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Michael K. Friedland (SBN 157,217) mfriedland@knobbe.com Paul N. Conover (SBN 192,358) pconover@knobbe.com Ali S. Razai (SBN 246,922) ali.razai@knobbe.com KNOBBE, MARTENS, OLSON & BEAR, LLP 2040 Main Street, Fourteenth Floor Irvine, CA 92614 Telephone: (949) 760-0404 Facsimile: (949) 760-9502 Attorneys for Plaintiff OAKLEY, INC.

IN THE UNITED STATES DISTRICT COURT 11 FOR THE SOUTHERN DISTRICT OF CALIFORNIA 12 13 OAKLEY, INC., a Washington corporation, 14 Plaintiff, 15 v. 16 KAENON, INC., a Delaware Corporation. 17 Defendant. 18 19 20 21 22 23 24 25 26 27 28 ) ) ) ) ) ) ) ) ) ) ) Case No. '12CV2458 LAB WMc COMPLAINT FOR PATENT INFRINGEMENT DEMAND FOR JURY TRIAL

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Plaintiff Oakley, Inc. (Oakley) hereby complains of Defendant Kaenon, Inc. (Kaenon) and alleges as follows: I. JURISDICTION AND VENUE 1. This Court has subject matter jurisdiction over this action pursuant to 28

U.S.C. 1331 and 1338, as it arises under the patent laws of the United States. 2. This Court has personal jurisdiction over the Defendant because Defendant has

a continuous, systematic, and substantial presence within this judicial district including by selling and offering for sale infringing products for sale in this judicial district, and by committing acts of patent infringement in this judicial district, including but not limited to selling infringing eyewear directly to consumers and/or retailers in this district and selling into the stream of commerce knowing such products would be sold in California and this district, which acts form a substantial part of the events or omissions giving rise to Oakleys claim. 3. Venue is proper in this judicial district under 28 U.S.C. 1391 (b) and (c), and

28 U.S.C. 1400(b). II. THE PARTIES 4. Plaintiff Oakley is a corporation organized and existing under the laws of the

State of Washington, having its principal place of business at One Icon, Foothill Ranch, California 92610. 5. Oakley is informed and believes, and thereon alleges, that Defendant Kaenon

is a corporation organized and existing under the laws of the state of Delaware and has a principal place of business at 864 West 16th St., Newport Beach, California 92663. 6. Oakley is informed and believes, and thereon alleges, that Defendant has

committed the acts alleged herein within this judicial district. /// /// /// /// -1COMPLAINT

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 11. 7.

III. GENERAL ALLEGATIONS Oakley has been actively engaged in the manufacture and sale of high quality

eyewear since at least 1985. Oakley is the manufacturer and retailer of several lines of eyewear that have enjoyed substantial success and are protected by various intellectual property rights owned by Oakley. 8. On June 10, 1997, the United States Patent and Trademark Office duly and

lawfully issued United States Letters Patent No. 5,638,145 (the 145 patent), entitled Vented Eyeglass Lens. Oakley is the owner by assignment of all right, title and interest in the 145 patent. A true and correct copy of the 145 patent is attached hereto as Exhibit A. 9. Defendant manufactures, uses, sells, offers for sale and/or imports into the

United States eyewear that infringes Oakleys intellectual property rights. 10. Oakley has provided the public with constructive notice of its patent rights in

the 145 patent pursuant to 35 U.S.C. 287. Defendant was provided written notice of Oakleys proprietary rights in the 145 patent in a letter dated July 25, 2011, which is attached hereto as Exhibits B. IV. CLAIM FOR RELIEF (Patent Infringement) (35 U.S.C. 271) Oakley repeats and re-alleges the allegations of paragraphs 1-10 of this

complaint as if set forth fully herein. 12. 13. This is a claim for patent infringement under 35 U.S.C. 271. Defendant, through its agents, employees and servants, has, and continues to,

knowingly, intentionally and willfully directly infringe, engage in acts of contributory infringement, and/or induce the infringement of the 145 patent by directly and/or indirectly making, using, selling, offering for sale and/or importing eyewear that are covered by one or more claims of the 145 patent, including Defendants SOFT KORE eyewear. 14. Defendants acts of infringement of the 145 patent were undertaken without

permission or license from Oakley. Defendant had actual and/or constructive knowledge of the 145 patent, and its actions constitute willful and intentional infringement of the 145 -2COMPLAINT

