shc holdings v. admotion direct - complaint

8/18/2019 SHC Holdings v. AdMotion Direct - Complaint

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17054339_1

IN THE UNITED STATES DISTRICT COURT

WESTERN DISTRICT OF OKLAHOMA

SHC HOLDINGS, LLC d/b/a )

SPECIALTY HOUSE OF CREATION, ))

Plaintiff, )

) Case No. ___________________

v. )

)

AdMotions Direct, )

)

Defendant. )

COMPLAINT

Plaintiff SHC Holdings, LLC (“Plaintiff” and/or “SHC”), through its

undersigned attorneys, file this Complaint against Defendant, AdMotions Direct

(“Defendant” or “AdMotions”), and states and alleges as follows:

PARTIES

1. SHC is a limited liability corporation organized under the laws of the

State of Kansas its principal place of business located at 200 North Walnut, Cottonwood

Falls, Kansas 66845.

2. Defendant is a corporation organized under the laws of the State of

Oklahoma with its principal place of business located at 2333 East Britton Road,

Oklahoma City, Oklahoma 73131.

JURISDICTION AND VENUE

3. This action arises under the patent laws of the United States, 35

U.S.C. § 1 et seq., and the copyright laws of the United States, 17 U.S.C. § 101 et seq.

CIV-16-400-W

Case 5:16-cv-00400-W Document 1 Filed 04/20/16 Page 1 of 8


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4. Subject matter jurisdiction over this action is conferred upon this

Court by 28 U.S.C. §§ 1331 and 1338(a).

5. Injunctive relief is authorized by 35 U.S.C. § 271, and 17 U.S.C. §

502(a).

6. This Court has personal jurisdiction over Defendant because

Defendant has purposefully availed itself of the privilege of conducting business within

this State and this District by, among other things, selling or offering for sale infringing

devices.

7. Venue in this district is proper under 28 U.S.C. §§ 1391 and 1400

because the events giving rise to the claims asserted herein occurred in this District, and

Defendant has committed acts of infringement in this District.

BACKGROUND

8. On February 10, 2004, U. S. Patent No. D486,531 (“the ’531

patent”) entitled “Slot Machine Card Holder” issued to SHC. A true and correct copy of

the ’531 patent is attached as Exhibit 1.

9. SHC received from the Register of Copyrights a Certificate of

Registration for a Slot Claw sculpture, registration No. VA 1-867-812 (“the ’812

registration”), effective July 8, 2013. A true and correct copy of the ’812 registration is

attached as Exhibit 2.

10. SHC owns all right, title and interest to the ’531 patent, and the ’812

registration, including the right to sue for past, present and future infringements.



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11. SHC has owned the ’531 patent throughout the period of the

Defendant’s infringing acts.

12. The ’531 patent is valid and enforceable.

13. SHC has complied with the statutory requirement of placing a notice

of the’531 patent on the devices it has made and sells.

COUNT I - ’531 PATENT INFRINGMENT

14. SHC incorporates by reference the foregoing allegations as if fully set

forth herein.

15. On information and belief, AdMotions Direct has committed and is

continuing to commit direct acts of infringement of the ‘531 patent under 35 U.S.C. §

271(a) by making, using, selling, offering to sell, and/or importing Casino Bungee Cords.

A Casino Bungee Cord sold by AdMotions Direct is shown below on the left next to Fig.

1 of the ‘531 Patent.



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17054339_1

16. SHC has been damaged as a direct result of the infringement of the

’531 patent. SHC continue to be damaged unless further infringement is enjoined.



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17054339_1

17. SHC is entitled under 35 U.S.C. § 284 to an award of damages

adequate to compensate SHC for AdMotions Direct’s infringement of the ’531 patent.

SHC is entitled to in no event less than a reasonable royalty for the infringement and use

made of the invention of the ’531 patent by AdMotions Direct, all together with interest

and costs.

18. On information and belief, AdMotions Direct’s past and continuing

infringement of the ’531 patent has been and continues to be deliberate and willful.

19. AdMotions Direct’s conduct warrants an award of treble damages

pursuant to 35 U.S.C. § 284.

20. Moreover, this is an exceptional case that entitles SHC to an award

of reasonable attorney fees under 35 U.S.C. § 285.

COUNT II – COPYRIGHT INFRINGEMENT

21. SHC repeats and incorporates the allegations contained in the

preceding paragraphs.

22. On information and belief, AdMotions Direct copied the Slot Claw

sculpture.

23. AdMotions Direct’s copying, use and sale of the sculpture to Lucky

Star Casino in Concho, Oklahoma without SHC’s permission or authority is a violation of

its exclusive rights under the Copyright Act, 17 U.S.C. § 101 et seq., and as a result, SHC

has been damaged and is entitled to damages.



