`
`ESTTA Tracking number:
`
`ESTTA969698
`
`Filing date:
`
`04/26/2019
`
`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
`
`Proceeding
`
`91246466
`
`Party
`
`Correspondence
`Address
`
`Defendant
`CM Welding Inc
`
`WILLIAM P KEALEY
`STUART & BRANIGIN LLP
`300 MAIN STREET, STE 900
`LAFAYETTE, IN 47901
`UNITED STATES
`wpk@stuartlaw.com
`765-423-1561
`
`Submission
`
`Filer's Name
`
`Filer's email
`
`Signature
`
`Date
`
`Attachments
`
`Motion to Dismiss - Rule 12(b)
`
`William P. Kealey
`
`wpk@stuartlaw.com, map@stuartlaw.com
`
`/s/William P. Kealey
`
`04/26/2019
`
`Applicants Renewed Motion to Dismiss or Suspend the Opposition.pdf(1252107
`bytes )
`
`
`
`
`
`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
`
`
`In the matter of trademark Application Serial No. 87934942:
`Trademark: RPR
`
`___________________________________________
`
`
`DON ESTES
`
`
`
`
`Opposer,
`
`
`
`
`
`
`
`v.
`
`
`
`
`CM WELDING INC.,
`
`
`
`
`Applicant.
`
`
`
`
`
`
`
`
`
`
`
`)
`)
`)
`)
`)
`)
`)
`)
`)
`)
`)
`)
`___________________________________________
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`Opposition No.: 91246466
`
`APPLICANT’S RENEWED MOTION TO
`DISMISS OR SUSPEND THE OPPOSITION
`
`
`Applicant CM Welding Inc. (“Applicant”), by counsel, moves to dismiss the Opposition
`
`pursuant to Federal Rule of Civil Procedure 12(b)(6) or, in the alternative, to suspend the
`
`Opposition pursuant to 37 C.F.R. § 2.117.
`
`Opposer filed his First Amended Notice of Opposition (“Amended Notice”) on March
`
`25, 2019. The Amended Notice does not remedy the original Notice’s failure to state a claim and
`
`should therefore be dismissed. In the alternative, the Opposition should be suspended pending
`
`the State Action discussed below.
`
`A.
`
`The Opposition fails to state a claim.
`
`
`
`Pursuant to 37 C.F.R. § 2.104, the Notice of Opposition “must at the pleading stage
`
`allege facts in support of” a “statutory ground which negates the applicant's entitlement to
`
`registration.” Young v. AGB Corp., 152 F.3d 1377, 1380 (Fed. Cir. 1988) (emph. added). In
`
`
`
`1
`
`
`
`
`
`Young v. AGB Corp., the opposer’s allegation that he was in a “manufacturer-purchaser
`
`relationship with respect to the subject matter of [applicant’s] application” failed to state a claim.
`
`Id.
`
`
`
`Similarly here, Opposer Don Estes has failed to “allege facts” that negate Applicant CM
`
`Welding’s entitlement to registration. Opposer alleges that “his products were being sold by CM
`
`Welding, Inc.”. Amended Notice, ¶ 12. Opposer does not allege that those products were sold by
`
`anyone else prior to CM Welding.1
`
`Paragraph 4 of the Amended Notice states: “That Opposer has continuously used RPR in
`
`interstate commerce in the United States in connection with agricultural harvesting equipment, in
`
`particular for concaves used in threshing machines (in IC 007) since at least as early as August
`
`23, 2013.”
`
`A conclusory allegation of “use in commerce” is not an allegation of “facts” within the
`
`meaning of Young v. AGB. The “short and plain statement” standard requires the pleading to
`
`state facts that plausibly show a right to relief. Ashcroft v. Iqbal, 556 U.S. 662 (2009); Bell
`
`Atlantic Corp. v. Twombly, 550 U.S. 544 (2007). In Iqbal, the Supreme Court stated:
`
`First, the tenet that a court must accept as true all the allegations contained in a complaint
`is inapplicable to legal conclusions. Threadbare recitals of the elements of a cause of
`action, supported by mere conclusory statements, do not suffice.... Second, only a
`complaint that states a plausible claim for relief survives a motion to dismiss.
