Eagles Nest Outfitters v. Dick's Sporting Goods - Complaint

IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF NORTH CAROLINA

ASHEVILLE DIVISION
CIVIL ACTION NO.: 1:18-CV-00082
EAGLES NEST OUTFITTERS, INC., )

)
Plaintiff, )
) COMPLAINT
v. ) [JURY TRIAL DEMANDED]
)
DICK'S SPORTING GOODS, INC., )
)
Defendant. )
Plaintiff Eagles Nest Outfitters, Inc. ("ENO"), through counsel, brings this
Complaint against Defendant Dick's Sporting Goods, Inc. ("Defendant"), and states and alleges
as follows:
PRELIMINARY STATEMENT
1. This action is based on Defendant's manufacture, sale, use, offer for sale,
and/or importation into the United States of a hammock strap that infringes ENO's proprietary
patent rights.
PARTIES
2. ENO is a North Carolina corporation with its principal place of business at
24 Buxton Avenue, Asheville, North Carolina 28801.
3. Upon information and belief, Defendant Dick's Sporting Goods, Inc. is a
Delaware corporation with its principal place of business at 345 Court St., Coraopolis,
Pennsylvania 15108.
Case 1:18-cv-00082 Document 1 Filed 03/29/18 Page 1 of 15

4. Upon information and belief, Defendant wholly owns and operates Field
& Stream, another outdoor retailer specializing in hunting and fishing.
5. Upon information and belief, Defendant does business as "Field &
Stream".
6. Upon information and belief, Defendant manufactures, sells, and/or offers
to sell goods under its "Field & Stream" brand.
7. Upon information and belief, Defendant owns and/or operates retail stores
under its "Field & Stream" brand.
8. Defendant does business in the Western District of North Carolina through
sales in its retail stores, including multiple retail stores in this District.
9. Among others in the Western District of North Carolina, Defendant
operates a Dick's Sporting Goods store at 107A River Hills Road, in Asheville, North Carolina,
28801 (the "Dick's Physical Location").
10. Among others in the Western District of North Carolina, Defendant
operates a Field & Stream store at 800 Brevard Rd., Ste. 901, in Asheville, North Carolina,
28801 (the "Field & Stream Physical Location").
11. The Dick's Physical Location and Field & Stream Physical Location are
fixed physical locations located within this District.
12. The Dick's Physical Location and Field & Stream Physical Location are
locations that represent regular and established places of business for Defendant.
13. Upon information and belief, Defendant is the owner and/or lessee of the
Dick's Physical Location and Field & Stream Physical Location.
2
14. Upon information and belief, Defendant is in possession of, and has
control over, the Dick's Physical Location and Field & Stream Physical Location.
15. Defendant also does business in the Western District of North Carolina
and nationally through its website - www.dickssportinggoods.com, its Field & Stream stores, and
its Field & Stream website - www.fieldandstreamshop.com.
JURISDICTION AND VENUE
16. This is an action for patent infringement arising under the patent laws of
the United States, including 35 U.S.C. §§ 271, 281, 283, 284 and 285.
17. This Court has subject matter jurisdiction over this action pursuant to 28
U.S.C. §§ 1331, 1367, and 1338(a).
18. This Court has personal jurisdiction over Defendant. Defendant's actions
establish such minimum contacts that jurisdiction comports with the North Carolina Long-Arm
statute, N.C. Gen. Stat. § 1-75.4 and the United States Constitution.
19. Upon information and belief, Defendant has conducted and does conduct
business within the State of North Carolina and maintains regular and established places of
business at multiple retail locations throughout the Western District of North Carolina, including
but not limited to the Dick's Physical Location and Field & Stream Physical Location.
20. Upon information and belief, Defendant, directly and through subsidiaries
or intermediaries (including distributors, retailers, and others) ships, distributes, offers for sale,
sells, and/or advertises (including through its web pages) its products (including the accused
hammock straps) described herein within this District.
3
21. Upon information and belief, Defendant has committed acts of patent
infringement within this District.
22. Upon information and belief, Defendant has contributed to or induced
