UNITED STATES DISTRICT COURT

for the WESTERN DISTRICT OF NORTH CAROLINA

Zachary W. Lyon, Plaintiff; v. Time Technology Ltd., and Cosmos Marketing Inc. Defendants.

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Civil Action No. 3:11-cv-00354

COMPLAINT (Jury Trial Demanded) Comes now, Plaintiff Zachary W. Lyon and files this complaint against Defendants Time Technology Ltd. and Cosmos Marketing Inc., alleging the following: Jurisdiction and Venue 1. This civil action arises under the Patent Laws of the United States, United States Code, Title 35, Section 1 et seq., and in particular, 35 U.S.C. 271. 2. This Court has jurisdiction of this action under the provisions of 28 U.S.C. 1331 and 1338(a), in that the claims of the Complaint arise under the Patent Laws of the United States, United States Code, Title 35, Section 1 et seq., and in particular, 35 U.S.C. 271. 3. This Court also has jurisdiction of this action under the provisions of 28 U.S.C. 1332(a) in that the matter in controversy exceeds the sum or value of $75,000

exclusive of interests and costs, is between citizens of different states and/or citizens of different States and in which citizens or subjects of a foreign state are additional parties. 4. Plaintiff Zachary W. Lyon is an individual citizen of the State of North Carolina, residing at 7682 Deboe Rd., Summerfield, North Carolina 27358. 5. Upon information and belief, Defendant Time Technology Ltd. is a limited company organized and existing under the laws of the Hong Kong Special Administrative Region, and has a principal place of business at Unit 1212, Kodak House II, 321 Java Road, North Point, Hong Kong. 6. Upon information and belief, Defendant Cosmos Marketing Inc. is a corporation formed and existing under the laws of the State of New Jersey, and has a principal place of business at 445 West Main Street, Wyckoff, New Jersey 07481. 7. This Court has personal jurisdiction over all Defendants in this action pursuant to the North Carolina Long-Arm Statute 1-75.4. Defendants have conducted substantial business within the State of North Carolina, and have committed acts within the State of North Carolina that relate to and give rise to this action. Such acts include, inter alia, the importation of and sale of products infringing Plaintiffs Patent No. 5,896,348 in the State of North Carolina. 8. This Court is a proper venue for the action pursuant to 28 U.S.C. 1391, because a substantial part of the events or omissions giving rise to the claims of the complaint occurred within this judicial district, and/or this is a judicial district in
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which any defendant may be found. 9. Defendants have committed acts of infringement of Patent No. 5,896,348 in this district. Such acts include, inter alia, the sale of products infringing Patent No. 5,896,348 at a retail store located in Charlotte, North Carolina. Claim for Patent Infringement 10. Plaintiff incorporates the allegations of the above paragraphs 1-9, as if fully set forth herein. 11. On April 20, 1999, United States Patent No. 5,896,348 issued to the Plaintiff Zachary W. Lyon (hereinafter the 348 patent). The 348 patent is a utility patent for a Method and Timepiece for Displaying Time Using Grouped Binary Indicators. A copy of the 348 patent is attached to this complaint as Exhibit 1, and incorporated herein. Plaintiff Zachary W. Lyon (hereinafter Lyon) has owned the 348 patent throughout the period of the Defendants infringing acts and still owns the 348 patent. 12. Defendants have infringed and are still infringing the 348 patent by making, offering for sale, selling, and importing into the United States timepieces that embody the patented invention, and Defendants will continue to do so unless enjoined by this court. 13. Defendants infringing timepieces include watches manufactured and sold under the name IBIZA RIDE, having model numbers IR102RB1, IR702RB1, IR702RB2, IR202RB1, IRH102RB1, IRH102RB4, IRH202RB1, IRH202RB4, IRH302RB1,
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IRH302RB4, and IRH104RB4. A print-out from Defendants Internet website http://www.01theone.com showing the IBIZA RIDE IR202RB1 model is attached to this complaint as Exhibit 2, and incorporated herein. A copy of a page from the instruction manual accompanying Defendants IBIZA RIDE IR202RB1 watch is attached to this complaint as Exhibit 3, and is incorporated herein. The aforementioned timepieces infringe at least claims 1, 2, 5, 8, 9, 10, 11, 12, 15, 18, 19 and 20 of the 348 patent. 14. Defendant Time Technology Ltd. manufactures the above-referenced IBIZA RIDE watches. Defendant Time Technology Ltd. imports said IBIZA RIDE watches into the United States. Defendant Time Technology Ltd. has offered for sale said IBIZA RIDE watches in the United States. Defendant Time Technology has sold said IBIZA RIDE watches in the United States. 15. Defendant Cosmos Marketing Inc. has offered for sale the above-referenced IBIZA RIDE watches in the United States. Defendant Cosmos Marketing Inc. has sold the above-referenced IBIZA RIDE watches in the United States. 16. Upon information and belief, Defendants have purposefully and knowingly sold the above-referenced IBIZA RIDE watches throughout the United States. 17. Upon information and belief, Defendants have purposefully and knowingly sold the above-referenced IBIZA RIDE watches in at least one retail store located in Charlotte, North Carolina. A print-out from Defendants Internet website showing the Charlotte retail store is attached as Exhibit 4, and is incorporated herein.
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18.