`
`Id. at 678-69. See Acceptance Ins. Companies, Inc. v. U.S., 583 F.3d 849, 853 (Fed. Cir. 2009)
`
`(Quoting Twombly: “In order to avoid dismissal for failure to state a claim, a complaint must
`
`allege facts ‘plausibly suggesting (not merely consistent with)’ a showing of entitlement to
`
`relief.”).
`
`1 The Amended Notice misquotes Applicant’s RPR application. The first use in
`commerce date shown in the application appended to Opposer’s Notice of Opposition is: “At
`least as early as 11/01/2016”.
`
`
`
`
`2
`
`
`
`
`
`The Amended Notice fails this standard. As Applicant’s previous Motion to Dismiss
`
`noted, “The Opposition does not allege that Opposer used the RPR mark in the sale of goods and
`
`services prior to Applicant’s use of the RPR mark in the sale of goods and services.” The
`
`Amended Notice has the same defect.
`
`The Lanham Act’s definition of “use in commerce” refers to when “the goods are sold or
`
`transported in commerce.” 15 U.S.C. § 1127. The Amended Notice fails to plead facts plausibly
`
`suggesting that Opposer sold or transported RPR-branded goods in commerce prior to and
`
`independent of CM Welding doing so.
`
`As in Young v. AGB, Opposer’s alleged supply-relationship with CM Welding does not
`
`state a claim. Nor does it matter who conceived of the RPR trademark on goods sold by CM
`
`Welding.2
`
`The word “sale” appears only once in the Amended Notice: “Opposer submits that there
`
`is a high likelihood of confusion to the public that are in the market for these goods as to who is
`
`offering them for sale due to the similarity of the Marks.” ¶ 18.
`
`In turn, the word “sell” appears in the Amended Notice only in reference to Applicant.
`
`Amended Notice p. 4 (allegation that “Applicant is not licensed to sell Opposer’s patented
`
`concaves.”).
`
`
`
`The word “sold” appears only in two conclusory allegations that lack any assertion of
`
`date-priority. Amended Notice, ¶ 16 (“has continuously used the Mark in interstate commerce in
`
`2 In Malibu, Inc. v. Reasonover, 246 F.Supp.2d 1008 (N.D. Ind. 2003), the court rejected
`Reasonover’s argument that he owned the mark because he originated it while he was associated
`with Malibu, Inc. “’[T]he question of who originated the mark is immaterial. Therefore, proof of
`an earlier conception is of no relevance.... The question of who created, or contributed to the
`creation of, the goodwill of the mark is also immaterial. Thus, the trademark and trade names
`used by a corporation are owned by the corporation and not by its officers, managers or agents.’
`Rudolf Callman, THE LAW OF UNFAIR COMPETITION, TRADEMARKS AND
`MONOPOLIES § 19.01, at 4 (4th ed.1981) (emphasis in original).” Id. at 1015.
`
`
`
`
`3
`
`
`
`
`
`the United States in connection with harvesting concaves that are sold by him and by those he
`
`has licensed to sell his product . . .”); p. 5 (“likely to cause confusion, or to cause mistake, or to
`
`deceive as to the affiliation, connection, or association of Opposer with the Applicant for the
`
`Opposed Mark, as to the origin, sponsorship, or approval of the Concaves sold by the parties”).
`
`
`
`Because Opposer has not alleged any facts to plausibly suggest sales that confer senior-
`
`user priority on Opposer, the Amended Notice fails to state a claim for denial of Applicant’s
`
`registration of RPR on grounds of likelihood of confusion.
`
`In the alternative, this Opposition should be suspended pending decision of the state
`court litigation between Applicant and Opposer.
`
`B.
