Jlip v. Stratospheric Industries et. al. | Patent Infringement | Sales

UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF FLORIDA

J LIP, LLC, a Delaware Corporation,

Plaintiff,
v.

STRATOSPHERIC INDUSTRIES INC.;
SHAW KAAKE; DEAN O’MALLEY;
J ETPACK ENTERPRISES, LLC; J ETPACK
ENTERPRISES – SAN DIEGO, LLC;
FRAZIER SAMUEL GRANDISON; LAND &
SEA MOTOR SPORTS INC.; HYDRO-
UNITED LTD.; KEITH DOUGLAS PAUL;
J ET PACK FLIGHT, LLC; USA HYDRO
SPORTS, LLC; LAKE ROCKET RIDES,
INC.; HWY 66 MOTORSPORTS, INC.

Defendants.
/







COMPLAINT FOR PATENT INFRINGEMENT

Plaintiff J LIP, LLC, a Delaware corporation (hereinafter “J LIP”), by and through its
undersigned counsel, hereby alleges in its Complaint against defendants STRATOSPHERIC
INDUSTRIES INC.; SHAW KAAKE; DEAN O’MALLEY; J ETPACK ENTERPRISES, LLC;
J ETPACK ENTERPRISES – SAN DIEGO, LLC; FRAZIER SAMUEL GRANDISON; LAND
& SEA MOTOR SPORTS INC.; HYDRO-UNITED LTD.; KEITH DOUGLAS PAUL; J ET
PACK FLIGHT, LLC; USA HYDRO SPORTS, LLC; LAKE ROCKET RIDES, INC.; and
HWY 66 MOTORSPORTS, INC. (collectively “defendants”) as follows:
NATURE OF THE ACTION

1. This is a civil action for patent infringement of United States Patent No.
7,735,772 (“the ‘772 Patent”) arising under the Patent Laws of the United States, 35 U.S.C. § 1
et seq.



