Trade Secrets Lawsuit V Reebok
Trade Secrets Lawsuit V Reebok
Defendant.
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) Civil Action No. ___________________
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) JURY TRIAL DEMANDED
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Plaintiff UNEQUAL is a corporation duly organized and existing under the laws
the Commonwealth of Massachusetts with its principal place of business at 1895 J.W. Foster
Boulevard, Canton, Massachusetts 02021.
The Court has jurisdiction over UNEQUALs claims for patent infringement
under the patent laws of the United States 35 U.S.C. 1 et seq., including 35 U.S.C. 271,
which gives rise to the remedies specified in 35 U.S.C. 281 and 283-285; under Delawares
Uniform Trade Secrets Act, 6 Del. C. 2001 et seq.; and under the common law.
4.
1331 and 1338(a). This Court also has jurisdiction over the subject matter of this action
pursuant to 28 U.S.C. 1367.
5.
This Court has personal jurisdiction over Reebok because, on information and
belief, Reebok is registered to do business in the State of Delaware, maintains a registered agent
in this judicial district at Corporation Services Company, 2711 Centerville Road, Suite 400,
Wilmington, Delaware, 19808, and has committed tortious act in the State of Delaware. On
information and belief, Reebok has committed tortious acts in the State of Delaware, including
by using, selling, offering to sell, or importing infringing products in the State of Delaware. On
information and belief, Reebok has purposefully availed itself of the rights and benefits of the
laws of the State of Delaware, at least by registering to do business here and selling or offering to
sell products in the State.
6.
because, on information and belief, Reebok is registered to do business in the State of Delaware
and has committed tortious acts in the State of Delaware.
PATENTS-IN-SUIT
7.
On January 4, 2005, the U.S. Patent and Trademark Office (PTO) duly and
legally issued U.S. Patent No. 6,837,812 (the 812 Patent), titled Vibration Dampening Grip
Cover For The Handle Of An Implement. The 812 Patent is attached hereto as Exhibit A.
8.
On August 30, 2005, the PTO duly and legally issued U.S. Patent No. 6,935,973
(the 973 Patent), titled Vibration Dampening Material. The 973 Patent is attached hereto
as Exhibit B.
9.
On February 6, 2007, the PTO duly and legally issued U.S. Patent No. 7,171,696
(the 696 Patent), titled Athletic Clothing With Sting Reduction Padding. The 696 Patent is
attached hereto as Exhibit C.
10.
The 812, 973, and 696 Patents are collectively the patents- in-suit.
11.
dissipating and vibration dampening materials to neutralize impact force energy using only
lightweight, ultrathin, flexible materials. Chief among the energy-dissipating material layers are
high tensile strength materials, such as aramid fibers like those in Kevlar. Kevlar is a
DuPont woven fiber sheet that is five times stronger than steel but is also flexible. In 2001,
inventor and UNEQUAL CEO Robert A. Vito began developing a method for coating high
tensile strength materials like Kevlar with elastomers to create a multi-layer, lightweight
composite for use in protective apparel and other industries.
UNEQUALs invention work coat the fibers of the high tensile strength materials and result in a
composite that is much stronger, thinner and more flexible, with enhanced vibration dampening
and force absorbing qualities.
13.
withstand battlefield conditions faced by armed forces, law enforcement and government
agencies. Uses include in helmets, knee protection, riot gear, stab fabric, protective foot gear,
and lightweight, fragment resistant clothing.
14.
athletic gear such as headbands, hats, helmets, gloves, kneepads, footgear, wrist, knee and elbow
protectors, shoes, and apparel. UNEQUAL is also used to cover handles, such as bicycle
handles, tennis rackets, and golf clubs, as well as the handles of other sporting equipment, other
implements, and power tools. UNEQUAL helps reduce the effects of impact, thereby reducing
injuries and abrasion, and increasing durability and resistance to cuts and tears.
15.
Prior to UNEQUALs invention, Kevlar and similar aramid materials were not
suitable for many of the applications, including sports apparel, which UNEQUAL makes
possible.
16.
In December 2002, Vito received the first of 49 U.S. and international patents
covering UNEQUALs groundbreaking technology for coating high tensile strength fibrous
materials and using such fibers in composites to create lightweight, flexible energy-dissipating
and vibration dampening materials, that also have other desirable characteristics.
