Yardstash v. Marketfleet - Complaint

Case 3:17-cv-00625-GPC-MDD Document 1 Filed 03/28/17 PageID.
1 Page 1 of 31
1 Matthew J. Faust, State Bar No. 254145

2 faust@shariffaust.com
Khodadad D. Sharif, State Bar No. 187992
3 sharif@shariffaust.com
4 SHARIF | FAUST LAWYERS, LTD.
1010 Second Ave, 24th Floor
5 San Diego, CA 92101
6 Telephone: (619) 233-6600
Facsimile: (619) 233-6602
7
Attorneys for Plaintiff
8 YardStash Solutions, LLC
9
10 UNITED STATES DISTRICT COURT

11 SOUTHERN DISTRICT OF CALIFORNIA
12 )
YARDSTASH SOLUTIONS, LLC ) Case No.: '17CV0625 GPC MDD
13 )
) COMPLAINT FOR DAMAGES AND
14 ) INJUNCTIVE RELIEF:
Plaintiff, )
15 ) 1. Patent Infringement
vs. ) 2. California Unfair Competition
16 )
MARKETFLEET, INC., and DOES 1 )
17 )
THROUGH 25, inclusive, )
18 ) JURY TRIAL DEMANDED
Defendants. )
19 )
)
20
21 COMES NOW, PLAINTIFF YARDSTASH SOLUTIONS, LLC, a California limited

22 liability company, who brings this action against DEFENDANTS MARKETFLEET, INC., a
23
California corporation, and DOES 1 through 25, inclusive, and alleges as follows:
24
25 ///
26
///
27
28
YardStash Solutions v. MarketFleet
Complaint
1
Case 3:17-cv-00625-GPC-MDD Document 1 Filed 03/28/17 PageID.2 Page 2 of 31
1 INTRODUCTION
2
1) This is an action by Plaintiff YARDSTASH SOLUTIONS, LLC, a California
3
4 limited liability company (Plaintiff), to recover damages arising from infringement of
5 Plaintiffs patented product, and to also restrain the unfair business acts of Defendant
6
MARKETFLEET, INC (Defendant MarketFleet), a California corporation. Plaintiff is
7
8 informed and believes, and thereupon alleges, that Defendant MarketFleet infringed and
9
continues to infringe, contributes to the infringement of, and/or actively induces others to
10
infringe Plaintiffs U.S. Patent No. D689,579 (the 579 patent).
11
12
13
JURISDICTION AND VENUE
14
2) This action arises under the patent laws of the United States and, more
15
16 particularly, under 35 U.S.C. 271, 281, 282, 283, 284, 285 and 289. This Court has
17
original subject matter jurisdiction over this patent infringement action pursuant to 28 U.S.C.
18
19 1331 and 1338.
20 3) The Court has personal jurisdiction over this action because Defendant
21
MarketFleet holds its principal place of business in this Judicial District. All of the acts
22
23 complained of below occurred in this Judicial District.

24 4) Venue properly lies in this Court pursuant to 28 U.S.C. 1391(b) and 28 U.S.C.
25
1400 because Plaintiffs claims arose in this Judicial District and Defendant MarketFleet
26
27 has committed acts of infringement in this State and in this District.
28
Complaint
2
1 THE PARTIES
2
5) Plaintiff is a California limited liability company organized and existing under
3
4 and by virtue of the laws of the State of California with its principal place of business located
5 at 13223-1 Black Mountain Road, Suite 379, in the City of San Diego, County of San Diego,
6
State of California. Plaintiff has for several years been in the business of manufacturing and
7
8 selling space saving outdoor storage products.

9
6) Defendant MarketFleet is a Delaware corporation with its principal place of
10
business located at 825 Main Street, in the City of Chico, Butte County, State of California.
11
12 7) Plaintiff is ignorant of the true names and capacities of the Defendants sued
13
herein under the fictitious names DOES 1 through 25, inclusive. Plaintiff is informed and
14
15
believes, and thereupon alleges, that each of the Defendants was responsible in some manner
16 for the current damages alleged in this Complaint.

