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Jeffrey W. Johnson
SCHMEISER, OLSEN & WATTS, LLP 18 E. University Drive, Suite 101 Mesa, Arizona 85201 Telephone: (480) 655-0073 jjohnson@IPlawUSA.com Scott R. Ryther (Pro Hac Vice Application Forthcoming) Jared L. Cherry (Pro Hac Vice Application Forthcoming) PHILLIPS RYTHER & WINCHESTER LLC 560 East 500 South, Suite 200 Salt Lake City, Utah 84102 Telephone: (801) 935-4935 Attorneys for Trackout Industries, LLC IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF ARIZONA TRACKOUT INDUSTRIES, LLC, an Arizona limited liability company, Plaintiff, v. INNOVATIVE DEVELOPMENT GROUP LLC, an Arizona limited liability company, and DESERT SERVICES, an entity of unknown origin, Defendant. COMPLAINT FOR PATENT INFRINGEMENT Plaintiff Trackout Industries, LLC (Trackout) hereby complains against defendants Innovative Development Group, LLC, and Desert Services (collectively Defendants), and for its causes of action alleges as follows: PARTIES 1. Trackout is a limited liability company organized and operating under the laws of COMPLAINT AND JURY DEMAND (Patent Infringement)

Case No. _______________________

the state of Arizona with its principal place of business at 811 West Warner Road, Tempe, AZ 85284-2957. Page 1 of 10

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2.

Upon information and belief, Defendant Innovative Development Group, LLC

(IDG) is an Arizona limited liability company with its headquarters at 9140 East Carol Way, Scottsdale, AZ 85260. 3. Upon information and belief, Defendant Desert Services (Desert Services) is an

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it sells the products at issue in this dispute in this judicial district. 5. Defendant IDG is subject to personal jurisdiction in this judicial district because it is a limited liability company organized under the laws of Arizona, because it conducts business in this judicial district, and because it sells the products at issue in this dispute in this judicial district. 6. Upon information and belief, Defendant Desert Services is subject to personal 4. entity of unknown origin and sponsorship with its headquarters at 11000 North Scottsdale Rd, #270, Scottsdale, AZ 85254. JURISDICTION AND VENUE This is an action for infringement under the patent laws of the United States, 35

U.S.C. 271, et. seq, and this Court has jurisdiction over the subject matter of this dispute pursuant to 28 U.S.C. 1331 and 1338(a).

jurisdiction in this judicial district because it conducts business in this judicial district and because

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Patent and Trademark Office on April 19, 2005. The 006 Patent claims an apparatus for 8. 7. Venue is proper in this Court under 28 U.S.C. 1400(b) and 28 U.S.C. 1391(b) because Defendants conduct their business in this Judicial District, and because the acts giving rise to this Complaint occurred in this judicial district. GENERAL ALLEGATIONS U.S. Patent No. 6,881,006 for DEVICE AND METHOD FOR REDUCING

CONSTRUCTION SITE TRACK OUT (the 006 Patent) was issued by the United States

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removing track out from a moving vehicle. A copy of the 006 Patent is attached hereto as Exhibit A. 9. U.S. Patent No. 6,981,818 for METHOD AND DEVICE FOR REDUCING

CONSTRUCTION SITE TRACK OUT (the 818 Patent) was issued by the United States

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Trademark Office on August 17, 2010. The patent application from which the 739 Patent issued Patent and Trademark Office on June 13, 2006. The patent application from which the 799 Patent issued was filed as a continuation of the patent application from which the 818 Patent was issued. The 799 Patent claims an apparatus for removing track out from a moving vehicle. A copy of the 799 Patent is attached hereto as Exhibit C. 11. U.S. Patent No. 7,775,739 for METHOD AND DEVICE FOR REDUCING Patent and Trademark Office on January 3, 2006. The patent application from which the 818 Patent issued was filed as a continuation-in-part of the patent application from which the 006 Patent was issued. The 818 Patent claims a method for removing track out from a vehicle. A copy of the 818 Patent is attached hereto as Exhibit B. 10. U.S. Patent No. 7,059,799 for METHOD AND DEVICE FOR REDUCING

CONSTRUCTION SITE TRACK OUT (the 799 Patent) was issued by the United States

CONSTRUCTION TRACK OUT (the 739 Patent) was issued by the United States Patent and

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enforceable. claims priority to the patent application from which the 799 Patent was issued. The 739 Patent claims a method for removing track out from a vehicle. A copy of the 739 Patent is attached hereto as Exhibit D. 12. Trackout is the owner of the entire right, title, and interest in the 006 Patent, the

818 Patent, the 799 Patent, and the 739 Patent (collectively, the Patents-in-Suit). 13. The Patents-in-Suit are each duly and legally issued and are each valid and

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14.