17.
UNEQUAL has invested 15 years and approximately $30 million in Research and
18.
With 49 issued U.S. and international patents covering this technology, and
another 52 pending, UNEQUAL was the first to create and is the market leader of this field of
invention.
UNEQUALs Invention Has Met With Unqualified Success
19.
high-strength materials that do not inhibit or restrict mobility or performance, and which also
have added manufacturing, wearability, and marketability characteristics.
UNEQUALs
patented technology is effective in reducing the risk of bodily injury and concussions because it
utilizes a multi-layer composite that suppresses, absorbs and disperses energy, compared with
alternative foam and rubber materials that provide a bulkier, less effective substitute.
UNEQUALs unique multilayer composites exhibit new properties in combination that
outperform each of the individual layers.
20.
Major League Baseball, National Hockey League (NHL), and the X Games, as well as
thousands of collegiate and youth athletes in football, baseball, soccer, hockey, lacrosse, and
other activities, wear UNEQUALs protective head and body gear. UNEQUAL was recently
invited to attend the White House Concussion Summit, has been recognized as one of Forbes
100 Most Promising Companies, is among ESPNs Top 15 Best Sports Innovations, and was
named the No. 1 Technology Innovation of 2013 by Esquire.com. UNEQUAL was named Best
Composite by Composite Manufacturing Magazine. UNEQUAL was also the 2012 winner of
the DuPont Kevlar Innovation Award.
21.
top universities, and youth sports leagues. These test results show that UNEQUAL reduces
impact acceleration, reducing abrasion, cuts and injuries.
22.
Prominent neurosurgeons associated with the NFL and a trainer for an NHL team
have praised UNEQUALs products and recommend them for athletes who are proactive about
their head protection.
Reebok Is Willfully Infringing the Patents-In-Suit, Misappropriating UNEQUALs
Trade Secrets, and in Breach of The Parties NDA
23.
(NDA), in which each party agreed to share confidential information, and that it would not
knowingly use or disclose confidential information of the other party without the consent of the
other party. A copy of the NDA is attached hereto as Exhibit D. Under the terms of the NDA,
Reebok agreed that confidential information includes UNEQUALs business practices,
whether or not such practices were capable of trade secret protection.
24.
Reebok further agreed that confidential information under the NDA includes
Reebok. Pursuant to the NDA, UNEQUAL gave Reebok valuable confidential manufacturing
information, which UNEQUAL has spent years discovering. This information allowed Reebok
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UNEQUAL specifically
explained why and how the technology works for the applications, including CrossFit products,
that Reebok was interested in.
26.
The parties had a series of meetings and information exchanges relating to their
interest in a potential business relationship. UNEQUAL worked to meet Reeboks requests for
reductions in weight and bulk, and presented Reebok with its results and prototypes.
UNEQUAL and Reebok discussed licensing and using UNEQUALs products in Reeboks
CrossFit products, among others.
27.
In or around late July 2014, UNEQUAL became aware of a news article reporting
that Reebok intended to develop a new line of CrossFit sporting goods using Kevlar in tops,
bottoms and footwear. UNEQUAL contacted Reebok to discuss the article and remind Reebok
of the UNEQUAL patents and the NDA. Reebok explicitly stated that it did not intend to coat
the Kevlar or use UNEQUALs technology in Reeboks new product line. Instead, Reebok
explained that it intended to use uncoated Kevlar.
28.
business relationship. Pursuant to the NDA, in a November 2014 meeting, UNEQUAL gave
Reebok various products samples and explained the uses and efficacy of certain coatings.
29.
Upon information and belief, after the November 2014 meeting, Reebok stopped
communicating with UNEQUAL, after stating it had concerns about potential competition from
UNEQUALs retail sports apparel.
30.
In May 2015, UNEQUAL learned that Reebok had announced that it intended to
launch a new Reebok CrossFit apparel collection incorporating Kevlar on June 1, 2015, and
that these products would be available at Reebok.com, store.crossfit.com, and select retailers
worldwide.
31.
Upon information and belief, in June 2015, Reebok began making, using, selling,
offering for sale, or importing into the United States products using coated Kevlar and
UNEQUALs patented technology.
32.
UNEQUALs patents, and has been aware of UNEQUALs patents, at least since signing the
NDA in March 2014. Reebok is aware that it is using UNEQUALs patented technology for
coating Kevlar, including in Reeboks CrossFit apparel collection.