17
8) At all times mentioned in the causes of action into which this paragraph is
18
19 incorporated by reference, each Defendant, was the agent/employee of each and every other
20 Defendant. In doing the things alleged in the causes of action to which this paragraph is
21
incorporated by reference, each and every Defendant was acting within the course and scope
22
23 of this agency and employment and was acting with the consent, permission, and
24 authorization of each of the other Defendants. All actions of each Defendants alleged in the
25
causes of action into which this paragraph is incorporated by reference were ratified and
26
27 approved by the officers or managing agents of every other Defendants.
28
Complaint
3
1 FACTUAL BACKGROUND
2
9) On September 10, 2013, United States Patent No. D689,579 was duly and
3
4 legally issued by the United States Patent and Trademark Office to Plaintiff. Plaintiff is the
5 record owner of the 579 patent with full rights to pursue recovery of royalties or damages for
6
infringement of the 579 Patent, including full rights to recover past and future damages. A
7
8 true and correct copy of the patent is attached hereto as Exhibit A and incorporated by
9
reference.
10
10) Plaintiff learned that Defendant MarketFleet was actively infringing Plaintiffs
11
12 579 patent by at least making, offering for sale, selling, and/or shipping a product named
13
Driftsun Storage Tent that was nearly identical to Plaintiffs patented product and that even
14
15
the key product features section appeared to be heavily copied from Plaintiffs patented
16 product. Attached hereto as Exhibit B is Plaintiffs patented products listing on Amazon.

17
Also attached hereto as Exhibit C is a photograph of Defendant MarketFleets infringing
18
19 product on Amazon.
20 11) In fact, the overall appearance of the infringing product was so much similar to
21
Plaintiffs patented product, that a potential purchaser familiar with this type of product
22
23 would be deceived into thinking that they are the same product. The following similarities
24
overshadow any minor differences between the two products:
25
a) The infringing product has the same shape and geometry as Plaintiffs
26
27 patented product, including roof pole angles and side pole angles;
28
Complaint
4
1 b) The infringing product has the same dimensions as Plaintiffs patented

2
product: 74 wide x 30 deep x 65 high;
3
4 c) The infringing product has the same color, same placement of front vent
5 and logo as well as back lock flap;
6
d) The poles in the infringing product are similar to Plaintiffs patented
7
8 product, in size, number, positions, connectors, and attachments;

9
e) The infringing product has the same pole attachments as Plaintiffs
10
patented product since the same sleeves and plastic clips are on left side,
11
12 the same sleeves and grommet holes are on right side and the same
13
grommet holes are on top; and
14
15
f) The infringing products listings on internet were copied from Plaintiffs
16 listing on Amazon.
17
12) Plaintiffs listing on internet predated Defendant MarketFleets infringing
18
19 products listings on internet.
20 13) On or about January 11, 2016, Plaintiff notified Defendant MarketFleet of the
21
infringement asserted in this complaint, and demanded that Defendant MarketFleets
22
23 infringement cease. A copy of the notice is attached hereto as Exhibit D.

24
14) In an email dated April 25, 2016, without any admission of liability, Defendant
25
MarketFleet agreed to cease sales of the infringing product; however, it refused to pay the
26
27 minimum statutory damages that Plaintiff is entitled to recover under 35 U.S.C. section 289.
28
Complaint
5
1 15) As a matter of fact, Defendant MarketFleet never ceased making, offering to sell,
2
selling and/or shipping the infringing product as Plaintiff discovered that the product had
3
4 been offered on Driftsuns website, attached hereto as Exhibit E. Furthermore, in or

5 about September 2016, Plaintiff discovered that Defendant MarketFleet had also been
6
marketing and selling the infringing product on eBay, attached hereto as Exhibit F.
7
8 Therefore, on or about September 29, 2016, Plaintiff sent another letter to Defendant
9
MarketFleet, demanding it once again to cease the infringement and to compensate Plaintiff
10
for all damages.
11
12 16) In spite of such repeated notices that Defendant MarketFleets actions constitute
13
infringement of valid patent, Defendant MarketFleet has continued to infringe Plaintiffs 579
14
15
patent. To date, Defendant MarketFleet has persistently failed and refused to cease from
16 infringing on Plaintiffs 579 patent and to compensate Plaintiff for the infringement. As
17
such, Defendant MarketFleets infringement is deliberate, willful, and intentional, and
18
19 committed with full knowledge of the existence and validity of Plaintiffs patent.
20 17) Defendant MarketFleet has infringed the 579 patent and, unless enjoined, will
21
continue to do so, by making, offering for sale, selling and/or shipping products infringing the
22
23 579 patent.
24
18) Plaintiff has been damaged by Defendant MarketFleets infringement of the 579
25
patent and will suffer additional irreparable damage unless Defendant MarketFleet is enjoined
26
27 from continuing to infringe the 579 patent.
28
Complaint
6
1 FIRST CAUSE OF ACTION