Trackout sells a line of products under its GRIZZLY trademark that embody the

limitations of one of more claims of the Patents-in-Suit. Photographs of exemplary products sold by Trackout under its GRIZZLY trademark are attached hereto as Exhibit E. 15. Upon information and belief, Defendants make, use, offer to sell, sell, and/or

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006 Patent, yet willfully and intentionally commenced and have continued infringement of the either directly, or in a contributory or induced manner (35 U.S.C. 271(a), (b), or (c)), one or more claims of the 006 Patent in this District and elsewhere by making, using, offering to sell, selling, and/or importing track out structures. 20. Upon information and belief, Defendants track out structures infringe at least 18. import track out structures designed to remove track out from a vehicle. 16. Upon information and belief, a photograph of two of Defendants track out

structures is attached hereto as Exhibit F. 17. Defendants track out structures compete directly with Trackouts products sold

under Trackouts GRIZZLY trademark. FIRST CLAIM FOR RELIEF (Infringement of U.S. Patent No. 6,881,006) Trackout hereby incorporates the allegations in paragraphs 1 through 17 above as

though fully set forth herein. 19. Upon information and belief, Defendants have infringed and continue to infringe,

claim 1 of the 006 Patent. 21. Upon information and belief, Defendants had notice of Trackouts rights under the

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006 Patent. 22. Upon information and belief, by reason of Defendants infringement of the 006

Patent, as alleged above, Trackout has lost sales of products sold under its GRIZZLY trademark, which it otherwise would have made. Page 4 of 10

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23.

Upon information and belief, Defendants are liable to Trackout for the lost profits

and/or reasonable royalty and any additional profits attributable to such infringement in an amount to be determined at trial. 24. Upon information and belief, Trackout has been and will continue to be damaged

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29. Upon information and belief, by reason of Defendants infringement of the 818 27. Upon information and belief, Defendants track out structures may be utilized to perform the method recited in at least claim 1 of the 818 Patent, and Defendants contribute to and/or induce infringement of at least claim 1 of the 818 Patent. 28. Upon information and belief, Defendants had notice of Trackout's rights under the 25. Trackout hereby incorporates the allegations in paragraphs 1 through 24 above as though fully set forth herein. 26. Upon information and belief, Defendants have infringed and continue to infringe, by Defendants continuing infringement of the 006 Patent. SECOND CLAIM FOR RELIEF (Infringement of U.S. Patent No. 6,981,818)

either directly, or in a contributory or induced manner (35 U.S.C. 271(a), (b), or (c)), one or more claims of the 818 Patent, including by way of example and not limitation, claim 1 of the 818 Patent, in this District and elsewhere by making, using, offering to sell, selling, and/or importing track out structures.

818 Patent, yet willfully and intentionally commenced and have continued infringement of the 818 Patent.

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Page 5 of 10 Patent, as alleged above, Trackout has lost sales of products sold under its GRIZZLY trademark, which it otherwise would have made.

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30.

Upon information and belief, Defendants are liable to Trackout for the lost profits

and/or reasonable royalty and any additional profits attributable to such infringement in an amount to be determined at trial. 31. Trackout has been and will continue to be damaged by Defendants continuing

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trademark, which it otherwise would have made. claim 1 of the 799 Patent. 35. Upon information and belief, Defendants had notice of Trackout's rights under the 32. Trackout hereby incorporates the allegations in paragraphs 1 through 31above as though fully set forth herein. 33. Defendants have infringed and continue to infringe, either directly, or in a infringement of the 818 Patent. THIRD CLAIM FOR RELIEF (Infringement of U.S. Patent No. 7,059,799)

contributory or induced manner (35 U.S.C. 271(a), (b), or (c)), one or more claims of the 799 Patent, including by way of example and not limitation, claim 1 of the 799 Patent, in this District and elsewhere by making, using, offering to sell, selling, and/or importing track out structures. 34. Upon information and belief, Defendants track out structures infringe at least

799 Patent, yet willfully and intentionally commenced and have continued infringement of the 799 Patent. 36. Upon information and belief, by reason of Defendants infringement of the 799

Patent, as alleged above, Trackout has lost sales of products sold under its GRIZZLY

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Page 6 of 10 37. Upon information and belief, Defendants are liable to Trackout for the lost profits and/or reasonable royalty and any additional profits attributable to such infringement in an amount to be determined at trial.

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38.