33.
the patents-in-suit, Reebok is inducing its manufacturers, agents, distributors, and direct and
indirect customers, including end users, to directly infringe the patents-in-suit through these
other parties manufacture, use, sale, offer to sell, or importation into the United States of
products including, for example, Reebok Kevlar CrossFit collection products, that are covered
by one or more claims of the patents-in-suit.
34.
On information and belief, Reebok has knowingly induced and will knowingly
induce such infringement of the patents-in-suit and with specific intent to induce such
infringement, including through activities relating to manufacturing, marketing, advertising,
promotion, support, and distribution of Reebok Kevlar CrossFit collection products.
35.
Reebok specifically markets, advertises, and promotes the benefits of the use of
coated Kevlar products, which can only be achieved through the use of the invention claimed
in the patents-in-suit.
Reebok advertises Reebok Kevlar CrossFit Short Built with Kevlar, Reebok Kevlar
CrossFit Tee Built with Kevlar, and other similar products, with [s]trategically placed
patches built with Kevlar [that] help reinforce and protect high abrasion zones. By way of
further example, Reebok actively publicizes such promotional and instructional materials for its
infringing products, including its CrossFit collection products, through numerous means,
including
through
its
website
at
http://www.reebok.com/us/crossfit,
at
and
at
http://www.store.crossfit.com/built_with_Kevlar,
https://www.youtube.com/watch?v=KCalfXJ5H3c&feature=youtu.be.
36.
On information and belief, Reebok also touts that it has partnered with DuPont in
a multi-year trademark license agreement for the use of the DuPont Kevlar and Dare
Bigger trademarks for use in the Reebok Kevlar CrossFit collection. Reebok knows that
the Reebok products incorporating coated Kevlar are infringing the patents-in-suit, and Reebok
specifically intends for its advertising and promotional statements to induce at least its customers
and retail partners to use, sell, or offer to sell the accused products in an infringing manner.
37.
On information and belief, Reebok also induces its agents and manufacturers to
39.
Reebok has infringed and, unless enjoined by the Court, Reebok will continue to
infringe, literally or under the doctrine of equivalents, the 812 Patent by making, using, selling,
or offering to sell in the United States, or importing into the United States products that are
covered by at least claim 1 of the 812 Patent. Such products include the Reebok Kevlar
CrossFit collection.
40.
In addition to directly infringing the 812 Patent, Reebok has indirectly infringed
and, unless enjoined by the Court, will continue to indirectly infringe the 812 Patent, including
by actively inducing others to directly infringe the 812 Patent in violation of 35 U.S.C. 271(b).
41.
Reebok has had knowledge of the 812 Patent and that Reeboks products would
infringe since at least March 2014, when it signed the NDA with UNEQUAL.
42.
Reebok was also aware since at least April 2014 that its products would infringe
the 812 Patent, when UNEQUAL began explaining to Reebok the manufacturing, marketability,
and wearability applications of UNEQUALs patented technology for Reeboks CrossFit
products.
43.
Reeboks infringement of the 812 Patent has been and continues to be willful and
deliberate. Despite Reeboks knowledge of the 812 Patent, its infringement thereof, and its
knowledge that its acts are encouraging direct infringement by others, including Reeboks
manufacturers, distributors, agents, and end users, on information and belief, Reebok has
intentionally continued to commit and encourage acts of direct infringement of the 812 Patent,
including through its activities as set forth above, by making, using selling, offering to sell, or
importing in the United States products, including the Reebok Kevlar CrossFit apparel
collection, that are covered by one or more claims of the 812 Patent. Reebok has acted and
continues to act despite an objectively high likelihood that its actions constitute infringement.
Reeboks willful and deliberate infringement entitles Plaintiffs to enhanced damages under
35 U.S.C. 284.
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44.
Unless and until enjoined by this Court, Reebok will continue to willfully infringe
the 812 patent, both directly and indirectly. Reeboks infringement is causing and will continue
to cause Plaintiffs irreparable harm, for which there is no adequate remedy at law. Under 35
U.S.C. 283, a preliminary and permanent injunction against further infringement is appropriate.
COUNT II
INFRINGEMENT OF THE 973 PATENT
45.
46.
