Textile Network v. Gerald Schwartz

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    IN THE UNITED STATES DISTRICT COURT

    FOR THE DISTRICT OF COLORADO

    Civil Action No. _____________________

    TEXTILE NETWORK, INC.,a Colorado corporation,

    Plaintiff,

    v.

    GERALD SCHWARTZ, INC.,

    a Georgia corporation,

    Defendant.

    COMPLAINT AND JURY DEMAND

    Plaintiff Textile Network, Inc. ("Textile Network"), by and through its undersigned

    attorneys, for its Complaint against Gerald Schwartz, Inc. ("GSI"), states as follows:

    PARTIES

    1. Plaintiff Textile Network is a Colorado corporation with its principal place of

    business in Lafayette, Colorado.

    2. Upon information and belief, Defendant GSI is a Georgia corporation with its

    principal place of business at 4756 Hammermill Rd. #401, Tucker, Georgia, 30084.

    JURISDICTION AND VENUE

    3. This is a civil action for patent infringement arising under the patent laws of the

    United States, 35 U.S.C. 101, et. seq.

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    4. This Court has jurisdiction over the subject matter of this action pursuant to 28

    U.S.C. 1331, 1332 and 1338.

    5. Venue is proper in this judicial district pursuant to 28 U.S.C. 1391 and 1400,

    and GSI is subject to personal jurisdiction in this judicial district pursuant to Colo. Rev. Stat.

    13-1-124, because GSI maintains a shipping facility in Colorado and, upon information and

    belief, because GSI offers for sale, sells, and/or distributes stretchable straps with grippers within

    and/or into Colorado such that GSI has committed acts of patent infringement in this judicial

    district.

    TEXTILE NETWORK'S PATENTS

    6. On February 17, 2009, United States Patent No. 7,490,634 (the "'634 Patent"),

    entitled "Stretchable Strap with Gripper and Method of Making the Same" was duly and legally

    issued to Pamela Resendez and Abel Pereira. A true and correct copy of the '634 Patent is

    attached as Exhibit A.

    7. By assignment, Textile Network owns all right, title and interest in and to the '634

    Patent, including, without limitation, the right to enforce the '634 Patent and to collect damages

    for past infringements.

    8. In general terms, the '634 Patent describes and claims a method of making a

    stretchable strap that includes regions woven with material for enhancing friction. More

    specifically, as set forth in the Abstract of the '634 Patent,

    A stretchable strap includes a side containing regions woven with

    frictionally enhancing material. Warp threads of both frictionallyenhancing and non-frictionally enhancing material are woven to

    form a two-layer strap. Internal elastomeric threads provide a

    connection between the two layers as well as allow the strap to

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    stretch. A method of making the strap is also provided wherein all

    elements are simultaneously woven on a loom.

    9. Independent claim 1 of the '634 Patent claims:

    A method for making a strap on a loom, comprising:

    weaving a frictionally enhanced layer in a plain weave

    from a plurality of upper warp threads and a first plurality of weftthreads, said upper warp threads comprising frictionally enhanced

    threads under a first tension and non-frictionally enhanced threads

    under a second tension;

    simultaneously weaving a non-frictionally enhanced layerin a plain weave from a plurality of lower warp threads and a

    second plurality of weft threads, said lower warp threads

    comprising non-frictionally enhanced threads under said secondtension;

    simultaneously weaving a connection between said

    frictionally enhanced layer and said non-frictionally enhancedlayer by weaving a plurality of internal elastomeric warp threads

    under a third tension and a plurality of binder warp threads both

    woven over and under each of a complete set of weft threads,wherein every other warp thread of said connection belongs to said

    plurality of internally located elastomeric warp threads, and

    wherein said complete set of weft threads comprises said first

    plurality of weft threads and said second plurality of weft threads,

    wherein every other weft thread belongs to said first plurality ofweft threads; and

    causing said first, second, and third tensions to relax after

    said weaving steps wherein:

    i.) said plurality of internal elastomeric threads contractscausing said plurality of weft threads to draw together;

    ii.)at least a portion of said plurality of frictionallyenhanced upper warp threads remain visible on asurface of said strap, and substantially coplanar with

    said surface; and

    iii.)said plurality of frictionally enhanced upper warpthreads remains operable to provide frictionenhancement along said surface.

    10. The '634 Patent is enforceable and, pursuant to 35 U.S.C. 282, enjoys a statutory

    presumption of validity.