JURISDICTION AND VENUE

2. This Court has original jurisdiction over the subject matter of this action under 28
U.S.C. §§ 1331 and 1338(a) because this action arises under the Patent Laws of the United
States, 35 U.S.C. § 1 et seq.
3. This Court has personal jurisdiction over the defendants pursuant to Florida’s
long-arm statute F.S. §48.193 (1)(b), (f)(1)-(2) in that the defendants are each (a) operating,
conducting, engaging or carrying on a business in the State of Florida; (b) committing tortious
acts within the State of Florida; and (c) engaging in substantial and not isolated activity within
the State of Florida.
4. Venue is proper in this district under 28 U.S.C. §§1391 and 1400(b).
5. J oinder of the defendants is proper under Fed. R. Civ. P. 20(a)(2) and 35 U.S.C.
§299 as the relief sought against each defendant arises out of the same transaction, occurrence, or
series of transactions or occurrences relating to the using, importing into the United States,
offering for sale, and/or selling of the same accused product or process, and matters of law and
fact common to all defendants will arise in the action.
THE PARTIES
6. J LIP is a Delaware corporation with its principal place of business at 1105 Old
Griffin Road, Dania Beach, FL 33004.
7. Upon information and belief, Stratospheric Industries, Inc. (“Stratospheric”) is a
Chinese company having a principal place of business at 6D 831 Xinzha Road Shanghai China
200040.
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8. Upon information and belief, Mr. Shaw Kaake (“Kaake”) is an individual residing
at Huakang Lu, Lane 69, Building 2, Shanghai, China 200070. Kaake is an owner and officer of
Stratospheric.
9. J etpack Enterprises, LLC (“J etpack Ent.”) is a California limited liability
company having a principal place of business at 2600 Newport Blvd Ste 122, Newport Beach,
CA 92663.
10. J etpack Enterprises – San Diego, LLC (“J etpack Ent. - SD”) is a California
limited liability company having a principal place of business at 2600 Newport Blvd Ste 122,
Newport Beach, CA 92663.
11. Upon information and belief, Mr. Dean O’Malley (“O’Malley”) is an individual
residing at 1713 W Balboa Blvd Apt A, Newport Beach, CA 92663. O’Malley is an owner and
officer of J etpack Ent. and J etpack Ent. - SD.
12. Land and Sea Motor Sports Inc. (“Land & Sea”) is a Florida company having a
principal place of business listed as 2150 NW 9
th
Ave, Ft. Lauderdale, FL 33311.
13. Hydro-United Ltd. (“Hydro”) is a Cayman Islands entity having a registered agent
located at 89 Nexus Way, Camana Bay, Grand Cayman, Cayman Islands KY1-9007.
14. Mr. Frazier Samuel Grandison (“Grandison”) is an individual residing at 1720
SW 64
th
Ave, Pompano Beach, FL 33068. Grandison is an owner and officer of Land & Sea and
Hydro.
15. J et Pack Flight, LLC (“J PF”) is a Florida limited liability company having a
principal place of business at 3961 SW 72 Dr, Davie, FL 33314.
16. USA Hydro Sports, LLC (“USA Hydro”) is a Florida limited liability company
having a principal place of business at 3961 SW 72 Dr, Davie, FL 33314.
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17. Upon information and belief, Mr. Keith Douglas Paul (“Paul”) is an individual
residing at 3961 SW 72 Dr, Davie, FL 33314. Paul is an owner and officer of J PF and USA
Hydro.
18. Lake Rocket Rides, Inc. (“Lake Rocket”) is an Illinois company with a principal
place of business at 3515 N Kenton Ave, Chicago, IL 60641.
19. Hwy 66 Motorsports, Inc. (“Hwy 66”) is a Texas company with a principal place
of business at 5006 Risada St, San Antonio, TX 78233.
THE PATENT-IN-SUIT
20. On J une 15, 2010, U.S. Patent No. 7,735,772 entitled “Personal Propulsion
Device,” was duly and lawfully issued by the USPTO. A true and correct copy of the ‘772 Patent
is attached hereto as Exhibit A.
21. J LIP is the owner of the ‘772 Patent.
22. The ‘772 Patent is in full force and effect as of the date of this Complaint and at
all times relevant to the allegations herein.
FACTUAL BACKGROUND
Stratospheric Industries Inc.
23. Stratospheric is in the business of manufacturing, importing into the United
States, using, selling, and offering to sell water-powered personal propulsion devices called “X-
J etpack” and/or “H3X X-J etpack,” (collectively referred to herein as “the X-J etpack”).
24. Upon information and belief, Stratospheric has distributed (or directed the
distribution of) X-J etpack devices to defendants O’Malley; J etpack Ent.; J etpack Ent. – SD;
Grandison; Land & Sea; Hydro; Paul; J PF; USA Hydro; Lake Rocket; and Hwy 66.
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25. Upon information and belief, Stratospheric has held training classes in the United
States for customers and potential customers on the operation and use of the X-J etpack, during
which Stratospheric personnel demonstrated and taught the use of the X-J etpack.
26. Stratospheric sells and offers to sell the X-J etpack throughout the United States
and in this District, including through the website www.x-jetpacks.com.
27. Stratospheric has been aware of the ‘772 Patent since at least as early as May 1,
2013.
28. Upon information and belief, Stratospheric has placed infringing products into the
stream of commerce with the knowledge and/or understanding that such products are sold to and
used by customers in this District. In addition, Stratospheric knowingly induced, and continues to
knowingly induce, infringement within this State and within this District by contracting with
others to market, use and sell infringing products with the knowledge and intent to facilitate
infringing sales and use of the products by others within this District and by creating and/or
disseminating product information and other instruction materials for the infringing products
with like mind and intent.
Mr. Shaw Kaake
29. Kaake is in the business of manufacturing, importing into the United States,
using, selling, and offering to sell the X-J etpack.
30. Upon information and belief, Kaake has distributed (or directed the distribution
of) X-J etpack devices to defendants J etpack Ent.; J etpack Ent. – SD; O’Malley; Grandison; Land
& Sea; Hydro; Paul; J PF; USA Hydro; Lake Rocket; and Hwy 66.
31. Kaake has been aware of the ‘772 Patent since at least as early as May 1, 2013.
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32. Upon information and belief, Kaake is an officer of Stratopsheric, and has
personally taken part in the commission of Stratospheric’s acts of patent infringement, and/or has
specifically directed other officers, agents, or employees of Stratospheric to commit these
tortious acts.
33. Upon information and belief, Kaake has placed infringing products into the
stream of commerce with the knowledge and/or understanding that such products are sold to and
used by customers in this District. In addition, Kaake knowingly induced, and continues to
knowingly induce, infringement within this State and within this District by contracting with
others to market, use and sell infringing products with the knowledge and intent to facilitate
infringing sales and use of the products by others within this District and by creating and/or
disseminating product information and other instruction materials for the infringing products
with like mind and intent.
Jetpack Enterprises, LLC
34. J etpack Ent. is in the business of, importing into the United States, using, selling,
and offering to sell the X-J etpack.
35. Upon information and belief, J etpack Ent. has held training classes in the United
States for customers and potential customers on the operation and use of the X-J etpack, during
which J etpack Ent. personnel demonstrated and taught the use of the X-J etpack.
36. J etpack Ent. sells and offers to sell the X-J etpack throughout the United States
and in this District, including through the website www. jetpackamerica.com.
37. J etpack Ent. has been aware of the ‘772 Patent since at least as early as J anuary 1,
2014.
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38. Upon information and belief, J etpack Ent. has placed infringing products into the
stream of commerce with the knowledge and/or understanding that such products are sold to and
used by customers in this District. In addition, J etpack Ent. knowingly induced, and continues to
knowingly induce, infringement within this State and within this District by contracting with
others to market, use and sell infringing products with the knowledge and intent to facilitate
infringing sales and use of the products by others within this District and by creating and/or
disseminating product information and other instruction materials for the infringing products
with like mind and intent.
Jetpack Enterprises – San Diego, LLC
39. J etpack Ent. – SD is in the business of importing into the United States, using,
selling, and offering to sell the X-J etpack.
40. Upon information and belief, J etpack Ent. – SD has held training classes in the
United States for customers and potential customers on the operation and use of the X-J etpack,
during which J etpack Ent. – SD personnel demonstrated and taught the use of the X-J etpack.
41. J etpack Ent. – SD sells and offers to sell the X-J etpack throughout the United
States and in this District, including through the website www. jetpackamerica.com.
42. J etpack Ent. – SD has been aware of the ‘772 Patent since at least as early as
J anuary 1, 2014.
43. Upon information and belief, J etpack Ent. – SD has placed infringing products
into the stream of commerce with the knowledge and/or understanding that such products are
sold to and used by customers in this District. In addition, J etpack Ent. – SD knowingly induced,
and continues to knowingly induce, infringement within this State and within this District by
contracting with others to market, use and sell infringing products with the knowledge and intent
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to facilitate infringing sales and use of the products by others within this District and by creating
and/or disseminating product information and other instruction materials for the infringing
products with like mind and intent.
Mr. Dean O’Malley
44. O’Malley is in the business of importing into the United States, using, selling, and
offering to sell the X-J etpack.
45. On information and belief, O’Malley has held training classes in the United States
for customers and potential customers on the operation and use of the X-J etpack.
46. O’Malley has been aware of the ‘772 Patent since at least as early as J anuary 1,
2014.
47. Upon information and belief, O’Malley is an officer of J etpack Ent. and J etpack
Ent. – SD, and has personally taken part in the commission of J etpack Ent. and J etpack Ent. –
SD’s acts of patent infringement, and/or has specifically directed other officers, agents, or
employees of J etpack Ent. and J etpack Ent. – SD to commit these tortious acts.
48. Upon information and belief, O’Malley has placed infringing products into the