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17054339_1

24. AdMotions Direct’s sale of SHC’s sculpture without SHC’s

permission or authority is a violation of its exclusive rights under the Copyright Act, 17

U.S.C. § 101 et seq., and as a result, SHC has been damaged and is entitled to damages.

WILLFUL INFRINGMENT

25. SHC incorporates by reference their foregoing allegations as if fully

set forth herein.

26. On information and belief, Defendant’s past and continuing

infringement of the’531 patent has been deliberate and willful. Its conduct warrants an

award of treble damages pursuant to 35 U.S.C. § 284. Moreover, this is an exceptional

case as set forth in 35 U.S.C. § 285 warranting an award of attorneys’ fees.

PRAYER FOR RELIEF

WHEREFORE, SHC respectfully prays that this Honorable Court:

A. A judgment that AdMotions Direct has infringed the ’531 patent;

B. A judgment and order permanently restraining and enjoining

AdMotions Direct, its officers, directors, agents, servants, employees, attorneys,

subsidiaries, affiliates, and all those acting in concert with or under or through them, from

making, using, selling, offering for sale, or importing any systems or products that infringe

one or more claims of the ’531 patent, or otherwise directly or indirectly committing further

acts of infringement of the patent;



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17054339_1

C. A judgment and order requiring Defendant to pay damages to SHC

adequate to compensate it for Defendant’s wrongful infringing acts in accordance with 35

U.S.C. § 284;

D. A judgment and order requiring Defendant to pay increased damages

up to three times, in view of their willful and deliberate infringement of the ’531 patent;

E. A finding in favor of SHC that this is an exceptional case under 35

U.S.C. § 285 and an award to SHC its costs, including reasonable attorney’s fees and other

expenses incurred in connection with this action;

F. A judgment and order requiring Defendants to pay SHC pre-judgment

interest under 35 U.S.C. § 284 and post-judgment interest under 28 U.S.C. § 1961 on all

damages awarded;

G. A judgment and order of temporary and permanent injunction to

prevent or restrain Defendant from infringement of SHC’s copyright under 17 U.S.C. § 502;

H. A judgment and order impounding and destruction of all of

Defendant’s infringing copies, molds, and means for creating infringing copies of SHC’s

protected works under 17 U.S.C. § 503;

I. A judgment and order requiring Defendant to pay SHC’s actual

damages and any additional profits of Defendant under 17 U.S.C. § 504;

J. A judgment and order requiring Defendant to pay to SHC its full costs

and reasonable attorney’s fees under 17 U.S.C. § 505; and

K. Such other and further relief as the Court deems just and appropriate.



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DESIGNATION OF PLACE OF TRIAL

Plaintiff hereby designates Oklahoma City, Oklahoma as the place of trial

of the above-styled matter.

REQUEST FOR JURY TRIAL

Plaintiff hereby requests trial by jury of the above-styled matter.

Respectfully submitted,

/s/Robert W. Dace

Robert W. Dace

McAfee & Taft A Professional Corporation

10th Floor, Two Leadership Square

211 North Robinson

Oklahoma City, OK 73102-7103

Telephone: (405) 235-9621

Facsimile: (405) 235-0439

[email protected]

Attorneys for Plaintiff

SHC Holdings, LLC



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1 2 ) United

States

Design Patent 1 0 )

P a t e n t N o . :

USO0D486531S

B r o o k i n s

US D 4 8 6 , 5 3 1

S

( 4 5 ) Date o f P a t e n t : = < = < F e b . 1 0 , 2004

( 5 4 )

( 7 5 )

( 7 3 )

( * * )

( 2 1 )

( 2 2 )

( 5 1 )

( 5 2 )

( 5 8 )

( 5 6 )

SLOT

MACHINE

CARD

HOLDER

I n v e n t o r : D o u g l a s

B r o o k i n s ,

P i t t s g r o v e , N J U S )

A s s i g n e e : S p e c i a l t y

H o u s e

o f C r e a t i o n , I n c . ,

P i t t s g r o v e , N J

U S )

T e r m : 14 Years

A p p l .

N o . : 2 9 / 1 7 7 , 2 2 0

F i l e d : Mar.

5 , 2 0 0 3

LOC

7 ) Cl.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . 21-01

US. Cl. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D21/370;

D21/394

Field

of Search

. . . . . . . . . . . . . . . . . . . . . . . .