2
Patent Infringement of U.S. Patent No. D689,579
3
4 (Against All Defendants)
5 19) Plaintiff hereby incorporates by reference paragraphs 1-18 of this Complaint as

6
if fully set forth herein.
7
8 20) Plaintiff is informed and believes, and thereupon alleges, that Defendants have
9
directly infringed and continues to infringe the 579 patent by making, offering to sell, selling
10
and/or shipping products in this district and elsewhere in the United States.
11
12 21) As alleged above, Defendants infringement is and has been deliberate, willful,
13
and intentional. On information and belief, Defendants had knowledge of the 579 patent no
14
15
later than January 11, 2016 and yet deliberately continued making, offering to sell, selling
16 and/or shipping the infringing product.

17
22) As a result of Defendants unlawful infringement of the 597 patent, Plaintiff has
18
19 suffered and will continue to suffer damage.
20 23) Plaintiff is entitled to complete accounting of all revenue and profits derived by
21
Defendants from the unlawful conduct alleged herein. Furthermore, Plaintiff is entitled to
22
23 recover from Defendants the damages suffered by Plaintiff as a result of Defendants

24 unlawful acts, including without limitation, Defendants total profit pursuant to 35 U.S.C.
25
289.
26
27 24) The deliberate, willful, and intentional nature of the infringement justifies an
28
Complaint
7
1 increase of three times the damages to be assessed pursuant to 35 U.S.C. 284 and also
2
qualifies this action as an exceptional case supporting this Courts award of reasonable
3
4 attorneys fees to Plaintiff pursuant to 35 U.S.C. 285.

5 25) Plaintiff is informed and believes, and thereupon alleges, that Defendant
6
MarketFleet intends to continue its unlawful infringing activity, and Plaintiff continues to and
7
8 will continue to suffer irreparably harm for which there is no adequate remedy at law- from
9
such unlawful infringing activities unless this Court enjoins Defendant MarketFleet from
10
further infringing activities.
11
12
13
SECOND CAUSE OF ACTION
14
15
California Unfair Competition Bus. & Prof. Code 17200, et seq.
16 (Against All Defendants)

17
26) Plaintiff hereby incorporates by reference paragraphs 1-25 of this Complaint as
18
19 if fully set forth herein.
20 27) Through the actions described in this Complaint, Defendants have been willfully
21
marketing and selling the infringing product in an effort to profit from Plaintiffs hard work
22
23 and good name. The acts of Defendants constitute unfair competition in violation of
24 California Business & Professions Code 17200, et seq.
25
28) Plaintiff is informed and believes, and thereon alleges, that Defendants have
26
27 profited through these unfair business practices.
28
Complaint
8
1 29) As a proximate result of Defendants actions, Plaintiff has suffered and will
2
continue to suffer great damage to its business, goodwill, reputation, profits, entitling Plaintiff
3
4 to an order disgorging Defendants of their ill-gotten gains, as a result of the unlawful and
5 unfair actions. However, an award of monetary damages alone cannot fully compensate
6
Plaintiff for its injuries, thereby justifying preliminary and injunctive relief under section
7
8 17203 of the California Business & Professions Code.

9
10
JURY DEMAND
11
12 30) Plaintiff hereby demand a jury trial in this case.