Reebok has infringed and, unless enjoined by the Court, Reebok will continue to
infringe, literally or under the doctrine of equivalents, the 973 Patent by making, using, selling,
or offering to sell in the United States, or importing into the United States products that are
covered by at least claim 1 of the 973 Patent. Such products include the Reebok Kevlar
CrossFit collection.
47.
In addition to directly infringing the 973 Patent, Reebok has indirectly infringed
and, unless enjoined by the Court, will continue to indirectly infringe the 973 Patent, including
by actively inducing others to directly infringe the 973 Patent in violation of 35 U.S.C. 271(b).
48.
Reebok has had knowledge of the 973 Patent and that Reeboks products would
infringe since at least March 2014, when it signed the NDA with UNEQUAL.
49.
Reebok was also aware since at least April 2014 that its products would infringe
the 973 Patent, when UNEQUAL began explaining to Reebok the manufacturing, marketability,
and wearability applications of UNEQUALs patented technology for Reeboks CrossFit
products.
50.
Reeboks infringement of the 973 Patent has been and continues to be willful and
deliberate. Despite Reeboks knowledge of the 973 Patent, its infringement thereof, and its
knowledge that its acts are encouraging direct infringement by others, including Reeboks
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manufacturers, distributors, agents, and end users, on information and belief, Reebok has
intentionally continued to commit and encourage acts of direct infringement of the 973 Patent,
including through its activities as set forth above, by making, using, selling, offering to sell in the
United States, or importing into the United States products, including the Reebok Kevlar
CrossFit apparel collection, that are covered by one or more claims of the 973 Patent. Reebok
has acted and continues to act despite an objectively high likelihood that its actions constitute
infringement.
Unless and until enjoined by this Court, Reebok will continue to willfully infringe
the 973 patent, both directly and indirectly. Reeboks infringement is causing and will continue
to cause Plaintiffs irreparable harm, for which there is no adequate remedy at law. Under 35
U.S.C. 283, a preliminary and permanent injunction against further infringement is appropriate.
COUNT III
INFRINGEMENT OF THE 696 PATENT
52.
53.
Reebok has infringed and, unless enjoined by the Court, Reebok will continue to
infringe, literally or under the doctrine of equivalents, the 696 Patent by making, using, selling,
offering to sell, or importing into the United States products that are covered by at least claim 1
of the 696 Patent. Such products include the Reebok Kevlar CrossFit collection.
54.
In addition to directly infringing the 696 Patent, Reebok has indirectly infringed
and, unless enjoined by the Court, will continue to indirectly infringe the 696 Patent, including
by actively inducing others to directly infringe the 696 Patent in violation of 35 U.S.C. 271(b).
55.
Reebok has had knowledge of the 696 Patent and that Reeboks products would
infringe since at least March 2014, when it signed the NDA with UNEQUAL.
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56.
Reebok was also aware since at least April 2014 that its products would infringe
the 696 Patent, when UNEEQUAL began explaining to Reebok the manufacturing,
marketability, and wearability applications of UNEQUALs patented technology for Reeboks
CrossFit products.
57.
Reeboks infringement of the 696 Patent has been and continues to be willful and
deliberate. Despite Reeboks knowledge of the 696 Patent, its infringement thereof, and its
knowledge that its acts are encouraging direct infringement by others, including Reeboks
manufacturers, distributors, agents, and end users, on information and belief, Reebok has
intentionally continued to commit and encourage acts of direct infringement of the 696 Patent,
including through its activities as set forth above, by making, using selling, offering to sell, or
importing in the United States products, including the Reebok Kevlar CrossFit apparel
collection, that are covered by one or more claims of the 696 Patent. Reebok has acted and
continues to act despite an objectively high likelihood that its actions constitute infringement.
Reeboks willful and deliberate infringement entitles Plaintiffs to enhanced damages under
35 U.S.C. 284.
58.
Unless and until enjoined by this Court, Reebok will continue to willfully infringe
the 696 patent, both directly and indirectly. Reeboks infringement is causing and will continue
to cause Plaintiffs irreparable harm, for which there is no adequate remedy at law. Under
35 U.S.C. 283, a preliminary and permanent injunction against further infringement is
appropriate.
COUNT V
MISAPPROPRIATION OF TRADE SECRETS UNDER THE
DELAWARE UNIFORM TRADE SECRETS ACT
59.
