Professional Documents
Culture Documents
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TECHLAW LLP
Dana B. Robinson (Bar No. 208265)
dana@techlawllp.com
Kayla Jimenez (Bar No. 292365)
kayla@techlawllp.com
P.O. Box 1416
La Jolla, CA 92038
Telephone: (858) 488-2545
Facsimile: (858) 777-3347
Attorneys for Plaintiff
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UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
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TechLaw LLP
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Plaintiff,
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vs.
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5:15-cv-0416
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Case No.:
Defendants.
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COMPLAINT5:15-cv-0416
the following against Defendants Lucky Scooter Parts, LLC (Lucky) Brian Jeide
TechLaw LLP
This is an action for False Association under the Lanham Act, Breach of
Contract, Breach of the Duty of Good Faith and Fair Dealing, Breach of Fiduciary
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damages, an award of attorneys fees and costs, and preliminary and permanent
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injunctive relief.
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PARTIES
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1.
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International Scooter Association World Champion for 2012, 2013 and 2014.
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2.
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liability company that distributes and sells scooters and scooter parts and
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3.
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principle of Lucky.
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4.
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This is an action for False Association under Section 43(a) of the Lanham
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Act, 15 U.S.C. 1125(a), Breach of Contract, Breach of the Duty of Good Faith
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U.S.C. 1331 and 1332. Further, complete diversity of citizenship exists, and the
This Court has subject matter jurisdiction over this case pursuant to 28
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This Court has personal jurisdiction over Defendants based upon: (a)
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judicial district; (b) commission by Defendants of the infringing and other tortious
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conduct underlying Plaintiffs claims, directed into this judicial district; and (c)
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entering into a contractual relationship with Plaintiff in this judicial district which
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BACKGROUND FACTS
Venue is proper in the United States District Court for the Central District of
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Kota is a professional scooter athlete and the winner of the past three
Kota has been a professional scooter athlete since the age of 10. Kota won
Kota is also listed as the current world record holder of the most backflips
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extends far beyond the sport of scootering. Kota has over 67,000 likes on
numerous magazine covers and television programs, including The Ellen Show
in 2013. Kotas YouTube videos have been viewed over 60 million times. Kota
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scooter company.
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distribution company. Defendants Jeide and Corriveau promised Kota that if Kota
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signed the sponsorship agreement with Lucky, Kota would receive a financial
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interest in Lucky and royalties from a KOTA complete signature scooter and
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several other offers from sponsors. However, Kota decided to accept a sponsorship
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agreement, where Lucky would pay Kota $2,000.00 a month for the first year of
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the sponsorship agreement. Corriveau, on behalf of Lucky, also agreed that Kota
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would receive a 1% membership interest per year in Lucky and 10% of net sales
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for the remaining 2 years of the sponsorship agreement. However, Jeide and
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Corriveau told Kota that Kota would make much more than $2,000 per month
At the time Defendants approached Kota, Kota was 16 years old and had
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after the first year, as Kota would receive distributions from his ownership in
Lucky as well as 10% of net sales from the KOTA signature scooter and parts.
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were displayed in stores. This promise was important to Kota, because it would
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agreement with Lucky, the financial interest in Lucky and the royalties from the
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Jeide and Corriveau promised Kota that if Kota signed the sponsorship
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would result in a huge payout for Kota because Defendants were planning on
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selling Lucky for a huge profit within two to three years to a larger entity, such as
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agreement with Lucky on September 7, 2012. A true and correct copy of the
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Sponsorship Agreement).
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representations that a sponsorship deal with Lucky would be in his best interest
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Agreement was the prime of Kotas career. The sport of scootering was growing,
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and Kota won three world championships during his time at Lucky.
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Kota had other sponsorship offers, including one offer for $5,000 per month
The time that Kota was contracted with Lucky under the Sponsorship
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of equity in SPONSOR will be granted at the end of each year of the sponsorship
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In fact, Defendants never intended for Kota to receive any distributions from his
2015. Jeide stated in this email, I also want you to be aware that the only time
your equity will pay anything is if the company does a distribution or we sell the
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company. We dont plan on selling and we have never done distributions and dont
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Defendants also terminated Kota two days before the completion of his
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Lucky would fully vest at the time of any ownership change. (Exhibit A, p. 3 at
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12(a)).
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with customized products that meet his specifications within 30 days so he can
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Defendants promised Kota that his financial interest in Lucky would result
Kota did not receive customized products in a condition satisfactory for his
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added). Given that the Sponsorship Agreement was executed September 7, 2012,
March 7, 2013.
Frequently, the products Defendants provided to Kota did not meet Kotas
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The KOTA Complete Signature Scooter was not completed until September
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Sponsorship Agreement.
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ATHLETE 10% of net sales of [the KOTA Complete Signature Scooter] for the
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KOTA signature parts, SPONSOR will remit to ATHLETE 10% of net sales of
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instead of 10% of net sales on KOTA signature parts and the KOTA Complete
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Signature Scooter, Kota would receive 15% of net sales on KOTA signature parts
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and the KOTA Complete Signature Scooter. Jeide reiterated this in an email to
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Scooter after Kotas termination. Thus, Kota was not able to make the amount of
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Furthermore, upon information and belief, Kota has not received all of his
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15% of net sales on the KOTA signature scooter and the KOTA signature parts.