13
14
15
WHEREFORE Plaintiff asks this Court to enter judgment in its favor against
16 Defendants and grant the following relief:

17
(a) An order declaring Plaintiff to be the record owner of all right, title, and
18
19 interest in and to 579 patent.
20 (b) An order declaring that 579 patent is good and valid in law, and that
21
the patent has been infringed by Defendants;
22
23 (c) A temporary injunction precluding Defendants, their officers, directors,

24 servants, agents, employees, principals, successors, assignees, attorneys,
25
and all those in active concert or participation with Defendant,
26
27 including related individuals and entities, customers, representatives,
28
Complaint
9
1 dealers, and distributors from engaging in further infringement against

2
579 patent pending the outcome of this action;
3
4 (d) A permanent injunction pursuant to 35 U.S.C. 283, precluding

5 Defendants, their officers, directors, servants, agents, employees,
6
principals, successors, assignees, attorneys, and all those in active
7
8 concert or participation with Defendant, including related individuals

9
and entities, customers, representatives, dealers, and distributors from
10
further acts of infringement, contributory infringement, and active
11
12 inducement to infringe with respect to the claim of the patent;

13
(e) An order requiring Defendants to account to Plaintiff for any and all
14
15
profits derived by it, and all damages sustained by Plaintiff resulting
16 from the acts complained of;

17
(f) An award to Plaintiff of damages adequate to compensate Plaintiff for
18
19 infringement, pursuant to 35 U.S.C. 284;
20 (g) An award to Plaintiff of enhanced damages up to and including trebling

21
of Plaintiffs damages for willful and deliberate character of the
22
23 infringement, as provided by 35 U.S.C. 284;

24 (h) An award of damages to recover Defendants profits with a minimum
25
liability of $250 per infringing article, pursuant to 35 U.S.C. 289;
26
27 (i) An award of prejudgment and post judgment interest on all sums;
28
Complaint
10
1 (j) An award of Plaintiffs costs of suit incurred herein and reasonable

2
attorneys fees pursuant to 35 U.S.C. 285 due to the exceptional
3
4 nature of this case, or as otherwise permitted by law;

5 (k) Any further relief as the Court may deem just and proper.
6
9
SHARIF | FAUST LAWYERS, LTD.
10
11
Dated: 03/28/2017 BY: /s/ Matthew J. Faust
12 Matthew J. Faust
Attorneys for Plaintiff
13
YardStash Solutions, LLC.
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
Complaint
11
)
)
EXHIBIT "A"
1111111111111111111~ IHllUSOOD689579S
Ill 1~111111111111 Hll~1111111111111111111
c12) United States Design Patent (10) Patent No.: US D689,579 S
Barker (45) Date of Patent: ** Sep. 10, 2013
(54) STORAGE UNIT 0338,052 S 811993 MacMorris, Jr. . ........... 021/838

0468,793 s 1/2003 Ragatz ......................... 0211836
(76) Inventor: George V. Barker, San Diego, CA (US) D 516,155 S 212006 Goodwin et al. .. .......... D21/834
0574,918 S &12008 McAlister .................... D21/834
7,775,230 B2 812010 Lau ............................... 1351126
14Yean
cited by examiner
(21) Appl. No.: 29/423,037
Primary Examiner - Cynthia M Chin
(22) Filed: May 25, 2012 (74) Attornl!J\ Age1Tf, or Finn-S McPherson IP Law
(51) LOC(9)CI....................................... ... ......... 21-04 (57) CLAIM
(52) U.S. Cl. The ornamental design for a storage unit, as shown and
USPC ......................................................... D21/834 described.
(58) Field ofClasslficatioD Search
USPC ................... D21/834, 836-839; 025/33, 64, DESCRIPTIO~
D25/66, 67, 71, 56, 57; 135/87, 88.05, 88.06,
135/88.13, 90, 93, 94, 96-99, 115, 116, 117, FIG. 1 is a perspective view ofa storage unit showing our new
135/121, 124-128,132, 133, 135, 138, 143, design;
135/157, 900, 908; 296/159- 161; 012/401 , FIG. 2 is a front elevational view thereof;
012/402, 403, 404; 52179.1 FIG. 3 is a rear elevational view thereof;
Soc application file for complete search history. FIG. 4 is a right side elevational view thereof;
FIG. 5 is a left side elevational view thereof;
(56) References Cited FlG. 6 is a top plan view thereof; and,
PIG. 7 is a bottom plan view, thereof.
U.S. PATENT DOCUMENTS The broken lines shown in the drawings are understood to
3,027,189 A 3/1962 Scott ............................. 135/116 represent stitching, which form a part of the claimed design.
3,799,608 A 311974 Smutny et al................. 135/115
0328,727 S &' 1992 Wallhead ....................... 025116 1 Claim, 7 Drawing Sheets
\
US D689,S79 S
Sep. 10, 2013 Sheet 1 of 7
U.S. Patent
FIG. 1
U.S. Patent Sep.10,2013 Sheet2 of7 US D689,579 S
FIG.2
U.S. Patent Sep. 10, 2013 Sheet 3 of 7 US D689,579 S
FIG. 3
U.S. Patent Sep.10,2013 Sheet4of7 US D689,579 S
FIG.4
U.S. Patent Sep.10,2013 Sheet 5 of7 US D689,579 S
==
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FIB. 6
U.S. Patent Sep. 10, 2013 Sheet 6 of 7 US D689,579 S
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FIG. 6
U.S. Patent Sep.10, 2013 Sheet 7of7 US D689,579 S
\ I I
FIG. 7
EXHIBIT "B"
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EXHIBIT ''D"
MatthewW. Mitchell
MITCHELL LAW PLLC matt@mipatents.com
p. 734.548.9005
INTELLECTUAL PROPERTY LAW f. 734.239.7425
January 11, 2016
VIA FEDERAL EXPRESS
Christian Friedland
411 Main Street
STE: 101
Chico, CA 95928
RE: MarketFleet and Driftsun's Past & Present Infringement ofYardStash Solutions
LLC's U.S. Patent No. 0689,579
Dear Mr. Friedland:
We write on behalf of our client, YardStash Solutions LLC. ("YardStash") regarding