    11. On October 13, 2009, United States Patent No. 7,600,540 (the "'540 Patent"),

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    entitled "Stretchable Strap with Gripper and Method of Making the Same" was duly and legally

    issued to Pamela Resendez and Abel Pereira. A true and correct copy of the '540 Patent is

    attached as Exhibit B.

    12. By assignment, Textile Network owns all right, title and interest in and to the '540

    Patent, including, without limitation, the right to enforce the 540 Patent and to collect damages

    for past infringements.

    13. In general terms, the '540 Patent describes and claims a stretchable strap that

    includes regions woven with material for enhancing friction. More specifically, as set forth in

    the Abstract of the '540 Patent,

    A stretchable strap includes a side containing regions woven with

    frictionally enhancing material. Warp threads of both frictionally

    enhancing and non-frictionally enhancing material are woven toform a two-layer strap. Internal elastomeric threads provide a

    connection between the two layers as well as allow the strap to

    stretch. A method of making the strap is also provided wherein all

    elements are simultaneously woven on a loom.

    14. Independent claim 1 of the '540 Patent claims:

    A strap, comprising:

    a frictionally enhanced layer comprising a plain weavewoven from a plurality of upper warp threads and a first plurality

    of weft threads, said upper warp threads comprising frictionally

    enhanced threads and non-frictionally enhanced threads;a non-frictionally enhanced layer comprising a plain weave

    woven from a plurality lower warp threads and a second plurality

    of weft threads, said lower warp threads comprising non-

    frictionally enhanced threads; anda connection between said frictionally enhanced layer and

    said non-frictionally enhanced layer comprising a plurality of

    internally located elastomeric warp threads and a plurality ofbinder warp threads both woven over and under each of a complete

    set of weft threads, wherein every other warp thread of said

    connection belongs to said plurality of internally locatedelastomeric warp threads, and wherein said complete set of weft

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    threads comprises said first plurality of weft threads and said

    second plurality of weft threads, wherein every other weft threadbelongs to said first plurality of weft threads;

    wherein said strap may be stretched from a non-elongatedstate to an elongated state, and wherein in both said non-elongatedstate and said elongated state at least a portion of said plurality of

    frictionally enhanced upper warp threads remain:

    i.) visible on a surface of said strap;ii.)substantially coplanar with said surface; andiii.)operable to provide friction enhancement along said

    surface.

    15. Independent claim 10 of the '540 Patent claims:

    A strap, comprising:a frictionally enhanced layer comprising a plain weave

    woven from a plurality of upper warp threads and a first plurality

    of weft threads, said upper warp threads comprising frictionallyenhanced threads and non-frictionally enhanced thread;

    a non-frictionally enhanced layer comprising a plain weave

    woven from a plurality lower warp threads and a second pluralityof weft threads, said lower warp threads comprising non-

    frictionally enhanced threads; and

    a connection between said frictionally enhanced layer and

    said non-frictionally enhanced layer comprising a plurality of

    internal elastomeric warp threads and a plurality of binder warpthreads both woven over and under each of a complete set of weftthreads, wherein every other warp thread of said connection

    belongs to said plurality of internally located elastomeric warp

    threads, and wherein said plurality of internal elastomeric threadsare located substantially between said frictionally enhanced layer

    and said non-frictionally enhanced layer, and wherein said

    complete set of weft threads comprises said first plurality of weftthreads and said second plurality of weft threads, wherein every

    other weft thread belongs to said first plurality of weft threads;

    wherein said upper warp threads are arranged in frictionally

    enhanced regions and non-frictionally enhanced regions, saidfrictionally enhanced regions comprising a plurality of said

    frictionally enhanced upper warp threads, said non-frictionally

    enhanced regions comprising of plurality of said non-frictionallyenhanced threads, wherein said frictionally and non-frictionally

    enhanced regions are alternatingly disposed across a width of said

    frictionally enhanced layer;wherein said strap may be stretched from a non-elongated

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    state to an elongated state, and wherein in both said non-elongated

    state and said elongated state at least a portion of said plurality offrictionally enhanced upper warp threads remain:

    i.) visible on a surface of said strap;ii.)substantially coplanar with said surface; andiii.)operable to provide friction enhancement along said

    surface.

    16. The '540 Patent is enforceable and, pursuant to 35 U.S.C. 282, enjoys a statutory

    presumption of validity.

