed and are continuing to willfully infringe Pendletons copyright in the Crossroads design. 153. Upon information and belief, by their acts, the Kraffs defendants have made and

will make substantial profits and gains to which they are not in law or in equity entitled. 154. Upon information and belief, the Kraffs defendants intend to continue their

willful conduct and will continue to willfully infringe Pendletons copyright in the Crossroads design, and to act in bad faith, unless restrained by this Court. 155. As a result of the Kraffs defendants conduct, Pendleton has suffered irreparable

injury and damage to its business and/or property, and other damages in an amount to be proven at trial.

PAGE 28 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 29 of 56

Page ID#: 29

EIGHTH CLAIM FOR RELIEF (Copyright Infringement 17 U.S.C. 501 / Diamond Desert Design) Against the Kraffs Defendants 156. Pendleton repeats and realleges each of the allegations set forth in paragraphs 1

through 155 above as if fully set forth herein. 157. Pendleton is the owner of a U.S. copyright registration for the Diamond Desert

design, which registration is in full force and effect. 158. The Kraffs defendants, without authorization from Pendleton, and after

Pendleton created and first used the Diamond Desert design on its products, have manufactured, imported, exported, distributed, supplied, advertised, promoted, sold, and/or offered for sale products created from Pendleton fabric bearing the Diamond Desert design that are unauthorized derivative works. 159. The Kraffs defendants have, after receiving notification of the infringement and

since December 5, 2013, willfully infringed and are continuing to willfully infringe Pendletons copyright in the Diamond Desert design. 160. Upon information and belief, by their acts, the Kraffs defendants have made and

will make substantial profits and gains to which they are not in law or in equity entitled. 161. Upon information and belief, the Kraffs defendants intend to continue their

willful conduct and will continue to willfully infringe Pendletons copyright in the Diamond Desert design, and to act in bad faith, unless restrained by this Court. 162. As a result of the Kraffs defendants conduct, Pendleton has suffered irreparable

injury and damage to its business and/or property, and other damages in an amount to be proven at trial.

PAGE 29 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 30 of 56

Page ID#: 30

NINTH CLAIM FOR RELIEF (Copyright Infringement 17 U.S.C. 501 / Eagle Rock Design) Against the Kraffs Defendants 163. Pendleton repeats and realleges each of the allegations set forth in paragraphs 1

through 162 above as if fully set forth herein. 164. Pendleton is the owner of a U.S. copyright registration for the Eagle Rock design,

which registration is in full force and effect. 165. The Kraffs defendants, without authorization from Pendleton, and after

Pendleton created and first used the Eagle Rock design on its products, have manufactured, imported, exported, distributed, supplied, advertised, promoted, sold, and/or offered for sale products created from Pendleton fabric bearing the Eagle Rock design that are unauthorized derivative works. 166. The Kraffs defendants have, after receiving notification of the infringement and

since December 5, 2013, willfully infringed and are continuing to willfully infringe Pendletons copyright in the Eagle Rock design. 167. Upon information and belief, by their acts, the Kraffs defendants have made and

will make substantial profits and gains to which they are not in law or in equity entitled. 168. Upon information and belief, the Kraffs defendants intend to continue their

willful conduct and will continue to willfully infringe Pendletons copyright in the Eagle Rock design, and to act in bad faith, unless restrained by this Court. 169. As a result of the Kraffs defendants conduct, Pendleton has suffered irreparable

injury and damage to its business and/or property, and other damages in an amount to be proven at trial.

PAGE 30 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 31 of 56

Page ID#: 31

TENTH CLAIM FOR RELIEF (Copyright Infringement 17 U.S.C. 501 / Evening Star Design) Against the Kraffs Defendants 170. Pendleton repeats and realleges each of the allegations set forth in paragraphs 1

through 169 above as if fully set forth herein. 171. Pendleton is the owner of a U.S. copyright registration for the Evening Star

design, which registration is in full force and effect. 172. The Kraffs defendants, without authorization from Pendleton, and after

Pendleton created and first used the Evening Star design on its products, have manufactured, imported, exported, distributed, supplied, advertised, promoted, sold, and/or offered for sale products created from Pendleton fabric bearing the Evening Star design that are unauthorized derivative works. 173. The Kraffs defendants have, after receiving notification of the infringement and

since December 5, 2013, willfully infringed and are continuing to willfully infringe Pendletons copyright in the Evening Star design. 174. Upon information and belief, by their acts, the Kraffs defendants have made and

will make substantial profits and gains to which they are not in law or in equity entitled. 175. Upon information and belief, the Kraffs defendants intend to continue their

willful conduct and will continue to willfully infringe Pendletons copyright in the Evening Star design, and to act in bad faith, unless restrained by this Court. 176. As a result of the Kraffs defendants conduct, Pendleton has suffered irreparable

injury and damage to its business and/or property, and other damages in an amount to be proven at trial.

