Professional Documents
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Case 2:18-cv-03626 Document 1 Filed 04/30/18 Page 2 of 17 Page ID #:2
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For its Complaint, Plaintiff alleges as follows:
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PARTIES
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1. Plaintiff Amini Innovation Corporation (“Plaintiff” or “AICO”) is a
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California corporation having its principal place of business at 8725 Rex Road,
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Pico Rivera, California 90660. AICO has designed for it, markets, and sells unique
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and original home furnishings. AICO’s furniture collections each have carefully
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selected names. AICO displays and offers its furniture for sale at various trade
Facsimile: (310) 394-4477
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shows.
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2. Defendant Acme Furniture Industries, Inc. (“Defendant” or “Acme”) is
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LOS ANGELES, CALIFORNIA 90025
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12100 Wilshire BLVD.
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www.cislo.com
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and/or false representations and warranties in prior settlement agreements between
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AICO and Acme, authorized and/or ratified the breaches of the settlement
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agreements described herein, and is believed to be personally directing and
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benefiting from the infringing activities described herein.
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4. The true names and capacities, whether individual, corporate or
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otherwise of Defendants Does 1-9 inclusive, are unknown to AICO, who therefore
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sues them by such fictitious names. AICO will seek leave to amend this complaint
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to allege their true names and capacities when they have been ascertained. AICO is
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informed and believes and thereon alleges that each of the fictitiously named
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Defendants is responsible in some manner for the occurrences herein alleged and
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that AICO’s damages as herein alleged were proximately caused by those
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Defendants. At all times herein mentioned, Defendants Does 1-9 inclusive were the
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agents, servants, employees or attorneys of their co-defendants, and in doing the
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things hereinafter alleged were acting within the course and scope of their authority
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1 as those agents, servants, employees or attorneys, and with the permission and
2 consent of their co-defendants.
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4 JURISDICTION AND VENUE
5 5. This Court has subject matter jurisdiction over this action pursuant to
6 28 U.S.C. §§ 1331 and 1338(a) as it arises under Acts of Congress related to
7 patents, trademarks, and copyrights. The Court also has subject matter jurisdiction
8 over AICO’s federal trademark infringement claim pursuant to 15 U.S.C. § 1121.
Facsimile: (310) 394-4477
9 The Court has subject matter jurisdiction over AICO’s state common law trademark
10 infringement and breach of settlement claims under 28 U.S.C. § 1367, as the facts
11 regarding each of AICO’s claims arise from the same common nucleus of operative
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12 facts.
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6. This Court has personal jurisdiction over the Defendant Acme as it has
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14 a regular and established place of business in this judicial district at and through
Telephone: (310) 979-9190
15 which it does substantial business in this judicial district in connection with the
16 accused actions described herein.
17 7. This Court has personal jurisdiction over Chen in that Chen is believed
18 to be a resident of this judicial district and is believed to have committed the
19 unlawful acts alleged herein in this judicial district.
20 8. Venue is proper in this judicial district pursuant to 28 U.S.C. §§
21 1391(b)(1), 1391(b)(2), and 1391(c) in that Defendant Acme is subject to personal
22 jurisdiction in this judicial district, resides in the this judicial district, and has a
23 regular and established business place of business in this judicial district and has
24 committed acts of infringement in this judicial district.
25 9. Venue is proper in this judicial district pursuant to 28 U.S.C. §§
26 1391(b)(1) and 1391 (b)(2) as to Chen in that he is believed to reside in this judicial
27 district and he has committed acts of infringement in this judicial district, including
28 personally directing and authorizing the acts of infringement and other violative
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9 numerous items of furniture including bedroom and dining room furniture, as well
10 as entertainment units, occasional tables, and other furniture items. AICO owns
11 state common law rights in the MONTE CARLO name in connection with the
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13 throughout the United States, including California (and most, if not all, other
www.cislo.com
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14 states). For the same reason AICO also has federal common law rights in the
Telephone: (310) 979-9190
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9 settlement agreement that on its face appeared to resolve the differences between
10 the parties. The settlement agreement was signed on behalf of Acme by Defendant
11 Chen. Upon appropriate court order, the terms of the settlement agreement, though
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www.cislo.com
14 the representations of Chen in the settlement agreement) had complied, and was
Telephone: (310) 979-9190
15 continuing to comply, with its obligations under the settlement agreement, AICO’s
16 research revealed that Acme had unashamedly continued to use the “Monte Carlo”
17 mark to sell furniture.
