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trebled and/or statutory damages, pre-judgment interest, attorneys fees and costs under the Lanham
Act based on Defendants counterfeit and infringing use of Plaintiffs trademarks in connection with
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the advertising, promotion, and sale of mixers, dispersers, mills, and related products that are not
Plaintiffs genuine products.
2.
NETZSCH brings this action to protect its reputation for selling products of the
highest quality, prevent deception of the consuming public by Defendants, retain control over the
substantial goodwill associated with its numerous registered trademarks being unlawfully exploited
by Defendants, and to avoid irretrievably lost sales.
Parties
3.
Exton, PA 19341.
4.
NETZSCH companies.
5.
Upon information and belief, Mr. Dennis Lei is the General Manager of PHLER.
9.
Upon information and belief, Mr. Lei resides at No. 016, Team 1, Zhujiaqi Village,
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10.
(Shanghai) Machinery and Instruments Co., Ltd., a subsidiary of the globally operated group of
NETZSCH companies.
11.
PHLER.
12.
Upon information and belief, Mr. Li resides at Room 302, No.4, Zijin 4 village,
Mr. Lis business address is Room 605, Telecom Industry Plaza, No. 25
Upon information and belief, Mr. Li was employed from 2005-2009 as a sales
manager by NETZSCH (Shanghai) Machinery and Instruments Co., Ltd., a subsidiary of the
globally operated group of NETZSCH companies.
15.
Mr. Leis past employment with NETZSCH put him on actual notice of
NETZSCHs intellectual property rights, including the infringing trademarks at issue in this action.
16.
Mr. Lis past employment with NETZSCH put him on actual notice of NETZSCHs
intellectual property rights, including the infringing trademarks at issue in this action.
17.
Upon information and belief, Messrs. Lei and/or Li selected the infringing
Upon information and belief, Messrs. Lei and/or Li selected the NETZSCH
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19.
Upon information and belief, at trade shows Mr. Lei directly solicited NETZSCHs
Upon information and belief, Defendants distributed marketing materials bearing the
Defendants are doing business through a number of trade shows, including the
American Coatings Show held in this District, and through Defendants websites, including
www.puhler.com, www.nanogrindingmill.com, and puhler.gmc.globalmarket.com, through which
Defendants market and sell their products.
Jurisdiction and Venue
22.
This claim arises under 15 U.S.C. 1051, et seq. (the Lanham Act), particularly 15
U.S.C. 1114(1). This Court has subject matter jurisdiction over the claims pursuant to the
provisions of 28 U.S.C. 1331 (federal question jurisdiction) and 1338 (any Act of Congress
relating to trademarks) and 15 U.S.C. 1121 (action arising under the Lanham Act). This Court has
jurisdiction over the state law claims pursuant to 28 U.S.C. 1367 (supplemental jurisdiction).
23.
Venue is proper in this Court pursuant to 28 U.S.C. 1391(b) and 1391(c) because
Defendants are subject to the Courts personal jurisdiction and because a substantial part of the
events giving rise to this action took place in the District. Furthermore, NETZSCH has suffered
harm in this District and the Lanham Act provides that venue lies in the place of harm.
24.
Defendants have been doing business in this District, and have and/or are
advertising, distributing, offering for sale, and selling products wrongfully bearing counterfeits of
NETZSCH trademarks to persons located within this District.
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25.
This Court has personal jurisdiction over Defendants because, inter alia, Defendants
(1) have systematic and continuous contacts with this District, (2) transact and do business in this
District, (3) have websites that are accessible in this District, and (4) have reserved an exhibitor
booth for the 2016 American Coatings Show to be held in this District on April 12-14 2016.
P & Design Trademark
26.
NETZSCH is responsible for maintaining control over the quality of the NETZSCH
NETZSCH is the owner of U.S. Reg. No. 3,426,673 for its P & Design trademark
for use in connection with industrial mixers, blenders, dispersers and mills; media milling and
dispersion equipment. The trademark record is attached as Exhibit A. An affidavit under Section 15
of the Lanham Act claiming incontestability for this registration was filed on September 24, 2013.
The Section 15 affidavit was acknowledged by the U.S. Patent and Trademark Office (USPTO) on
September 28, 2013. Accordingly, this registration is considered incontestable.
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31.
NETZSCH is the owner of U.S. Reg. No. 3,426,674 for its P & Design trademark
for use in connection with industrial mixers, blenders, dispersers and mills; media milling and
dispersion equipment. The trademark record is attached as Exhibit B. An affidavit under Section 15
of the Lanham Act claiming incontestability for this registration was filed on September 24, 2013.
The Section 15 affidavit was acknowledged by the USPTO on September 28, 2013. Accordingly,
this registration is considered incontestable.