(instructing and supplying others with infringing products and instructions for use) patent
infringement by others in this District.
23. Defendant has purposefully and voluntarily placed one or more infringing
products into the stream of commerce with the expectation that they will be purchased and used
by consumers in the Western District of North Carolina.
24. Upon information and belief, Defendant has committed acts of patent
infringement within the State of North Carolina and, more particularly, within the Western
District of North Carolina.
25. Venue is proper in the Western District of North Carolina under 28 U.S.C.
1400(b) because Defendant has a regular and established place of business in this District as
describe herein.
STATEMENT OF FACTS
The Asserted Patents
26. This lawsuit asserts causes of action for infringement of United States
Design Patent No. D666,896 ("the ENO design patent"), United States Patent No. 9,003,579
("the '579 Patent), and United States Patent No. 9,320,343 ("the '343 Patent") (together, "the
Asserted Patents").
27. On September 11, 2012, the United States Patent and Trademark Office
duly and legally issued the ENO design patent, titled "Hammock Strap," to Peter Pinholster, Paul
4
Pinholster, and Brendan Garvey, who immediately thereafter assigned the patent to ENO. A true
and correct copy of the ENO design patent is attached as Exhibit A.
28. On April 14, 2015, the '579 Patent, titled "Multiple-Loop Support Strap
and Method for Hanging a Hammock," was duly and legally issued to Peter Pinholster, Paul
Pinholster, and Brendan Garvey by the United States Patent and Trademark Office, and
immediately thereafter assigned to ENO. A true and correct copy of the '579 Patent is attached as
Exhibit B.
29. On April 26, 2016, the '343 Patent", titled "Multiple-Loop Support Strap
and Method for Hanging a Hammock," was duly and legally issued to Peter Pinholster, Paul
Pinholster, and Brendan Garvey by the United States Patent and Trademark Office, and
immediately thereafter assigned to ENO. A true and correct copy of the '343 Patent is attached as
Exhibit C.
30. ENO is the owner of the entire right, title, and interest in and to the
Asserted Patents, and has owned the entire right, title, and interest in and to the Asserted Patents
continuously from the date the patents were issued to the present.
31. The Asserted Patents are valid and enforceable.
ENO's Use of the Asserted Patents in the Outdoor Gear and Hammock Industry
32. The inventions disclosed and claimed in the Asserted Patents were
invented and patented by Brenden Garvey, Former Design Team Member of ENO, and Peter and
Paul Pinholster.
5
33. ENO was founded in 1999. Brothers Peter and Paul Pinholster founded
ENO and contributed to the invention of its products with the intent to introduce the general
public to the joys of hammocking.
34. Since its founding, ENO has been a leader in the outdoor industry. Under
its ENO mark, ENO manufactures top of the line outdoor camping hammocks and associated
hammock accessories all over the world.
35. ENO has been selling its hammocks, hardware, and associated gear since
at least 1999.
36. One of ENO's most successful products is its patented Atlas strap, which
revolutionized the hammock industry.
Defendant Infringes ENO's Patents
37. Defendant is a company that, among other things, purports to
manufacture, sell, offer to sell, and/or distribute hammock accessories and straps, under the
brands "Field and Stream" and "Logo Brands".
38. Defendant has also sold and offered for sale ENO's patented Atlas
hammock straps.
39. Defendant began to sell ENO's patented Atlas hammock straps in
Defendant's Dick's Sporting Goods and Field & Stream retail stores in or about 2012.
40. For years, ENO sold substantial amounts of its Atlas hammock straps
through Defendant's retail stores, and yearly sales approached or exceeded $8 million dollars.
41. In 2017, however, for reasons then unknown to ENO, the sales of its straps
at Defendant's stores dropped substantially.
6
42. In 2018, ENO became aware that Defendant was manufacturing, selling,
and offering for sale a "Field & Stream" brand hammock package with a strap that infringes
ENO's patents, as well as selling the infringing strap under the Field and Stream name separately