MarketFleet, Inc.'s, ("MarketFleet") past and present infringement ofYardStash's U.S. Patent
Nos. 0689,579 (attached as Exhibit "A"}. YardStash has requested that this firm investigate and
pursue its potential claims against MarketFleet.
YardStash has recently learned that MarketFleet d/b/a DriftSun is actively infringing and
wrongfully using various proprietary technologies and designs solely held by YardStash without
entering into a licensing agreement. Specifically, MarketFleet has and continues to infringe
YardStash's patents by at least offering for sale, selling, and/or shipping the Driftsun Storage
Tent shown in the attached Exhibit "B." Note, that the product is nearly identical to the patented
product and further, that even the 'key product features' section appears to be heavily copied
from the YardStash III listing: ASIN BOOIAD3FCY. Our client is naturally concerned that absent
a proper and reasonable licensing agreement, the sale and manufacture of your product is
impermissible.
We therefore must demand that you:
1. Immediately remove the listing from Amazon
2. Immediately cease all other advertising including online, manufacturing and selling
all products which infringe the abovementioned patents; and
3. Provide us verified documentation of the quantities of infringing products you have

sold, upon which Y ardStash will consider appropriate compensation. Please confirm
no later than January 31, 2016 that you have halted all infringements, and provide the
requested documentation no later than February 8, 2016.
Address: 944 N. Main St. I Ann Arbor, Ml 48104 T: 734.548.9005 I info@mipatents.com

MITCHELL LAW PLLC

Matthew W. Mitchell
matt@mipatents.com
p. 734.548.9005
INTELLECTUAL PROPERTY LAW f. 734.239.7425
You will appreciate by MarketFleet infringing YardStash' intellectual property rights, the
harm to YardStash could be substantial and irreparable in nature. Consequentially, we ask that
you notify us immediately ofMarketFleet's agreement to provide us with the requested
information by no later than January 31, 2016.
Finally, we remind you of your duty to preserve information, including electronically

stored information, which may be relevant to, and potentially discoverable in, this matter. This
duty includes preservation of all electronically stored documents, including retained e-mails sent
or received by any employee (both current and former), as well as other "active" information
stored on servers and information stored on backup tapes or other media that are capable of
restoration. Please confirm that you have suspended any routine document retention and/or
destruction policies and put in place a "litigation hold" to ensure the preservation of all relevant
documents, including both electronic and paper documents. Thank you for your anticipated
prompt attention to these matters.
YardStash is mindful of the intellectual property rights of others and hopes that this
matter may be settled amicably and expeditiously. And, to that end, we look forward to hearing
from you.
Sincerely,
Matthew W. Mitchell
Enclosures:
Exhibit "A," U.S. Patent No . 0689,579
Exhibit "B," Screenshots ofMarketFleet's Infringing Storage Tent
Address: 944 N. Main St. I Ann Arbor, Ml 48104 T: 734.548.9005 I info@mipatents.com

EXHIBIT "E"
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Driftsun Patio Storage Tent,

Bike Tent, Garden Equipment
Organizer Shed
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FREE SHIPPING
FrH shipping OC'I an orders.
MONEY BACK GUARANTEE

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Yardstash v. Marketfleet - Complaint

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Case 3:17-cv-00625-GPC-MDD Document 1 Filed 03/28/17 PageID.