32.
NETZSCH is the owner of U.S. Reg. No. 4,911,597 for its P & Design trademark
for use in connection with: industrial mixers; dispersing machines and mills; machines for mixing;
mixing, homogenizing and processing machines and apparatus for the food industry, chemical
industry, cosmetic industry and pharmaceutical industry, and parts for the aforesaid goods. The
trademark record is attached as Exhibit C.
33.
The P & Design trademark is distinctive and is used to identify high quality products
The P & Design trademark is arbitrary and fanciful and is entitled to the highest
NETZSCH uses the P & Design trademark in connection with the marketing and
trade shows, and by other means. See, e.g. Exhibit L. NETZSCH has invested substantial effort
and resources in developing and promoting the NETZSCH Products under the P & Design
trademark.
36.
identifying and distinguishing its products and there is considerable and valuable goodwill
associated with the P & Design trademark.
37.
Having continuously used the P & Design trademark to promote its products,
NETZSCH owns all rights in the trademark, as well as marks substantially similar thereto, and its
registrations are constructive notice of NETZSCHs rights as a matter of law.
ZETA Trademark
38.
NETZSCH is the owner of U.S. Reg. No. 2,620,559 for its ZETA trademark
for use in connection with mechanical and industrial agitators and their parts for processing and
production of low to highly viscous materials and mixtures, namely colors, pigments, food,
minerals, and pharmaceutical substances. The trademark record is attached as Exhibit D. An
affidavit under Section 15 of the Lanham Act claiming incontestability for this registration was filed
on September 3, 2008. The Section 15 affidavit was acknowledged by the USPTO on September
29, 2008. Accordingly, this registration is considered incontestable.
39.
NETZSCH is the owner of U.S. Reg. No. 3,767,507 for its ZETA trademark
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for use in connection with electrically operated machines, namely, agitator bead mills and structural
parts therefore for use in processing low to highly viscous products. The trademark record is
attached as Exhibit E. An affidavit under Section 15 of the Lanham Act claiming incontestability for
this registration was filed on March 31, 2015. The Section 15 affidavit was acknowledged by the
USPTO on April 8, 2015. Accordingly, this registration is considered incontestable.
40.
The ZETA trademark is distinctive and is used to identify high quality products
NETZSCH uses the ZETA trademark in connection with the marketing and sales of
distinguishing its products and there is considerable and valuable goodwill associated with the
ZETA trademark.
43.
Having continuously used the ZETA trademark to promote its products, NETZSCH
owns all rights in the trademark, as well as marks substantially similar thereto, and its registrations
are constructive notice of NETZSCHs rights as a matter of law.
Infringing Acts
44.
Long after NETZSCHs adoption and first use of its P & Design and ZETA
trademarks Defendants started to use prominently the P & Design and ZETA trademarks, without
authorization from NETZSCH, in connection with their competing business.
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45.
on PHLERs
Defendants have incorporated the P & Design trademark into PHLERs company
logo
See Exhibit F.
47.
Defendants market products under the P & Design trademark that compete directly
in the marketplace with products that NETZSCH markets under the P & Design trademark,
including the NETZSCH Products.
48.
Defendants target markets include North America and Defendants have exported
Upon information and belief, Defendants market their products under the P &
Defendants marketing materials that bear the P & Design trademark and are
52.
On information and belief, Defendants did not begin to use the P & Design
53.
On information and belief, Defendants knew of NETZSCHs prior rights in the P &
Design trademark and disregarded those rights when they chose to adopt the P & Design trademark
in connection with competing products.
54.
Defendants are also using the ZETA trademark, without authorization from
Defendants have a mill named SuperMaxZeta, which they advertise at trade shows
Defendants market products under the ZETA trademark that compete in the
marketplace with products that NETZSCH markets under the ZETA trademark, including the
NETZSCH Products.
57.
58.
On information and belief, Defendants did not begin to use the ZETA in the U.S.
ZETA trademark and disregarded those rights when they chose to adopt the ZETA trademark in
connection with competing products.
60.
Upon information and belief, Messrs. Lei and/or Li selected the infringing
trademarks used by Defendants with the intent to trade off of NETZSCHs goodwill.
61.
Defendants customers for products offered under their infringing trademarks are
likely to consist of many of the same customers who are already familiar with the products offered
by NETZSCH under those same trademarks.
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62.
Defendants offer and distribute products under their infringing trademarks through
channels of trade that overlap with those used to offer and distribute the products offered by
NETZSCH under those same trademarks, including the same trade shows and conventions.
63.
The American Coatings show is a leading North American industry show and
conference that occurs every two years. In 2014, more than 8,700 industry attendees from 69
countries visited the American Coatings Show.
64.