PAGE 31 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 32 of 56

Page ID#: 32

ELEVENTH CLAIM FOR RELIEF (Copyright Infringement 17 U.S.C. 501 / Gannett Peak Design) Against the Kraffs Defendants 177. Pendleton repeats and realleges each of the allegations set forth in paragraphs 1

through 176 above as if fully set forth herein. 178. Pendleton is the owner of a U.S. copyright registration for the Gannett Peak

design, which registration is in full force and effect. 179. The Kraffs defendants, without authorization from Pendleton, and after

Pendleton created and first used the Gannett Peak design on its products, have manufactured, imported, exported, distributed, supplied, advertised, promoted, sold, and/or offered for sale products created from Pendleton fabric bearing the Gannett Peak design that are unauthorized derivative works. 180. The Kraffs defendants have, after receiving notification of the infringement and

since December 5, 2013, willfully infringed and are continuing to willfully infringe Pendletons copyright in the Gannett Peak design. 181. Upon information and belief, by their acts, the Kraffs defendants have made and

will make substantial profits and gains to which they are not in law or in equity entitled. 182. Upon information and belief, the Kraffs defendants intend to continue their

willful conduct and will continue to willfully infringe Pendletons copyright in the Gannett Peak design, and to act in bad faith, unless restrained by this Court. 183. As a result of the Kraffs defendants conduct, Pendleton has suffered irreparable

injury and damage to its business and/or property, and other damages in an amount to be proven at trial.

PAGE 32 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 33 of 56

Page ID#: 33

TWELFTH CLAIM FOR RELIEF (Copyright Infringement 17 U.S.C. 501 / Gatekeeper Designs) Against the Kraffs Defendants 184. Pendleton repeats and realleges each of the allegations set forth in paragraphs 1

through 183 above as if fully set forth herein. 185. Pendleton is the owner of U.S. copyright registrations for the Gatekeeper designs,

which registrations are in full force and effect. 186. The Kraffs defendants, without authorization from Pendleton, and after

Pendleton created and first used the Gatekeeper designs on its products, have manufactured, imported, exported, distributed, supplied, advertised, promoted, sold, and/or offered for sale products created from Pendleton fabric bearing the Gatekeeper designs that are unauthorized derivative works. 187. The Kraffs defendants have, after receiving notification of the infringement and

since December 5, 2013, willfully infringed and are continuing to willfully infringe Pendletons copyrights in the Gatekeeper designs. 188. Upon information and belief, by their acts, the Kraffs defendants have made and

will make substantial profits and gains to which they are not in law or in equity entitled. 189. Upon information and belief, the Kraffs defendants intend to continue their

willful conduct and will continue to willfully infringe Pendletons copyrights in the Gatekeeper designs, and to act in bad faith, unless restrained by this Court. 190. As a result of the Kraffs defendants conduct, Pendleton has suffered irreparable

injury and damage to its business and/or property, and other damages in an amount to be proven at trial.

PAGE 33 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 34 of 56

Page ID#: 34

THIRTEENTH CLAIM FOR RELIEF (Copyright Infringement 17 U.S.C. 501 / Los Ojos Design) Against the Kraffs Defendants 191. Pendleton repeats and realleges each of the allegations set forth in paragraphs 1

through 190 above as if fully set forth herein. 192. Pendleton is the owner of a U.S. copyright registration for the Los Ojos design,

which registration is in full force and effect. 193. The Kraffs defendants, without authorization from Pendleton, and after

Pendleton created and first used the Los Ojos design on its products, have manufactured, imported, exported, distributed, supplied, advertised, promoted, sold, and/or offered for sale products created from Pendleton fabric bearing the Los Ojos design that are unauthorized derivative works. 194. The Kraffs defendants have, after receiving notification of the infringement and

since December 5, 2013, willfully infringed and are continuing to willfully infringe Pendletons copyright in the Los Ojos design. 195. Upon information and belief, by their acts, the Kraffs defendants have made and

will make substantial profits and gains to which they are not in law or in equity entitled. 196. Upon information and belief, the Kraffs defendants intend to continue their

willful conduct and will continue to willfully infringe Pendletons copyright in the Los Ojos design, and to act in bad faith, unless restrained by this Court. 197. As a result of the Kraffs defendants conduct, Pendleton has suffered irreparable

injury and damage to its business and/or property, and other damages in an amount to be proven at trial.

PAGE 34 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 35 of 56

Page ID#: 35

FOURTEENTH CLAIM FOR RELIEF (Copyright Infringement 17 U.S.C. 501 / North Star Designs) Against the Kraffs Defendants 198. Pendleton repeats and realleges each of the allegations set forth in paragraphs 1

through 197 above as if fully set forth herein. 199. Pendleton is the owner of U.S. copyright registrations for the North Star designs,

which registrations are in full force and effect. 200. The Kraffs defendants, without authorization from Pendleton, and after

Pendleton created and first used the North Star designs on its products, have manufactured, imported, exported, distributed, supplied, advertised, promoted, sold, and/or offered for sale products created from Pendleton fabric bearing the North Star designs that are unauthorized derivative works. 201. The Kraffs defendants have, after receiving notification of the infringement and

since December 5, 2013, willfully infringed and are continuing to willfully infringe Pendletons copyrights in the North Star designs. 202. Upon information and belief, by their acts, the Kraffs defendants have made and

will make substantial profits and gains to which they are not in law or in equity entitled. 203. Upon information and belief, the Kraffs defendants intend to continue their

willful conduct and will continue to willfully infringe Pendletons copyrights in the North Star designs, and to act in bad faith, unless restrained by this Court. 204. As a result of the Kraffs defendants conduct, Pendleton has suffered irreparable

injury and damage to its business and/or property, and other damages in an amount to be proven at trial.