(the "Field and Stream Infringing Products").
43. At the same time, ENO became aware that Defendant was selling a "Logo
Brands" brand hammock package in its Field & Stream stores that also includes straps that
infringe ("the Logo Brands Infringing Products") (together "the Infringing Products").
44. In at least some of its retail stores, Defendant displays its Infringing
Products, including the Field and Stream Infringing Products, directly above ENO's patented and
competing Atlas hammock straps. A true and correct copy of a photo depicting such a display at
the Field & Stream Physical Location is attached hereto as Exhibit D.
45. Defendant's Infringing Products are also available online at
www.dickssportinggoods.com and www.fieldandstreamshop.com. ENO's patented and
competing Atlas hammock straps are sold on these websites as well.
46. On information and belief, the drop in sales of ENO's straps at Defendant's
stores coincided with Defendant's manufacture, sale, and offer of sale of the Infringing Products
alongside ENO's straps in Defendant's stores.
47. On March 5, 2018, ENO sent a cease and desist letter to Defendant,
informing Defendant that Defendant was selling infringing products and asking Defendant to
immediately cease and desist such sale and provide information on infringing sales to ENO.
7
48. Three weeks after the letter was sent, Defendant, through an advertising
publication for Field and Stream, advertised the Field and Stream hammock package that
includes a hammock strap that infringes ENO's patents.
49. In addition, after serving the cease and desist letter, ENO became aware
that not only was Defendant actively advertising its Field and Stream hammock packages which
contain straps that infringe ENO's patents, but that Defendant was selling a Field and Stream
brand strap separately and such strap also infringes ENO's patents.
50. Upon information and belief, Defendant distributes the Infringing
Products throughout the United States, including in the Western District of North Carolina.
51. The Infringing Products that Defendant has sold and, upon information
and belief, continues to sell, infringe the ENO Design Patent and infringe at least claims 1-7, 9-
16, and 18 of the '579 Patent and the '343 Patent.
52. ENO has never licensed, permitted, or authorized Defendant to practice
the inventions of the Asserted Patents to make, use, offer to sell, or sell any hammock strap
within the United States, or to import any hammock strap, or component constituting a material
part thereof, into the United States.
53. Defendant has directly and indirectly infringed and, upon information and
belief, continues to directly and indirectly infringe the Asserted Patents by engaging in acts
constituting infringement under 35 U.S.C. § 271(a) and (b), including but not necessarily limited
to, one or more of making, using, selling, and offering to sell, in this District and elsewhere in
the United States, and importing into this District and elsewhere in the United States hammock
straps which infringe the ENO's design patent and multiple claims of the '579 and '343 Patents.
8
54. On information and belief, the Infringing Products contain
construction/design characteristics that are within the claims recited in the ENO design patent
and the '579 and '343 Patents issued to ENO.
55. Defendant is doing business in the United States and, more particularly, in
the Western District of North Carolina, by making, using, selling, importing, and/or offering for
sale Defendant's infringing patents.
56. Upon information and belief, Defendant has had actual knowledge of the
Asserted Patents since prior to its decision to manufacture, sell, offer to sell, and/or import the
Infringing Products.
57. Prior to its sale of the Infringing Products, Defendant sold ENO's patented
Atlas hammock straps.
58. ENO's patented Atlas hammock straps are marked with the ENO design
patent and the '579 patent.
59. Therefore, in having ENO's patented Atlas hammock straps in its
possession and selling and offering those straps for sale, Defendant was aware that the Atlas
hammock straps were covered by the ENO design patent and the '579 patent.
60. Notwithstanding this knowledge, Defendant chose to manufacture the
Field & Stream Infringing Products and then sell and offer to sell the Field & Stream Infringing