At no time has Plaintiff Lyon granted any license to Defendant Time Technology Ltd. or Defendant Cosmos Marketing Inc. relating to the 348 patent.

19.

Defendants unauthorized sale of the above-referenced IBIZA RIDE watches directly infringes 348 patent.

20.

Defendants have also indirectly infringed the 348 patent. Defendants have induced their customers to infringe the 348 patent by, inter alia, selling products that, when used as intended by Defendants, performs all of the steps, or their substantial equivalent, of the methods claimed in at least claims 11, 12, 15, 18, 19 and 20 of the 348 patent.

21.

Defendants have willfully infringed the 348 patent. Defendants have been aware of the 348 patent since on or about December 1, 2006. On September 30, 2005, Anton Kraft, who upon information and belief is a principal of Time Technology Ltd., filed a design patent application in the U.S. Patent and Trademark Office for an ornamental design for a watch, which issued on October 30, 20087 as U.S. Patent No. D554,004. On December 1, 2006, the patent examiner assigned to the Kraft design patent application cited the 348 patent as being material prior art. Therefore, upon information and belief, Defendants have been aware of the 348 patent since on or about December 1, 2006, and have continued to infringe the 348 patent.

WHEREFORE, Plaintiff respectfully asks the Court to grant the following relief: A. That the Court enter preliminary and permanent injunctions against Defendants, enjoining Defendants and each of them from infringing the 348 patent pursuant to 35 U.S.C. 283. B. That Plaintiff be granted an accounting for damages resulting from Defendants infringement of the 348 patent; C. That Plaintiff be awarded judgment against Defendants, jointly and severally, for damages resulting from Defendants infringement of the 348 patent, and that such damages be trebled pursuant to 35 U.S.C. 284, and that Plaintiff be awarded its reasonable attorneys fees in accordance with 35 U.S.C. 285; D. That the Court award Plaintiff interest, costs, and such further relief that this Court deems just and equitable; E. That the Court order Defendants to pay Plaintiff all his reasonable taxable costs in a sum and manner deemed appropriate by this Court based on the deliberate and willful infringement of the 348 patent by Defendants as set forth in this Complaint; F. G. That a trial by jury be had on all issues so triable; and Such other and further relief as the Court may deem just and proper, in law or equity.
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Respectfully submitted, this the 22nd day of July, 2011. /s/ Stephen S. Ashley, Jr. Stephen S. Ashley, Jr. N.C. State Bar No. 27,649 ASHLEY LAW FIRM P.C. 3440 Toringdon Way, Suite 205 Charlotte, NC 28277 Telephone: (704) 927-5824 Facsimile: (704) 927-5924 E-mail: sa@ashleypatentlaw.com Attorney for Plaintiff Zachary W. Lyon