`
`
`
`In the alternative, this Opposition should be suspended in deference to a previously filed
`
`state court action by Applicant against Opposer and others.
`
`The Amended Notice admits Opposer’s historical relationship with Applicant. ¶¶ 11-13.
`
`Applicant CM Welding, Inc. is the plaintiff in a pending state court suit filed on August 20, 2018
`
`(the “State Action”, in Clinton Superior Court, Clinton County Indiana, Cause No. 12D01-1808-
`
`PL-000645). See Exhibit A hereto (clerk-stamped copy “Complaint”). As set forth in that
`
`Complaint, CM Welding Inc. is an Indiana corporation with a place of business in Clinton
`
`County, Indiana. Opposer Estes is the lead defendant in the State Action. The State Action will
`
`decide the intellectual property issues pending between Applicant CM Welding and Opposer
`
`Estes. Exhibit A, p. 13.
`
`Pending resolution of the State Action, this Opposition should be suspended pursuant to
`
`37 C.F.R. § 2.117 which provides, “[w]henever it shall come to the attention of the Trademark
`
`Trial and Appeal Board that a party or parties to a pending case are engaged in a civil action or
`
`another Board proceeding which may have a bearing on the case, proceedings before the Board
`
`may be suspended until termination of the civil action or the other Board proceeding.”
`
`
`
`4
`
`
`
`
`
`The State Action “does not have to be dispositive of the Board proceeding to warrant
`
`suspension, it need only have a bearing on the issues before the Board.” New Orleans Louisiana
`
`Saints LLC & NFL Properties LLC, 99 U.S.P.Q.2d 1550 (T.T.A.B. July 22, 2011); TBMP
`
`510.02(a); 6 McCarthy on Trademarks and Unfair Competition § 32:47 (5th ed.) (“It is standard
`
`procedure for the Trademark Board to stay administrative proceedings pending the outcome of
`
`court litigation between the same parties involving related issues.”).
`
`In the pending Opposition No. 91244035, regarding Applicant CM Welding’s application
`
`for RPR CONCAVES, this Board has recently determined to suspend that Opposition due to the
`
`pendency of the same State Action. See Exhibit B, pp. 6-7. The Board’s rationale for suspending
`
`that Opposition applies here also. In both Oppositions, the Opposer is alleging an issue that is
`
`pending between Don Estes and CM Welding in the State Action.
`
`WHEREFORE, Applicant respectfully requests the Board to:
`
`CONCLUSION
`
`1. Dismiss the Opposition for failure to state a claim upon which relief may be granted.
`
`2. In the alternative, suspend this proceeding pursuant to 37 C.F.R. § 2.117.
`
`3. Grant all other relief just and proper in the premises.
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`5
`
`
`
`
`
`Date: April 26, 2019
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`Respectfully Submitted,
`
`
`
`
`
`
`
`
`
`
`
`William P. Kealey
`Attorney No. 18973-79
`STUART & BRANIGIN LLP
`300 Main Street, Suite 900
`P.O. Box 1010
`Lafayette, IN 47902-1010
`(765) 423-1561 (telephone)
`(765) 742-8175 (fax)
`Attorney for Applicant CM Welding, Inc.
`
`
`
`
`
`CERTIFICATE OF SERVICE
`
`I hereby certify that a true and complete copy of the foregoing Applicant’s Renewed
`
`Motion to Dismiss or Suspend the Opposition has been served on Opposer by forwarding said
`
`copy on April 26, 2019, via email to: gaskew@askewipllc.com.
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`William P. Kealey
`Date: March 8, 2019
`
`
`
`
`
`
`
`
`
`
`
`
`1164034_2.docx
`
`
`
`6
`
`
`
`
`
`Exhibit A
`Exhibit A
`
`STATE OF INDIANA
`,
`COUNTY OF CLINTON
`
`)
`) SS:
`)
`
`CLINTON SUPERIOR COURT
`
`CAUSE NO. 12D01-1808-PL-000645
`
`JURY TRIAL DEMANDED
`
`
`
`‘
`
`0m“ 3
`
`3 20m
`
`. *
`é Am; In @mw
`CLERK SUPERIOR COURT
`
`)
`
`) ) )
`
`) )
`
`)
`)
`)
`)
`)
`)
`)
`
`CM WELDING, INC,
`Plaintiff,
`
`V.