Products along with the Logo Infringing Products.
61. Upon information and belief, Defendant used the patented ENO Atlas
hammock straps as a model when determining the design of its Field & Stream infringing
hammock straps.
9
62. Adding to the egregious, intentional, and willful nature of Defendant's
infringement is the fact that Defendant then placed its own infringing products (copied from
ENO's patented products) directly above ENO's patented products in its retail stores as depicted
in Exhibit D.
63. ENO has been damaged as a result of Defendant's infringing conduct.
Defendant is therefore liable to ENO in an amount that adequately compensates ENO for
Defendant's infringement, which, by law, cannot be less than a reasonable royalty, together with
interest and costs as fixed by this Court under 35 U.S.C. § 284, and in an amount that represents
Defendant's profits for infringement of the ENO Design Patent under 35 U.S.C. § 289.
COUNT 1 – INFRINGEMENT OF THE ASSERTED PATENTS
64. ENO repeats and realleges the allegations contained in paragraphs 1
through 63, as if fully set forth.
65. Defendant has directly infringed and continues to directly infringe the
Asserted Patents by making, using, testing, selling, offering for sale, or importing into the United
States products and/or methods covered by one or more claims of the Asserted Patents.
Defendant's products that infringe one or more claims of the Asserted Patents include, but are not
limited to, the Infringing Products.
66. Defendant has induced and continues to induce infringement of the
Asserted Patents by intending that others use, offer for sale, or sell in the United States, products
and/or methods covered by one or more claims of the Asserted Patents, including, but not limited
to the Infringing Products. Defendant provides these products to others, such as customers,
10
resellers, and end-use consumers who, in turn, use, offer for sale, or sell in the United States
Defendant's products that infringe one or more claims of the Asserted Patents.
67. Defendant indirectly infringes the Asserted Patents by inducing
infringement by others, such as resellers, customers and end-use consumers, in accordance with
35 U.S.C. §§ 271(b) in this District and elsewhere in the United States. Direct infringement is a
result of the activities performed by the resellers, customers and end-use consumers of the
Infringing Products.
68. Defendant had notice of the Asserted Patents as of the date it began selling
the patented ENO Atlas hammock straps.
69. As described herein, Defendant's infringement of the Asserted Patents is
willful, intentional, and egregious.
70. Defendant's affirmative acts of selling the Infringing Products, causing the
Infringing Products to be manufactured and distributed, and providing instructions for using the
Infringing Products, induce Defendant's resellers, customers and end-use consumers to use
Defendant's Infringing Products in their normal and customary way to infringe one or more
claims of the Asserted Patents. Defendant performs the acts that constitute induced
infringement, and induce actual infringement, with the knowledge of the Asserted Patents and
with the knowledge or willful blindness that the induced acts constitute infringement.
71. Defendant specifically intends for others, such as resellers, customers and
end-use consumers, to directly infringe one or more claims of the Asserted Patents, or,
alternatively, has been willfully blind to the possibility that its inducing acts would cause
infringement. By way of example, and not as limitation, Defendant induces such infringement
11
through its affirmative action by, among other things: (a) providing advertising on the benefits of
using the Infringing Products, and (b) providing instruction on how to use the Infringing
Products.
72. Accordingly, a reasonable inference is that Defendant specifically intends
for others, such as resellers, customers and end-use consumers, to directly infringe one or more
claims of the Asserted Patents in the United States because Defendant has knowledge of the
Asserted Patents at least as of the date this lawsuit was filed and Defendant actually induces
others, such as resellers, customers and end-use consumers, to directly infringe the Asserted
