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7
8 UNITED STATES DISTRICT COURT
9 CENTRAL DISTRICT OF CALIFORNIA
10
11 CASE NO. 2:21-cv-1323
CALIFORNIA COSTUME
12 COLLECTIONS, INC.,
13 Plaintiff, COMPLAINT
14 v.
15
PANDALOON, LLC. JURY TRIAL DEMANDED
16
Defendant.
17
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COMPLAINT
Case 2:21-cv-01323 Document 1 Filed 02/12/21 Page 2 of 13 Page ID #:2
1 Declaratory Judgment Act, 28 U.S.C. §§ 2201 and 2202. The Court also has
2 supplemental jurisdiction pursuant to 28 U.S.C. § 1367 over the state claims
3 because they are related to the patent claims and form part of the same case and
4 controversy.
5 8. There exists a real and immediate controversy between CCC and
6 Defendant concerning Defendant’s allegations that CCC infringes Defendant’s ‘325
7 Patent.
8 9. Defendant claims to be the assignee of all rights, title and interest in
9 the ‘325 Patent and has alleged in writing to CCC and Amazon that certain of
10 CCC’s products infringe the ‘325 Patent.
11 10. Defendant also obtained the suspension of CCC’s accused product
12 listings, and the listings of CCC’s customers selling CCC’s accused products, on
13 Amazon.
14 11. CCC has tried to get Defendant to withdraw its Amazon complaints
15 against CCC’s product listings, contacting Defendant’s attorneys multiple times via
16 email, letter and phone calls. Defendant’s attorneys have refused to reply to CCC’s
17 correspondence and phone messages.
18 12. The Amazon listings for CCC’s accused products remain down,
19 harming CCC and CCC’s customers.
20 13. This Court has general personal jurisdiction over Defendant because it
21 has engaged in systematic and continuous business activities in this District and,
22 upon information and belief, hast its principal place of business in California.
23 14. In addition, as described below, this Court has specific personal
24 jurisdiction over Defendant because Defendant has accused CCC of patent
25 infringement and purposefully directed its ‘325 Patent enforcement activities at
26 CCC, a California resident, within this District. Defendant sent a cease and desist
27 letter to CCC in this District. Defendant also obtained the take down of CCC’s
28 sales listings of the accused products from Amazon which seeks to refrain CCC’s
2
COMPLAINT
Case 2:21-cv-01323 Document 1 Filed 02/12/21 Page 4 of 13 Page ID #:4
1 27. The letter further asked Defendant to withdraw its Amazon complaints
2 against CCC’s Accused Product listings. A true and correct copy of CCC’s
3 September 1, 2020 letter is attached hereto as Exhibit 2.
4 28. Defendant never responded to CCC’s letter.
5 29. CCC’s attorneys attempted to contact Defendant’s attorneys by email
6 and phone multiple times but all communications went unanswered.
7 30. Upon information and belief, Defendant wrongfully accused CCC’s
8 Accused Product of infringing the ‘325 Patent for the improper, anti-competitive
9 purpose of interfering with CCC’s business.
10 31. Amazon listings for the Accused Products remain down.
11 32. Since August 2020, CCC has been unable to sell its Accused Product
12 on Amazon.com through its resellers, resulting in a significant loss in revenue and
13 profits for CCC and CCC’s customers.
14 33. CCC’s Accused Product ranking on Amazon has also been adversely
15 affected, damaging CCC’s reputation, reviews and standing.
16 Patent-in-Suit
17 34. On December 26, 2017, the United States Patent and Trademark
18 Office (“USPTO”) issued the ‘325 Patent,” titled “Pet Costume.” The ‘325 Patent
19 issued from U.S. Patent Application No. 29/606,387 (“the ‘387 Application”) filed
20 on June 4, 2017. A true and correct copy of the ‘325 Patent is appended to
21 Defendant’s cease and desist letter attached to this Complaint as Exhibit 1.
22 35. Upon information and belief, Defendant is the assignee of all right,
23 title and interest in the ‘325 Patent, including all rights to enforce and prosecute
24 actions for infringement and to collect damages for all relevant times.
25 36. Figure 8 of the ‘325 Patent showing the claimed design is shown
26 below:
27
28
5
COMPLAINT
Case 2:21-cv-01323 Document 1 Filed 02/12/21 Page 7 of 13 Page ID #:7
1
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11
12
13 37. Defendant submitted an Information Disclosure Statement (IDS) at the
14 time the ‘325 Application was filed. In the submitted (IDS), no mention was made
15 of the readily available prior art costumes such as those disclosed in CCC’s letter.