PAGE 35 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 36 of 56

Page ID#: 36

FIFTEENTH CLAIM FOR RELIEF (Copyright Infringement 17 U.S.C. 501 / San Miguel Design) Against the Kraffs Defendants 205. Pendleton repeats and realleges each of the allegations set forth in paragraphs 1

through 204 above as if fully set forth herein. 206. Pendleton is the owner of a U.S. copyright registration for the San Miguel design,

which registration is in full force and effect. 207. The Kraffs defendants, without authorization from Pendleton, and after

Pendleton created and first used the San Miguel design on its products, have manufactured, imported, exported, distributed, supplied, advertised, promoted, sold, and/or offered for sale products created from Pendleton fabric bearing the San Miguel design that are unauthorized derivative works. 208. The Kraffs defendants have, after receiving notification of the infringement and

since December 5, 2013, willfully infringed and are continuing to willfully infringe Pendletons copyright in the San Miguel design. 209. Upon information and belief, by their acts, the Kraffs defendants have made and

will make substantial profits and gains to which they are not in law or in equity entitled. 210. Upon information and belief, the Kraffs defendants intend to continue their

willful conduct and will continue to willfully infringe Pendletons copyright in the San Miguel design, and to act in bad faith, unless restrained by this Court. 211. As a result of the Kraffs defendants conduct, Pendleton has suffered irreparable

injury and damage to its business and/or property, and other damages in an amount to be proven at trial.

PAGE 36 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 37 of 56

Page ID#: 37

SIXTEENTH CLAIM FOR RELIEF (Copyright Infringement 17 U.S.C. 501 / Santa Fe Saxony Designs) Against the Kraffs Defendants 212. Pendleton repeats and realleges each of the allegations set forth in paragraphs 1

through 211 above as if fully set forth herein. 213. Pendleton is the owner of U.S. copyright registrations for the Santa Fe Saxony

designs, which registrations are in full force and effect. 214. The Kraffs defendants, without authorization from Pendleton, and after

Pendleton created and first used the Santa Fe Saxony designs on its products, have manufactured, imported, exported, distributed, supplied, advertised, promoted, sold, and/or offered for sale products created from Pendleton fabric bearing the Santa Fe Saxony designs that are unauthorized derivative works. 215. The Kraffs defendants have, after receiving notification of the infringement and

since December 5, 2013, willfully infringed and are continuing to willfully infringe Pendletons copyrights in the Santa Fe Saxony designs. 216. Upon information and belief, by their acts, the Kraffs defendants have made and

will make substantial profits and gains to which they are not in law or in equity entitled. 217. Upon information and belief, the Kraffs defendants intend to continue their

willful conduct and will continue to willfully infringe Pendletons copyrights in the Santa Fe Saxony designs, and to act in bad faith, unless restrained by this Court. 218. As a result of the Kraffs defendants conduct, Pendleton has suffered irreparable

injury and damage to its business and/or property, and other damages in an amount to be proven at trial.

PAGE 37 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 38 of 56

Page ID#: 38

SEVENTEENTH CLAIM FOR RELIEF (Copyright Infringement 17 U.S.C. 501 / Aspen/Silver Bark Design) Against the Kraffs Defendants 219. Pendleton repeats and realleges each of the allegations set forth in paragraphs 1

through 218 above as if fully set forth herein. 220. Pendleton is the owner of a U.S. copyright registration for the Aspen/Silver Bark

design, which registration is in full force and effect. 221. The Kraffs defendants, without authorization from Pendleton, and after

Pendleton created and first used the Aspen/Silver Bark design on its products, have manufactured, imported, exported, distributed, supplied, advertised, promoted, sold, and/or offered for sale products created from Pendleton fabric bearing the Aspen/Silver Bark design that are unauthorized derivative works. 222. The Kraffs defendants have, after receiving notification of the infringement and

since December 5, 2013, willfully infringed and are continuing to willfully infringe Pendletons copyright in the Aspen/Silver Bark design. 223. Upon information and belief, by their acts, the Kraffs defendants have made and

will make substantial profits and gains to which they are not in law or in equity entitled. 224. Upon information and belief, the Kraffs defendants intend to continue their

willful conduct and will continue to willfully infringe Pendletons copyright in the Aspen/Silver Bark design, and to act in bad faith, unless restrained by this Court. 225. As a result of the Kraffs defendants conduct, Pendleton has suffered irreparable

injury and damage to its business and/or property, and other damages in an amount to be proven at trial.

PAGE 38 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 39 of 56

Page ID#: 39

EIGHTEENTH CLAIM FOR RELIEF (Copyright Infringement 17 U.S.C. 501 / Spirit of the Peoples Design) Against the Kraffs Defendants 226. Pendleton repeats and realleges each of the allegations set forth in paragraphs 1

through 225 above as if fully set forth herein. 227. Pendleton is the owner of a U.S. copyright registration for the Spirit of the

Peoples design, which registration is in full force and effect. 228. The Kraffs defendants, without authorization from Pendleton, and after

Pendleton created and first used the Spirit of the Peoples design on its products, have manufactured, imported, exported, distributed, supplied, advertised, promoted, sold, and/or offered for sale products created from Pendleton fabric bearing the Spirit of the Peoples design that are unauthorized derivative works. 229. The Kraffs defendants have, after receiving notification of the infringement and

since December 5, 2013, willfully infringed and are continuing to willfully infringe Pendletons copyright in the Spirit of the Peoples design. 230. Upon information and belief, by their acts, the Kraffs defendants have made and

will make substantial profits and gains to which they are not in law or in equity entitled. 231. Upon information and belief, the Kraffs defendants intend to continue their

willful conduct and will continue to willfully infringe Pendletons copyright in the Spirit of the Peoples design, and to act in bad faith, unless restrained by this Court. 232. As a result of the Kraffs defendants conduct, Pendleton has suffered irreparable

injury and damage to its business and/or property, and other damages in an amount to be proven at trial.

