IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF GEORGIA ATLANTA DIVISION

GRACO CHILDRENS PRODUCTS INC., ) ) ) Plaintiff, ) ) v. ) ) KIDS II, INC. ) ) Defendant. )

Civil Action No. ________________

JURY TRIAL DEMANDED

COMPLAINT The Plaintiff, Graco Childrens Products Inc. (Graco), hereby files this Complaint against Defendant Kids II, Inc. (Kids II) and avers as follows: NATURE OF THE ACTION 1. This is an action for patent infringement under the patent laws of the

United States, Title 35, United States Code. 2. Graco, a leading provider of childrens products, has a tradition of

innovation. For example, Graco invented the worlds first wind-up infant swing and the first product that allowed for an infant car seat to be readily inserted into or removed from a stroller.

3.

In keeping with that tradition, Graco invented a novel infant soothing

swing that is able to mimic the natural side-to-side swaying motion of a parent or caregiver while cradling an infant. Graco obtained patents directed to the numerous inventions in its swing, including U.S. Patent Nos. 7,563,170; 7,883,426; 8,029,377; and 8,187,111 (collectively, the Graco Patents). 4. Kids II has recently begun to offer a soothing swing product under the

designation InGenuity Cozy Coo Sway Seat (the InGenuity child sway product) that mimics a caregivers side-to-side swaying motion. This product is available on the Kids II website and at various retailers including, for example, Target. 5. On information and belief, Kids II has knowledge of one or more of

the Graco Patents. In fact, Kids II has hired certain former Graco employees who were involved with or knowledgeable of Gracos development of one or more of the inventions described and claimed in the Graco Patents. 6. By making, using, offering for sale or selling the InGenuity child

sway product, Kids II is infringing one or more claims of each of the Graco Patents. Graco seeks preliminary and permanent injunctive relief, and monetary relief. Moreover, given the circumstances of such infringement, including Kids IIs unique access to and knowledge of the Graco technology and the Graco 2

Patents, the present case is exceptional and Graco is entitled to enhanced damages and an award of its attorneys fees. PARTIES 7. Graco is a Delaware corporation with a place of business at 3

Glenlake Parkway, Atlanta, Georgia 30328. 8. On information and belief, Kids II is a Georgia corporation with a

place of business at 3333 Piedmont Road, Suite 1800, Atlanta, Georgia 30305. JURISDICTION AND VENUE 9. 1 et seq. 10. This Court has subject matter jurisdiction over this action pursuant to This is an action under the patent laws of the United States, 35 U.S.C.

28 U.S.C. 1331 and 1338 because this Complaint includes a cause of action for patent infringement under the laws of the United States, 35 U.S.C. 1 et seq. 11. This Court has personal jurisdiction over Kids II consistent with the

principles underlying the United States Constitution because, upon information and belief, Kids II has committed acts of infringement in the State of Georgia, or is doing business and has done business in the State of Georgia and in this District, or is otherwise a resident of this jurisdiction.

12. 1400.

Venue is proper in this District pursuant to 28 U.S.C. 1391 and/or

FACTUAL BACKGROUND 13. Graco invests substantial time and effort in the research and

development of new products. The Graco research and development staff has developed a wide range of childrens products, including, for example, infant swings, car seats, strollers, playards, and high chairs. Graco has a tradition of innovation that is reflected in such products. 14. Graco, through its research and development staff, invented a novel

infant soothing swing that mimics the natural swaying motion of a parent or other caregiver while cradling an infant. 15. Graco has commercialized its infant soothing swing by offering such

swings for sale in Georgia and elsewhere. 16. Graco has obtained and owns patents directed to the inventions

embodied in its infant soothing swing. 17. On July 21, 2009, after a full and fair examination, the United States

Patent and Trademark Office issued United States Patent No. 7,563,170 (the 170 Patent), entitled CHILD MOTION DEVICE. A true and correct copy of the

170 Patent is attached hereto as Exhibit A. Graco owns all right, title, and interest to the 170 Patent, including the right to sue for infringement thereof. 18. On February 8, 2011, after a full and fair examination, the United

States Patent and Trademark Office issued United States Patent No. 7,883,426 (the 426 Patent), entitled CHILD MOTION DEVICE. A true and correct copy of the 426 Patent is attached hereto as Exhibit B. Graco owns all right, title, and interest to the 426 Patent, including the right to sue for infringement thereof. 19. On October 4, 2011, after a full and fair examination, the United

States Patent and Trademark Office issued United States Patent No. 8,029,377 (the 377 Patent), entitled CHILD MOTION DEVICE. A true and correct copy of the 377 Patent is attached hereto as Exhibit C. Graco owns all right, title, and interest to the 377 Patent, including the right to sue for infringement thereof. 20. On May 29, 2012, after a full and fair examination, the United States

Patent and Trademark Office issued United States Patent No. 8,187,111 (the 111 Patent), entitled CHILD MOTION DEVICE. A true and correct copy of the 111 Patent is attached hereto as Exhibit D. Graco owns all right, title, and interest to the 111 Patent, including the right to sue for infringement thereof.

