IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW MEXICO FALCON INDUSTRIES, INC Plaintiff, v.

COMBAT OPTICAL, INC., AIRSOFTXP, GLOBAL MILITARY GEAR CORP., CDNN SPORTS, INC., AEX, L.L.C., STREAMLIGHT, INC., THE GLOBAL SPORTSMAN, GUN RIFLE GEAR AKA GRG MFG, TACTICAL DEALS, and AMERICAN TACTICAL, Defendants. Civil Action No. 1:12-cv-679

COMPLAINT The plaintiff, Falcon Industries, Inc (Falcon), brings this action against defendants, Combat Optical, Inc. (Combat Optical), AirsoftXP, Global Military Gear Corp. (GMG), CDNN Sports, Inc. (CDNN), AEX, L.L.C. (AEX), Streamlight, Inc. (StreamLight), The Global Sportsman (Global Sportsman), Gun Rifle Gear aka GRG MFG (GRG), Tactical Deals, American Tactical for infringing United States Patent No. 6,725,594 (the 594 patent). Falcon further charges GMG with infringing Falcons Ergo Grip trademark and with false marking in violation of 35 U.S.C. 292. By this Complaint, Falcon seeks, inter alia, injunctive relief and monetary damages and alleges as follows:

PARTIES

1.

Falcon is a New Mexico corporation with its principal place of business in Moriarty, New Falcon is engaged in the business of developing, manufacturing, and marketing

Mexico.

specialty products. 2. Upon information and belief, Combat Optical, Inc. (Combat Optical) is a California

company having a principal location at 4961 Santa Anita Ave #H, Temple City, CA 91780, having as registered agent Allen M. Lin, 4961 Santa Anita Ave #H, Temple City, CA 91780, having an internet store at www.combatoptical.com. 3. Upon information and belief, Combat Optical has an Amazon.com storefront under the

nickname Combat Optical Store 4. Upon information and belief, Combat Optical markets and sells small arms accessories and

airsoft accessories. 5. Upon information and belief, Combat Optical sells goods using the

www.combatoptical.com web store. 6. Upon information and belief, Combat Optical sells infringing rail covers through an

Amazon.com web store. 7. Upon information and belief, Combat Optical has sold and continues to sell its products

into New Mexico and throughout the United States. 8. 9. Upon information and belief, AirsoftXP is a California business. Upon information and belief, AirsoftXP has shipped infringing items using the return

address VNS TOYS, 2343 Rose Park Ave., Duarte CA 91010. 10. 11. Upon information and belief, AirsoftXP also does business under the name VNS Toys. Upon information and belief, Airsoft XP also does business under the name

BoxedinUSA.

12.

Upon information and belief, AirsoftXP markets and sells airsoft accessories, including

infringing rail covers, through a variety of web stores including an Amazon.com web store and an Ebay.com web store. 13. Upon information and belief, AirsoftXP has sold and continues to sell its products into

New Mexico and throughout the United States. 14. Upon information and belief, GMG is a New York Corporation having a mailing address at

3 Birchtree Place, South Huntington, NY 11746 at which corporate officer Addy Sandler may also be addressed and having a principal executive office at 1 Lenox Ave, Farmingdale, NY 11735 to which the state of New York will mail service if accepted on behalf of GMG. 15. 16. 17. GMG markets and sells small arms accessories. Upon information and belief, GMG sells goods using the www.gm-gear.com web store. Upon information and belief, infringing GMG rail covers are sold at the Amazon.com web

site by a number of retailers. 18. GMG has sold and continues to sell its products into New Mexico and throughout the

United States. 19. Upon information and belief, CDNN is a Texas company having a principal location at

3602 Treadaway Blvd, Abilene, TX 79602 and having as registered agent Charles Crawford, 3602 Treadaway Blvd, Abilene, TX 79602. 20. 21. Upon information and belief, CDNN markets and sells small arms accessories. Upon information and belief, CDNN has sold and continues to sell its products into New

Mexico and throughout the United States. 22. Upon information and belief, CDNN sells goods using the www.cdnninvestments.com web

store. The domain name www.cdnnsports.com redirects to the CDNN web store.

23. store. 24.