PAGE 39 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 40 of 56

Page ID#: 40

NINETEENTH CLAIM FOR RELIEF (Copyright Infringement 17 U.S.C. 501 / Storm Design) Against the Kraffs Defendants 233. Pendleton repeats and realleges each of the allegations set forth in paragraphs 1

through 232 above as if fully set forth herein. 234. Pendleton is the owner of a U.S. copyright registration for the Storm design,

which registration is in full force and effect. 235. The Kraffs defendants, without authorization from Pendleton, and after

Pendleton created and first used the Storm design on its products, have manufactured, imported, exported, distributed, supplied, advertised, promoted, sold, and/or offered for sale products created from Pendleton fabric bearing the Storm design that are unauthorized derivative works. 236. The Kraffs defendants have, after receiving notification of the infringement and

since December 5, 2013, willfully infringed and are continuing to willfully infringe Pendletons copyright in the Storm design. 237. Upon information and belief, by their acts, the Kraffs defendants have made and

will make substantial profits and gains to which they are not in law or in equity entitled. 238. Upon information and belief, the Kraffs defendants intend to continue their

willful conduct and will continue to willfully infringe Pendletons copyright in the Storm design, and to act in bad faith, unless restrained by this Court. 239. As a result of the Kraffs defendants conduct, Pendleton has suffered irreparable

injury and damage to its business and/or property, and other damages in an amount to be proven at trial.

PAGE 40 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 41 of 56

Page ID#: 41

TWENTIETH CLAIM FOR RELIEF (Copyright Infringement 17 U.S.C. 501 / Suwanee Stripe Design) Against the Kraffs Defendants 240. Pendleton repeats and realleges each of the allegations set forth in paragraphs 1

through 239 above as if fully set forth herein. 241. Pendleton is the owner of a U.S. copyright registration for the Suwanee Stripe

design, which registration is in full force and effect. 242. The Kraffs defendants, without authorization from Pendleton, and after

Pendleton created and first used the Suwanee Stripe design on its products, have manufactured, imported, exported, distributed, supplied, advertised, promoted, sold, and/or offered for sale products created from Pendleton fabric bearing the Suwanee Stripe design that are unauthorized derivative works. 243. The Kraffs defendants have, after receiving notification of the infringement and

since December 5, 2013, willfully infringed and are continuing to willfully infringe Pendletons copyright in the Suwanee Stripe design. 244. Upon information and belief, by their acts, the Kraffs defendants have made and

will make substantial profits and gains to which they are not in law or in equity entitled. 245. Upon information and belief, the Kraffs defendants intend to continue their

willful conduct and will continue to willfully infringe Pendletons copyright in the Suwanee Strip design, and to act in bad faith, unless restrained by this Court. 246. As a result of the Kraffs defendants conduct, Pendleton has suffered irreparable

injury and damage to its business and/or property, and other damages in an amount to be proven at trial.

PAGE 41 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 42 of 56

Page ID#: 42

TWENTY-FIRST CLAIM FOR RELIEF (Copyright Infringement 17 U.S.C. 501 / Toadlena Design) Against the Kraffs Defendants 247. Pendleton repeats and realleges each of the allegations set forth in paragraphs 1

through 246 above as if fully set forth herein. 248. Pendleton is the owner of a U.S. copyright registration for the Toadlena design,

which registration is in full force and effect. 249. The Kraffs defendants, without authorization from Pendleton, and after

Pendleton created and first used the Toadlena design on its products, have manufactured, imported, exported, distributed, supplied, advertised, promoted, sold, and/or offered for sale products created from Pendleton fabric bearing the Toadlena design that are unauthorized derivative works. 250. The Kraffs defendants have, after receiving notification of the infringement and

since December 5, 2013, willfully infringed and are continuing to willfully infringe Pendletons copyright in the Toadlena design. 251. Upon information and belief, by their acts, the Kraffs defendants have made and

will make substantial profits and gains to which they are not in law or in equity entitled. 252. Upon information and belief, the Kraffs defendants intend to continue their

willful conduct and will continue to willfully infringe Pendletons copyright in the Toadlena design, and to act in bad faith, unless restrained by this Court. 253. As a result of the Kraffs defendants conduct, Pendleton has suffered irreparable

injury and damage to its business and/or property, and other damages in an amount to be proven at trial.