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patent. Defendant infringed the 145 patent with reckless disregard of Oakleys patent rights. Defendant knew, or it was so obvious that Defendant should have known, that its actions constituted infringement of the 145 patent. Defendants acts of infringement of the 145 patent were not consistent with the standards of commerce for its industry. 15. As a direct and proximate result of Defendants infringement of the 145

patent, Defendant has derived and received gains, profits, and advantages in an amount not presently known to Oakley. 16. Pursuant to 35 U.S.C. 284, Oakley is entitled to damages for Defendants

infringing acts and treble damages together with interests and costs as fixed by this Court. 17. Pursuant to 35 U.S.C. 285, Oakley is entitled to reasonable attorneys fees

for the necessity of bringing this claim. 18. Due to the aforesaid infringing acts, Oakley has suffered great and irreparable

injury, for which Oakley has no adequate remedy at law. 19. Defendant will continue to directly and/or indirectly infringe the 145 patent to

the great and irreparable injury of Oakley, unless enjoined by this Court. WHEREFORE, Oakley prays for judgment in its favor against Defendant for the following relief: A. An order adjudging Defendant to have willfully infringed the 145 patent

under 35 U.S.C. 271; B. A preliminary and permanent injunction enjoining Defendant, its respective

officers, directors, agents, servants, employees and attorneys, and those persons in active concert or participation with Defendant from directly or indirectly infringing the 145 patent in violation of 35 U.S.C. 271; C. That Defendant account for all gains, profits, and advantages derived by

Defendants infringement of the 145 patent in violation of 35 U.S.C. 271 and that Defendant pay to Oakley all damages suffered by Oakley; D. An Order for a trebling of damages and/or exemplary damages because of

Defendants willful conduct pursuant to 35 U.S.C. 284; -3COMPLAINT

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E. F.

An Order adjudging that this is an exceptional case; An award to Oakley of the attorneys fees and costs incurred by Oakley in

connection with this action pursuant to 35 U.S.C. 285; G. An award of pre-judgment and post-judgment interest and costs of this action

against Defendant; H. That Oakley have and recover the costs of this civil action, including

reasonable attorneys fees. I. Such other and further relief as this Court may deem just and proper.

Respectfully submitted, KNOBBE, MARTENS, OLSON & BEAR, LLP

Dated: October 10, 2012

By: s/Ali S. Razai Michael K. Friedland Paul N. Conover Ali S. Razai Attorneys for Plaintiff OAKLEY, INC.

-4-

COMPLAINT

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12120539

DEMAND FOR JURY TRIAL Plaintiff Oakley, Inc. hereby demands a trial by jury on all issues so triable.

Respectfully submitted, KNOBBE, MARTENS, OLSON & BEAR, LLP

Dated: October 10, 2012

By: s/Ali S. Razai Michael K. Friedland Paul N. Conover Ali S. Razai Attorneys for Plaintiff OAKLEY, INC.

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -5COMPLAINT

JS 44 (Rev. 12/07)

CIVIL COVER SHEET

DEFENDANTS

The JS 44 civil cover sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or other papers as required by law, except as provided by local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, is required for the use of the Clerk of Court for the purpose of initiating the civil docket sheet. (SEE INSTRUCTIONS ON THE REVERSE OF THE FORM.)

I. (a) PLAINTIFFS

OAKLEY, INC., a Washington corporation

KAENON, INC., a Delaware corporation

(b) County of Residence of First Listed Plaintiff

(EXCEPT IN U.S. PLAINTIFF CASES)

County of Residence of First Listed Defendant

(IN U.S. PLAINTIFF CASES ONLY) NOTE: IN LAND CONDEMNATION CASES, USE THE LOCATION OF THE LAND INVOLVED.

(c)

Attorneys (Firm Name, Address, and Telephone Number)

Attorneys (If Known)

Michael K. Friedland, Paul N. Conover, Ali S. Razai Knobbe, Martens, Olson & Bear LLP 2040 Main St., 14th Floor, Irvine, CA 92614 Telephone: (949) 760-0404
II. BASIS OF JURISDICTION
1 U.S. Government Plaintiff 2 U.S. Government Defendant (Place an X in One Box Only)

III. CITIZENSHIP OF PRINCIPAL PARTIES

(For Diversity Cases Only) PTF Citizen of This State Citizen of Another State Citizen or Subject of a Foreign Country
1 2 3

3 Federal Question (U.S. Government Not a Party) 4 Diversity (Indicate Citizenship of Parties in Item III)

(Place an X in One Box for Plaintiff and One Box for Defendant) PTF DEF
4 5 6 4 5 6

DEF
1 2 3

Incorporated or Principal Place of Business In This State Incorporated and Principal Place of Business In Another State Foreign Nation

