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R. Scott Weide, Esq. Nevada Bar No. 5541 sweide@weidemiller.com Kendelee L. Works, Esq. Nevada Bar No. 9611 kworks@weidemiller.com
WEIDE & MILLER, LTD.

7251 W. Lake Mead Blvd., Suite 530 Las Vegas, NV 89128-8373 Tel. (702) 382-4804 Fax (702) 382-4805 Attorneys for JS Products, Inc. UNITED STATES DISTRICT COURT DISTRICT OF NEVADA JS PRODUCTS, INC., ) ) ) ) ) ) ) ) ) ) ) Case No.: 2:11-cv-01856 COMPLAINT FOR DECLARATORY JUDGMENT OF PATENT INVALIDITY AND NONINFRINGEMENT (DEMAND FOR JURY TRIAL)

11 Plaintiff, 12 vs. 13 14 15 16 KABO TOOL COMPANY; JOHN DOE ENTITIES I-X; and JOHN DOES XI-XX, Defendants.

Plaintiff JS PRODUCTS, INC., a Nevada corporation, ("JSP") hereby alleges against 17 Defendant KABO TOOL COMPANY, ("Kabo"), John Doe Entities I-X, and John Does XI-XX 18 (also referred to herein as Defendants) as follows: 19 THE PARTIES 20 1. 21 in this Judicial District and having offices located in the City of Las Vegas in Clark County, 22 Nevada. 23 2. 24 Taiwanese company that regularly conducts business in this Judicial District by, among other 25 things, distributing its products in this Judicial District, including via JSP. 26 3. 27 identities are presently unknown and who are sued by fictitious names. JSP believes that such 28
W EIDE & MILLER, LTD.
7251 W. LAKE MEAD BLVD., SUITE 530 LAS VEGAS, NEVADA 89128-8373 (702) 382-4804

JSP is, and was at all times relevant hereto, a Nevada corporation doing business

Upon information and belief, Kabo is, and was at all times relevant hereto, a

John Doe Entities I-X are corporations or other business entities whose true

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W EIDE & MILLER, LTD.
7251 W. LAKE MEAD BLVD., SUITE 530 LAS VEGAS, NEVADA 89128-8373 (702) 382-4804

fictitious defendants are or may be responsible for the occurrences described in this Complaint and for the resulting damages to JSP. JSP will amend this Complaint when the true identities of these defendants are known. 4. John Does XI-XX are individuals whose true identities are presently unknown

and who are sued by fictitious names. JSP believes that such fictitious defendants are or may be responsible for the occurrences described in this Complaint and for the resulting damages to JSP. JSP will amend this Complaint when the true identities of these defendants are known. JURISDICTION AND VENUE 5. These claims arise under the Declaratory Judgment Act, 28 U.S.C. 2201 and

2202, and the Patent Laws of the United States, 35 U.S.C. 1 et seq. 6. This Court has subject matter jurisdiction based upon 28 U.S.C. 1331, 1338(a)

because this case involves federal questions arising under the patent and trademark laws of the United States. 35 U.S.C. 1 et seq.; 15 U.S.C. 1051 et seq. 7. and 1400(b). STATEMENT OF THE CASE 8. This is a civil action seeking a declaratory judgment that certain products that Venue is proper in this judicial district pursuant to 28 U.S.C. 1391(b) and (c),

JSP imports into the United States and that JSP sells or offers for sale, more specifically certain JSP wrenches, (the Accused Products), do not infringe certain intellectual property rights of Kabo. In particular, JSP seeks a declaratory judgment that: 1) the Accused Products do not infringe U.S. Patent No. 7,066,057 (the 057 Patent); and 2) the 057 Patent is invalid and/or unenforceable. Exhibit A is a copy of the 057 Patent. 9. JSP further seeks damages for Kabos intentional interference with JSPs

contractual relations, Kabos interference with JSPs prospective economic advantages, and for Kabos disparagement of JSP. 10. On August 29, 2011, counsel for Kabo informed JSP via written correspondence

that Kabo is the owner of the 057 Patent, that Kabo believed JSPs conduct with regard to the Accused Products was infringing the 057 Patent, and further demanded that JSP cease and
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W EIDE & MILLER, LTD.
7251 W. LAKE MEAD BLVD., SUITE 530 LAS VEGAS, NEVADA 89128-8373 (702) 382-4804

desist any allegedly infringing activity (Cease and Desist Letter). 11. On August 31, 2011, JSP responded to Kabos Cease and Desist Letter by

acknowledging receipt of Kabos demand but disagreeing with Kabos assertions regarding the alleged infringement. In particular, by JSPs response, JSP detailed inaccuracies in Kabos basis for asserting that the Accused Products infringe the 057 Patent and otherwise detailed the basis for JSPs determination that the Accused Products do not infringe the 057 Patent. 12. After receiving JSPs response and analysis which clearly dispelled any basis that

the Accused Products infringed the 057 Patent, Kabo contacted certain vendor(s) with whom JSP had previously established contractual relationships and, upon information and belief, knowingly provided said vendor(s) with false information and/or made false claims regarding JSPs purportedly infringing activities, thereby negatively impacting JSPs existing and prospective contractual relationships and disparaging JSP. 13. Upon information and belief, Kabo was aware of JSPs existing contractual