18 19. On or about September 9, 2009, counsel for AICO sent counsel for
19 Acme a letter demanding that Acme cease and desist from using, inter alia, the
20 mark “Monte Carlo” in connection with furniture. Because the terms of the
21 settlement agreement are confidential, and the September 9, 2009 letter refers to
22 certain terms of the settlement agreement, AICO, in an abundance of caution, has
23 chosen not to attach the letter as an exhibit hereto. A copy of the September 9,
24 2009 letter and its attachments are available upon request and appropriate court
25 order.
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“Inter alia,” as used herein, refers to the fact that AICO has omitted references to
28 previous Acme violations that are not, to the best of AICO’s present knowledge,
recurring in connection with this current matter.
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9 its demands for financial information, and made additional demands for financial
10 information from Acme. Because the terms of the settlement agreement are
11 confidential, and the October 2, 2009 letter refers to certain terms of the settlement
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12 agreement, AICO, in an abundance of caution, has chosen not to attach the letter as
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13 an exhibit hereto.
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15 indicated that Acme would cease using, or had ceased using, inter alia, all of the
16 offending trade marks, but Acme refused to provide any of the requested financial
17 information to AICO. AICO requested such information in good faith in hopes of
18 resolving the issues existing at the time without the need for involving the Court.
19 Acme, however, had refused to comply.
20 23. As a result of a lack of complete cooperation from Acme to remedy its
21 ongoing infringements and breach of the May 2009 settlement agreement, on
22 October 13, 2009, AICO filed suit in this Court against Acme and James Chen, and
23 received Case No. 2:09-cv-7427-PA-AJW. The Complaint in that matter contains
24 exhibits that demonstrate the above-referenced violations. Such exhibits have been
25 omitted herein to minimize volume and, as noted, to avoid disclosure of matter in
26 the confidential settlement agreement from May 2009.
27 24. In February of 2010, AICO and Acme entered into a second
28 confidential settlement agreement that on its face appeared to resolve the
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1 differences between the parties. The settlement agreement was signed on behalf of
2 Acme by Defendant Chen, and Mr. Chen also signed the agreement in his personal
3 capacity. If need be, and upon appropriate court order, the terms of the settlement
4 agreement, though confidential, are incorporated herein by reference.
5 25. In addition to the settlement agreement, AICO and Acme also
6 submitted a Stipulation Permanent Injunction that was entered by the Court on
7 February 23, 2010 (Case No. 2:09-cv-7427-PA-AJW, Docket No. 26). In the
8 Stipulated Permanent Injunction entered by the Court, Acme was enjoined from,
Facsimile: (310) 394-4477
9 inter alia, selling furniture under the name “Monte Carlo” (or confusingly similar
10 names). A copy of the Permanent Injunction entered by the Court is attached hereto
11 as Exhibit 4.
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12 26. In or about early 2018, it again came to AICO’s attention that Acme
12100 Wilshire BLVD.
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13 was again selling furniture under the name “Monte Carlo.” Such acts by Acme not
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1 numerous trade shows in common with AICO over the past several years. On
2 information and belief, Acme, through its officers (including Chen and others)
3 and/or its sales representatives, have visited AICO’s showrooms at these trade
4 shows and observed AICO’s furniture designs and trade names in connection with
5 its “Monte Carlo” and “Overture” collections.
6 31. Accordingly, and in light of Acme’s and Chen’s previous conduct with
7 respect to “Monte Carlo” (and other items in the past) it is believed that Acme
8 systematically targeted AICO to copy because of AICO’s acclaim and success in
Facsimile: (310) 394-4477
9 the industry, thus permitting Acme to profit from using AICO’s names and/or
10 designs at AICO’s expense in this judicial district and elsewhere by virtue of using
11 AICO’s carefully conceived names and branding to divert sales from AICO, to
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12 Acme’s own benefit. On information and belief, this use and misuse of AICO’s
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13 designs and trademarks by Acme has been done, and is being done, under the
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9 and mark in connection with its furniture products. Thus, AICO enjoys common
10 law rights in the MONTE CARLO mark throughout the United States (including
11 under 15 U.S.C. § 1125(a)) in connection with furniture products, and such rights
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12 are senior and superior to any rights which Defendants may claim in and to their
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13 infringing mark.