The 2016 American Coatings Show will be held in Indianapolis, Indiana on April
NETZSCH is registered to attend the 2016 American Coatings Show and has
NETZSCH plans to market its products at the 2016 American Coatings Show using
In fact, PHLER has reserved booth #3042, which is right next to NETZSCHs
On information and belief, Defendants will market competing products at the 2016
customers will be confused at the 2016 American Coatings Show by Defendants marketing of
products using their infringing trademarks in the booth next to where NETZSCH will be marketing
its products using its P & Design and ZETA trademarks.
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71.
Defendants acts are deliberately calculated to confuse and deceive the public and
are performed with full knowledge of NETZSCHs rights. Said acts constitute willful and
deliberate infringement of NETZSCHs rights in the P & Design and ZETA trademarks.
72.
sanctioned by NETZSCH.
73.
NETZSCH is not able to monitor, enforce, or maintain its quality control standards
on the non-genuine/counterfeit products Defendants manufacture, offer for sale, and sell.
74.
Defendants use of the P & Design and ZETA trademarks in the manner described
above tends to and does create the erroneous impression that Defendants products and services
emanate or originate from NETZSCH, and/or that said products are authorized, sponsored, or
approved by NETZSCH, even though they are not. This confusion causes irreparable harm to
NETZSCH and the P & Design and ZETA trademarks.
75.
NETZSCHs intellectual property for their own financial gain. Furthermore, Defendants have
unfairly benefited and profited from NETZSCHs outstanding reputation for high quality products
and its significant advertising and promotion of the NETZSCH Products and the P & Design and
ZETA trademarks.
76.
Defendants acts, as set forth herein, are willful and deliberate. Therefore, this case
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77.
likely to cause confusion or mistake or deception, now and in the future, as to the origin, source, and
sponsorship of Defendants products and NETZSCHs products.
78.
likely to deceive the consuming public into believing that they are purchasing genuine goods which
have been manufactured, authorized, or approved by NETZSCH, and has caused and/or is likely to
cause mistake in that consumers assume that NETZSCH has manufactured, authorized, or approved
the counterfeit products sold by Defendants.
79.
Defendants use of the infringing trademarks for products that are competing with
and/or closely related to NETZSCHs products have resulted in and will continue to result in
incalculable harm to NETZSCH because of a likelihood of confusion among customers and injury
to NETZSCHs reputation.
80.
irreparable lost sales, Defendants manufacture, distribution, and sale of counterfeit products
displaying NETZSCHs trademarks will irreparably injure NETZSCHs reputation for the
manufacture and sale of the highest quality products because NETZSCH is unable to control the
quality of the materials used by Defendants. Indeed, there is no way to know the quality or safety of
the counterfeit products.
81.
Upon information and belief, Defendants conduct is continuing and will continue
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COUNT I
Trademark Counterfeiting 15 U.S.C. 1114
83.
NETZSCH repeats and re-alleges each and every allegation set forth in the
Defendants have used spurious designations that are identical with, or substantially
indistinguishable from, the P & Design and ZETA trademarks and possibly other NETZSCH
trademarks, on the counterfeit products they promote, offer for sale, and sell.
85.
Defendants have intentionally used these spurious designations knowing they are
counterfeit, in connection with the advertisement, promotion, offering for sale, and sale of
counterfeit mixers, dispersers, mills, and related products.
86.
88.
By reason of the foregoing, Defendants are liable to NETZSCH for: (a) an amount
representing three time NETZSCHs damages and/or Defendants profits, whichever is greater, or
an election of statutory damages; and (b) reasonable attorneys fees, costs including investigative
fees, and pre-judgment interest pursuant to 15 U.S.C. 1117.
COUNT II
Trademark Infringement 15 U.S.C. 1114
89.
NETZSCH repeats and re-alleges each and every allegation set forth in the
has the exclusive right to import and sell in the U.S. mixers, dispersers, mills, and related products
bearing its trademarks, and has express authority to take action to prevent actual or threatened
infringement of those trademarks.
92.
Continually, for a long time prior to the acts of the Defendants complained of herein,
NETZSCH has sold a wide range of mixers, dispersers, mills, and related products that use the
NETZSCH trademarks.
93.
Continually, for a long time prior to the acts of the Defendants complained of herein,
NETZSCH has been and is now marketing, offering for sale and selling products bearing the
NETZSCH trademarks in the State of Indiana and elsewhere in interstate commerce. Through
NETZSCHs extensive sales, the public has come to recognize NETZSCH products as being of
excellent quality and reputation.
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94.
extensive sales, advertising, and promotion, products sold under NETZSCHs trademarks enjoy an
excellent reputation among the public. NETZSCHs trademark registrations and the resulting
goodwill which has accrued are of great value to NETZSCH in the conduct of its business.
