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IN THE UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF OHIO SLIDE FIRE SOLUTIONS, LP 760 FM 2408 Moran, Texas

76464 Plaintiff, v. DRECO, INC. 7887 Root Road North Ridgeville, Ohio 44052 Defendant. ) ) ) ) ) ) ) ) ) ) ) ) ) CASE NO.

HON.

JURY DEMANDED

COMPLAINT Plaintiff Slide Fire Solutions, LP (Slide Fire) states as follows for its complaint against Dreco, Inc. (Dreco): Nature of the Action 1. This is an action for patent infringement and deceptive trade practices under the

federal Lanham Act and Ohio Deceptive Trade Practices Act. Until February 2012, Dreco manufactured certain components of proprietary gunstocks for Slide Fire. Slide Fire rejected many of those stocks as defective and unfit for sale. After their relationship terminated, Dreco refused to return to Slide Fire or to destroy the defective gunstocks. Using the website eBay.com and multiple aliases, defendant Dreco has, without Slide Fires authorization, offered for sale and sold the defective gunstocks, affixed the spurious name Wutburger STORM on the stocks directly over Slide Fires trademark, and misled consumers concerning the nature, qualities and origin of the STORM gunstocks.

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Parties, Jurisdiction and Venue 2. Plaintiff Slide Fire is a Texas limited partnership having a principal place of

business at 760 FM 2408, Moran, Texas 76464. 3. Upon information and belief, defendant Dreco is an Ohio corporation having a

principal place of business at 7887 Root Road, North Ridgeville, Ohio 44052. 4. and 1367. 5. This Court has personal jurisdiction over Dreco because it is an Ohio corporation This Court has subject matter jurisdiction based upon 28 U.S.C. 1331, 1338(a),

and maintains its principal place of business in Ohio. Fed. R. Civ. P. 4(k). 6. Dreco maintains its principal place of business in North Ridgeville, Ohio, which

is located within this district. Venue is proper in this district pursuant to 28 U.S.C. 1391 and 1400(b). Factual Allegations 7. 8. Slide Fire incorporates by reference paragraphs 16. Slide Fire makes and sells proprietary sliding rifle gunstocks designed for certain

semi-automatic rifles. Beginning around May 2011, Slide Fire contracted with Dreco to manufacture key components of its proprietary gunstocks. Slide Fire paid for the molds, mold bases, and other tooling necessary to manufacture the gunstocks, and provided the tooling to Dreco. Slide Fire issued purchase orders to Dreco which identified the gunstock components that Dreco was to manufacture for Slide Fire. 9. Beginning at least January 2012, Slide Fire notified Dreco that its production

quality was unacceptable. By February 2012, the return rate for one gunstock manufactured by Dreco, the SSAR-15 OGR-R, exceeded 60%, i.e., less than 40% were useable. The return rate for another gunstock, the SSAK-47 RH, approached 25%. The return rate for a critical
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component of Slide Fires proprietary gunstock system, the interface block (sometimes referred to as the support block slide mount), exceeded 20%. 10. On or about February 1, 2012, Slide Fire sent Dreco a letter demanding adequate

assurance of performance. On or about February 3, 2012, Dreco stated via email that it could not provide adequate assurance. 11. Dreco. 12. gunstocks. 13. On information and belief, Dreco did not destroy or recycle the defective On information and belief, Dreco produced approximately 3,500 defective On or about February 17, 2012, Slide Fire terminated its purchase orders with

gunstocks rejected by Slide Fire. 14. At least by early May, 2012, Dreco was selling and offering for sale the defective

gunstocks to the public. Dreco used multiple spurious seller aliases on eBay, including 2012storm2012 and wutburger2012. 15. Dreco sold and offered for sale the defective stocks using the brand name

Wutburger and the model name STORM. Dreco entitled its eBay listing as The Wutburger STORM Stock & Grip with Support Block Slide Mount. An eBay listing and sales receipt to a Mr. Paul OBrien is attached as Exhibit 1. 16. Dreco attached unapproved and untested components to the defective gunstock

components it manufactured, presumably to make the components useable by end users. 17. Dreco deliberately obliterated or obscured Slide Fires trademark that was molded

into the butt plate of the STORM gunstock, covering Slide Fires mark with the spurious label Wutburger STORM Cleveland.

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18.

Dreco affixed another label on the Wutburger STORM gunstock it sold

intentionally and falsely misrepresenting the origin of the gunstock. Dreco intentionally misled consumers concerning the defective characteristics, nature and quality of the goods. 19. Dreco used Slide Fires proprietary inventions, designs, and tooling to

manufacture the STORM gunstocks. 20. Slide Fire never authorized Dreco to modify or sell the defective gunstock

components which Slide Fire had rejected. 21. On information and belief, a person using a defective gunstock sold by Dreco has

a significantly higher risk of the product malfunctioning, or even structurally failing, than if the person were using a gunstock inspected and approved by Slide Fire. Failure of the gunstock sold by Dreco could lead to property damage or personal injury. Count I: Infringement of United States Patent No. 8,127,658 22. 23. Slide Fire incorporates by reference paragraphs 121. United States Patent No. 8,127,658 (the 658 Patent), entitled Method of