Upon information and belief, CDNN sells infringing rail covers through an Amazon web

Upon information and belief, AEX is a California company having a principal location at

1402 B S. Bascom Ave, San Jose, CA 95128, having as registered agent Peter Ho, 216 Ramona St #2, San Mateo, CA 94401, and having a number of retail stores operating under the name Airsoft Extreme. 25. Upon information and belief, AEX markets and sells small arms accessories and airsoft

accessories. 26. Upon information and belief, AEX markets and sells goods using the

www.airsoftextreme.com web store. 27. Upon information and belief, AEX has sold and continues to sell its products into New

Mexico and throughout the United States. 28. Upon information and belief, StreamLight is a Delaware company having a principal

location at Eagleville Road, Eagleville, PA 19403 and having as registered agent Registered Office Service Company, 203 NE Front Street, Suite 101, Milford, DE 19963. 29. Upon information and belief, StreamLight markets and sells flashlights, flashlight

accessories, and StreamLight Gear. 30. Upon information and belief, StreamLights has sold and continues to sell its products into Streamlight has at least two registered

New Mexico and throughout the United States.

dealers/retailers in Albuquerque, NM although Streamlight products are available at a wide variety of other local businesses. 31. Upon information and belief, StreamLight sells StreamLight Gear such as hats, shirts and

other apparel through its streamlightgear.com web store.

32. site. 33.

Upon information and belief, StreamLight products are sold through the Amazon.com web

Upon information and belief, StreamLights remote retaining clip aka StreamLight part

number 88178 is sold through the Amazon.com web site. 34. Upon information and belief, The Global Sportsman is the nickname for Global

Sportsman, a merchant using an Amazon.com storefront to market and sell small arms accessories. 35. Upon information and belief Global Sportsman is a New York company, a New Jersey

company, an individual named Abraham Safdie, or an individual named Nathan S. Doueck. Global Sportsman is located at least one of the following addresses: 64 MacDougal St. #3, New York, NY 10012; 823 McDougal St., Brooklyn, NY 11230; 246 Industrial Way West, Rear Suite, Eatontown, NJ 07724; and 24 Mount Dr, Num 14L, W. Long Branch, NJ 07764. 36. Upon information and belief, Global Sportsman has marketed and sold small arms

accessories into New Mexico and throughout the United States. 37. Upon information and belief, Global Sportsman sells infringing rail covers through an

Amazon.com web store. 38. Upon information and belief, Gun Rifle Gear or GRG MFG is a nickname for GRG, a

merchant using an Amazon.com storefront to market and sell small arms accessories. 39. Upon information and belief, GRG is California company or individual having a mailing

address at 2910 S. Archibald Ave, Ste A535, Ontario, CA 91761, which appears to be a UPS Store. 40. Upon information and belief, GRG has marketed and sold small arms accessories into New

Mexico and throughout the United States.

41.

Upon information and belief, GRG sells infringing rail covers through an Amazon.com

web store. 42. Upon information and belief, Tactical Deals is a nickname for a merchant using an

Amazon.com storefront to market and sell small arms accessories. 43. Upon information and belief, Tactical Deals has marketed and sold small arms accessories

into New Mexico and throughout the United States. 44. Upon information and belief, Tactical Deals sells infringing rail covers through an

Amazon.com web store. 45. Upon information and belief, American Tactical and The American Outdoorsman are

both nicknames for the same merchant, American Tactical, using an Amazon.com storefront to market and sell small arms accessories. 46. Upon information and belief, American Tactical has marketed and sold small arms

accessories into New Mexico and throughout the United States. 47. Upon information and belief, American Tactical sells infringing rail covers through an

Amazon.com web store.

JURISDICTION, VENUE, AND JOINDER 48. This Court has subject matter jurisdiction pursuant to 15 U.S.C. 1121(a), 28 U.S.C.

1331, 28 U.S.C. 1338, 28 U.S.C. 1367 and 35 U.S.C. 292. 49. This court has personal Jurisdiction over defendants under 28 U.S.C. 1391 and 1400(b)

and New Mexico Statute 38-1-16 which affects long arm jurisdiction based upon defendants contacts with this jurisdiction.

50. This Court has personal jurisdiction over each and every defendant because, upon information and belief, each and every defendants infringing products are marketed, distributed and sold in New Mexico and offered for sale and sold into New Mexico over the internet. 51. Venue is proper in this district under 28 U.S.C. 1391 and 1400(b). 52. Joinder of the defendants is proper under 35 U.S.C. 299 because all the defendants has had infringing products marketed, offered for sale, and sold at the Amazon.com web site.