60.
Secrets Act, 6. Del. C. 2001, et. seq. UNEQUALs trade secrets derive independent economic
value by virtue of not being generally known to or readily ascertainable by proper means by
other persons who can obtain economic value from its disclosure or use. UNEQUAL has taken
reasonable measures to maintain the secrecy of its trade secrets and confidential information,
including but not limited to executing an NDA with Reebok.
61.
UNEQUAL only shared its trade secrets and confidential information with
Reebok pursuant to the NDA. Reebok understood the technical details of the trade secret and
appreciated the importance of the trade secret in the development, marketing and sale of
competing products. Upon information and belief, Reebok knew or should have known that it
was obligated to limit the use and disclosure of UNEQUALs trade secret information. Upon
information and belief, Reebok misappropriated UNEQUALs trade secret and confidential
information for use in manufacturing Reeboks products, including Reebok Kevlar CrossFit
collection products.
62.
continue to be damaged, and Reebok has been and will continue to be unjustly enriched at
UNEQUALs expense in an amount to be proved at trial.
63.
Reeboks acts have caused and will continue to cause irreparable harm to
UNEQUAL for which UNEQUAL has no adequate remedy at law. The Court should remedy
the irreparable harm to UNEQUAL through equitable relief, including a preliminary and
permanent injunction.
64.
Because Reebok has acted willfully and maliciously, exemplary damages and an
award of UNEQUALs attorneys fees are appropriate pursuant to 6 Del. C. 2003 & 2004.
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COUNT VI
BREACH OF CONTRACT
65.
66.
On information and belief, Reebok materially breached the terms of the NDA
entered into by the parties, including but not limited to by: (i) failing to take all necessary steps
to protect UNEQUALs confidential information; (ii) knowingly disclosing and/or using
UNEQUALs confidential manufacturing information to manufacture Reeboks infringing
products without UNEQUALs consent; and (iii) practicing UNEQUALs confidential
information without any license or permission from UNEQUAL.
67.
UNEQUAL has performed all conditions to be performed on its part under the
68.
NDA.
Reeboks breach of the NDA, including but not limited to, actual, compensatory, and incidental
damages, lost profits, reasonable royalties, customers, sales, potential investors and business
goodwill.
69.
Reeboks breach has caused and will continue to cause irreparable harm to
UNEQUAL for which UNEQUAL has no adequate remedy at law. The Court should remedy
the irreparable harm to UNEQUAL through equitable relief, including a preliminary and
permanent injunction.
PRAYER FOR RELIEF
WHEREFORE, Plaintiffs respectfully request that the Court enter judgment in their favor
and pray that the Court grant the following relief to Plaintiffs:
A.
A judgment that the 812, 973, and 696 patents are infringed by Reeboks
manufacture, offers to sell, sales, or uses within the United States, or importation into the United
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States, of products, including without limitation products such as Reebok Kevlar CrossFit
collection products, that practice or are used in the practice of one or more of the inventions
claimed in the 812, 973, and 696 patents.
B.
subsidiaries, and each of its officers, agents, servants and employees and those acting in privity
or concert with them, from directly or indirectly infringing any of the claims of the patents-insuit, and from causing or encouraging others to directly or indirectly infringe any claim of the
patents-in-suit until after the expiration date of the patents-in-suit, including any extensions
and/or additional periods of exclusivity which Plaintiffs are granted;
C.
compensate Plaintiffs for its damages arising from infringement by Reebok, including, but not
limited to, lost profits and/or a reasonable royalty, together with prejudgment and postjudgment
interest, and costs;
D.
to 35 U.S.C. 284;
E.
An accounting and/or supplemental damages for all damages occurring after any
discovery cutoff and through the Courts decision regarding the imposition of a permanent
injunction;
F.
subsidiaries, and each of its officers, agents, servants and employees and those acting in privity
or concert with them, from using any of UNEQUALs trade secrets or confidential information;
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H.
for its damages arising from Reeboks misappropriation of trade secrets and confidential
information;
I.
and awarding UNEQUAL exemplary damages and an award of UNEQUALs attorneys fees are
appropriate pursuant to 6 Del. C. 2003 & 2004;
J.
for its damages arising from Reeboks breach of the NDA; and
K.
Such further and other relief as this Court deems proper and just.
JURY DEMAND
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