PAGE 42 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 43 of 56

Page ID#: 43

TWENTY-SECOND CLAIM FOR RELIEF (Copyright Infringement 17 U.S.C. 501 / Iroquois/Heritage Turtle Design) Against the Kraffs Defendants 254. Pendleton repeats and realleges each of the allegations set forth in paragraphs 1

through 253 above as if fully set forth herein. 255. Pendleton is the owner of a U.S. copyright registration for the Iroquois/Heritage

Turtle design, which registration is in full force and effect. 256. The Kraffs defendants, without authorization from Pendleton, and after

Pendleton created and first used the Iroquois/Heritage Turtle design on its products, have manufactured, imported, exported, distributed, supplied, advertised, promoted, sold, and/or offered for sale products created from Pendleton fabric bearing the Iroquois/Heritage Turtle design that are unauthorized derivative works. 257. The Kraffs defendants have, after receiving notification of the infringement and

since December 5, 2013, willfully infringed and are continuing to willfully infringe Pendletons copyright in the Iroquois/Heritage Turtle design. 258. Upon information and belief, by their acts, the Kraffs defendants have made and

will make substantial profits and gains to which they are not in law or in equity entitled. 259. Upon information and belief, the Kraffs defendants intend to continue their

willful conduct and will continue to willfully infringe Pendletons copyright in the Iroquois/Heritage Turtle design, and to act in bad faith, unless restrained by this Court. 260. As a result of the Kraffs defendants conduct, Pendleton has suffered irreparable

injury and damage to its business and/or property, and other damages in an amount to be proven at trial.

PAGE 43 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 44 of 56

Page ID#: 44

TWENTY-THIRD CLAIM FOR RELIEF (Copyright Infringement 17 U.S.C. 501 / Yavapai/Basketmaker Design) Against the Kraffs Defendants 261. Pendleton repeats and realleges each of the allegations set forth in paragraphs 1

through 260 above as if fully set forth herein. 262. Pendleton is the owner of a U.S. copyright registration for the

Yavapai/Basketmaker design, which registration is in full force and effect. 263. The Kraffs defendants, without authorization from Pendleton, and after

Pendleton created and first used the Yavapai/Basketmaker design on its products, have manufactured, imported, exported, distributed, supplied, advertised, promoted, sold, and/or offered for sale products created from Pendleton fabric bearing the Yavapai/Basketmaker design that are unauthorized derivative works. 264. The Kraffs defendants have, after receiving notification of the infringement and

since December 5, 2013, willfully infringed and are continuing to willfully infringe Pendletons copyright in the Yavapai/Basketmaker design. 265. Upon information and belief, by their acts, the Kraffs defendants have made and

will make substantial profits and gains to which they are not in law or in equity entitled. 266. Upon information and belief, the Kraffs defendants intend to continue their

willful conduct and will continue to willfully infringe Pendletons copyright in the Yavapai/Basketmaker design, and to act in bad faith, unless restrained by this Court. 267. As a result of the Kraffs defendants conduct, Pendleton has suffered irreparable

injury and damage to its business and/or property, and other damages in an amount to be proven at trial.

PAGE 44 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 45 of 56

Page ID#: 45

TWENTY-FOURTH CLAIM FOR RELIEF (Copyright Infringement 17 U.S.C. 501 / Zapotec Design) Against the Kraffs Defendants 268. Pendleton repeats and realleges each of the allegations set forth in paragraphs 1

through 267 above as if fully set forth herein. 269. Pendleton is the owner of a U.S. copyright registration for the Zapotec design,

which registration is in full force and effect. 270. The Kraffs defendants, without authorization from Pendleton, and after

Pendleton created and first used the Zapotec design on its products, have manufactured, imported, exported, distributed, supplied, advertised, promoted, sold, and/or offered for sale products created from Pendleton fabric bearing the Zapotec design that are unauthorized derivative works. 271. The Kraffs defendants have, after receiving notification of the infringement and

since December 5, 2013, willfully infringed and are continuing to willfully infringe Pendletons copyright in the Zapotec design. 272. Upon information and belief, by their acts, the Kraffs defendants have made and

will make substantial profits and gains to which they are not in law or in equity entitled. 273. Upon information and belief, the Kraffs defendants intend to continue their

willful conduct and will continue to willfully infringe Pendletons copyright in the Zapotec design, and to act in bad faith, unless restrained by this Court. 274. As a result of the Kraffs defendants conduct, Pendleton has suffered irreparable

injury and damage to its business and/or property, and other damages in an amount to be proven at trial.

PAGE 45 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 46 of 56

Page ID#: 46

TWENTY-FIFTH CLAIM FOR RELIEF (Copyright Infringement 17 U.S.C. 501 / Zigzag Design) Against the Kraffs Defendants 275. Pendleton repeats and realleges each of the allegations set forth in paragraphs 1

through 274 above as if fully set forth herein. 276. Pendleton is the owner of a U.S. copyright registration for the Zigzag design,

which registration is in full force and effect. 277. The Kraffs defendants, without authorization from Pendleton, and after

Pendleton created and first used the Zigzag design on its products, have manufactured, imported, exported, distributed, supplied, advertised, promoted, sold, and/or offered for sale products created from Pendleton fabric bearing the Zigzag design that are unauthorized derivative works. 278. The Kraffs defendants have, after receiving notification of the infringement and

since December 5, 2013, willfully infringed and are continuing to willfully infringe Pendletons copyright in the Zigzag design. 279. Upon information and belief, by their acts, the Kraffs defendants have made and

will make substantial profits and gains to which they are not in law or in equity entitled. 280. Upon information and belief, the Kraffs defendants intend to continue their

willful conduct and will continue to willfully infringe Pendletons copyright in the Zigzag design, and to act in bad faith, unless restrained by this Court. 281. As a result of the Kraffs defendants conduct, Pendleton has suffered irreparable

injury and damage to its business and/or property, and other damages in an amount to be proven at trial.