. . D3/211

215 234

0 3 / 2 7 4 , D 1 1 / 8 1 ,

2 3 8 ;

D 2 1 / 3 6 9 — 3 7 0 ,

3 8 5 ,

3 9 2 , 3 9 4 , 3 9 6 ; 2 7 3 / 1 4 8 A ,

1 5 0 , 4 6 3 / 1 7 ,

2 0 , 4 6 ,

4 7

R e f e r e n c e s C i t e d

U . S . PATENT DOCUMENTS

D361 516 S 8/1995 Pee r sma nn . . . . . . . . . . . . . . . . . . . . D10/6

D366 359 S

* 1/1996

Riedl

. . . . . . . . . . . . . . . . . . . . . . . . . . D3/211

5 560 603

A

10/1996 S e e l i g e t a l . . . . . . . . . . . . . . . . . . .

463/20

5 590 880 1/1997 Flam

. . . . . . . . . . . .

.. 273/150

6 009 048 A 12/1999

R aesZ

. . . . . . . .

. .

D21/370

6 076 296 6/2000

Schaeffer . . . . . . . . .. 40/649

D464 998 S 10/2002 Brookins . . . . . . . . . . . . . . . . .

. .

D21/370

* c i t e d by

examiner

P r i m a r y Examiner—Sandra L . M o r r i s

7 4 )

A t t o r n e y ,

A g e n t , o r Firm—Marvin C . G a e r

( 5 7 )

CLAIM

The

o r n a m e n t a l d e s i g n f o r a

s l o t

machine c a r d h o l d e r , a s

shoWn a n d d e s c r i b e d .

DESCRIPTION

F I G .

1 i s a

f r o n t

e l e v a t i o n vieW o f

t h e

s l o t machine c a r d

h o l d e r s h o w i n g

my

neW

d e s i g n .

FIG.

2

i s a r e a r

e l e v a t i o n

vieW

t h e r e o f ;

F I G .

3 i s a r i g h t

s i d e

e l e v a t i o n

vieW

t h e r e o f ;

F I G .

4

i s a l e f t s i d e e l e v a t i o n vieW t h e r e o f ;

F I G . 5 i s a t o p p l a n

v i e W

t h e r e o f ; a n d ,

FIG. 6

i s a bottom

end vieW

t h e r e o f .

1

C l a i m , 3 Drawing S h e e t s

F J I A T Q I I G H Q T I

I l l “

1 1 1 W

Case 5:16-cv-00400-W Document 1-1 Filed 04/20/16 Page 1 of 4EXHIBIT 1


10/16

U . S . Patent F e b . 1 0 ,

2 0 0 4

S h e e t

1 o f 3

US

D486 531 S

H

‘ D H

n

E

D

W I W

M

W‘

I l l l l l

I I I I I I

I I I I I I I I I I I I I

Case 5:16-cv-00400-W Document 1-1 Filed 04/20/16 Page 2 of 4


11/16

U . S . Patent F e b . 1 0 ,

2 0 0 4

S h e e t

2 o f 3

US

D486 531 S

If

W W W

i



12/16

U . S .

Patent

F e b . 1 0 ,

2 0 0 4 S h e e t

3

o f 3

US

D486 531 S



13/16


EXHIBIT B

EXHIBIT 2


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15/16

JS 44(Rev. 12/12)

CIVIL COVER SHEET

The JS-44 civil cover sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or other papers as rby law, except as provided by local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, is requireuse of the Clerk of Court for the purpose of initiating the civil docket sheet. (SEE INSTRUCTIONS ON THE REVERSE OF THE FORM.)

I. (a) PLAINTIFFS DEFENDANTS

SHC HOLDINGS, LLC d/b/a SPECIALTY HOUSE OF CREATION ADMOTIONS DIRECT

(b) COUNTY OF RESIDENCE OF FIRST LISTED PLAINTIFF Chase Co., Kansas COUNTY OF RESIDENCE OF FIRST LISTED DEFENDANT(EXCEPT IN U.S. PLAINTIFF CASES) (IN U.S. PLAINTIFF CASES ONLY)

NOTE: IN LAND CONDEMNATION CASES, USE THE LOCATION OF THE TRACT

LAND INVOLVED

(c) ATTORNEYS (FIRM NAME, ADDRESS, AND TELEPHONE NUMBER) ATTORNEYS (IF KNOWN)

Robert W. DaceMcAfee & Taft10th Fl, Two Leadership Sq.211 N. RobinsonOklahoma City, OK 73102(405) 235-9621 (telephone)(405) 235-0439 (facsimile)

II. BASIS OF JURISDICTION (PLACE AN x IN ONE BOX ONLY)

1 U.S. Government 3 Federal Question Plaintiff (U.S. Government Not a Party)

2 U.S. Government 4 Diversity (Indicate Citizenship of Partiesin Item III)

III. CITIZENSHIP OF PRINCIPAL PARTIES (PLACE AN “X” IN ONE BOX FOR PL(For Diversity Cases Only) AND ONE BOX FOR DEFENDANT)