stream of commerce with the knowledge and/or understanding that such products are sold to and
used by customers in this District. In addition, O’Malley knowingly induced, and continues to
knowingly induce, infringement within this State and within this District by contracting with
others to market, use and sell infringing products with the knowledge and intent to facilitate
infringing sales and use of the products by others within this District and by creating and/or
disseminating product information and other instruction materials for the infringing products
with like mind and intent.
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Land & Sea Motor Sports Inc.
49. Land & Sea is in the business of importing into the United States, using, selling,
and offering to sell the X-J etpack.
50. Upon information and belief, Land & Sea has held training classes in the United
States for customers and potential customers on the operation and use of the X-J etpack, during
which Land & Sea personnel demonstrated and taught the use of the X-J etpack.
51. Land & Sea has been aware of the ‘772 Patent since at least as early as J anuary 1,
2012.
52. Upon information and belief, Land & Sea has placed infringing products into the
stream of commerce with the knowledge and/or understanding that such products are sold to and
used by customers in this District. In addition, Land & Sea knowingly induced, and continues to
knowingly induce, infringement within this State and within this District by contracting with
others to market, use and sell infringing products with the knowledge and intent to facilitate
infringing sales and use of the products by others within this District and by creating and/or
disseminating product information and other instruction materials for the infringing products
with like mind and intent.
Hydro-United Ltd.
53. Hydro is in the business of importing into the United States, using, selling, and
offering to sell the X-J etpack.
54. Upon information and belief, Hydro has held training classes in the United States
for customers and potential customers on the operation and use of the X-J etpack, during which
Hydro personnel demonstrated and taught the use of the X-J etpack.
55. Hydro has been aware of the ‘772 Patent since at least as early as J anuary 1, 2012.
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56. Upon information and belief, Hydro has placed infringing products into the
stream of commerce with the knowledge and/or understanding that such products are sold to and
used by customers in this District. In addition, Hydro knowingly induced, and continues to
knowingly induce, infringement within this State and within this District by contracting with
others to market, use and sell infringing products with the knowledge and intent to facilitate
infringing sales and use of the products by others within this District and by creating and/or
disseminating product information and other instruction materials for the infringing products
with like mind and intent.
Mr. Frazier Samuel Grandison
57. Grandison is in the business of importing into the United States, using, selling,
and offering to sell the X-J etpack.
58. On information and belief, Grandison has held training classes in the United
States for customers and potential customers on the operation and use of the X-J etpack.
59. Grandison has been aware of the ‘772 Patent since at least as early as J anuary 1,
2012.
60. Upon information and belief, Grandison is an officer of Land & Sea and Hydro,
and has personally taken part in the commission of Land & Sea and Hydro’s acts of patent
infringement, and/or has specifically directed other officers, agents, or employees of Land & Sea
and Hydro to commit these tortious acts.
61. Upon information and belief, Grandison has placed infringing products into the
stream of commerce with the knowledge and/or understanding that such products are sold to and
used by customers in this District. In addition, Grandison knowingly induced, and continues to
knowingly induce, infringement within this State and within this District by contracting with
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others to market, use and sell infringing products with the knowledge and intent to facilitate
infringing sales and use of the products by others within this District and by creating and/or
disseminating product information and other instruction materials for the infringing products
with like mind and intent.
Jet Pack Flight, LLC
62. J PF is in the business of importing into the United States, using, selling, and
offering to sell the X-J etpack.
63. Upon information and belief, J PF has held training classes in the United States for
customers and potential customers on the operation and use of the X-J etpack, during which J PF
personnel demonstrated and taught the use of the X-J etpack.
64. J PF has been aware of the ‘772 Patent since at least as early as J anuary 1, 2012.
65. Upon information and belief, J PF has placed infringing products into the stream
of commerce with the knowledge and/or understanding that such products are sold to and used
by customers in this District. In addition, J PF knowingly induced, and continues to knowingly
induce, infringement within this State and within this District by contracting with others to
market, use and sell infringing products with the knowledge and intent to facilitate infringing
sales and use of the products by others within this District and by creating and/or disseminating
product information and other instruction materials for the infringing products with like mind
and intent.
USA Hydro Sports, LLC
66. USA Hydro is in the business of importing into the United States, using, selling,
and offering to sell the X-J etpack.
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67. Upon information and belief, USA Hydro has held training classes in the United
States for customers and potential customers on the operation and use of the X-J etpack, during
which USA Hydro personnel demonstrated and taught the use of the X-J etpack.
68. USA Hydro has been aware of the ‘772 Patent since at least as early as J anuary 1,
2012.
69. Upon information and belief, USA Hydro has placed infringing products into the
stream of commerce with the knowledge and/or understanding that such products are sold to and
used by customers in this District. In addition, USA Hydro knowingly induced, and continues to
knowingly induce, infringement within this State and within this District by contracting with
others to market, use and sell infringing products with the knowledge and intent to facilitate
infringing sales and use of the products by others within this District and by creating and/or
disseminating product information and other instruction materials for the infringing products
with like mind and intent.
Mr. Keith Douglas Paul
70. Paul is in the business of importing into the United States, using, selling, and
offering to sell the X-J etpack.
71. On information and belief, Paul has held training classes in the United States for
customers and potential customers on the operation and use of the X-J etpack.
72. Paul has been aware of the ‘772 Patent since at least as early as J anuary 1, 2012.
73. Upon information and belief, Paul is an officer of J PF and USA Hydro, and has
personally taken part in the commission of J PF and USA Hydro’s acts of patent infringement,
and/or has specifically directed other officers, agents, or employees of J PF and USA Hydro to
commit these tortious acts.
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74. Upon information and belief, Paul has placed infringing products into the stream
of commerce with the knowledge and/or understanding that such products are sold to and used
by customers in this District. In addition, Paul knowingly induced, and continues to knowingly
induce, infringement within this State and within this District by contracting with others to
market, use and sell infringing products with the knowledge and intent to facilitate infringing
sales and use of the products by others within this District and by creating and/or disseminating
product information and other instruction materials for the infringing products with like mind
and intent.
Lake Rocket Rides, Inc.
75. Lake Rocket is in the business of importing into the United States, using, selling,
and offering to sell the X-J etpack.
76. Upon information and belief, Lake Rocket has held training classes in the United
States for customers and potential customers on the operation and use of the X-J etpack, during
which Lake Rocket personnel demonstrated and taught the use of the X-J etpack.
77. Upon information and belief, Lake Rocket has placed infringing products into the
stream of commerce with the knowledge and/or understanding that such products are sold to and
used by customers in this District. In addition, Lake Rocket knowingly induced, and continues to
knowingly induce, infringement within this State and within this District by contracting with
others to market, use and sell infringing products with the knowledge and intent to facilitate
infringing sales and use of the products by others within this District and by creating and/or
disseminating product information and other instruction materials for the infringing products
with like mind and intent.
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Hwy 66 Motorsports, Inc.
78. Hwy 66 is in the business of importing into the United States, using, selling, and
offering to sell the X-J etpack.
79. Upon information and belief, Hwy 66 has held training classes in the United
States for customers and potential customers on the operation and use of the X-J etpack, during
which Hwy 66 personnel demonstrated and taught the use of the X-J etpack.
80. Upon information and belief, Hwy 66 has placed infringing products into the
stream of commerce with the knowledge and/or understanding that such products are sold to and
used by customers in this District. In addition, Hwy 66 knowingly induced, and continues to
knowingly induce, infringement within this State and within this District by contracting with
others to market, use and sell infringing products with the knowledge and intent to facilitate
infringing sales and use of the products by others within this District and by creating and/or
disseminating product information and other instruction materials for the infringing products
with like mind and intent.
COUNT I
(Infringement of U.S. Patent No. 7,735,772)
81. Plaintiff re-alleges and incorporates paragraphs 1-80 from above as though fully set forth
herein.
82. Each of the defendants has actual or constructive notice of the ‘772 Patent.
83. Each of the defendants has directly infringed and continues to directly infringe, literally
and/or under the doctrine of equivalent, one or more claims of the ‘772 Patent by importing,
making, using, offering to sell and/or selling X-jetpack personal propulsion devices and
associated components in the United States without authority and in violation of 35 U.S.C. §271.
14