Patents by using, selling, and/or distributing, within the United States, the Infringing Products.
73. As a result of Defendant's acts of infringement, ENO has suffered and will
continue to suffer damages in an amount to be proved at trial.
74. As a result of the foregoing acts of infringement by Defendant, ENO has
been irreparably harmed and will continue to suffer irreparable harm if Defendant is not
preliminarily and permanently enjoined from further acts of infringement. This irreparable harm
includes but is not limited to loss of good will due to the presence of a competitor's infringing
products in the marketplace; loss of ENO's market share; and price erosion.
75. As a result of the foregoing acts of infringement by Defendant as to the
ENO design patent, specifically Defendant's sale and/or exposure for sale of products (including
but not limited to the Infringing Products) that apply ENO's patented design and/or seek to
imitate it, ENO is entitled to Defendant's profits pursuant to 35 U.S.C. § 289.
76. ENO's patent infringement claim is likely to succeed on the merits.
12
77. The balance of the hardships between the parties for issuing preliminary
and permanent injunctions against Defendant weighs heavily in favor of ENO. As long as
Defendant continues its infringing conduct, ENO continues to suffer the irreparable harm
described above.
78. The issuance of preliminary and permanent injunctions against Defendant
serves the public interest, as enjoining Defendant from further infringement preserves the
integrity of the patent system.
79. This is an exceptional case, entitling ENO to recover its attorneys' fees
from Defendant pursuant to 35 U.S.C. § 285.
DEMAND FOR JURY TRIAL
ENO hereby demands a jury trial for all issues so triable.
PRAYER FOR RELIEF
WHEREFORE, Plaintiff Eagles Nest Outfitters, Inc. ("ENO”) requests that this Court
enter judgment in its favor and grant the following relief:
A. a preliminary injunction against Defendant, and those in active concert with it, from
further infringement of the Asserted Patents;
B. a permanent injunction against Defendant, and those in active concert with it, from
further infringement of the Asserted Patents;
C. a judgment that Defendant directly and/or indirectly infringes one or more claims of the
Asserted Patents;
D. award ENO damages in the amount adequate to compensate ENO for Defendant's
infringing products' infringement of the claims of the Asserted Patents, but in no event
13
less than a reasonable royalty, and supplemental damages for any continuing post-verdict
infringement until entry of the final judgment with an accounting is needed, under 35
U.S.C. § 284;
E. award ENO treble damages pursuant, pursuant to 35 U.S.C. § 284, based on Defendant's
intentional, willful, and egregious acts of infringement;
F. award ENO pre-judgment interest and post-judgment interest on the damages awarded,
including pre-judgment interest, pursuant to 35 U.S.C. § 284, from the date of each act of
infringement of the Asserted Patent by Defendant to the day a damages judgment is
entered, and an award of post-judgment interest, pursuant to 28 U.S.C. § 1961,
continuing until such judgment is paid, at the maximum rate allowed by law;
G. enter a judgment and order finding this to be an exceptional case and requiring Defendant
to pay the costs of this action (including all disbursements) and attorneys' fees, pursuant
to 35 U.S.C. § 285;
H. order an accounting for damages;
I. award a compulsory future royalty for the Asserted Patents;
J. award to ENO monetary remedies in an amount to be determined by a trier of fact for all
harm caused by Defendant's actions, including Defendant's profits, the damages sustained
by ENO, costs of the action, reasonable attorneys' fees, and treble damages and profits as
authorized by law;
K. award to ENO monetary remedies in an amount to be determined by a trier of fact for all
harm caused by Defendant's application and/or imitation of the design in the ENO Design
14
Patent in the Infringing Products, in the form of Defendant's total profits from the sale of
the infringing products pursuant to 35 U.S.C. § 289;
L. award ENO interest, including prejudgment interest, on the foregoing amounts;
M. award any such further relief as the Court deems just and proper.
This the 29th day of March, 2018.
/s/ Joseph A. Schouten