Kids IIs Infringing Acts 21. On information and belief, Kids II provides childrens products under

the designation InGenuity. 22. On information and belief, certain persons who were members of the

Graco research and development staff have been hired by Kids II for the purpose of developing childrens products to be offered by Kids II. On further information and belief, such former Graco research and development staff members have knowledge of Gracos infant soothing swing technology or the Graco Patents or both. 23. Kids II has recently begun to offer for sale the InGenuity child sway

product, including at retail establishments such as Target. Exhibit E is a true and correct copy of a page from the Target website showing the InGenuity child sway product. Kids II advertises the InGenuity child sway product on its website as providing a gentle side-to-side motion and a unique sway [that] is at the heart of this deluxe swing . . .. Exhibit F is a true and correct copy of a page from the Kids II website showing the InGenuity child sway product. 24. The InGenuity child sway product infringes one or more claims of

each of United States Patent Nos. 7,563,170; 7,883,426; 8,029,377 and 8,187,111.

25.

On information and belief, Kids II has been aware of Gracos

technology and the Graco Patents for some time, since at least when Kids II hired certain former Graco research and development staff members. 26. On information and belief, Kids II has purposefully, actively and

voluntarily offered for sale and sold the InGenuity child sway product with the expectation that it would be purchased or used by consumers in Georgia and elsewhere. By such acts, Kids II has injured Graco and is thus liable to Graco for infringement of the Graco Patents pursuant to 35 U.S. C. 271. COUNT I (Infringement of the 170 Patent) 27. The allegations contained in paragraphs 1-26 above are incorporated

by reference as if fully set forth herein. 28. The 170 Patent, entitled CHILD MOTION DEVICE, was duly and

properly issued to Graco by the United States Patent and Trademark Office on July 21, 2009. 29. Kids II has actively and knowingly infringed and is infringing the

170 Patent with knowledge of Gracos patent rights and without reasonable basis for believing that Kids IIs conduct is lawful, by engaging in acts including making, using, selling, or offering to sell within the United States, or importing

into the United States a product that embodies the patented invention described and claimed in the 170 Patent, including the InGenuity child sway product. 30. Furthermore, on information and belief, Kids II has also induced

infringement and/or contributed to infringement of the 170 Patent by users of the InGenuity child sway product. 31. Kids IIs acts have been without express or implied license from

Graco, and are willful and in reckless disregard of Gracos patent rights. On information and belief, Kids II will continue to infringe the 170 Patent unless enjoined by this Court. 32. As a result of Kids IIs infringement, Graco has suffered, and will

continue to suffer, irreparable harm for which there is no adequate remedy at law. Graco is entitled to preliminary and permanent injunctive relief against such infringement under 35 U.S.C. 283. 33. As a result of Kids IIs infringement, Graco has been damaged, will

further be damaged, and is entitled to compensation for such damages under 35 U.S.C. 284. COUNT II (Infringement of the 426 Patent) 34. The allegations contained in paragraphs 1-33 above are incorporated

by reference as if fully set forth herein. 8

35.

The 426 Patent, entitled CHILD MOTION DEVICE, was duly and

properly issued to Graco by the United States Patent and Trademark Office on February 8, 2011. 36. Kids II has actively and knowingly infringed and is infringing the

426 Patent with knowledge of Gracos patent rights and without reasonable basis for believing that Kids IIs conduct is lawful, by engaging in acts including making, using, selling, or offering to sell within the United States, or importing into the United States a product that embodies the patented invention described and claimed in the 426 Patent, including the InGenuity child sway product. 37. Furthermore, on information and belief, Kids II has also induced

infringement and/or contributed to infringement of the 426 Patent by users of the InGenuity child sway product. 38. Kids IIs acts have been without express or implied license from

Graco, and are willful and in reckless disregard of Gracos patent rights. On information and belief, Kids II will continue to infringe the 426 Patent unless enjoined by this Court. 39. As a result of Kids IIs infringement, Graco has suffered, and will

continue to suffer, irreparable harm for which there is no adequate remedy at law.

Graco is entitled to preliminary and permanent injunctive relief against such infringement under 35 U.S.C. 283. 40. As a result of Kids IIs infringement, Graco has been damaged, will

further be damaged, and is entitled to compensation for such damages under 35 U.S.C. 284. COUNT III (Infringement of the 377 Patent) 41. The allegations contained in paragraphs 1-40 above are incorporated

by reference as if fully set forth herein. 42. The 377 Patent, entitled CHILD MOTION DEVICE, was duly and

properly issued to Graco by the United States Patent and Trademark Office on October 4, 2011. 43. Kids II has actively and knowingly infringed and is infringing the

377 Patent with knowledge of Gracos patent rights and without reasonable basis for believing that Kids IIs conduct is lawful, by engaging in acts including making, using, selling, or offering to sell within the United States, or importing into the United States a product that embodies the patented invention described and claimed in the 377 Patent, including the InGenuity child sway product.