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SPONSOR will fund travel and lodging expenses of ATHLETE for agreed upon
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Association World Championship in England. Kota attended the event, but Lucky
Defendants agreed that Kota should attend the 2014 International Scooter
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Lucky also did not reimburse Kota for the mileage, maintenance and repair
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costs that Kota incurred while using his vehicle for Lucky.
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not reimburse Kota for the vehicle maintenance that was done in preparation for
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this tour. Lucky cancelled the East Coast Sprinter Tour 2013 after Kota already
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trade shows, including: Germany for ISPO (the worlds largest trade show for
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scooters) in 2013, 2014 and 2015; Australia; China; the Scooter World
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Championships; the InterBike Trade Show in Las Vegas; and the East Coast
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for the ISPO in 2013, 2014 and 2015. Defendants also cancelled the East Coast
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Sprinter Tour in 2013 and the InterBike Trade Show Las Vegas in 2012, 2013 and
Lucky requested that Kota attend the East Coast Sprinter Tour 2013, but did
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2014.
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promised back when Defendants approached Kota about signing the Sponsorship
Agreement.
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with Luckys design work, and reimburse Kota for the cost of taking off the
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previous wrap. Kotas previous wrap cost over $6,400, but Kota took the wrap off
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his vehicle based on Defendants promises. The cost to remove the old wrap alone
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totaled $1,000. Defendants did not reimburse Kota for the cost to remove the
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wrap. Defendants also did not put new wrap on Kotas vehicle. As such, Kota lost
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the opportunity to generate revenue from sponsors that would have otherwise paid
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Bar.
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and business.
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Kota had an agreement with Anthony Baker to manufacture the Tukno Bars.
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When Kota went to order more Tukno Bars, Mr. Baker informed Kota that he did
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not have any Tukno Bars ready because Defendants bought out the entire supply.
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Kota designed and created a scooter product, which Kota named the Tukno
Defendants agreed that Kota could sell Tukno Bars under Kotas own brand
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relationship.
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quality for price. The cheap Tukno Bars are advertised as KOTA products even
though Kota did not approve of the Tukno Bars being manufactured anywhere but
the United States. These cheap Tukno Bars have flooded the market, and
affected Kotas customers, including distributors that are trying to sell the higher
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using Kotas name, without Kotas permission and without paying Kota any
Upon information and belief, Defendants continue to sell Kotas Tukno Bars
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Kotas Performance
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Agreement and broken their promises to Kota, Kota has gone above and beyond
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promote SPONSORS products and services for up to 45 days per year. Kota has
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thousands of autographs, won three world championships, set two Guinness Book
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August 10, 2014. When Kota returned from the championship, Lucky fired Kota.
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Kota has also saved Defendants money by traveling using his mothers free
During the time Kota was contracted with Lucky, Kota signed tens of
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the Complaint.
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these quotations to Kota. Defendants then published the false Kota quotations
After Kota was fired, Defendants continued to use Kotas name and image
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products.
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image or likeness after the contract terminated, yet Defendants continue to use
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Kota in the past, and all royalty payments moving forward. This was unacceptable
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to Kota.
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scooter parts, using Kotas name and brand, without Kotas permission and
Kota did not give permission to Defendants to continue to use his name,
Defendants refuse to send Kota his royalty payments for sales up to the
On or about January 7, 2015, Jeide told Kota that he would only pay Kota
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reputation. For example, on social media, Kotas fans are questioning why Kota
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The sale of the Kota signature scooter and parts is damaging Kotas
Defendants have not announced that Kota is no longer riding for Lucky.
COUNT I
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trademarks, including the KOTA trademark, as used on goods that do not emanate
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trademarks with knowledge that Plaintiff owns, has used, and continues to use
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Plaintiff has developed in connection with his products and unique brand.
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suffered, and will continue to suffer, monetary loss and irreparable injury to his
As the direct and proximate result of such false association, Plaintiff has
COUNT II
(Breach of Contract)
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Plaintiff, failing to provide Plaintiff with customized products that met Plaintiffs
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interest in Lucky, failing to launch the KOTA complete signature scooter within
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six months, failing to reimburse Plaintiff for travel expenses, failing to send
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promised, and failing to reimburse Plaintiff for replacing the vehicle wrap.
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party.
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condition precedent.
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Defendants breach.
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Defendants breach was not excused by any conduct of Plaintiff or any third
COUNT III
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Plaintiff has not breached any element of the contract with Defendants.
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Defendants have breached the letter and spirit of the contract by continuous
terminating the contract right before the release of the scooter which would
withholding distributions for his membership interest in Lucky after they had
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full well that the negative consequences to the Plaintiff would be substantial.
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Defendants acted in bad faith, looking out for their own interests, knowing
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COUNT IV
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interest in Lucky.
