UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NORTH CAROLINA WESTERN DIVISION Krausz Industries Ltd.

f/k/a/ Krausz Metal Industries Ltd., Plaintiff, - vs (1) Smith-Blair, Inc; (2) Sensus USA, Inc.; and (3) Sensus Manufacturing Shanghai Ltd. Defendants. Civil Action No. JURY TRIAL DEMANDED

COMPLAINT FOR PATENT INFRINGEMENT AND JURY DEMAND

Plaintiff Krausz Industries Ltd. (Krausz), by and through its counsel, for its Complaint against Smith-Blair, Inc. ("Smith-Blair"), Sensus USA, Inc. ("Sensus"), and Sensus Manufacturing Shanghai Ltd. ("Sensus-Shanghai") (collectively, "Defendants"), alleges as follows: I. 1. THE PARTIES

Plaintiff Krausz is an Israeli corporation having an address at 6 Hapatish St.,

Tel-Aviv, Israel. For over the past 40 years, Krausz has been engaged in the manufacture and sale of pipe joining and pipe repair devices of the highest quality. Krausz products are sold throughout the world including in the United States. Krausz products are sold throughout the fifty states, including in North Carolina. 2. On information and belief, Defendant Smith-Blair is a corporation organized

and existing under the laws of Delaware with its principal place of business at 30 Globe Avenue, Texarkana, Arkansas 71854. Smith-Blair is engaged in the business of

manufacturing and selling pipe fittings and tools for the waterworks industry. In the field of extended range pipe couplings, Smith-Blair is a direct competitor of Krausz. On information and belief, Smith-Blair is owned by defendant Sensus. 3. On information and belief, Defendant Sensus is a corporation organized and

existing under the laws of Delaware with its principal place of business at 8601 Six Forks Road, Raleigh, North Carolina 27615. Sensus is a leader in the field of utility infrastructure systems. On information and belief, Sensus is the parent corporation of Defendants SmithBlair and Sensus-Shanghai. 4. On information and belief, Defendant Sensus-Shanghai is a corporation

existing under the laws of China with its principal place of business in Shanghai, China. On information and belief, Sensus-Shanghai is engaged in the business of manufacturing and selling pipe fittings and tools for the waterworks industry. On information and belief, Sensus-Shanghai sells and imports into the U.S. pipe fittings and tools for waterworks industry customers located in the U.S. II. 5. 6. JURISDICTION AND VENUE

All claims herein arise under the Patent Act, 35 U.S.C. 1 et seq. Subject matter jurisdiction for the pleaded claims is conferred upon the Court

by 28 U.S.C. 1331 and 1338(a). 7. This court has personal jurisdiction over Smith-Blair consistent with the

principles of the U.S. Constitution and N.C. Gen. Stat. 1-75.4 in that Smith-Blair, either directly or through its respective agents, regularly and continuously transacts business and contracts to supply goods and services in the State of North Carolina in general and in the Eastern District of North Carolina in particular. On information and belief, Smith-Blair is a

registered corporation in the State of North Carolina with CT Corporation System acting as its registered agent at the address of 150 Fayetteville Street, Box 1011, Raleigh, NC 27601. On information and belief, Smith-Blair is regularly doing business in the State of North Carolina, and employs sales and/or marketing personnel responsible for various geographic territories, including one or more territories that encompass the Eastern District of North Carolina. Smith-Blair has promoted the sale of the accused products in the Eastern District of North Carolina either directly or through its respective agents or distributors. On information and belief, Smith-Blair has committed an act of infringement in the State of North Carolina. 8. This court has personal jurisdiction over Sensus consistent with the principles

of the U.S. Constitution and N.C. Gen. Stat. 1-75.4, in that Sensus transacts business in the State of North Carolina and has its principal place of business physically located at 8601 Six Forks Road, Raleigh, North Carolina 27615, which is within the Eastern District of North Carolina. On information and belief, Sensus is a registered corporation in the State of North Carolina with CT Corporation System acting as its registered agent at the address of 150 Fayetteville Street, Box 1011, Raleigh, NC 27601. On information and belief, Sensus has committed an act of infringement in the State of North Carolina, and owns, uses or possesses real property in the State of North Carolina. 9. This court has personal jurisdiction over Sensus-Shanghai consistent with the

principles of the U.S. Constitution and N.C. Gen. Stat. 1-75.4, in that the products of Sensus-Shanghai relevant to this case are sold, offered for sale, imported, and/or used in this State and District. On information and belief, Sensus-Shanghai transacts business in the State of North Carolina directly or indirectly through its parent corporation, Defendant