THE SUBJECT PATENT 53. On April 27, 2004, United States Patent No. 6,725,594 entitled Rail cover for firearm rail systems (the 594 patent) was issued naming Stephen Charles Hines as inventor. A copy of the 594 patent is attached as Exhibit A. 54. All rights, title, and interest in the 594 patent are assigned to Falcon.

THE SUBJECT TRADEMARK 55. Falcon has distinguished itself and it goods for over a decade by providing high quality

goods bearing the Ergo Grip trademark and/or the ergogrips.net internet address 56. 57. Falcon began using Ergo Grips in early 1998 to trademark small arms accessories. Falcon created the ergogrips.net domain name in July 2000 and began marketing and

selling firearms accessories through the ergogrips.net web site shortly thereafter. 58. Falcon filed for trademark registration of the Ergo Grip trademark with the United States

Patent and Trademark Office (USPTO) in March 2003. The Ergo Grip trademark issued in April 2005 with registration number 2939628, with serial number 78231458, and with Falcon as

the owner. Falcon still owns the trademark. A copy of the registration certificate is attached as Exhibit B. 59. Falcon used TM to signify its use of Ergo Grip until the mark was registered with the

USPTO at which time TM was replaced with . 60. Falcon sells and has sold its trademarked goods for over a decade through a variety of

channels including distributors and over the internet.

COMMON RAIL COVERS 61. A number of the defendants have manufactured, marketed or sold long ladder rail covers, short full type 1 rail covers, or short full type 2 rail covers. 62. Long ladder rail covers infringe claims 1, 2, 9, 10, 11, 14, 15, 16, 17, 26, 27, and 28 of the 594 patent as shown in Exhibit C. 63. Unless specified otherwise, long ladder rail covers have eighteen slots of coverage because they cover eighteen recoil grooves when attached to a Picatinny rail. 64. Short full type 1 rail covers rail covers infringe claims 1-3. 7, 8, 12-14, 18, and 19 of the 594 patent as shown in Exhibit D. 65. Short full type 1 have five slots of coverage because they cover five recoil grooves when attached to a Picatinny rail. 66. Short full type 2 rail covers infringe claims 1-3. 7, 8, 12-14, 18, and 19 of the 594 patent as shown in Exhibit E. 67. Short full type 2 rail covers have five slots of coverage because they cover five recoil grooves when attached to a Picatinny rail. 68. A reasonable royalty for licensing the 594 patent is $0.15 per slot of coverage.

COUNT I Patent Infringement Against Combat Optical 69. Falcon re-alleges and incorporates herein by reference each and every allegation contained in paragraphs 1 through 68, inclusive, as set forth above. 70. On information belief, Combat Optical markets, sells, and distributes infringing rail covers including long ladder rail covers and short full type 1 rail covers. 71. Combat Optical conducted its wrongful acts willfully and without authorization or license. 72. Falcon has suffered substantial damage as a result of Combat Opticals infringement of the 594 patent including, but not limited to, loss of sales of its own rail covers and loss of value of its patent. 73. Falcon is entitled to an accounting of Combat Opticals profits derived from the sale of rail covers.

COUNT II Patent Infringement Against AirsoftXP 74. Falcon re-alleges and incorporates herein by reference each and every allegation contained in paragraphs 1 through 73, inclusive, as set forth above. 75. On information belief, AirsoftXP markets, sells, and distributes infringing rail covers including long ladder rail covers. 76. AirsoftXP conducted its wrongful acts willfully and without authorization or license. 77. Falcon has suffered substantial damage as a result of AirsoftXPs infringement of the 594 patent including, but not limited to, loss of sales of its own rail covers and loss of value of its patent.