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44.

Furthermore, on information and belief, Kids II has also induced

infringement and/or contributed to infringement of the 377 Patent by users of the InGenuity child sway product. 45. Kids IIs acts have been without express or implied license from

Graco, and are willful and in reckless disregard of Gracos patent rights. On information and belief, Kids II will continue to infringe the 377 Patent unless enjoined by this Court. 46. As a result of Kids IIs infringement, Graco has suffered, and will

continue to suffer, irreparable harm for which there is no adequate remedy at law. Graco is entitled to preliminary and permanent injunctive relief against such infringement under 35 U.S.C. 283. 47. As a result of Kids IIs infringement, Graco has been damaged, will

further be damaged, and is entitled to compensation for such damages under 35 U.S.C. 284. COUNT IV (Infringement of the 111 Patent) 48. The allegations contained in paragraphs 1-47 above are incorporated

by reference as if fully set forth herein.

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49.

The 111 Patent, entitled CHILD MOTION DEVICE, was duly and

properly issued to Graco by the United States Patent and Trademark Office on May 29, 2012. 50. Kids II has actively and knowingly infringed and is infringing the

111 Patent with knowledge of Gracos patent rights and without reasonable basis for believing that Kids IIs conduct is lawful, by engaging in acts including making, using, selling, or offering to sell within the United States, or importing into the United States a product that embodies the patented invention described and claimed in the 111 Patent, including the InGenuity child sway product. 51. Furthermore, on information and belief, Kids II has also induced

infringement and/or contributed to infringement of the 111 Patent by users of the InGenuity child sway product. 52. Kids IIs acts have been without express or implied license from

Graco, and are willful and in reckless disregard of Gracos patent rights. On information and belief, Kids II will continue to infringe the 111 Patent unless enjoined by this Court. 53. As a result of Kids IIs infringement, Graco has suffered, and will

continue to suffer, irreparable harm for which there is no adequate remedy at law.

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Graco is entitled to preliminary and permanent injunctive relief against such infringement under 35 U.S.C. 283. 54. As a result of Kids IIs infringement, Graco has been damaged, will

further be damaged, and is entitled to compensation for such damages under 35 U.S.C. 284. COUNT V (Willful Infringement) 55. The allegations contained in paragraphs 1-54 above are incorporated

by reference as if fully set forth herein. 56. In view of its hiring of former Graco research and development staff

members, Kids II has knowledge of the Graco infant soothing swing technology or the Graco Patents or both. 57. On information and belief, Kids IIs past and continuing infringement

of the Graco Patents has been made with knowledge of the Graco Patents, and has been deliberate and willful. 58. Kid IIs conduct warrants an award of enhanced damages, pursuant to

35 U.S.C. 284, and renders this an exceptional case justifying an award of attorneys fees to Graco, pursuant to 35 U.S.C. 285.

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REQUEST FOR RELIEF WHEREFORE, Graco respectfully prays for judgment as follows: A. Entry of judgment holding Kids II liable for infringement of each of

the Graco Patents, specifically: 1. that Kids II has infringed the 170 Patent; 2. that Kids II has infringed the 426 Patent; 3. that Kids II has infringed the 377 Patent; 4. that Kids II has infringed the 111 Patent; B. An order preliminarily and permanently enjoining Kids II, its officers,

agents, servants, employees, attorneys, all those in active concert or participation with it, and all other parties properly enjoined by law, from continued acts of infringement of the Graco Patents; C. Award Graco damages adequate to compensate for all such

unauthorized acts of infringement pursuant to 35 U.S.C. 284, and treble the damages award by reason of the willful and deliberate nature of Kids IIs acts of infringement also pursuant to 35 U.S.C. 284; D. Declare this case as exceptional within the meaning of 35 U.S.C.

285, and award Graco its reasonable attorneys fees and other costs and expenses as incurred in the prosecution of this action; and

E. proper.

Award such other and further relief as the Court deems just and

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JURY DEMAND Graco demands a trial by jury on all issues so triable.

Respectfully submitted, this 17th day of September 2012. McKEON, MEUNIER, CARLIN & CURFMAN LLC

/s/ Stephen M. Schaetzel Georgia State Bar No. 628653 Gregory J. Carlin Georgia State Bar No. 455865 Walter Hill Levie, III Georgia State Bar No. 415569 Anthony B. Askew Georgia State Bar No. 025300 Attorneys for Graco Childrens Products Inc. 817 W. Peachtree Street Suite 500 Atlanta, GA 30308 Telephone: (404) 645-7700 Facsimile: (404) 645-7707

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