PAGE 46 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 47 of 56

Page ID#: 47

TWENTY-SIXTH CLAIM FOR RELIEF (Federal Trademark Infringement, 15 U.S.C. 1114 / Use of PENDLETON Marks) Against the Kraffs Defendants 282. Pendleton repeats and realleges each of the allegations set forth in paragraphs 1

through 281 above as if fully set forth herein. 283. The PENDLETON Marks and the goodwill of the business associated with it are

of great value, are highly distinctive, and have become associated in the public mind with Pendletons high quality products. 284. The Kraffs defendants use of the PENDLETON Marks, including but not

limited to the Pendleton Warranted Labels, is likely to cause confusion, deception, and mistake by creating the false and misleading impression that Kraffs is an authorized reseller of Pendletons products, and/or that the Kraffs defendants retail services are associated or connected with Pendleton, or have the sponsorship, endorsement, or approval of Pendleton, when they do not, and/or that the products manufactured by the Kraffs defendants are genuine Pendleton products. 285. The Kraffs defendants use of the PENDLETON Marks, including but not

limited to the Pendleton Warranted Labels, is in violation of 15 U.S.C. 1114, and the Kraffs defendants activities have caused and, unless enjoined by this Court, will continue to cause a likelihood of confusion and deception of members of the trade and the public and, additionally, irreparable harm and injury to Pendletons goodwill and reputation as symbolized by the federally registered PENDLETON Marks, for which Pendleton has no adequate remedy at law. 286. The Kraffs defendants use of the PENDLETON Marks, including but not

limited to the Pendleton Warranted Labels, is not nominal fair use because the Kraffs defendants use much more of the PENDLETON Marks than is necessary simply to identify Pendleton products they offer (albeit without Pendleton authorization) for sale.

PAGE 47 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 48 of 56

Page ID#: 48

287.

The Kraffs defendants actions demonstrate an intentional, willful, and malicious

intent to trade on the goodwill associated with Pendletons federally registered PENDLETON Marks to Pendletons great and irreparable injury and are in knowing and willful violation of Pendletons rights under 15 U.S.C. 1114(a). 288. As a direct and proximate result of the Kraffs defendants conduct, Pendleton has

suffered damages to its valuable PENDLETON Marks and other damages in an amount to be proven at trial. 289. The Kraffs defendants have caused, and are likely to continue causing,

substantial injury to the public and to Pendleton, and Pendleton is entitled to injunctive relief and to recover the Kraffs defendants profits, actual damages, enhanced profits and damages, costs, and reasonable attorneys fees under 15 U.S.C. 1114, 1116, and 1117. TWENTY-SEVENTH CLAIM FOR RELIEF (Federal Unfair Competition, 15 U.S.C. 1125(a) / Use of PENDLETON Marks) Against the Kraffs Defendants 290. Pendleton repeats and realleges each of the allegations set forth in paragraphs 1

through 289 above as if fully set forth herein. 291. The Kraffs defendants infringement of the PENDLETON Marks constitutes a

false designation of origin, or a false or misleading description or representation of fact, which is likely to cause confusion, or to cause mistake, or to deceive as to the Kraffs defendants affiliation, connection, or association with Pendleton, and as to the origin of the Kraffs defendants products or services, or as to the sponsorship or approval of the Kraffs defendants products or services by Pendleton. 292. Upon information and belief, the Kraffs defendants have intentionally and

willfully used the PENDLETON Marks in disregard of Pendletons rights.

PAGE 48 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 49 of 56

Page ID#: 49

293.

As a direct and proximate result of the Kraffs defendants conduct, Pendleton has

suffered damages to its valuable PENDLETON Marks and other damages in an amount to be proven at trial. 294. Pendleton has no adequate remedy at law, and if the Kraffs defendants activities

are not enjoined, Pendleton will continue to suffer irreparable harm and injury to its goodwill and reputation. TWENTY-EIGHTH CLAIM FOR RELIEF (Federal Trademark Infringement, 15 U.S.C. 1114 / JUSTIN KRAFF Label) Against the Kraffs Defendants 295. Pendleton repeats and realleges each of the allegations set forth in paragraphs 1

through 294 above as if fully set forth herein. 296. The Pendleton Warranted Labels and the goodwill of the business associated with

them are of great value, are highly distinctive, and have become associated in the public mind with Pendletons high quality products. 297. The Kraffs defendants use of the blue and gold JUSTIN KRAFF label on

products manufactured using Pendleton fabric is likely to cause confusion, deception, and mistake by creating the false and misleading impression that the products are genuine Pendleton products, and/or that the products are associated or connected with Pendleton, or have the sponsorship, endorsement, or approval of Pendleton, when they do not. 298. The Kraffs defendants use of the blue and gold JUSTIN KRAFF label is in

violation of 15 U.S.C. 1114, and the Kraffs defendants activities have caused and, unless enjoined by this Court, will continue to cause a likelihood of confusion and deception of members of the trade and public and, additionally, irreparable harm and injury to Pendletons goodwill and reputation as symbolized by the federally registered Pendleton Warranted Labels, for which Pendleton has no adequate remedy at law.

PAGE 49 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 50 of 56

Page ID#: 50

299.