16 COUNT 1
17 Declaratory Judgement of Non-Infringement of the ‘325 Patent
18 38. CCC incorporates the foregoing paragraphs by reference as though
19 fully set forth herein.
20 39. CCC has not infringed and does not infringe the claim of the ‘325
21 Patent either directly, contributorily, or by inducement, literally or under the
22 doctrine of equivalents, including through its making, use, importation into the
23 United States, sale, and/or offer for sale of the Accused Product.
24 40. Claim 1 of the ‘325 Patent is directed to only the ornamental design of
25 the pet costume shown in Figures 1-8 of the patent.
26 41. The Accused Product does not infringe the ‘325 Patent because it does
27 not include every claim limitation. As one example, the claimed design requires the
28
6
COMPLAINT
Case 2:21-cv-01323 Document 1 Filed 02/12/21 Page 8 of 13 Page ID #:8
1 bear-shaped hood to be attached to the body of the costume. The hood on the
2 Accused Product is not attached to the costume body.
3 42. Separately and additionally, the claimed design requires a drawstring
4 closure around the face opening of the hood. The Accused Product does not have
5 such a closure.
6 43. As a further example, the ‘325 Patent claims a one-fold, half circle ear
7 shape which is not found in the Accused Product. Rather, the ears found in the
8 Accused Product are two-fold with a white fabric insert.
9 44. The Accused Product also features a head that has a smaller
10 circumference in proportion to the costume body whereas the head claimed in the
11 ‘325 Patent is much larger in proportion to the body of the costume.
12 45. The ‘325 Patent also claims a horizontal front seam that extends to the
13 back of the costume which is not present in the Accused Product, which instead has
14 a center Velcro closure.
15 46. As yet another example, the claimed design also includes tie-back
16 closures whereas the Accused Product does not.
17 47. The faux arms of the claimed design attach to the side seem. The
18 Accused Products’ arms do not. Rather, they attach to the neck seam of the body of
19 the costume.
20 48. These differences in design are clearly distinguishable to an ordinary
21 observer.
22 49. Accordingly, at least for the above reasons, CCC does not infringe the
23 ‘325 Patent, either literally or under the doctrine of equivalents.
24 50. CCC also does not induce infringement of the ‘325 patent,
25 contributorily infringe, or otherwise indirectly infringe, for at least the reasons
26 stated above.
27 51. As set forth above, there exists an actual controversy between CCC
28 and Defendant with respect to alleged infringement of the ‘325 Patent of sufficient
7
COMPLAINT
Case 2:21-cv-01323 Document 1 Filed 02/12/21 Page 9 of 13 Page ID #:9
1 59. CCC seeks and is entitled to declaratory judgment that the ‘325 Patent
2 is invalid for failure to satisfy one or more conditions of patentability. Without
3 such declaratory relief, CCC is and will continue to be irreparably harmed and
4 damaged.
5 COUNT 3
6 Declaratory Judgment of Unenforceability of the ‘325 Patent
7 60. CCC incorporates the foregoing paragraphs by reference as though
8 fully set forth herein.
9 61. On June 4, 2017, when Eugenia Judy Chen and her attorney, Stanton
10 Braden from Mu Patents, filed the patent application that later issued as the ‘325
11 Patent, they knew that the Teddy Bear pet costume from Rubies, and CCC’s
12 Gingerbread Pup costume, were widely available for sale in the marketplace.
13 62. Ms. Chen and Mr. Braden were aware of their duty of candor to the
14 U.S. Patent and Trademark Office (“USPTO”) to disclose all known and relevant
15 prior art.
16 63. Upon information and belief, Ms. Chen and Mr. Braden knew that the
17 Teddy Bear and/or Gingerbread pet costumes were material to patentability of the
18 ‘325 Patent, and that the USPTO would not have issued the ‘325 Patent had it been
19 aware of either of these prior art costumes.
20 64. Ms. Chen and Mr. Braden made a deliberate decision not to disclose
21 the Teddy Bear or Gingerbread pet costumes to the patent examiner and thus
22 committed fraud upon the USPTO.
23 65. Ms. Chen’s and Mr. Braden’s conduct before the USPTO was
24 inequitable and the ‘325 Patent is unenforceable.
25 66. As a result of Pandaloon asserting the unenforceable ‘325 Patent
26 against CCC’s Accused Product listings on Amazon, CCC has suffered damages
27 that are substantial, continuing and irreparable.
