IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF TENNESSEE WESTERN DIVISION ) ) ) ) ) ) ) ) ) ) ) COMPLAINT COME NOW

Plaintiffs, Gerald R. Gallik and Robert G. Gallik, Jr. (collectively "Plaintiffs"), and for their Complaint against Defendant, Kurt Lusko ("Defendant"), states the following: I. 1. 2. THE PARTIES

GERALD R. GALLIK and ROBERT G. GALLIK, JR. Plaintiffs, v. KURT LUSKO, Defendant.

Civil Action No. 2:12-cv-2276

JURY TRIAL DEMANDED

Plaintiffs are both resident citizens of Memphis, Shelby County, Tennessee. Upon information and belief, Defendant Kurt Lusko is a resident citizen of Ann

Arbor, Michigan, living at 6206 Campbell Road, Ann Arbor, Michigan, 48108, and can be served with process at that location. II. 3. JURISDICTION AND VENUE

This is an action against Defendant for patent infringement arising under the Patent

Laws of the United States, specifically 35 U.S.C. 271 and 35 U.S.C. 281. 4. This Court has subject matter jurisdiction over this action pursuant to 28 U.S.C.

1331 as it involves a federal question; United States Patent Laws, 28 U.S.C. 1338(a) as it

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involves federal patent law; and 28 U.S.C. 1332 as the action is between citizens of different States, and the amount in controversy in this action, exclusive of interest and costs, exceeds the sum of $75,000.00. 5. This Court has personal jurisdiction over the Defendant based upon Defendants

sale of infringing goods and the transaction of business in the state of Tennessee and sufficient minimum contacts with the state of Tennessee. Defendant has sold and delivered the Infringing Products to residents of Shelby County, Tennessee. 6. Venue is proper in this District under 28 U.S.C. 1400(b) and 1391(b), (c). III. 7. THE CONTROVERSY

On August 17, 2004, the United States Patent and Trademark Office duly and

lawfully issued U.S. Patent No. 6,775,934 (the 934 Patent) for the invention entitled Head Apparel Embroidery Hoop and Alignment Device." A copy of the 934 Patent is attached hereto as Exhibit A. 8. Patent. 9. Plaintiffs market and sell products which are covered by the '934 Patent under the Plaintiffs are the inventors of the '934 Patent and the exclusive owners of the '934

name of "Hoop-N-Buddyz." 10. Defendant has made, used, sold, and/or offered to sell within the United States,

and/or imported into the United States, head apparel embroidery hoops (sometimes generically referenced herein as "hat hoops") that infringe the 934 Patent, including but not limited to such hat hoops that are used, sold, and/or offered for sale and described as "Cap Hat Hoop" and -2M DLB 2309784 v1 0-0 04/10/2012

purporting to be applicable to machines from various manufacturers (hereinafter referred to as Infringing Products). Defendant has sold and/or offered to sell the Infringing Products on the internet through "e-bay" using various seller names including, without limitation: "5026kurt." 11. Defendant was and is on notice of Plaintiffs' patent rights pursuant to 35 U.S.C.

287 by virtue of Plaintiffs' marketing efforts and the instructional inserts and product materials (including the patent number) that are included with Plaintiffs' "Hoop-N-Buddyz" product. 12. Plaintiffs have suffered and is continuing to suffer damages as a result of

Defendants infringement of the 934 Patent, and Plaintiffs are entitled to compensation as allowed to the full extent of the law pursuant to 35 U.S.C. 284. 13. By reason of the ongoing infringement by Defendant of the 934 Patent, Plaintiffs are entitled to the entry of an injunction against Defendant, preventing further infringement of the 934 Patent pursuant to 35 U.S.C. 283. 14. Defendant has had and continues to have notice of Plaintiffs' patent rights in the

'934 Patent. Defendant has copied verbatim much of the language from the product instruction sheets that are included in Plaintiff's "Hoop-N-Buddyz" shipments. Defendant's infringement of the '934 Patent has been and continues to be willful. Thus, the damages should be enhanced up to three times as permitted by 35 U.S.C. 284. COUNT I PATENT INFRINGEMENT--U.S. PAT. 9,775,934 15. Plaintiffs hereby incorporate and reallege paragraphs one (1) through fourteen (14)

as if fully set forth herein.

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16.

Defendant made or had made, used, offered for sale, distributed, sold and/or

imported into the United States the Infringing Products which infringe the 934 Patent. 17. ascertained. 18. Defendants infringement constitutes willful and intentional infringement making Defendants infringement has caused damage to Plaintiffs in an amount not yet

this an exceptional case and justifying the imposition of treble damages and an award of reasonable attorney fees to Plaintiffs within the provisions of 35 U.S.C. 284 and 285. 19. By reason of the acts of Defendant alleged herein, Plaintiffs have suffered, are

suffering and will continue to suffer irreparable damage, and unless Defendant is restrained from continuing its wrongful acts, the damage to Plaintiffs will be increased. 20. Plaintiffs have no adequate remedy at law.

WHEREFORE, Plaintiffs respectfully request that a judgment be entered in their favor as follows: 1. That the Court adjudge and decree that the Defendants conduct infringes

Plaintiff's patent rights in the 934 Patent in violation of 35 U.S.C. 271. 2. That, pursuant to 35 U.S.C. 283, Defendant and Defendant's agents be forthwith

preliminarily enjoined and restrained from making, using, offering to sell, selling or importing into the United States, the Infringing Products, and any other product that infringes the 934 Patent, during the pendency of this civil action, and thereafter permanently enjoined and restrained from making, using, offering to sell, selling, or importing into the United States the Infringing Products, and any other products that infringe the 934 Patent. -4M DLB 2309784 v1 0-0 04/10/2012

3.

That Defendant be directed to file with this Court and serve on Plaintiffs' counsel

of record within thirty days after the service of an injunction, a report in writing under oath, setting forth in detail the manner and form in which Defendant has complied with any preliminary, temporary and/or permanent injunctions. 4. That Defendant account for and pay to Plaintiffs all damages, together with

interest and costs, available to Plaintiffs on account of Defendants infringement of the 934 Patent, and that the Court increase the amount of damages to three times the amount found or assessed by the Court because of the willful and deliberate nature of the infringement, in accordance with 35 U.S.C. 284. 5. That the Court declare this an exceptional case and that Plaintiffs be granted and

awarded their reasonable attorneys fees in accordance with 35 U.S.C. 285. 6. That the Court require Defendant to notify its commercial licensees, dealers,

associates, distributors, suppliers and customers of said Court Order enjoining Defendant. 7. That the Court require a full and complete accounting of all monies received by

the Defendant as a result of the wrongful making, using, importing, offering for sale and/or selling of the Infringing Products, and that the Court further order Defendant to transfer to Plaintiffs any amounts found to be due to Defendant. 8. That the Court award to Plaintiffs all interest at the then prevailing rate, as well as

all costs found due and owing to Plaintiffs. 9. That the Court award the Plaintiffs all such other and further relief as the Court

may deem just. DEMAND FOR JURY Plaintiffs request that all issues triable by a jury be so tried in this case.

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Respectfully submitted, s/ David L. Bearman David L. Bearman (TN 17876) Adam S. Baldridge (TN 23488) BAKER, DONELSON, BEARMAN, CALDWELL & BERKOWITZ, P.C. 165 Madison Avenue Suite 2000 Memphis, Tennessee 38103 Telephone: (901) 577-8116 Facsimile: (901) 577-0716 Email: dbearman@bakerdonelson.com Email: abaldridge@bakerdonelson.com Attorneys for Plaintiffs, Gerald R. Gallik and Robert G. Gallik, Jr.

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