The Kraffs defendants actions demonstrate an intentional, willful, and malicious

intent to trade on the goodwill associated with Pendletons federally registered Pendleton Warranted Labels to Pendletons great and irreparable injury and are in knowing and willful violation of Pendletons rights under 15 U.S.C. 1114(a). 300. As a direct and proximate result of the Kraffs defendants conduct, Pendleton has

suffered damages to its valuable Pendleton Warranted Labels and other damages in an amount to be proven at trial. 301. The Kraffs defendants have caused and are likely to continue causing substantial

injury to the public and to Pendleton, and Pendleton is entitled to injunctive relief and to recover the Kraffs defendants profits, actual damages, enhanced profits and damages, costs, and reasonable attorneys fees under 15 U.S.C. 1114, 1116, and 1117. TWENTY-NINTH CLAIM FOR RELIEF (Federal Unfair Competition, 15 U.S.C. 1125(a) / JUSTIN KRAFF Label) Against the Kraffs Defendants 302. Pendleton repeats and realleges each of the allegations set forth in paragraphs 1

through 301 above as if fully set forth herein. 303. The Kraffs defendants infringement of the Pendleton Warranted Labels

constitutes a false designation of origin, or a false or misleading description or representation of fact, which is likely to cause confusion, or to cause mistake, or to deceive as to the affiliation, connection, or association of products bearing the blue and gold JUSTIN KRAFF label with Pendleton, the origin of JUSTIN KRAFF products, or as to the sponsorship or approval of the JUSTIN KRAFF products by Pendleton. 304. Upon information and belief, the Kraffs defendants have intentionally and

willfully used the blue and gold JUSTIN KRAFF label that is highly similar to the Pendleton Warranted Labels in disregard of Pendletons rights.

PAGE 50 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 51 of 56

Page ID#: 51

305.

As a direct and proximate result of the Kraffs defendants conduct, Pendleton has

suffered damages to its valuable Pendleton Warranted Labels trademarks and other damages in an amount to be proven at trial. 306. Pendleton has no adequate remedy at law, and if the Kraffs defendants activities

are not enjoined, Pendleton will continue to suffer irreparable harm and injury to its goodwill and reputation. THIRTIETH CLAIM FOR RELIEF (Common Law Trademark Infringement and Unfair Competition) Against the Kraffs Defendants 307. Pendleton repeats and realleges each of the allegations set forth in paragraphs 1

through 306 above as if fully set forth herein. 308. The Kraffs defendants acts constitute common law trademark infringement and

unfair competition, and have created and will continue to create a likelihood of confusion to the irreparable injury of Pendleton and its PENDLETON Marks unless restrained by this Court as Pendleton has no adequate remedy at law for this injury. 309. On information and belief, The Kraffs defendants acted with full knowledge of

Pendletons use of and statutory and common law rights to, the PENDLETON Marks and without regard to the likelihood of confusion by the public created by their activities. 310. The Kraffs defendants actions demonstrate an intentional, willful, and malicious

intent to trade on the goodwill associated with the PENDLETON Marks to the great and irreparable injury of Pendleton. 311. As a result of the Kraffs defendants acts, Pendleton has been damaged in an

amount to be proven at trial. At a minimum, however, Pendleton is entitled to injunctive relief, an accounting of the Kraffs defendants profits, damages, and costs. Further, in light of the deliberately fraudulent and malicious use of confusingly similar imitations of the PENDLETON

PAGE 51 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 52 of 56

Page ID#: 52

Marks, and the need to deter the Kraffs defendants from similar conduct in the future, Pendleton additionally is entitled to punitive damages. THIRTY-FIRST CLAIM FOR RELIEF (Intentional Interference with Economic Relations) Against the Kraffs Defendants 312. Pendleton repeats and realleges each of the allegations set forth in paragraphs 1

through 311 above as if fully set forth herein. 313. Pendleton has or had a contractual relationship with each of Defendant John Doe

Companies 1-20. 314. The Kraffs defendants are not parties to any of the above-referenced contracts

with Defendant John Doe Companies 1-20. 315. By purchasing Pendleton products from one or more of Defendant John Doe

Companies 1-20, the Kraffs defendants intentionally interfered with Pendletons relationship with each of the Defendant John Doe Companies 1-20 by causing and/or aiding Defendant John Doe Companies 1-20 to breach their contracts with Pendleton. 316. The Kraffs defendants activities were accomplished through improper means or

for an improper purpose because they were accomplished only via willful and intentional violation of the provisions of Pendletons Sales Order contracts, and for the purpose of obtaining Pendleton products in a volume to support infringement of the PENDLETON Marks, misleading consumers into believing Kraffs is an authorized reseller of Pendleton products, and elevating sales of products infringing Pendletons copyrights. 317. Upon information and belief, the Kraffs defendants either induced and/or

conspired with Defendant John Doe Companies 1-20 to breach their contracts with Pendleton in order that the Kraffs defendants could continue selling Pendleton products, although not authorized to do so, and to divert consumers from authorized Pendleton resellers to Kraffs.

PAGE 52 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 53 of 56

Page ID#: 53

318.