Shooting A Semi-Automatic Firearm, was duly and legally issued by the United States Patent and Trademark Office (USPTO) to Jeremiah Cottle on March 6, 2012, after full and fair examination. A true and accurate copy of the 658 Patent is attached hereto as Exhibit 2. 24. Patent. 25. Dreco is actively, intentionally, and/or knowingly inducing or contributing to Slide Fire owns all of the rights and interest in, and is the assignee of, the 658

infringement of the 658 Patent by others, including, but not limited to, actual and prospective customers, by making, using, importing, selling, or offering for sale in the United States, including the Northern District of Ohio, products embodying and practicing the patented inventions claimed in the 658 Patent without authority. For example, Dreco is infringing the
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658 Patent by making, selling, and offering for sale accessories for firearms such as its Wutburger STORM stock and grip with support block slide mount to end users, with knowledge and the intention that the end users will directly infringe the 658 Patent. 26. On information and belief, Dreco is infringing the 658 Patent directly, and/or

jointly with other entities, by practicing the patented inventions claimed in the 658 Patent without authority in the United States, including the Northern District of Ohio. 27. Drecos infringement is exceptional within the meaning of 35 U.S.C. 285,

justifying treble damages pursuant to 35 U.S.C. 284. 28. On information and belief, Dreco will continue to infringe the 658 Patent,

causing immediate and irreparable harm, unless this Court enjoins and restrains Drecos activities. 29. On information and belief, the infringement by Dreco has and will deprive Slide

Fire of sales, profits, and other related revenue that Slide Fire would have made or would enjoy in the future, has injured Slide Fire in other respects, and will cause Slide Fire added injury and damage, including loss of sales, profits, and other related revenue in the future unless Dreco is enjoined from infringing the 658 Patent. Count II: Infringement of United States Patent No. 8,176,835 30. 31. Slide Fire incorporates by reference paragraphs 129. United States Patent No. 8,176,835 (the 658 Patent), entitled Sliding Stock for

Firearm, was duly and legally issued by the United States Patent and Trademark Office (USPTO) to Jeremiah Cottle on May 15, 2012, after full and fair examination. A true and accurate copy of the 835 Patent is attached hereto as Exhibit 3. 32. Patent.
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Slide Fire owns all of the rights and interest in, and is the assignee of, the 835

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33.

Dreco is infringing the 835 Patent directly, and/or jointly with other entities, by

making, using, importing, selling, or offering for sale in the United States, including the Northern District of Ohio, products and/or services embodying and practicing the patented inventions claimed in the 835 Patent without authority. For example, Dreco is infringing the 835 Patent by making, using, selling, and offering for sale accessories for firearms such as its Wutburger STORM stock and grip with support block slide mount. 34. Dreco is actively, intentionally, and/or knowingly inducing or contributing to

infringement of the 835 Patent by others, including, but not limited to, actual and prospective customers. 35. Drecos infringement is exceptional within the meaning of 35 U.S.C. 285,

justifying treble damages pursuant to 35 U.S.C. 284. 36. On information and belief, Dreco will continue to infringe the 835 Patent,

causing immediate and irreparable harm, unless this Court enjoins and restrains Drecos activities. 37. On information and belief, the infringement by Dreco has and will deprive Slide

Fire of sales, profits, and other related revenue that Slide Fire would have made or would enjoy in the future, has injured Slide Fire in other respects, and will cause Slide Fire added injury and damage, including loss of sales, profits, and other related revenue in the future unless Dreco is enjoined from infringing the 835 Patent. Count III: Violation of Lanham Act Section 43 38. 39. Slide Fire incorporates by reference paragraphs 137. Prior to termination of purchase orders in about February, 2012, Dreco

manufactured key components of proprietary gunstocks for Slide Fire.

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40.

Slide Fire rejected many hundreds of gunstock components tendered by Dreco

because the components did not conform to specifications, were of poor quality, defective, and/or unfit for sale to consumers. 41. On information and belief, Dreco did not contest any of Slide Fires

determinations of nonconforming goods. 42. Slide Fire repeatedly requested that Dreco either return to Slide Fire or destroy the

defective stock components it had manufactured. Dreco refused to comply with Slide Fires requests. 43. Beginning at least May 2012, Dreco offered the defective gunstock components

for sale on at least the website www.ebay.com. Dreco used at least the seller aliases 2012storm2012 and wutburger2012. 44. On information and belief, Dreco has sold more than one hundred of the defective

gunstock components. 45. Dreco falsely re-branded the gunstocks it sold. Dreco intentionally removed or

obscured Slide Fires trademark molded into the plastic butt plate of a gunstock component, and replaced or overlaid it with the false mark Wutburger STORM Cleveland. See Exhibit 1. 46. Dreco falsely designated the origin, and provided false or misleading descriptions,

of the gunstock components it sold and offered for sale, including omitting from its representations that the STORM gunstock components were defective and deemed unfit for sale by Slide Fire. 47. Drecos false and misleading statements are likely to cause confusion, mistake, or

deceive end users concerning the origin as well as the defective nature, characteristics, and quality of the STORM gunstocks. 48.
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49.