Joseph A. Schouten
N.C. State Bar I.D. No.: 39430
email: jas@wardandsmith.com
Derek J. Allen
email: dja@wardandsmith.com
Caroline B. McLean
email: cbmclean@wardandsmith.com
For the firm of
Ward and Smith, P.A.
Post Office Box 2020
Asheville, NC 28802-2020
Telephone: 828.348.6070
Facsimile: 828.348.6077
Attorneys for Plaintiff
15
Exhibit A
Case 1:18-cv-00082 Document 1-1 Filed 03/29/18 Page 1 of 3

Exhibit B

Exhibit C

EXHIBIT D


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IN THE UNITED STATES DISTRICT COURT

FOR THE WESTERN DISTRICT OF NORTH CAROLINA

EAGLES NEST OUTFITTERS, INC., )

2. ENO is a North Carolina corporation with its principal place of business at

24 Buxton Avenue, Asheville, North Carolina 28801.

3. Upon information and belief, Defendant Dick's Sporting Goods, Inc. is a

Case 1:18-cv-00082 Document 1 Filed 03/29/18 Page 1 of 15

& Stream, another outdoor retailer specializing in hunting and fishing.

5. Upon information and belief, Defendant does business as "Field &

6. Upon information and belief, Defendant manufactures, sells, and/or offers

to sell goods under its "Field & Stream" brand.

under its "Field & Stream" brand.

8. Defendant does business in the Western District of North Carolina through

9. Among others in the Western District of North Carolina, Defendant

28801 (the "Dick's Physical Location").

10. Among others in the Western District of North Carolina, Defendant

28801 (the "Field & Stream Physical Location").

fixed physical locations located within this District.

Dick's Physical Location and Field & Stream Physical Location.

its Field & Stream website - www.fieldandstreamshop.com.

JURISDICTION AND VENUE

U.S.C. §§ 1331, 1367, and 1338(a).

hammock straps) described herein within this District.

infringement within this District.

22. Upon information and belief, Defendant has contributed to or induced

infringement by others in this District.

by consumers in the Western District of North Carolina.

District of North Carolina.

The Asserted Patents

and correct copy of the ENO design patent is attached as Exhibit A.

31. The Asserted Patents are valid and enforceable.

public to the joys of hammocking.

hammock accessories all over the world.

revolutionized the hammock industry.

Defendant Infringes ENO's Patents

37. Defendant is a company that, among other things, purports to

brands "Field and Stream" and "Logo Brands".

39. Defendant began to sell ENO's patented Atlas hammock straps in

at Defendant's stores dropped substantially.

(the "Field and Stream Infringing Products").

the Field & Stream Physical Location is attached hereto as Exhibit D.

45. Defendant's Infringing Products are also available online at

www.dickssportinggoods.com and www.fieldandstreamshop.com. ENO's patented and

competing Atlas hammock straps are sold on these websites as well.

alongside ENO's straps in Defendant's stores.

includes a hammock strap that infringes ENO's patents.

50. Upon information and belief, Defendant distributes the Infringing

16, and 18 of the '579 Patent and the '343 Patent.

52. ENO has never licensed, permitted, or authorized Defendant to practice

part thereof, into the United States.

and the '579 and '343 Patents issued to ENO.

sale Defendant's infringing patents.

Atlas hammock straps.

patent and the '579 patent.

59. Therefore, in having ENO's patented Atlas hammock straps in its

60. Notwithstanding this knowledge, Defendant chose to manufacture the

Products along with the Logo Infringing Products.

63. ENO has been damaged as a result of Defendant's infringing conduct.

COUNT 1 – INFRINGEMENT OF THE ASSERTED PATENTS

64. ENO repeats and realleges the allegations contained in paragraphs 1

through 63, as if fully set forth.

limited to, the Infringing Products.

66. Defendant has induced and continues to induce infringement of the

67. Defendant indirectly infringes the Asserted Patents by inducing

Eagles Nest Outfitters v. Dick's Sporting Goods - Complaint

Eagles Nest Outfitters v. Dick's Sporting Goods - Complaint