As a direct and proximate result of the Kraffs defendants conduct, Pendleton has

suffered damages in an amount to be proven at trial. 319. Pendleton has advised the Kraffs defendants of its concerns related to the Kraffs

defendants conduct in interfering with Pendletons business relations, and the Kraffs defendants nevertheless continued in their tortious activities. Further, in light of the deliberate nature of the Kraffs defendants conduct, and the need to deter the Kraffs defendants from similar conduct in the future, Pendleton additionally is entitled to punitive damages. THIRTY-SECOND CLAIM FOR RELIEF (Breach of Contract) Against Defendant John Doe Companies 1-20 320. Pendleton repeats and realleges each of the allegations set forth in paragraphs 1

through 319 above as if fully set forth herein. 321. In order to do business with Pendleton, each of Defendant John Doe Companies

1-20 agreed to Pendletons Sales Order terms, that it would not sell the [Pendleton] goods or any part thereof, to another dealer or to any other reseller, and will not sell the goods through the Internet without the written consent of Pendleton Woolen Mills. 322. Pendleton is not aware of any written consent given to any of Defendant John Doe

Companies 1-20 to sell goods to another dealer or to any other reseller. 323. Pendleton did not give written consent to any of Defendant John Doe Companies

1-20 to sell goods to the Kraffs defendants. 324. Each of Defendant John Doe Companies 1-20 materially breached the Sales Order

contract by selling Pendleton goods to Kraffs, who is another dealer and reseller. 325. Pendleton has suffered damage as a result of the breaches by Defendant John Doe

Companies 1-20. Pendletons damages consist of lost profits, damage to its trademarks and copyrights that ensued following the improper sale of products to Kraffs, and costs and disbursements incurred in this litigation. PAGE 53 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 54 of 56

Page ID#: 54

DEMAND FOR JURY TRIAL 326. Pendleton respectfully demands a trial by jury on all claims and issues so triable. PRAYER FOR RELIEF WHEREFORE, Plaintiff Pendleton Woolen Mills, Inc. respectfully prays for judgment as follows: 1. That judgment be entered in favor of Pendleton and against defendants on each of

Pendletons claims. 2. That the Kraffs defendants and all of their agents, officers, employees,

representatives, successors, assigns, attorneys, and all other persons acting for, with, by, through, or under authority from the Kraffs defendants, or in concert or participation with the Kraffs defendants, and each of them, be preliminarily and permanently enjoined from: a. manufacturing, distributing, advertising, promoting, offering for sale,

and/or selling any products created using Pendletons copyright-protected designs (i.e. derivative works); b. using the PENDLETON Marks, or any confusingly similar variations

thereof, in connection with the Kraffs defendants goods or retail services; c. using any trademark, service mark, name, logo, label, design, or source

designation of any kind on or in connection with the Kraffs defendants goods or retail services that is a copy, reproduction, colorable imitation, simulation of, or confusing similar to Pendletons trademarks, service marks, names, logos, labels, or designs; d. using any trademark, service mark, name, logo, design, or source

designation of any kind on or in connection with the Kraffs defendants goods or services that is likely to cause confusion, mistake, deception, or public misunderstanding that such goods or services are produced or provided by Pendleton, or are sponsored or authorized by Pendleton or are in any way connected or related to Pendleton; and

PAGE 54 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 55 of 56

Page ID#: 55

e.

passing off, palming off, or assisting in passing off or palming off, the

Kraffs defendants goods or retail services as those of Pendleton, authorized by Pendleton, or otherwise continuing any and all acts of unfair competition as alleged in this Complaint. 3. That the Kraffs defendants be required to deliver up for destruction all products

created using Pendletons copyright-protected designs (i.e. derivative works) and all advertising or promotional materials therefore, and any other fabric in the Kraffs defendants possession that could be used to create any further derivative works. 4. That the Kraffs defendants, within thirty (30) days after service upon them of

judgment with notice of entry thereof, be required to file with the Court and serve upon Pendleton a written report under oath setting forth in detail the manner in which they have complied with paragraphs 2 and 3 above. 5. That the Court award Pendleton the Kraffs defendants profits and Pendletons

damages and/or statutory damage, attorneys fees and costs, to the full extent provided for by 17 U.S.C. 504 and 505. 6. That the Kraffs defendants account for and pay over to Pendleton profits realized

by the Kraffs defendants by reason of their unlawful acts herein alleged and that the amount of damages for trademark infringement of the PENDLETON Marks be increased by a sum not exceeding three times the amount thereof as provided for by 15 U.S.C. 1117. 7. That Pendleton be awarded actual damages in an amount to be proven at trial and

punitive damages, and that such damages be increased by a sum not exceeding three times the amount thereof as provided by law by reason of the Kraffs defendants willful and intentional conduct, pursuant to 15 U.S.C. 1117 and the common law. 8. That Pendleton be awarded contract damages resulting from the breach of

contract by Defendant John Doe Companies 1-20, in an amount to be determined at trial. 9. That Pendleton be awarded reasonable attorneys fees, costs, and disbursements

incurred herein. PAGE 55 - COMPLAINT


LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1

Case 3:14-cv-00628-PK

Document 1

Filed 04/16/14

Page 56 of 56

Page ID#: 56

10. 11. and equitable.

That Pendleton be awarded prejudgment interest. That Pendleton be awarded such other and further relief as the Court deems just

DATED: April 16, 2014 LANE POWELL PC

By

/s/ Parna A. Mehrbani Parna A. Mehrbani, OSB No. 053235 mehrbanip@lanepowell.com Vicki L. Smith, OSB No. 854410 smithv@lanepowell.com Telephone: 503.778.2100 Facsimile: 503.778.2200

Attorneys for Pendleton Woolen Mills, Inc.

PAGE 56 - COMPLAINT
LANE POWELL PC 601 SW SECOND AVENUE, SUITE 2100 PORTLAND, OREGON 97204-3158 503.778.2100 FAX: 503.778.2200

005436.0584/5940293.1