Sensus. On information and belief, Sensus-Shanghai has committed an act of infringement in the State of North Carolina. 10. 1400(b). III. 11. U.S. PATENT NO. 6,293,556 Venue is proper in this district pursuant to 28 U.S.C. 1391(b) and (c), and

On September 25, 2001, U.S. Patent No. 6,293,556 (the '556 patent) titled

Seal for Coupling and Connecting Means was duly and lawfully issued by the U.S. Patent and Trademark Office (Exhibit A, U.S. Patent No. 6,293,556). 12. On May 22, 2012, the United States Patent and Trademark Office completed

an ex parte reexamination of the '556 patent and confirmed that each of the claims of the '556 patent are patentable (Exhibit B, Reexamination Confirmation of Claims, U.S. Pat. No. 6,293,556). 13. Krausz is the owner by assignment of the entire right, title, and interest in and

to the '556 patent. 14. 282. 15. The '556 patent relates to coupling and connecting means to be used with The '556 patent is entitled to a presumption of validity pursuant to 35 U.S.C.

pipes of same or different diameters, where the difference between the diameter of the pipes could be quite substantial. (Exhibit A, Col. 1, ll. 5-6 and 35.) The invention disclosed in the '556 patent achieves its purpose by using nested inner and outer gaskets that can be separated to accommodate pipes of different diameters. (Id. at Col. 1, ll. 42-45.) Cross section drawings of the claimed sealing element disclosed in the '556 patent are shown below at items 1 and 5.

16.

The '556 patent includes one independent claim and two dependent claims.

Claim 1 of the '556 patent provides: A sealing ring for pipe connector means made of resilient material, the sealing ring comprising a first sleeve-like ring the cross section of which defines a inner space therein, and a second ring overriding said first sleeve-like ring and being loosely connected to said first ring, said second ring being adapted to be torn off said first ring at a predetermined location so as to adapt the sealing ring to interconnect pipes of substantially different diameters. Claim 3 of the '556 patent provides: A sealing ring as claimed in claim 1 where said seal is incorporated with connecting means provided with a U shape ring and placed within said U shaped ring.

IV. 17.

THE SMITH-BLAIR 421 TOP BOLT

Defendant Smith-Blair sells, offers for sale, and/or imports, and Defendant

Sensus-Shanghai manufactures, sells, offers for sale, and/or imports, an extended range pipe coupling known as the 421 Top Bolt, pictured below and found in Smith-Blair's published and publically-available product materials found at http://www.smith-blair.com/water.php (Exhibit C, Smith-Blair Brochure for the 421 Top Bolt product).

18.

A cross section drawing of the 421 Top Bolt and its inner and outer gaskets

as found in the brochure are set forth below (Id. at p. 2):

(Id. at p. 3.) 19. As set out in Smith-Blair's public product materials, the 421 Top Bolt uses a

set of "Removable Inner Gaskets" that "[f]acilitates on the job change-outs to larger [outside diameters]" where the inner gasket can be removed to accommodate larger pipe diameters. (Id. at p. 2.)

V.

COUNT I

PATENT INFRINGEMENT OF U.S. PATENT NO. 6,293,556 20. Plaintiff Krausz reaffirms and realleges the allegations contained in the above

paragraphs 1-19. 21. The Smith-Blair 421 Top Bolt includes, either literally or under the doctrine

of equivalents, each and every limitation of claims one and three of the '556 patent (set forth in paragraph 16 above) including without limitation: (i) a first sleeve-like ring the crosssection of which defines an inner space therein (A below); (ii) a second ring overriding the first sleeve-like ring and being loosely connected to the first ring (B below); and (iii) a second ring that is adapted to be torn off the first ring at a predetermined location (also B below). A B

22.