84. Each of the defendants also has and continues to indirectly infringe one or more claims of
the ‘772 Patent by inducing others to infringe and/or contributing to the infringement of others,
including end users of its infringing X-jetpack personal propulsion devices. Specifically, each of
the defendants has actively induced, and continues to induce, the infringement of one or more
claims of the ‘772 Patent at least by actively inducing the infringing use of X-jetpack personal
propulsion devices by defendants’ customers in the United States. Each of the defendants knew
or should have known that its conduct would induce others to use its X-jetpack personal
propulsion devices in a manner that infringes the ‘772 Patent.
85. Each of the defendants has also contributorily infringed and continues to contributorily
infringe the ‘772 Patent by importing into the United States, using, selling and/or offering to sell
within the United States infringing products that constitute a material part of the claimed
inventions that are not staple articles of commerce suitable for substantial noninfringing use.
86. Each of the defendants’ infringement of the ‘772 Patent has been willful and deliberate.
87. Each of the defendants’ infringement of the ‘772 Patent will continue unless enjoined by
this Court.
88. As a direct and proximate result of defendants’ infringement of the ‘772 Patent, Plaintiff
has suffered and will continue to suffer irreparable injury and damages in an amount not yet
determined for which Plaintiff is entitled to relief.
PRAYER FOR RELIEF
WHEREFORE, Plaintiff respectfully requests that the Court:

A. Enter a judgment that defendants have infringed, induced infringement and
contributed to the infringement of the ‘772 Patent.
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B. Order defendants to pay damages to adequately compensate Plaintiff for
defendants’ patent infringement, including but not limited to an award of defendants’ profits
from its infringement of the ‘772 Patent, Plaintiff’s lost profits, and/or reasonable royalties
together with pre- and post-judgment interest;
C. Enter a permanent injunction pursuant to 35 U.S.C. § 283, restraining and
enjoining defendants and their respective officers, agents, servants, employees, attorneys,
customers, licensors, suppliers and those in concert or participation with them from any further
sales, offers for sale, importation or use of infringing products and services and any other
infringement of the ‘772 Patent, whether direct or indirect;
D. Find that defendants’ patent infringement was willful and malicious and award
treble damages to Plaintiff under 35 U.S.C. §284;
E. Find this to be an exceptional case of patent infringement under 35 U.S.C. §285
and award reasonable attorneys’ fees, costs, and expenses incurred by Plaintiff in prosecuting
this action; and
F. Award such other and further relief as the Court deems just and equitable.

Dated: August 6, 2014 Respectfully Submitted,
s/ Nicholas R. Lewis
Nicholas R. Lewis
nlewisesq@gmail.com
Florida Bar No. 16146
1105 Old Griffin Road
Dania Beach, Florida 33004
(954) 662-8664 (Telephone)
(954) 922-7871 (Facsimile)

Attorney for Plaintiff JLIP, LLC

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