78. Falcon is entitled to an accounting of AirsoftXPs profits derived from the sale of rail covers.

COUNT III Patent Infringement Against GMG 79. Falcon re-alleges and incorporates herein by reference each and every allegation contained in paragraphs 1 through 78, inclusive, as set forth above. 80. On information belief, GMG markets, sells, and distributes infringing rail covers including GMG long full rail covers. 81. GMG long full rail covers have twelve slots of coverage. 82. GMG long full rail covers infringe claims 1-3. 7, 8, 12-14, 18, and 19 as shown in Exhibit F. 83. 84. GMG conducted its wrongful acts willfully and without authorization or license. By marking its rail covers with Pat# 6,725,594, as shown in Exhibit F, GMG establishes

that it has had committed its acts with full knowledge of the 594 patent. 85. Falcon has suffered substantial damage as a result of GMGs infringement of the 594

patent including, but not limited to, loss of sales of its own rail covers and loss of value of its patent. 86. Falcon is entitled to an accounting of GMGs profits derived from the sale of rail covers.

COUNT IV Trademark Infringement Against GMG 87. Falcon re-alleges and incorporates herein by reference each and every allegation contained in paragraphs 1 through 86, inclusive, as set forth above. 88. GMG marked its GMG long full rail covers with ergogrips.net as shown in Exhibit F.

89. GMG marked its GMG long full rail covers with ergogrips.net willfully and without authorization or license. 90. GMGs use of Falcons trademark leads to confusion and misleads the public into believing

that Falcon is the source of the GMG long full rail cover. 91. By marking its rail cover with Falcons trademark, GMG infringed Falcons trademark.

COUNT V False Marking Against GMG 92. Falcon re-alleges and incorporates herein by reference each and every allegation contained

in paragraphs 1 through 91, inclusive, as set forth above. 93. 94. 95. 96. GMG marked its GMG long full rail covers with Pat# 6,725,594 as shown in Exhibit F. GMG conducted its wrongful acts willfully and without authorization or license. By marking its rail cover with Falcons patent, GMG violated the 35 U.S.C. 292. Falcon has suffered substantial damage as a result of GMGs infringement of the 594

patent including, but not limited to, loss of sales of its own rail covers and loss of value of its patent.

COUNT VI Patent Infringement Against CDNN 97. Falcon re-alleges and incorporates herein by reference each and every allegation contained

in paragraphs 1 through 96, inclusive, as set forth above. 98. On information belief, CDNN markets, sells, and distributes infringing rail covers

including short full type 1 rail covers. One of the ways that CDNN distributes infringing rail covers is by packing them with its other products.

99.

On information and belief, CDNN includes rail covers with the TAR16B Quad Rail sold on

through CDNNs Amazon.com web store. 100. CDNN conducted its wrongful acts willfully and without authorization or license. 101. Falcon has suffered substantial damage as a result of CDNNs infringement of the 594 patent including, but not limited to, loss of sales of its own rail covers and loss of value of its patent. 102. Falcon is entitled to an accounting of CDNNs profits derived from the sale of rail covers.

COUNT VII Patent Infringement Against AEX 103. Falcon re-alleges and incorporates herein by reference each and every allegation contained in paragraphs 1 through 102, inclusive, as set forth above. 104. On information belief, AEX markets, sells, and distributes infringing rail covers including long ladder rail covers. 105. AEX conducted its wrongful acts willfully and without authorization or license. 106. Falcon has suffered substantial damage as a result of AEXs infringement of the 594 patent including, but not limited to, loss of sales of its own rail covers and loss of value of its patent. 107. Falcon is entitled to an accounting of AEXs profits derived from the sale of rail covers.

COUNT VIII Patent Infringement Against StreamLight 108. Falcon re-alleges and incorporates herein by reference each and every allegation contained in paragraphs 1 through 107, inclusive, as set forth above.

109. On information belief, StreamLight markets, sells, and distributes infringing rail covers including StreamLight Remote Retaining Clips. 110. Each StreamLight Remote Retaining Clip has three slots of coverage. 111. StreamLight Remote Retaining Clips infringe claims 1, 2, 9-11, 14-17, and 26-28 of the 594 patent as shown in Exhibit G. 112. StreamLight conducted its wrongful acts willfully and without authorization or license. 113. Falcon has suffered substantial damage as a result of StreamLights infringement of the 594 patent including, but not limited to, loss of sales of its own rail covers and loss of value of its patent. 114. Falcon is entitled to an accounting of StreamLights profits derived from the sale of rail covers.