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By virtue of the above stated acts, Defendants have, in bad faith, breached
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As the direct and proximate result of Defendants bad faith breach of their
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COUNT V
(Fraud)
100. Plaintiff incorporates the preceding allegations as if fully set forth herein.
membership interest in Lucky and royalties from the KOTA Lucky products would
102. Defendants knew that Plaintiffs membership interest in Lucky would not
result in any payment to Plaintiff, and in fact never intended to pay Plaintiff any
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103. Defendants also knew the royalties from the KOTA Lucky products would
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determined at trial.
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COUNT VI
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(Negligent Misrepresentation)
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107. Plaintiff incorporates the preceding allegations as if fully set forth herein.
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Lucky to Plaintiff.
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109. Defendants knew or should have known that the statements were false and
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misrepresentative.
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COUNT VII
(Deceit)
112. Plaintiff incorporates the preceding allegations as if fully set forth herein.
113. Defendants have deceived Plaintiff and Plaintiffs fans and customers to the
determined at trial.
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COUNT VIII
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(Unjust Enrichment)
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115. Plaintiff incorporates the preceding allegations as if fully set forth herein.
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116. Plaintiffs contract specified that he is required to work 45 days of the year
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for Defendants, but Plaintiff actually worked over 200 days a year for the
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Defendants.
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117. Plaintiff was not compensated for the additional days he worked for
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Defendants.
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118. Plaintiff was not paid for the travel and automobile expenses that he
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119. Plaintiff also developed and popularized the Tukno Bars, which Defendants
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120. Defendants have benefitted from Plaintiffs hard work and actions to the
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COUNT IX
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121. Plaintiff incorporates the preceding allegations as if fully set forth herein.
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122. Plaintiff had a contractual relationship with the manufacturer of the Tukno
Mr. Baker by buying the entire supply of Tukno Bars from the manufacturer so
125. Defendants bought the entire supply of Tukno Bars so that Plaintiffs
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127. Defendants have no legal right, privilege or justification for their conduct.
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128. As the direct and proximate cause of Defendants actions, Plaintiff has
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COUNT X
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130. Plaintiff incorporates the preceding allegations as if fully set forth herein.
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131. Plaintiff had a longstanding economic relationship with his customers who
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132. Defendants knew Plaintiff had an economic relationship with his customers.
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133. Defendants intentionally disrupted the relationship between Plaintiff and the
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manufacturer of the Tukno Bars by taking Plaintiffs design for the Tukno Bars
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undercut Plaintiff and Plaintiffs customers, who were distributing the Tukno Bars.
135. Defendants have no legal right, privilege or justification for its conduct.
136. As the direct and proximate cause of Defendants actions, Plaintiff has
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COUNT XI
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138. Plaintiff incorporates the preceding allegations as if fully set forth herein.
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140. Defendants have used and continue to use Plaintiffs name, image and
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141. Defendants use of Plaintiffs name, image and likeness without Plaintiffs
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143. Defendants have also profited from the use of Plaintiffs name, image and
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all other remedies available under the law, including, but not limited to
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disgorgement of profits.
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COUNT XII
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145. Plaintiff incorporates the preceding allegations as if fully set forth herein.
146. By virtue of having used and continuing to use the KOTA trademark, the
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common law trademark rights, Plaintiff has suffered, and will continue to suffer,
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monetary damages and irreparable injury to his business, reputation, and goodwill.
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COUNT XIII
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(State Unfair Competition Cal. Bus. & Prof. Code 17200 et seq.)
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149. Plaintiff incorporates the preceding allegations as if fully set forth herein.
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150. Upon information and belief, Defendants engaged in the sale of products
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that use Plaintiffs trademarks, name, image and likeness without Plaintiffs
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permission to do so.
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151. Defendants have profited from the use of Plaintiffs trademarks, name,
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152. Defendants advertising and sale of these products has caused irreparable
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COUNT XIV
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(False Advertising & Deceptive Trade Practices Cal. Bus. & Prof. Code 17500)
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153. Plaintiff incorporates the preceding allegations as if fully set forth herein.
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154. Defendants have made false statements about Defendants goods and
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155. Defendants have made false statements about Defendants goods to third
parties.
156. In the course of conducting its business, Defendants knowingly made false
permission.
157. Upon information and belief, Defendants have profited from these false
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has suffered and will continue to suffer monetary damages and irreparable injury
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TechLaw LLP
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following relief:
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A.
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sponsored by Plaintiff;
TechLaw LLP
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G.
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relations;
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economic advantage;
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J.
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K.
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L.
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M.
Pursuant to 17 U.S.C. 505 and 1203(b)(4) and (5), and 1125(a), full
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N.
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O.
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TECHLAW, LLP
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P.O. Box 1416
La Jolla, California 92038
(858) 488-2545 FAX: (858) 777-3347
TechLaw LLP
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P.O. Box 1416
La Jolla, California 92038
(858) 488-2545 FAX: (858) 777-3347
TechLaw LLP
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