As proscribed by 35 U.S.C. 271, on information and belief Smith-Blair has

directly and/or indirectly infringed and continues to infringe, literally or under the doctrine of equivalents, at least claims one and three of the '556 patent by: (a) acting without authority so as to make, have made, use, offer to sell, sell, and/or import within the United States its 421 Top Bolt extended range coupling and/or any other similar coupling products marketed under different names that incorporate the limitations of claims one and 7

three of the '556 patent; and (b) contributing to and/or actively inducing infringement of the '556 patent. 23. As proscribed by 35 U.S.C. 271, Sensus has directly and/or indirectly

infringed and continues to infringe, literally or under the doctrine of equivalents, at least claims one and three of the '556 patent by: (a) acting without authority so as to make, have made, use, offer to sell, sell, and/or import within the United States the 421 Top Bolt extended range coupling and/or any other similar coupling products marketed under different names that incorporate the limitations of claims one and three of the '556 patent; and (b) contributing to and/or actively inducing infringement of the '556 patent. 24. As proscribed by 35 U.S.C. 271, Sensus-Shanghai has directly and/or

indirectly infringed, literally or under the doctrine of equivalents, at least claims one and three of the '556 Patent, by: (a) acting without authority so as to make, have made, use, offer to sell, sell, and/or import within the United States the 421 Top Bolt extended range coupling and/or any other similar coupling products marketed under different names that incorporate the limitations of claims one and three of the '556 patent; and (b) contributing to and/or actively inducing infringement of the '556 patent. 25. Plaintiff Krausz has suffered injury as a result of the infringing activities of

each of the Defendants, and will continue to suffer severe and irreparable injury and damages as long as the infringing activities of the Defendants continue. 26. Krausz is entitled to recover damages adequate to compensate it for the

injuries complained of herein, but in no event less than a reasonable royalty. Krausz is further entitled to have Defendants enjoined from committing future acts of infringement that would subject Krausz to irreparable harm.

27.

Upon information and belief, Smith-Blair's, Sensus's, and Sensus-Shanghai's

infringement of the '556 patent is willful. PRAYER FOR RELIEF WHEREFORE, Plaintiff Krausz prays for relief as follows: A. A declaration that Smith-Blair, Sensus, and Sensus-Shanghai have infringed

one or more claims of the '556 patent; B. A preliminary and permanent injunction pursuant to 35 U.S.C. 283,

enjoining Smith-Blair, Sensus, and Sensus-Shanghai, together with any of their officers, directors, agents, servants, employees, and attorneys, and such other persons in active concert or participation with Smith-Blair, Sensus, and Sensus-Shanghai, who receive actual notice of the order, from any further direct or indirect acts of infringement, contributory infringement, or inducement of infringement of the '556 patent; C. Damages adequate to compensate Krausz for infringement by Smith-Blair,

Sensus, and Sensus-Shanghai; D. Award Krausz as appropriate treble damages based on willful infringement by

Smith-Blair, Sensus, and Sensus-Shanghai pursuant to 35 U.S.C. 284; E. A declaration that this is an exceptional case within the meaning of 35 U.S.C.

285, and an award to Krausz of its reasonable attorneys fees, costs, and disbursements; F. Pre- and post judgment interest on all damages awarded in accordance with

the rates allowed by law; and G. Such other, further, and different relief as may be just and equitable.

DEMAND FOR JURY TRIAL Krausz hereby demands trial by jury for all issues so triable.

DATED this 20th day of August, 2012. By: /s/ Lance A. Lawson Lance A. Lawson llawson@slk-law.com North Carolina Bar Number 23835 Attorney for Plaintiff OF COUNSEL: Lance A. Lawson (N.C. Bar No. 23835) W. Thad Adams, III (N.C. Bar No. 000020) SHUMAKER, LOOP & KENDRICK, LLP First Citizens Bank Plaza 128 South Tryon Street Suite 1800 Charlotte, NC 28202 Tel: (704) 945-2912 Fax: (704) 332-1197 Email: llawson@slk-law.com tadams@slk-law.com

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