IV. NATURE OF SUIT

110 120 130 140 150 151 152 153 160 190 195 196

(Place an X in One Box Only) TORTS PERSONAL INJURY PERSONAL INJURY 310 Airplane 362 Personal Injury 315 Airplane Product Med. Malpractice Liability 365 Personal Injury 320 Assault, Libel & Product Liability Slander 368 Asbestos Personal 330 Federal Employers' Injury Product Liability Liability 340 Marine PERSONAL PROPERTY 345 Marine Product 370 Other Fraud Liability 371 Truth in Lending 350 Motor Vehicle 380 Other Personal 355 Motor Vehicle Property Damage Product Liability 385 Property Damage 360 Other Personal Product Liability Injury PRISONER PETITIONS CIVIL RIGHTS 441 Voting 510 Motion to Vacate 442 Employment Sentence Habeas Corpus: 443 Housing/ Accommodations 530 General 444 Welfare 535 Death Penalty 445 Amer. w/Disabilities 540 Mandamus & other Employment 550 Civil Rights 446 Amer. w/Disabilities 555 Prison Condition Other 440 Other Civil Rights FORFEITURE/PENALTY 610 Agriculture 620 Other Food & Drug 625 Drug Related Seizure of Property 2 1 USC 88 1 630 Liquor Laws 640 R.R. & Truck 650 Airline Regs. 660 Occupational Safety/Health 690 Other LABOR BANKRUPTCY 422 Appeal 28 USC 158 423 Withdrawal 28 USC 157 PROPERTY RIGHTS 820 Copyrights OTHER STATUTES 400 State Reapportionment 410 Antitrust 430 Banks and Banking 450 Commerce 460 Deportation 470 Racketeer Influenced and Corrupt Organizations 480 Consumer Credit 490 Cable/Sat TV 810 Selective Service 850 Securities/Commodities/ Exchange 875 Customer Challenge 12 USC 3410 890 Other Statutory Actions 891 Agricultural Acts 892 Economic Stabilization Act 893 Environmental Matters 894 Energy Allocation Act 895 Freedom of Information Act 900 Appeal of Fee Determination Under Equal Access to Justice 950 Constitutionality of State Statutes

CONTRACT Insurance Marine Miller Act Negotiable Instrument Recovery of Overpayment & Enforcement of Judgment Medicare Act Recovery of Defaulted Student Loans (Excl. Veterans) Recovery of Overpayment of Veteran's Benefits Stockholders' Suits Other Contract Contract Product Liability Franchise

830 Patent 840 Trademark

REAL PROPERTY 210 Land Condemnation 220 Foreclosure 230 Rent Lease & Ejectment 240 Torts to Land 245 Tort Product Liability 290 All Other Real Property

710 Fair Labor Standards Act 720 Labor/Mgmt. Relations 730 Labor/Mgmt. Reporting & Disclosure Act 740 Railway Labor Act 790 Other Labor Litigation FEDERAL TAX SUITS 791 Empl. Ret. Inc. Security Act 870 Taxes (U.S. Plaintiff IMMIGRATION or Defendant) 462 Naturalization Application 871 IRS - Third Party 463 Habcas Corpus 26 USC 7609 Alien Detainee 465 Other Immigration Actions

SOCIAL SECURITY 861 HIA (1395ff) 862 Black Lung (923) 863 DIWC/DIWW (405(g)) 864 SSID Title XVI 865 RSI (405(g))

V. ORIGIN

(Place an X in One Box Only)

Appeal to District

X 1

Original Proceeding

2 Removed from
State Court

Litigation another district (specify) Cite the U.S. Civil Statute under which you are filing (Do not cite jurisdictional statutes unless diversity): Appellate Court Reopened Brief description of cause:

3 Remanded from

4 Reinstated or

5 Transferred from

6 Multidistrict

7 Judge from
Magistrate Judgment

VI. CAUSE OF ACTION VII. REQUESTED IN COMPLAINT: VIII. RELATED CASE(S) IF ANY
DATE

35 U.S.C. Sec. 271 Patent Infringement

CHECK IF THIS IS A CLASS ACTION UNDER F.R.C.P. 23
(See instructions):

DEMAND $

To Be Determined

CHECK YES only if demanded in complaint: X Yes JURY DEMAND: No DOCKET NUMBER

JUDGE

Cathy A. Bencivengo

11CV1607

October 10, 2012

AMOUNT

SIGNATURE OF ATTORNEY OF RECORD

/s/Ali S. Razai
APPLYING IFP

FOR OFFICE USE ONLY RECEIPT #

JUDGE

MAG. JUDGE
CSDJS44