`
`DONALD JOSEPH ESTES;
`STEVEN WILLIAM GREENO;
`COPPERHEAD CONCAVE
`SYSTEMS, LLC; COPPERHEAD
`AGRICULTURAL PRODUCTS,
`LLC; TAYLOR IP, P.C.; CSM
`CORP.
`
`Defendants.
`
`AMENDED COMPLAINT
`
`Comes now Plaintiff CM Welding, Inc. (“CM Welding”), by counsel, and for its
`
`Amended Complaint, states:
`
`1.
`
`Plaintiff CM Welding, Inc. is an Indiana corporation with a place of business in
`
`Clinton County.
`
`2.
`
`Defendant Donald Joseph Estes (“Donald Estes”) is an individual Who has resided
`
`in Clinton County in the course of events alleged herein.
`
`3.
`
`Defendant Steven William Greeno (“Greeno”) is an individual who resides in
`
`Clinton County.
`
`4.
`
`Donald Estes and Steven Greeno were employees of Plaintiff in the course of
`
`events alleged herein and are referred to herein as the “Employee Defendants.”
`
`5.
`
`Defendants Copperhead Concave Systems, LLC and Copperhead Agricultural
`
`Products, LLC (together, “Copperhead Defendants”) are incorporated in South Dakota and have
`
`
`
`
`
`done business with Plaintiff and the Employee Defendants in Clinton County in the course of
`
`events alleged herein.
`
`6.
`
`Defendant Taylor IP, P.C. (“Taylor IP”) is incorporated in Indiana and has its
`
`principal place of business in Avilla, Indiana.
`
`7.
`
`CSM Corp. is incorporated in Illinois and has its principal place of business in
`
`Peoria, Illinois and has participated in Indiana in events alleged herein.
`
`8.
`
`CM Welding owns trademarks, trade secrets and other intellectual property,
`
`including inventions made by Estes in the course and scope of his employment with Plaintiff
`
`(“CM Intellectual Property”). Taylor IP is prosecution counsel of record for the following
`
`applications and patents claiming CM Intellectual Property disclosed by Donald Estes (the “CM
`
`Welding Patents”):
`
`Provisional Patent Application Number 61/573,644
`
`US. Patent Number 8,454,416
`
`US. Patent Number RE 46,401
`
`US. Patent Number 8,690,652
`
`Provisional Patent Application Number 62/520,188
`
`Non-provisional Patent Application Number 15/926,294
`
`9.
`
`Plaintiff is informed and believes and based thereon alleges: On July 26, 2018,
`
`Donald Estes secretly attempted to license CM Intellectual Property including certain CM
`
`Welding Patents and brand names to Copperhead Concave Systems, LLC. On August 16, 2018,
`
`Donald Estes, with the assistance of Taylor IP, secretly attempted to nominally assign the CM
`
`Welding Patents to CSM Corp. of Illinois (“CSM”). Without disclosure to Plaintiff, Taylor IP
`
`recorded that assignment on August 22, 2018.
`
`
`
`COUNT I - BREACH OF FIDUCIARY DUTY OF LOYALTY
`
`10.
`
`Plaintiff incorporates by reference the foregoing averrnents.
`
`11.
`
`As employees of Plaintiff, Employee Defendants were subject to a fiduciary duty
`
`of loyalty to act solely for the benefit of Plaintiff during their employment.
`
`I
`
`12.
`
`Defendant Estes failed to assign to Plaintiff the CM Welding Patents, which were
`
`prepared under the direction of Estes and with financing by Plaintiff and assistance from Taylor IP,
`
`for CM Intellectual Property. Defendant Estes further failed to disclose to Plaintiff that he had
`
`failed to perform those assignments and instead attempted to claim ownership of the CM
`
`Intellectual Property and CM Welding Patents and license or assign the CM Intellectual Property
`
`and CM Welding Patents to others.