28
9
COMPLAINT
Case 2:21-cv-01323 Document 1 Filed 02/12/21 Page 11 of 13 Page ID #:11
EXHIBIT 1
Case 2:21-cv-01323 Document 1-1 Filed 02/12/21 Page 2 of 14 Page ID #:15
MU PATENTS
PROTECT YOUR INVENTION
www.mupatents.com
WITHOUTPREDJUDICE
We represent Pandaloon LLC ("Client"), owners ofUnjted States Design Patent number USD
806,325 (copy enclosed). Pandaloon LLC has invested substantial resources in its products, and
is affiliated with Shark Investors, LLC.
It has come to our Client's attention that a California Costume Collections, Inc., product that is
being advertised, listed, distributed and sold in the United States, is infringing on our Client's
patent USD 806,325. Our Client's patent is directed towards the ornamental design for a panda
pet costume, as shown and described in the enclosed patent.
The infringing California Costume Collections, Inc., product, an example of which is listed
below, has been and is continuing to be advertised, listed, distributed, and sold in the United
States by Califorrua Costume Collections, Inc., across various platforms (both online and
physically in stores), without our Client's permission or authorization.
3525 Del Mar Heights Road, Suite 135 San Diego, California 92130 T: (858) 263-7554
Case 2:21-cv-01323 Document 1-1 Filed 02/12/21 Page 3 of 14 Page ID #:16
www rnupatents.com
Online platforms:
3. "California Costumes Panda Bear Pooch Plush Pets Dogs Halloween Costume
PET20163" Sold on FearlessApparel.com:
https://www.fearlessapparel.com/california-costumes-panda-bear-pooch-plush-pets-dogs-
halloween-costume-pet20163/
On behalf of our Client, we demand that California Costume Collections, Inc., Cease and Desist
from this conduct immediately, and comply with the required actions described below.
In view of the foregoing, we demand that California Costume Collections, Inc., immediately
cease and desist from any advertising, listing, distribution, selling, or offering for sale, of the
Case 2:21-cv-01323 Document 1-1 Filed 02/12/21 Page 4 of 14 Page ID #:17
MU PATENTS
PROTECT YOUR INVENTION
www.rnupatents com
We request that California Costume Collections, Inc., direct any communication to us directly
and do not contact our Client directly on this matter. Our Client seeks to resolve this entire
dispute without resort to formal court action, and requests that California Costume Collections,
Inc., contact us to arrange for settlement negotiations. However, our Client reserves the right to
act in any manner necessary to vindicate its rights, including formal legal proceedings if a
satisfactory outcome cannot be arranged.
This letter is written without prejudice to any other rights or remedies our Client may possess.
ft (Cjll
Glenn E. Von Tersch
M
Enclosures: as stated
3525 Del Mar Heights Road. Suite 135 San Diego, California 92130 T: (858) 263-7554
Case 2:21-cv-01323 Document 1-1 Filed 02/12/21 Page 5 of 14 Page ID #:18
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Case 2:21-cv-01323 Document 1-1 Filed 02/12/21 Page 6 of 14 Page ID #:19
US D806,325 S
Page 2
OTHER PUBLICATIONS
"Adorable Panda Sighting at California Beach". Found online Jul.
13, 2017 at rumble.com. Page dated Dec. 15, 2016. Retrieved from
https://rumble.com/v32vml-panda-attaclcs-califomia-beach.html. •
"Vid We Love: Munchkin the Teddy Bear Dog Walles Into a Puddle
of Awws". Found online Jul. 13, 2017 at dogster.com. Page dated
Jan. 8, 2015. Retrieved from http://www.dogster.com/the-scoop/
munchkin-teddy-bear-costume-dog-cute-videos. •
"Rubies Costume Company Walking Teddy Bear Pet Sur... Found
online Jul. 13, 2017 at amazon.com. Page dated Aug. 5, 2016.
Retrieved from https:/ /www.amazon.com/Wa1king-Teddy-Bear-
Suit-Large/dp/B01C4K93R4/ref=cm_cr_arp_d_product_
top?ie=UTFS. •
* cited by examiner
Case 2:21-cv-01323 Document 1-1 Filed 02/12/21 Page 7 of 14 Page ID #:20
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Case 2:21-cv-01323 Document 1-1 Filed 02/12/21 Page 10 of 14 Page ID #:23
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Case 2:21-cv-01323 Document 1-1 Filed 02/12/21 Page 11 of 14 Page ID #:24
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Case 2:21-cv-01323 Document 1-1 Filed 02/12/21 Page 12 of 14 Page ID #:25
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Case 2:21-cv-01323 Document 1-1 Filed 02/12/21 Page 13 of 14 Page ID #:26
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Case 2:21-cv-01323 Document 1-1 Filed 02/12/21 Page 14 of 14 Page ID #:27
FIG. 8
Case 2:21-cv-01323 Document 1-2 Filed 02/12/21 Page 1 of 9 Page ID #:28
EXHIBIT 2
Case 2:21-cv-01323 Document 1-2 Filed 02/12/21 Page 2 of 9 Page ID #:29
p ~{;, Lena N. Bacani, Esq.