relationships and intentionally acted in order to interfere with said relationships. 14. As a result of Kabos conduct, JSP has suffered financial and business losses,

including damage to its reputation. THE PRESENCE OF A CASE OR CONTROVERSY 15. To avoid legal uncertainty and to prevent any further attempts to interfere with its

business, JSP has brought these claims for a declaratory judgment of unenforceability and/or invalidity with regard to the 057 Patent. An actual justiciable controversy exists between the Parties as to the infringement and invalidity of the Accused Products and the 057 Patent. FIRST CLAIM FOR RELIEF (Declaratory Judgment of Non-Infringement and Invalidity and/or Unenforceability of the 057 Patent) 16. 17. JSP realleges and incorporates by reference the allegations of paragraphs 1-15. The 057 Patent is invalid and/or unenforceable for failure to meet one or more

of the requirements of patentability under 35 U.S.C. 101, et seq. including but not limited to 35 U.S.C. 102, 103 and 112.
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W EIDE & MILLER, LTD.
7251 W. LAKE MEAD BLVD., SUITE 530 LAS VEGAS, NEVADA 89128-8373 (702) 382-4804

18.

Even if the 057 Patent was deemed valid or enforceable, none of the Accused

Products infringe upon the 057 Patent. 19. Accordingly, JSP is entitled to a declaratory judgment that the claims of the 057

Patent are invalid and/or unenforceable and that the Accused Products do not infringe the 057 Patent. SECOND CLAIM FOR RELIEF (State Law Claim for Intentional Interference with Contractual Relations and/or Prospective Economic Advantage) 20. 21. JSP realleges and incorporates by reference the allegations of paragraphs 1-19. JSP enjoyed various contractual relationships for the distribution and/or sale of

JSPs products, of which Kabo was aware. 22. Intending to harm JSP by interfering with, preventing and/or causing termination

of those contractual relationships, Kabo and/or its principals, employees and/or agents, intentionally interfered with such relationships by asserting baseless claims of infringement and liability and timing those claims to interfere with JSPs existing contractual relations, resulting in the loss of economic advantage to JSP. 23. conduct. 24. 25. The aforementioned conduct by Kabo has resulted in actual harm to JSP. As a direct and proximate cause of Kabos conduct, JSP has sustained damages Kabo is without any legal right, privilege or justification for the aforementioned

in an amount to be proven at trial. 26. Kabos actions were knowing, willful, intentional and performed with malice and

warrant the imposition of exemplary damages. 27. As a direct and proximate cause of Kabos conduct, JSP has sustained special

damages in the nature of attorneys fees and costs incurred to bring this action in an amount to be proven at trial. /// ///
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W EIDE & MILLER, LTD.
7251 W. LAKE MEAD BLVD., SUITE 530 LAS VEGAS, NEVADA 89128-8373 (702) 382-4804

THIRD CLAIM FOR RELIEF (Common Law Claim for Commercial Disparagement and/or Corporate Defamation) 28. 29. JSP realleges and incorporates by reference the allegations of paragraphs 1-27. Acting with the purpose of harming JSP and/or its business and reputation, Kabo

contacted individuals or companies having relationships with JSP and made false statements regarding JSP and/or its products and services. 30. Kabos false statements intentionally called into question the reputation of JSP

and/or the quality of JSPs products and services. 31. As a direct and proximate result of Kabos false statements to third parties, JSP

has sustained damages in an amount to be proven at trial. 32. As a direct and proximate cause of Kabos conduct, JSP has sustained special

damages in the nature of attorneys fees and costs incurred to bring this action in an amount to be proven at trial. PRAYER FOR RELIEF WHEREFORE, JSP respectfully requests that this Court enter a Judgment and Order in its favor and against Kabo: A. B. infringed; C. Permanently enjoining Kabo and/or its officers, agents, directors, servants, Declaring that the claims of the 057 Patent are invalid and/or unenforceable; Declaring that no valid and enforceable claim of the 057 Patent has been

employees, subsidiaries, and assigns, and all those acting under the authority of or in privy with them or with any of them, from asserting or otherwise seeking to enforce the 057 Patent against JSP and/or its licensees or assigns; D. Declaring that this case is an exceptional case under 35 U.S.C. 285 and

awarding JSP its attorneys fees, cost and expenses; and E. Awarding JSP monetary damages in an amount to be proven at the time of trial

with regard to its claim for Intentional Interference with Contractual Relations and/or Prospective Economic Advantage, as well as for Commercial Disparagement and/or Corporate
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Defamation. F. Awarding JSP attorney fees incurred as special damages with regard to it claim

for Intentional Interference with Contractual Relations, as well as for Commercial Disparagement and/or Corporate Defamation. G. and equitable. DATED this 17th day of November, 2011. Respectfully Submitted, Awarding JSP any further additional relief as the Court may deem just, proper

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W EIDE & MILLER, LTD.
7251 W. LAKE MEAD BLVD., SUITE 530 LAS VEGAS, NEVADA 89128-8373 (702) 382-4804

/s/ Kendelee L. Works R. Scott Weide, Esq. Kendelee L. Works, Esq. 7251 W. Lake Mead Blvd., Suite 530 Las Vegas, NV 89128 Attorneys for JS Products, Inc.

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EXHIBIT A

EXHIBIT A