    FIRST CLAIM FOR RELIEF

    (Infringement of U.S. Patent No. 7,490,634)

    17. Textile Network incorporates herein by reference each and every allegation in

    paragraphs 1 through 16.

    18. GSI is making, using, selling and/or offering to sell in the United States and/or

    importing into the United States, stretchable straps with grippers, including, without limitation,

    the stretchable strap with gripper depicted in attached Exhibit C.

    19. GSI's activities in making, using, selling and/or offering to sell in the United

    States and/or importing into the United States, stretchable straps with grippers constitute direct

    infringement of the '634 Patent, in violation of 35 U.S.C. 271(a) and (g).

    20. GSI's actions in infringing the '634 Patent have been, and are, willful, deliberate

    and/or in conscious disregard of Textile Networks rights, making this an exceptional case within

    the meaning of 35 U.S.C. 285 and entitling Textile Network to the award of its attorneys' fees.

    21. GSI's infringement of the '634 Patent has caused and will continue to cause

    damage to Textile Network in an amount to be ascertained at trial.

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    22. GSI's infringement of the '634 Patent has caused and will continue to cause

    irreparable injury to Textile Network, as to which irreparable injury there exists no adequate

    remedy at law. GSI's infringement of the '634 Patent will continue unless enjoined by this Court.

    SECOND CLAIM FOR RELIEF

    (Infringement of U.S. Patent No. 7,600,540)

    23. Textile Network incorporates herein by reference each and every allegation in

    paragraphs 1 through 22.

    24. Textile Network is making, using, selling and/or offering to sell in the United

    States and/or importing into the United States, stretchable straps with grippers, including,

    without limitation, the stretchable strap with gripper depicted in attached Exhibit C.

    25. Textile Networks activities in making, using, selling and/or offering to sell in the

    United States and/or importing into the United States, stretchable straps with grippers constitute

    direct infringement of the '540 Patent, in violation of 35 U.S.C. 271(a).

    26. GSI's actions in infringing the '540 Patent have been, and are, willful, deliberate

    and/or in conscious disregard of Textile Network's rights, making this an exceptional case within

    the meaning of 35 U.S.C. 285 and entitling Textile Network to the award of its attorneys' fees.

    24. GSI's infringement of the '540 Patent has caused and will continue to cause

    damage to Textile Network in an amount to be ascertained at trial.

    25. GSI's infringement of the '540 Patent has caused and will continue to cause

    irreparable injury to Textile Network as to which irreparable injury there exists no adequate

    remedy at law. GSI's infringement of the '540 Patent will continue unless enjoined by this Court.

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    PRAYER FOR RELIEF

    WHEREFORE, Textile Network requests that judgment be entered in its favor and

    against GSI as follows:

    A. Declaring that GSI has infringed United States Patent Nos. 7,490,634 and

    7,600,540;

    B. Issuing temporary, preliminary, and permanent injunctions enjoining GSI, its

    officers, agents, subsidiaries, and employees, and those in privity or in active concert with any of

    the foregoing, from further activities that constitute infringement of the United States Patent Nos.

    7,490,634 and 7,600,540, pursuant to 35 U.S.C. 283;

    C. Awarding Textile Network damages arising out of GSI's infringement of United

    States Patent Nos. 7,490,634 and 7,600,540 in an amount not less than a reasonable royalty for

    each act of infringement, and trebling those damages pursuant to 35 U.S.C. 284, together with

    costs and prejudgment and post-judgment interest;

    D. Finding that this is an exceptional case within the meaning of 35 U.S.C. 285 and

    awarding reasonable attorneys' fees to Textile Network; and

    E. Awarding Textile Network such further legal and equitable relief as the Court

    deems just and proper.

    JURY DEMAND

    Pursuant to Rule 38 of the Federal Rules of Civil Procedure, Textile Network demands a

    trial by jury on all issues so triable.

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    DATED: June 13, 2012 Respectfully submitted,

    By: s/ Benjamin B. Lieb

    Benjamin B. [email protected]

    David B. Kellis

    [email protected]

    SHERIDAN ROSS P.C.1560 Broadway, Suite 1200

    Denver, Colorado 80202-5141

    Telephone: 303-863-9700

    Facsimile: 303-863-0223E-mail: [email protected]

    ATTORNEYS FOR PLAINTIFFTEXTILE NETWORK, INC.

    Plaintiff's Address:

    Textile Network, Inc.501 E. Simpson St.

    Lafayette, CO 80026