305 N. Second Avenue, #127, Upland, CA 91786
213.394.3625 (direct line/fax)
~·
LOZA & LOZA
1 lena.bacani@lozaip.com | www.lozaip.com ANINTELLECTUAL
PROPERTY
SOLUTIONS
FIRM
September 1, 2020
We are intellectual property litigation counsel for California Costume Collections, Inc.
(“CCC”) and write in response to your August 29, 2019 letter and Pandaloon LLC’s recent
complaints to Amazon against several of CCC’s customers.
CCC respects the intellectual property rights of others. Accordingly, CCC asked us to
thoroughly consider Pandaloon’s allegations that one of CCC’s pet costumes infringes
Pandaloon’s U.S. design patent, D806,325 (“the ‘325 Patent”). For at least the reasons set forth
herein, we find Pandaloon’s infringement allegations totally without merit.
Founded in 1995, CCC is a costume design and manufacturing company based in Los
Angeles, California. CCC’s products are designed locally in the United States; including
conceptual design, sketching, patenting, sizing, form-fitting, pre-production, sample production,
photography and artwork. In 2010, CCC developed and marketed a line of Pet Costumes which
were introduced commercially in 2011. Since then, CCC has produced over 60 unique styles of
pet costumes. In 2011, CCC developed, and put into commerce in 2012, a series of costumes
that featured faux front limbs and a body suit covering the actual front limbs, creating an illusion
of a stand up dog. Since 2012, CCC has developed over 10 styles of pet costumes using the
same concept.
CCC has been selling its Gingerbread Pup costume (see Exhibit A attached) since
December 2013. A cursory search of CCC’s Amazon reviews for this product shows sales of the
costume on the Amazon marketplace at least as early as October 2015. See
https://www.amazon.com/dp/B00J48XAJM?th=1 and https://www.amazon.com/California-
Costume-Collections-Gingerbread-Large/product-
reviews/B00J48XAJM/ref=cm_cr_dp_d_show_all_btm?ie=UTF8&reviewerType=all_reviews.
Chicago, IL | Dallas, TX | Los Angeles, CA | Phoenix, AZ | Salt Lake City, UT | San Jose, CA | San Diego, CA | Washington, D.C
' ~(:,
Case 2:21-cv-01323 Document 1-2 Filed 02/12/21 Page 3 of 9 Page IDPandaloon
#:30 LLC
September 1, 2020
Page 2 of 4
It t
LOZA & LOZA
yz 2
Tho body was perfect but hat was bit big and floppy
Reviewed 1nthe United States on October 4, 20 5
1:e: diUm Vari ed Purchasa
The body was perfect but hat was a bit big and Ooppy,doesn hold shape well. I'm thinking of putting extra roam
so it stays.
Cl 0
ti
The Gingerbread Pup costume features many of the design elements claimed in the ‘325
Patent, including the round face opening, oversized rounded head and body shape, faux front
limbs and character “legs” that enclose the pet’s front legs. CCC’s Gingerbread Pup costume
was being sold more than a year prior to the earliest effective filing date of the ‘325 Patent and is
prior art.
Many more examples of prior art are immediately apparent. See, e.g., the Teddy Bear pet
costume from Rubies, which was available for sale at least as early as February 23, 2016. See
https://www.amazon.com/Walking-Teddy-Bear-Suit-
Medium/dp/B01C4K93TW/ref=sr_1_3?dchild=1&keywords=teddy%2Bbear%2Bpet%2Bcostu
me&qid=1598918622&sr=8-3&th=1. A picture of the costume also appears below.
Case 2:21-cv-01323 Document 1-2 Filed 02/12/21 Page 4 of 9 Page IDPandaloon
#:31 LLC
September 1, 2020
Page 3 of 4
Despite their wide availability, none of these costumes were disclosed to the patent
examiner by Pandaloon. The fact that the costumes do not feature black and white “panda”
markings does not limit their applicability as prior art given that the ‘325 Patent is not so limited.