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15 Chen (and perhaps others), has again used in commerce the term “Monte Carlo,” as
16 a trademark in connection with its furniture in such a way as will likely cause
17 confusion or mistake, or will likely deceive the public in relation to Acme’s
18 products being associated or identified with or being the same as those of AICO.
19 As presently known, Defendants’ recent use of “Monte Carlo” in connection with
20 furniture appears to have taken place in 2017 and/or 2018.
21 38. Not only did AICO never consent to, or authorize, Defendant Acme’s
22 adoption or commercial use of the term “Monte Carlo” for sales of furniture, but
23 Acme and Chen have on several previous occasions agreed to cease all use of the
24 name “Monte Carlo” in connection with furniture. Furthermore, in 2010, this Court
25 previously enjoined Acme’s and Chen’s use of the name “Monte Carlo” in
26 connection with furniture. Defendant Acme (at the direction, control, and behest of
27 Defendant Chen and perhaps others) therefore has infringed AICO’s “Monte Carlo”
28 trademark in violation of AICO’s federal common law trademark rights under the
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1 Lanham Act, 15 U.S.C. § 1051, et seq., and possibly its registered rights as well,
2 before the registration lapsed.
3 39. AICO’s “Monte Carlo” trademark is very strong in light of at least
4 AICO’s long-term and continuous use of, and the substantial marketing and
5 promotion of, the “Monte Carlo” name in connection with furniture. Defendant
6 Acme’s use (at the direction, control, and behest of at least Chen) of the
7 confusingly similar and/or identical “Monte Carlo” mark in connection with
8 furniture thus creates a likelihood of confusion.
Facsimile: (310) 394-4477
9 40. At all times relevant to this action, including when Defendant Acme
10 (under the direction and control of at least Defendant Chen) re-adopted the “Monte
11 Carlo” mark, Defendants unequivocally knew of AICO’s prior adoption and
LOS ANGELES, CALIFORNIA 90025
CISLO & THOMAS LLP
12 widespread commercial use of the “Monte Carlo” mark in connection with furniture
12100 Wilshire BLVD.
Attorneys at Law
14 to use the “Monte Carlo” name and mark in connection with furniture, and were
Telephone: (310) 979-9190
15 even enjoined by this Court from doing so. Despite their agreement, and this
16 Court’s permanent injunction, Defendants brazenly violated this Court’s injunction
17 and breached two separate agreements with AICO in its use of the “Monte Carlo”
18 mark in connection with furniture. Accordingly, Defendants’ infringement of the
19 “Monte Carlo” mark is undeniably willful and deliberate.
20 41. As a direct and proximate result of the aforesaid acts of federal
21 common law (and possibly registered) trademark infringement, Defendants have
22 wrongfully and unjustly profited from AICO’s creativity and investment of time,
23 energy and money in connection with its marks. Defendants should therefore
24 disgorge all profits from the sale of their products under the “Monte Carlo” mark.
25 42. AICO has no control over the composition and quality of the goods
26 sold by Defendant Acme under the confusingly similar and/or identical “Monte
27 Carlo” mark by Defendant Acme. As a result, to the extent Defendant Acme’s
28 products and/or customer service are inferior to AICO’s, AICO’s valuable goodwill
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10 COUNT II – STATE COMMON LAW TRADEMARK INFRINGEMENT
11 44. AICO hereby repeats and incorporates herein the allegations set forth
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www.cislo.com
45. AICO owns and uses, and has since approximately 2001 used, the
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14 MONTE CARLO mark and enjoys common law rights therein in California and
Telephone: (310) 979-9190
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Case 2:18-cv-03626 Document 1 Filed 04/30/18 Page 12 of 17 Page ID #:12
1 48. Defendants’ infringement will continue unless again enjoined, and also
2 sanctioned by the Court for their brazen disregard of this Court’s injunction entered
3 in 2010.
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5 COUNT III – BREACH OF 2009 SETTLEMENT AGREEMENT
6 49. AICO hereby repeats and incorporates herein the allegations set forth
7 in paragraphs 1 through 48 above.