1 Matthew J. Faust, State Bar No. 254145

10 UNITED STATES DISTRICT COURT

21 COMES NOW, PLAINTIFF YARDSTASH SOLUTIONS, LLC, a California limited

4 limited liability company (Plaintiff), to recover damages arising from infringement of

23 complained of below occurred in this Judicial District.

8 selling space saving outdoor storage products.

16 for the current damages alleged in this Complaint.

16 product. Attached hereto as Exhibit B is Plaintiffs patented products listing on Amazon.

1 b) The infringing product has the same dimensions as Plaintiffs patented

8 product, in size, number, positions, connectors, and attachments;

23 infringement cease. A copy of the notice is attached hereto as Exhibit D.

4 been offered on Driftsuns website, attached hereto as Exhibit E. Furthermore, in or

1 FIRST CAUSE OF ACTION

4 (Against All Defendants)

5 19) Plaintiff hereby incorporates by reference paragraphs 1-18 of this Complaint as

16 and/or shipping the infringing product.

23 recover from Defendants the damages suffered by Plaintiff as a result of Defendants

4 attorneys fees to Plaintiff pursuant to 35 U.S.C. 285.

16 (Against All Defendants)

8 17203 of the California Business & Professions Code.

12 30) Plaintiff hereby demand a jury trial in this case.

16 Defendants and grant the following relief:

23 (c) A temporary injunction precluding Defendants, their officers, directors,

1 dealers, and distributors from engaging in further infringement against

4 (d) A permanent injunction pursuant to 35 U.S.C. 283, precluding

8 concert or participation with Defendant, including related individuals

12 inducement to infringe with respect to the claim of the patent;

16 from the acts complained of;

20 (g) An award to Plaintiff of enhanced damages up to and including trebling

23 infringement, as provided by 35 U.S.C. 284;

1 (j) An award of Plaintiffs costs of suit incurred herein and reasonable

4 nature of this case, or as otherwise permitted by law;

(54) STORAGE UNIT 0338,052 S 811993 MacMorris, Jr. . ........... 021/838

U.S. Patent Sep.10,2013 Sheet2 of7 US D689,579 S

U.S. Patent Sep. 10, 2013 Sheet 3 of 7 US D689,579 S

U.S. Patent Sep.10,2013 Sheet4of7 US D689,579 S

U.S. Patent Sep.10,2013 Sheet 5 of7 US D689,579 S

U.S. Patent Sep. 10, 2013 Sheet 6 of 7 US D689,579 S

U.S. Patent Sep.10, 2013 Sheet 7of7 US D689,579 S

Amazan.com: W.. ~rd~ X + 0 x

1 ;it!o:t Ltlwn & G..l'den , '>uldMr .S!on:qit Slnra.,& Shc>c11

Tta11<11t t..c:lek ........ Jott'lll.,._..

$158 58 ~ AddWJ C-1'1

..a.llJS 2016 Fall Event 'rc.e~no

.,-4ll"!41 ~!~~~ Up Your Yard

I rc<111tmtly 8cmc1ht I OJJ<~tlmr

Iola! pdca $135.98

January 11, 2016

VIA FEDERAL EXPRESS

Dear Mr. Friedland:

We write on behalf of our client, YardStash Solutions LLC. ("YardStash") regarding

We therefore must demand that you:

1. Immediately remove the listing from Amazon

3. Provide us verified documentation of the quantities of infringing products you have

Address: 944 N. Main St. I Ann Arbor, Ml 48104 T: 734.548.9005 I info@mipatents.com

MITCHELL LAW PLLC

Finally, we remind you of your duty to preserve information, including electronically

Address: 944 N. Main St. I Ann Arbor, Ml 48104 T: 734.548.9005 I info@mipatents.com

~ DRl~W\. t, I C.'ll<igor!e': Q \.. t -817S21M269 co-..TACT US a

Driftsun Patio Storage Tent,

MONEY BACK GUARANTEE

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