95.
of NETZSCHs trademarks, are promoting and selling to the public counterfeit products that bear
false reproductions of NETZSCHs trademarks. NETZSCH has never authorized or consented in
any way to the use of its trademarks on any of Defendants products, nor has NETZSCH granted
any license to Defendants allowing such use.
96.
Defendants have counterfeited the P & Design trademark in the identical color and
their sale and distribution of competing products infringes NETZSCHs exclusive rights in its
federally registered trademarks, is likely to cause, and/or has caused, confusion, mistake or
deception, and constitutes trademark infringement in violation of 15 U.S.C. 1114.
98.
Defendants should be held liable to NETZSCH for additional remedies, including treble damages
and attorneys fees pursuant to 15 U.S.C. 1117.
99.
to its goodwill and reputation, and will continue both to damage NETZSCH and to deceive the
public, unless permanently enjoined by this Court. NETZSCH has no adequate remedy at law.
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100.
By reason of the foregoing, Defendants are liable to NETZSCH for: (a) an amount
representing NETZSCHs damages; (b) Defendants profits; and (c) reasonable attorneys fees,
costs including investigative fees, and pre-judgment interest pursuant to 15 U.S.C. 1117.
COUNT III
False Designations of Origin, False Descriptions and Unfair Competition 15 U.S.C.
1125(a)
101.
NETZSCH repeats and re-alleges each and every allegation set forth in the
This is a claim for false designation of origin, false description, or representation and
unfair competition arising under the Lanham Act, Section 43(a), 15 U.S.C. 1125(a).
103.
Defendants constitutes the use in commerce of false designations of origins, false description, and
unfair competition because such designations and representations tend to wrongly and falsely
designate the products distributed, offered for sale, and sold by Defendants as originating from,
being connected with, sponsored or authorized by NETZSCH.
104.
On information and belief, the counterfeit products that Defendants sell and offer for
sale are deliberately and intentionally designed to falsely simulate genuine NETZSCH products and
damage NETZSCHs excellent reputation.
105.
By reason of the foregoing, Defendants have violated and are continuing to violate
Section 43(a) of the Lanham Act, 15 U.S.C. 1125(a) and Defendants are liable to NETZSCH for:
(a) an amount representing NETZSCHs damages; (b) Defendants profits; and (c) reasonable
attorneys fees, costs including investigative fees, and pre-judgment interest pursuant to 15 U.S.C.
1117.
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106.
107.
NETZSCH repeats and re-alleges each and every allegation in the foregoing
business reputation, impaired the effectiveness of the NETZSCH trademarks, and diluted
NETZSCHs distinctive trademarks.
109.
origin, relationship, sponsorship, or association with NETZSCH. The purchasing public is likely to
attribute to NETZSCH the use by Defendants of NETZSCHs trademarks, as a source of origin,
authorization, or sponsorship for Defendants products and, therefore, to utilize and/or buy
Defendants products in that erroneous belief.
110.
NETZSCHs trademarks with the intent of causing confusion, mistake, and deception as to the
source of its goods, and with the intent to palm off its goods as those of NETZSCH, and to place
others in the position to palm off their goods as those of NETZSCH and, as such, Defendants have
committed trademark infringement and unfair competition under the common law of the State of
Indiana.
A. Grant of a permanent injunction enjoining and restraining Defendants and their officers,
agents, servants, employees, owners, representatives, and attorneys, and all those in
active concert or participation with them, from:
a. substantially imitating, copying, counterfeiting, or making unauthorized use of
NETZSCHs trademarks;
b. manufacturing, distributing, importing, circulating, advertising, selling, offering
for sale, moving or otherwise disposing of any product or simulation,
reproduction, counterfeit, copy, or colorable imitation of NETZSCHs
trademarks;
c. using any simulation, reproduction, counterfeit, copy, colorable, or confusingly
similar imitation of NETZSCHs trademarks;
d. using any false description or designation of origin or representation (including,
without limitation, any letters, words, symbols, or other text) which can, or is
likely to lead the trade or public, or individual members thereof, to believe that
any product manufactured, imported, advertised, distributed, and/or sold by
Defendants is in any manner associated or connected with NETZSCH or is sold,
licensed, sponsored, or approved by NETZSCH;
e. engaging in any course of conduct likely to cause confusion, deception, or
mistake, or to injure NETZSCHs business reputation or dilute the distinctive
quality of NETZSCHs name and trademarks;
f. engaging in any other activity constituting an infringement of NETZSCHs
trademarks or NETZSCHs rights in or right to exploit the same;
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JURY DEMAND
NETZSCH demands a trial by jury on all claims and issues so triable.
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Respectfully submitted,
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