PTF DEF PTF

Citizens of This State 1 1 Incorporated or Principal Place

Of Business in This State

4

Citizens of Another State 2 2 Incorporated and Principal PlaceOf Business in Another State

5

Citizens or Subject of aForeign County

3 3 Foreign Nation 6

IV. NATURE OF SUIT (PLACE AN X IN ONE BOX ONLY)CONTRACT TORTS FORFEITURE/PENALTY BANK RUPTCY OTHER STATUT

110 Insurance120 Marine130 Miller Act140 Negotiable Instrument150 Recovery of Overpayment

& Enforcement ofJudgment

151 Medicare Act152 Recovery of Defaulted

Student Loans(Excludes Veterans)

153 Recovery of Overpaymentof Veteran’s Benefits

160 Stockholders’ Suits190 Other Contract195 Contract Product Liability196 Franchise

PERSONAL INJURY

310 Airplane 315 Airplane Product

Liability 320 Assault, Libel & Slander330 Federal Employers’

Liability340 Marine 345 Marine Product Liability 350 Motor Vehicle 355 Motor Vehicle Product

Liability 360 Other Personal Injury362 Personal Injury – Med

Malpractice

PERSONAL INJURY

365 Personal Injury – ProductLiability

367 Health Care/Pharmaceutical PersonalInjury Product Liability

368 Asbestos Personal InjuryProduct Liability

PERSONAL PROPERTY

370 Other Fraud 371 Truth in Lending 380 Other Personal Property

Damage 385 Property Damage Product

Liability

625 Drug Related Seizure ofProperty 21 USC 881

690 Other

422 Appeal28 USC 158

423 Withdrawal28 USC 157

375 False Claims Act400 State Reapportion410 Antitrust430 Banks and Banking450 Commerce460 Deportation470 Racketeer Influence

and CorruptOrganizations

480 Consumer Credit490 Cable/Sat TV850 Securities/Commod

Exchange

850 Securities/CommodExchange890 Other Statutory Ac891 Agricultural Acts893 Environmental Mat895 Freedom of Informa

Act896 Arbitration899 Administrative Proc

Act/Review or App Agency Decision

950 Constitutionality ofState Statutes

Claim for Benefits undPlan

PROPERTY RIGHTS

820 Copyrights830 Patent840 Trademark

LABOR SOCIAL SECURITY

710 Fair Labor Standards Act

720 Labor/Mgmt. Relations740 Railway Labor Act751 Family and Medical Leave

Act790 Other Labor Litigation791 Employee Retirement

Income Security Act

861 HIA (1395ff)862 Black Lung (923)

863 DIWC/DIWW(405(g))

864 SSID Title XVI865 RSI (405(g))

REAL PROPERTY CIVIL RIGHTS PRISONER PETITIONS IMMIGRATION FEDERAL TAX SUITS

210 Land Condemnation220 Foreclosure230 Rent Lease & Ejectment240 Torts to Land245 Tort Product Liability290 All Other Real Property

440 Other Civil Rights 441 Voting442 Employment443 Housing/

Accommodations445 Amer. w/Disabilities –

Employment446 Amer. w/Disabilities -

Other448 Education

HABEAS CORPUS:463 Alien Detainee

510 Motions to VacateSentence

530 General

535 Death Penalty

OTHER:

540 Mandamus & Other

550 Civil Rights

555 Prison Condition

560 Civil Detainee –Conditions of

Confinement

462 Naturalization Application465 Other Immigration Actions

870 Taxes (U.S.Plaintiff orDefendant

871 IRS – Third Party28 USC 7609

V. ORIGIN (PLACE AN X IN ONE BOX ONLY) 1 Original

Proceeding 2 Removed from

State Court 3 Remanded from

Appellate Court 4 Reinstated or

Reopened 5 Transferred from

Another District

(specify)

6 MultidistrictLitigation

VI. CAUSE OF ACTION (CITE THE U.S. CIVIL STATUTE UNDER WHICH YOU ARE FILING (DO NOT CITE JURISDICTIONAL STATUTES UNLESS DIVERSITY.)

35 U.S.C. § 1, et seq.; 17 U.S.C. § 101 et seq.

AND WRITE A BRIEF STATEMENT OF CAUSE.

Patent Infringement

VII. REQUESTED IN

COMPLAINT CHECK IF THIS IS A CLASS ACTIONUNDER F.R.C.P. 23

DEMAND $Check YES only if demanded in complaint:

JURY DEMAND: YES NO

VIII. RELATED CASE(S) (See instructions)

IF ANY



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DATE Apri l 20, 2016 SIGNATURE OF ATTORNEY OF RECORD

/s/Robert W. DaceFOR OFFICE USE ONLY

RECEIPT # AMOUNT APPLYING IFP JUDGE MAG. JUDGE


shc holdings v. admotion direct - complaint

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