Drecos listing and offer for sale of the gunstock components on the Internet

constitute commercial advertising or promotion. 50. Drecos actions expose purchasers of the defective stocks to a higher risk of

product malfunction or failure. Such malfunction or failure could result in property damage, serious human injury, or death. 51. Dreco is liable to Slide Fire for damages under 15 U.S.C 1125, also known as

section 43 of the Lanham Act. 52. Slide Fire has been damaged by Drecos false and misleading descriptions and

trademark misuse. 53. In addition to lost profits, damage to its reputation and other consequential

damages, Slide Fire faces a higher risk of a product liability claim if one or more of the defective stocks sold by Dreco malfunctions or fails. On information and belief, users injured or damaged by, or as the result of, Drecos defective stocks will remove Drecos spurious labels from the defective product and claim it was an approved Slide Fire product. 54. Drecos conduct is an exceptional case under section 35 of the Lanham Act,

entitling Slide Fire to recover three times its actual damages and the costs of this action, including its attorney fees. Count IV: Violation of Ohio Deceptive Trade Practices Act 55. 56. 57. Slide Fire incorporates by reference paragraphs 154. This claim arises under Ohio Rev. Code 4165.01 .04. Drecos intentional and willful acts alleged above violate Ohio Rev. Code

4165.02 by, among other things, causing likelihood of confusion or misunderstanding as to the source, sponsorship, approval, or certification of the gunstocks and other goods it sold; causing likelihood of confusion or misunderstanding as to affiliation, connection, or association with, or
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certification by, another namely Slide Fire; representing that the gunstocks and other goods it sold have sponsorship, approval, or other characteristics that they do not have, and representing that the gunstocks and other goods it sold are of a particular standard, quality, or grade that they do not have. 58. Slide Fire has been damaged by Drecos intentional and willful violation of Ohio

Rev. Code 4165.01 .04. 59. In addition to compensatory, consequential, and other actual damages, Slide Fire

should be awarded its attorneys fees under Ohio Rev. Code 4165.03(B). PRAYER FOR RELIEF Slide Fire prays that this Court enter judgment in favor of Slide Fire and against Dreco on all claims asserted by Slide Fire: A. Entering preliminary and permanent injunctions against Dreco enjoining it, its directors, officers, agents, employees, successors, subsidiaries, assigns, and all persons acting in privity or in concert or participation with Dreco from making, using, selling, or offering for sale in the United States, or importing into the United States, any and all products and/or services embodying the patented invention claimed in the 658 Patent or the 835 Patent; B. Ordering Dreco to provide an accounting of all sales activity relating to the STORM Slide On Stock And Grip, together with a list of all persons to whom it has sold the gunstocks, including their addresses and other contact information; C. Ordering Dreco to notify immediately every person and entity to whom it has sold or otherwise provided the STORM Slide On Stock And Grip that any use of such product could result in a product failure leading to property damage and/or human injury;
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D.

Ordering Dreco immediately to return to Slide Fire all remaining defective gunstock components;

E.

Awarding such damages to Slide Fire to which it is entitled, pursuant to 35 U.S.C. 284, 15 U.S.C. 1117, and Ohio Rev. Code 4165.01 .04;

F.

Awarding Slide Fire enhanced damages pursuant to 35 U.S.C. 284 and 15 U.S.C. 1117(a)(3);

G. H.

Awarding Slide Fire pre-judgment and post-judgment interest as allowed by law; Awarding Slide Fire its costs, expenses, and fees, including reasonable attorneys fees, pursuant to 35 U.S.C. 285, 15 U.S.C. 1117(a), Ohio Rev. Code 4165.03(B), and/or other applicable statutes;

I. J.

Holding that Dreco acted willfully in causing damage to Slide Fire; and Awarding Slide Fire such other and further relief as the Court deems just, equitable, and proper.

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Jury Demand Slide Fire demands a jury.

Respectfully submitted, /s/ David H. Wallace David H. Wallace (0037210) Michael J. Zbiegien, Jr. (0078352) TAFT STETTINIUS & HOLLISTER LLP 200 Public Square, Suite 3500 Cleveland, Ohio 44114 Phone: (216) 241-2838 Fax: (216) 241-3707 E-mail: dwallace@taftlaw.com E-mail: mzbiegien@taftlaw.com Bradley L. Smith, Pro Hac Vice motion to be filed ENDURANCE LAW GROUP PLC 180 W. Michigan Avenue, Suite 501 Jackson, Michigan 49201 Phone: (517) 879-0253 Fax: (313) 228-1110 Email: bsmith@endurancelaw.com Counsel for Plaintiff, Slide Fire Solutions, LP

CERTIFICATE OF SERVICE I hereby certify that on May 16, 2012, the foregoing document was filed electronically via the Courts CM/ECF system. Notice and service of this filing will be sent to all parties by operation of the Courts electronic filing system. Parties may access this filing through the Courts system.

/s/ David H. Wallace David H. Wallace (0037210) One of the Attorneys for Plaintiff, Slide Fire Solutions, LP

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