All parties associated with prosecution of the ‘325 Application were required to disclose any
information known that may have been material to the patentability of the claimed invention
pursuant to 37 C.F.R. § 1.56. Failure to disclose such information constitutes inequitable
conduct that renders the patent unenforceable. See, e.g., Critikon, Inc. v. Becton Dickinson
Vascular Access, Inc., 120 F.3d 1253, 1256-57 (Fed. Cir. 1997) (inferring intent where applicant
was aware of a prior art reference and “knew or should have known” that information in that
reference was relevant to a claimed point of novelty).
It is disturbing that Pandaloon has made such reckless infringement allegations against
CCC and CCC’s customers given this readily available prior art. Even a cursory search prior to
sending its takedown notices to Amazon would have revealed these, and similar costumes,
predate the earliest filing date of the ‘325 Patent. Pandaloon’s filing of takedown notices with
Amazon against CCC’s customers shows either a complete failure to conduct a pre-suit
investigation or deliberately anticompetitive conduct in violation of California Business &
Professions Code § 17200.
Even if the ‘325 Patent was valid, which it is not, it is not infringed by CCC’s products.
As you are undoubtedly aware, design patents cover only the ornamental designs of an article,
and not any of the functional elements. 35 U.S.C. § 171, Egyptian Goddess v. Swisa, Inc., 543
F.3d 665 (Fed. Cir. 2008).
An ordinary observer, familiar with the prior art, looking at CCC’s Panda Pooch costume,
would not be deceived into thinking that it was the same as the design in the ‘325 Patent. See id.
While both feature a bear shape with “false arms,” CCC’s costume has a much fuzzier nap,
Case 2:21-cv-01323 Document 1-2 Filed 02/12/21 Page 5 of 9 Page IDPandaloon
#:32 LLC
p ~{i7 September 1, 2020
Page 4 of 4
Lt t
LOZA & LOZA
giving it an overall shaggy appearance that clearly distinguishes it from Pandaloon’s Panda
costume. (See Exhibit B.)
Additionally, CCC’s costume head is a separate, detachable hood that is not attached to
the costume body, unlike the ‘325 Patent design. Also, the CCC costume does not have a
drawstring around the hood face, but instead a fixed single needle finish stitched opening with a
front Velcro closure. (See id.) The CCC costume ears are two-fold with a white fabric inset,
rather than the one-fold, half circle shape claimed in the ‘325 Patent. CCC’s Panda costume
head has a smaller circumference in proportion to the costume body whereas the head on the
Pandaloon’s costume is much larger, giving it a very different look that is clearly distinguishable
to an ordinary observer.
The horizontal front seam that extends to the back of the costume that is claimed in the
’325 Patent is not present in CCC’s Panda costume, which has a center Velcro closure. The back
closures (see Fig. 7 of ‘325 Pat.) are also different. The Panda Pooch costume has ties rather
than a drawstring and no drawstring stopper. In addition, the faux arms of the Panda Pooch
costume attach to the neck seam rather than the side seam as required by the ‘325 Patent.
For at least the following reasons, CCC’s Panda Pooch costume does not infringe the
‘325 Patent and CCC rejects Pandaloon’s demands.
Given the above, CCC demands that Pandaloon immediately withdraw its infringement
allegations against CCC and CCC’s customers and send a retraction of its complaints to Amazon
at notice-dispute@amazon.com, including for the following:
Please confirm that you have taken the above action no later than September 8, 2020. If
we do not hear from you by then, we will be forced to take legal action. Our proposal to resolve
this matter without resort to litigation is for settlement purposes only. Nothing in this letter shall
be deemed a waiver of, prejudice, or otherwise limit any of CCCs rights and remedies, all of
which are expressly reserved.
Sincerely,
Lena N. Bacani
Case 2:21-cv-01323 Document 1-2 Filed 02/12/21 Page 6 of 9 Page ID #:33
EXHIBIT A
Case 2:21-cv-01323 Document 1-2 Filed 02/12/21 Page 7 of 9 Page ID #:34
PET20133
G1NGERBREAD PuP
• HOOD
• COSTUME WITH ATTACHE □ ARMS
ANO LEGS
XS. S. M. L
Case 2:21-cv-01323 Document 1-2 Filed 02/12/21 Page 8 of 9 Page ID #:35
EXHIBIT B
Case 2:21-cv-01323 Document 1-2 Filed 02/12/21 Page 9 of 9 Page ID #:36