FILED02DEC*il li:iOUSDC-Oi?

Timothy S. DeJong, OSB No. 940662 Email: tdejong@stollberne.com

Jacob S. Gill, OSB No. 033238

Email: jgill@stollberne.com
STOLL STOLL BERNE LOKTING & SHLACHTER P.C. 209 S.W. Oak Street, Fifth Floor Portland, Oregon 97204

Telephone: Facsimile:

(503) 227-1600 (503) 227-6840

Attorneys for Plaintiff

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF OREGON

PORTLAND
VANGUARD PRODUCTS GROUP, INC., an Illinois corporation, doing business as Vanguard Protex Global,

^.^
Case No.
COMPLAINT FOR PATENT

Plaintiff,
v.

INFRINGEMENT
DEMAND FOR JURY TRIAL

MERCHANDISING TECHNOLOGIES,

INC., an Oregon corporation,

Defendant.

Plaintiff Vanguard Products Group, Inc. ("Vanguard") alleges thatdefendant

Merchandising Technologies, Inc. ("MTI") infringes U.S. Patent No. 5,726,627 and U.S. Patent
No. 6,278,365, and in support thereof states as follows:
PARTIES. JURISDICTION AND VENUE

1.

Plaintiff Vanguard is an Illinois corporation doing business as Vanguard Protex

Global, with its principal place of business in Oldsmar, Florida.

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Page 1- COMPLAINT FORPATENT INFRINGEMENT

^pHl5l

STOLL STOLL BERNE LOKTING & SHLACHTER P.C.

209 S.W. OAK STREET

PORTLAND, OREGON 97204

TEL.(503) 227-1600 FAX (503) 227-6840

2.

Defendant MTI is an Oregon corporation with its principal place of business in

Hillsboro, Oregon.

3.

This action arises under the patent laws of the United States, 35 U.S.C. 1 et

seq. This Court has jurisdiction under 28 U.S.C. 1331 and 1338(a). Venue is appropriate pursuant to 28 U.S.C. 1391(b) and (c) and 1400(b).
CLAIM FOR RELIEF (PATENT INFRINGEMENT)

4.

Vanguard is the owner, as assignee, of U.S. Patent No. 5,726,627 (the "'627

Patent"), a copy of which is attached as Exhibit A.

5.

Vanguard is the owner, as assignee, of U.S. Patent No. 6,278,365 (the " '365

Patent"), a copy of which is attached as Exhibit B.

6.

MTI has infringed and is infringing the '627 Patent and the '365 Patent by

manufacturing, using, selling, offering to sell within the United States security systems
incorporating the MTI Freedom 1.0 and MTI Freedom 2.0 alarm modules.

7.

MTI has actively induced the infringement of the '627 Patent and the '365 Patent

by other persons: a.
'365 Patent.

At all material times MTI had actual knowledge of the '627 Patent and the

b.

MTI has sold and provided security systems incorporating the MTI

Freedom 1.0 and MTI Freedom 2.0 alarm modules and material components thereof to other

persons for use in a manner that infringes the '627 Patent and the '365 Patent.
c. At all material times, MTI either (i) knew that the use of security systems

incorporatingthe MTI Freedom 1.0 and MTI Freedom 2.0 alarm modules in the manner directed by MTI would infringe the '627 Patent and the '365 Patent; or (ii) believed that there was a high
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Page 2 - COMPLAINT FOR PATENT INFRINGEMENT

STOLL STOLL BERNE LOKTING & SHLACHTER P.C.
209 S.W. OAK STREET

PORTLAND, OREGON 97204

TEL (503) 227-1600 FAX (503) 227-6840

probability that such conduct would infringe the '627 Patent and the '365 Patent and took
deliberate actions to avoid confirming that fact.

8.

MTI has contributed to the infringement of the '627 Patent and the '365 Patent by

other persons by selling and offering to sellmaterial components of security systems

incorporating theMTI Freedom 1.0 and MTI Freedom 2.0alarm modules, knowing the same to beespecially made or especially adapted for use in security systems incorporating the MTI
Freedom 1.0 and MTI Freedom 2.0 alarm modules and not a staple article or commodity of

commerce suitablefor any other substantial use within the United States.
9. MTI's acts of infringement have been willful and deliberate: a.
the '365 Patent.

At all material times, MTI had actual knowledge of the '627 Patent and

b.

At all materialtimes, MTI either (i) engaged in the conduct described in

Paragraphs 6-8 ofthis Complaint knowing that such conduct would infringe, directly or

indirectly, the '627 Patent and the '365 Patent; or (ii) engaged in such conduct knowing that
there was a substantial risk that such conduct would infringe, directly or indirectly, the '627
Patent and the '365 Patent.

10.

Vanguard has suffered, and will continue to suffer, substantial harm due to MTI's

infringing acts, and is entitled to recover damages from MTI in anamount adequate to

compensate Vanguard for the infringement that has occurred, but in no event less than a
reasonable royalty for the use made by MTI of the inventions.

11.

Vanguard has suffered, and will continue to suffer, permanent and irreparable

injury, for which Vanguard has no adequate remedy at law. Vanguard isentitled toinjunctive
reliefenjoining MTI from infringing the '627 Patent and the '365 Patent.
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Page 3 - COMPLAINT FORPATENT INFRINGEMENT

STOLL STOLL BERNE LOKTING & SHLACHTER P.C
209 S.W. OAK STREET

PORTLAND, OREGON 97204

TEL (503)227-1600' FAX (503) 227-6840

12.
285.

Vanguard is entitled to the relief provided by 35 U.S.C. 281,283,284, and

WHEREFORE, Vanguard requests the following relief:

A.

An order enjoining MTI from making, using, offering tosell, orselling within the

United States, or importing into the United States, any product that infringes the '627 Patent or
the '365 Patent orany product whose use infringes the '627 Patent or the '365 Patent;

B.

An order enjoining MTI from contributing to oractively inducing the

infringement by others of the '627 Patent or the '365 Patent;

C.

An order awarding Vanguard damages for MTI's acts of infringement, inan

amount not less than a reasonable royalty, including prejudgment interest thereon pursuant to 35
U.S.C. 284;

D.

An order awarding Vanguard itscosts pursuant to 35 U.S.C. 284;

E.
285;and

An order awarding Vanguard its reasonable attorney fees pursuant to 35 U.S.C.

F.

Such other relief as the Court may deemjust and reasonable.

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Page 4 - COMPLAINT FOR PATENT INFRINGEMENT

STOLL STOLL BERNE LOKTING & SHLACHTER P.C.
209 S.W. OAK STREET

PORTLAND, OREGON 97204

TEL (503) 227-1600 FAX(503) 227-4840

JURY DEMAND

Plaintiff hereby demands a trial by jury.

DATED this 2nd day of December, 2011.

STOLL STOLL
CHTERP.C.

20/SW Oak Street, 5th Floor

Portland, OR 97204

Telephone: Facsimile: Email:

(503) 227-1600 (503) 227-6840 tdejong@stollberne.com jgill@stollberne.com

Attorneys for Plaintiff

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Page 5 - COMPLAINT FOR PATENT INFRINGEMENT

STOLL STOLL BERNE LOKTING & SHLACHTER P.C
209 S.W. OAK STREET

PORTLAND, OREGON 97204

TEL. (503) 227-1600 FAX (503)227-6840