8 50. AICO and Acme entered into a settlement agreement in May of 2009,
Facsimile: (310) 394-4477
9 the terms of which are confidential, but upon appropriate court order, are
10 incorporated herein by reference.
11 51. The settlement agreement was the product of significant negotiations
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12 and consideration flowed to both AICO and Acme. The settlement agreement was
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15 52. AICO has fully performed all of its obligations under the settlement
16 agreement.
17 53. Acme has materially breached the settlement agreement by virtue of
18 the activities described herein.
19 54. As a direct result of Acme’s breach of the 2009 settlement agreement,
20 AICO has been damaged in an amount to be proven at trial, including with respect
21 to the terms of paragraph 7 of the settlement agreement, as well as an award of
22 attorneys’ fees and costs in bringing this claim.
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24 COUNT IV – BREACH OF 2010 SETTLEMENT AGREEMENT
25 55. AICO hereby repeats and incorporates herein the allegations set forth
26 in paragraphs 1 through 54 above.
27 56. AICO and Acme, as well as Chen, entered into a settlement agreement
28 in February of 2010, the terms of which are confidential, but upon appropriate court
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9 59. Acme and Chen have materially breached the settlement agreement by
10 virtue of the activities described herein.
11 60. As a direct result of Acme’s breach of the 2010 settlement agreement
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12 and injunction of this court, AICO has been damaged in an amount to be proven at
12100 Wilshire BLVD.
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13 trial, as well as an award of attorneys’ fees and costs in bringing this claim.
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Telephone: (310) 979-9190
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1 Carlo” bedroom collection, but which was very recently changed to the “Lucca”
2 bedroom. See, Exhibit 5, attached hereto.
3 64. The making, using, importing, offering to sell, and/or selling of
4 infringing products by Defendants, and/or contributing to the infringing activities of
5 others, has been without authority or license from AICO and is in violation of
6 AICO’s rights, thereby infringing the ‘630 Patent.
7 65. For the reasons stated elsewhere herein, Defendants’ infringement of
8 AICO’s ‘630 Patent has been willful, with knowledge, and in disregard for the
Facsimile: (310) 394-4477
9 exclusive rights of AICO set forth in its patent set forth herein.
10 66. The amount of money damages which AICO has suffered due to
11 Defendants’ acts of infringement cannot be determined without an accounting of
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12 directors, agents, servants, attorneys, and employees and all other persons acting in
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13 concert with them, and Defendant James Chen from making, using, importing,
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14 offering to sell, and/or selling its Monte Carlo/Lucca headboard, any other product
Telephone: (310) 979-9190
15 within the scope of AICO’s ‘630 Patent, and/or any colorably similar imitations
16 thereof;
17 C. For an order directing Defendants to file with this Court and to serve
18 on the Plaintiff within thirty (30) days after service on Defendants of the
19 injunction(s) granted herein, or such extended period as the Court may direct, a
20 report in writing, under oath, setting forth in detail the manner and form in which
21 Defendants have complied with the injunction and order of the Court;
22 D. For an order seizing and impounding all accused products;
23 E. For an order finding Defendants in contempt of this Court’s prior
24 permanent injunction in regards to the MONTE CARLO trademark;
25 F. For a judgment to be entered for AICO against Defendants in an
26 amount equal to the profits Defendants made in connection with their sales of
27 products that infringe the ‘630 Patent pursuant to 35 U.S.C. § 289 to be proven at
28 trial;
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Case 2:18-cv-03626 Document 1 Filed 04/30/18 Page 16 of 17 Page ID #:16
9 Patent Act;
10 I. For a judgment awarding to AICO prejudgment and postjudgment
11 interest until the award is fully paid; and,
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12 J. For such other and further relief as this Court may deem just and
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Respectfully submitted:
Telephone: (310) 979-9190
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16 CISLO & THOMAS LLP
17 Dated: April 30, 2018 By: s/Donald M. Cislo
18 Donald M. Cislo, Esq.
Daniel M. Cislo, Esq.
19 Mark D. Nielsen, Esq.
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Attorneys for Plaintiff, AMINI
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INNOVATION CORPORATION
22 \\Srv-db\tmdocs\09-22314\Complaint - Acme II.doc
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Exhibit 1
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