Trackout has been and will continue to be damaged by Defendants continuing

infringement of the 799 Patent. FOURTH CLAIM FOR RELIEF (Infringement of U.S. Patent No. 7,775,739) 39. Trackout hereby incorporates the allegations in paragraphs 1 through 38above as

though fully set forth herein. 40. Upon information and belief, Defendants have infringed and continue to infringe,

either directly, or in a contributory or induced manner (35 U.S.C. 271(a), (b), or (c)), one or more claims of the 739 Patent, including by way of example and not limitation, claim 1 of the 739 Patent, in this District and elsewhere by making, using, offering to sell, selling, and/or importing track out structures. 41. Upon information and belief, Defendants track out structures may be utilized to

perform the method recited in at least claim 1 of the 739 Patent, and Defendants contribute to and/or induce infringement of at least claim 1 of the 739 Patent. 42. Upon information and belief, Defendants had notice of Trackout's rights under the

739 Patent, yet willfully and intentionally commenced and have continued infringement of the 739 Patent. 43. Upon information and belief, by reason of Defendants infringement of the 739

Patent, as alleged above, Trackout has lost sales of products sold under its GRIZZLY trademark, which it otherwise would have made. 44. Upon information and belief, Defendants are liable to Trackout for the lost profits

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and/or reasonable royalty and any additional profits attributable to such infringement in an amount to be determined at trial. 45. Trackout has been and will continue to be damaged by Defendants continuing

infringement of the 739 Patent. Page 7 of 10

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B. C. D. E.

PRAYER FOR RELIEF

WHEREFORE, Trackout demands trial by jury and prays that this Court: A. Enter an order that Defendants have infringed the 006 Patent; Enter an order that Defendants have infringed the 818 Patent; Enter an order that Defendants have infringed the 799 Patent; Enter an order that Defendants have infringed the 739 Patent; Enter judgment in favor of Trackout and against Defendants for damages for patent infringement pursuant to 35 U.S.C. 284 in an amount to be determined at trial, for Trackouts lost profits and/or reasonable royalty and any additional profits of Defendant attributable to infringement of the 006

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determined at trial, for Trackouts lost profits and/or reasonable royalty and Page 8 of 10 H. G. Enter judgment in favor of Trackout and against Defendants for damages for patent infringement pursuant to 35 U.S.C. 284 in an amount to be determined at trial, for Trackouts lost profits and/or reasonable royalty and any additional profits of Defendant attributable to infringement of the 799 Patent; Enter judgment in favor of Trackout and against Defendants for damages for patent infringement pursuant to 35 U.S.C. 284 in an amount to be F. Patent; Enter judgment in favor of Trackout and against Defendants for damages for patent infringement pursuant to 35 U.S.C. 284 in an amount to be determined at trial, for Trackouts lost profits and/or reasonable royalty and any additional profits of Defendant attributable to infringement of the 818 Patent;

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I.

any additional profits of Defendant attributable to infringement of the 739 Patent; Enter judgment in favor of Trackout and against Defendants for treble damages pursuant to 35 U.S.C. 284 by reason of Defendants deliberate

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N. Enter a permanent injunction prohibiting further infringement, inducement, and contributory infringement of the 818 Patent; O. Enter a permanent injunction prohibiting further infringement, inducement, and contributory infringement of the 799 Patent; P. Enter a permanent injunction prohibiting further infringement, inducement, and contributory infringement of the 739 Patent; Q. Enter an Order awarding Trackout interest and reasonable attorneys fees pursuant to 35 U.S.C. 285, as well as costs and expenses; and M. L. and willful infringement of the 799 Patent; Enter judgment in favor of Trackout and against Defendants for treble damages pursuant to 35 U.S.C. 284 by reason of Defendants deliberate and willful infringement of the 739 Patent; Enter a permanent injunction prohibiting further infringement, inducement, and contributory infringement of the 006 Patent; K. J. and willful infringement of the 006 Patent; Enter judgment in favor of Trackout and against Defendants for treble damages pursuant to 35 U.S.C. 284 by reason of Defendants deliberate and willful infringement of the 818 Patent; Enter judgment in favor of Trackout and against Defendants for treble damages pursuant to 35 U.S.C. 284 by reason of Defendants deliberate

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R.

Enter an Order granting Trackout such other and further relief as the Court deems just and proper.

DEMAND FOR JURY TRIAL Pursuant to the Federal Rules of Civil Procedure 38(b), Trackout demands a trial by jury for this action on all issues so triable.

DATED this 16th day of March, 2012.

SCHMEISER, OLSEN & WATTS, LLP PHILLIPS RYTHER & WINCHESTER LLC

__/Jeffrey W. Johnson/______________________ By: Jeffrey W. Johnson Attorneys for the Plaintiff

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