COUNT IX Patent Infringement Against Global Sportsman 115. Falcon re-alleges and incorporates herein by reference each and every allegation contained in paragraphs 1 through 114, inclusive, as set forth above. 116. On information belief Global Sportsman markets, sells, and distributes infringing rail covers including TufForce rail covers, long ladder rail covers, and short full type 1 rail covers. 117. TufForce rail covers have seven slots of coverage. 118. TufForce rail covers infringe claims 1-3, and 14 of the 594 patent as shown in Exhibit H. 119. Global Sportsman conducted its wrongful acts willfully and without authorization or license.

120. Falcon has suffered substantial damage as a result of Global Sportsmans infringement of the 594 patent including, but not limited to, loss of sales of its own rail covers and loss of value of its patent. 121. Falcon is entitled to an accounting of Global Sportsmans profits derived from the sale of rail covers.

COUNT X Patent Infringement Against GRG 122. Falcon re-alleges and incorporates herein by reference each and every allegation contained in paragraphs 1 through 121, inclusive, as set forth above. 123. On information belief GRG markets, sells, and distributes infringing rail covers including long ladder rail covers, and short full type 1 rail covers. 124. GRG conducted its wrongful acts willfully and without authorization or license. 125. Falcon has suffered substantial damage as a result of GRGs infringement of the 594 patent including, but not limited to, loss of sales of its own rail covers and loss of value of its patent. 126. Falcon is entitled to an accounting of GRGs profits derived from the sale of rail covers.

COUNT XI Patent Infringement Against Tactical Deals 127. Falcon re-alleges and incorporates herein by reference each and every allegation contained in paragraphs 1 through 126, inclusive, as set forth above. 128. On information belief Tactical Deals markets, sells, and distributes infringing rail covers including long ladder rail covers, short full type 1 rail covers and short full type 2 rail covers.

129. Tactical Deals conducted its wrongful acts willfully and without authorization or license. 130. Falcon has suffered substantial damage as a result of Tactical Deals infringement of the 594 patent including, but not limited to, loss of sales of its own rail covers and loss of value of its patent. 131. Falcon is entitled to an accounting of Tactical Deals profits derived from the sale of rail covers.

COUNT XII Patent Infringement Against American Tactical 132. Falcon re-alleges and incorporates herein by reference each and every allegation contained in paragraphs 1 through 131, inclusive, as set forth above. 133. On information belief American Tactical markets, sells, and distributes infringing rail covers including long ladder rail covers, short full type 1 rail covers and short full type 2 rail covers. 134. American Tactical conducted its wrongful acts willfully and without authorization or license. 135. Falcon has suffered substantial damage as a result of American Tacticals infringement of the 594 patent including, but not limited to, loss of sales of its own rail covers and loss of value of its patent. 136. Falcon is entitled to an accounting of American Tacticals profits derived from the sale of rail covers.

REQUEST FOR RELIEF

WHEREFOR, Falcon respectfully requests an entry of judgment in its favor against Defendants and requests that: A) Defendants be adjudged to have infringed the 594 patent and that such infringement be

adjudged to have been willful; B) Defendant GMG be adjudged to have infringed Falcons trademark and that such

infringement be adjudged to have been willful; C) D) E) Defendants to be enjoined from further infringement of Falcons intellectual property; Defendants to at their own cost deliver all stock of infringing items to Falcon; Falcon be awarded damages in an amount no less than a reasonable royalty for Defendants

infringement of the 594 patent; F) G) H) I) J) K) Falcon be awarded treble damages pursuant to 35 U.S.C. 284; Falcon be awarded attorney fees and legal costs; Falcon be awarded prejudgment interest and post judgment interest; and Falcon to be awarded such other and further relief as the Court may deem just and proper. Defendant GMG be adjudged to have falsely marked its product with Pat# 6,725,594. From Defendant GMG, Falcon to be awarded damages in accordance with 15 U.S.C.

1117(a), 15 U.S.C. 1117(b), and 35 U.S.C. 292.

JURY DEMAND In accordance with Federal Rules of Civil Procedure 38 and 39, Plaintiff asserts its right under the Seventh Amendment of the United States Constitution and demands a trial by jury on all issues.

Dated June 25, 2012 Respectfully Submitted, Ortiz and Lopez, PLLC Electronically Filed By: /s/ Luis M. Ortiz Luis M. Ortiz Attorney for the Plaintiff Ortiz and Lopez, PLLC 117 Bryn Mawr Dr. SE, Suite 101 Albuquerque, NM 87106 Telephone: 505-314-1310 Facsimile: 505-314-1307