`
`13.
`
`Employee Defendants disclosed to Copperhead Defendants sensitive, confidential,
`
`and trade secret information of Plaintiff, including confidential inventions, tax returns, cost data,
`
`manufacturing relationships, and customer lists.
`
`14.
`
`Employee Defendants contacted Plaintiffs manufacturing supplier to persuade the
`
`manufacturer to supply Plaintiff 3 product designs to Copperhead Defendants, without consent or
`
`knowledge of Plaintiff.
`
`15.
`
`Employee Defendants diverted Plaintiff’ s inventory to Copperhead Defendants
`
`. Without securing payment from Copperhead Defendants to Plaintiff. On information and belief,
`
`Employee Defendants also diverted customer payments to themselves.
`
`16.
`
`Employee Defendants breached their fiduciary duty of loyalty to Plaintiff, resulting
`
`in harm to Plaintiff according to proof.
`
`17.
`
`Employee Defendants’ breach of their duty of loyalty has deprived Plaintiff of the
`
`fruits of their employment, thereby entitling Plaintiff to restitution of wage payments to Employee
`
`
`
`
`
`Defendants.
`
`18.
`
`Because Employee Defendants’ above-alleged conduct is willful and malicious,
`
`Plaintiff is entitled to exemplary damages.
`
`COUNT II: MISAPPROPRIATION OF TRADE SECRETS
`
`gUNIFORM TRADE SECRETS ACT!
`
`19.
`
`Plaintiff incorporates by reference the foregoing averments.
`
`20.
`
`Plaintiff possesses information (including but not limited to research and
`
`development including certain CM Intellectual Property, customer lists, vendor identification,
`
`and account information) (the “Proprietary Information”) which has commercial value on
`
`account of the fact that it is not generally known.
`
`21.
`
`Plaintiff has taken reasonable steps to maintain the secrecy of the Proprietary
`
`Information.
`
`22.
`
`Plaintiff is informed and believes and based thereon alleges that the Employee
`
`Defendants and the Copperhead Defendants have removed and diverted the Proprietary Information
`
`from Plaintiff s possession and control without permission of Plaintiff.
`
`23.
`
`The Employee Defendants and the Copperhead Defendants are using the Proprietary
`
`Information without permission from Plaintiff, thereby committing trade secret misappropriation.
`
`24.
`
`Plaintiff has suffered damages from the above-alleged actions in an amount
`
`according to proof.
`
`25.
`
`Because the above—alleged conduct is willful and malicious, Plaintiff is entitled to
`
`exemplary damages.
`
`COUNT III: CONVERSION
`
`26.
`
`Plaintiff hereby incorporates by reference the foregoing averments.
`
`27.
`
`Employee Defendants were entrusted with Plaintiff’ 3 property for the limited
`
`
`
`
`
`purpose of furthering Plaintiff s business operations.
`
`28.
`
`For their own use and benefit, and without the authority to do so, Employee 1
`
`Defendants wrongfully, knowingly and intentionally exerted physical dominion over or
`
`otherwise converted and appropriated for their own personal use and benefit the property of
`
`Plaintiff.
`
`29.
`
`Employee Defendants wrongfully exercised dominion over and intentionally and
`
`knowingly misappropriated the property of Plaintiff with complete awareness, or awareness of
`
`the high probability, that their acts were not authorized by Plaintiff and violated IC § 35-43—4-3.
`
`30.
`
`Plaintiff has suffered damages and incurred attorneys’ fees as a result of
`
`Employee Defendants’ acts of conversion.
`
`3 1.
`
`Plaintiff is entitled to recover its attorneys’ fees and costs and treble damages
`
`pursuant to IC § 34-24—3-1.
`
`32.
`
`Because Employee Defendants’ above—alleged conduct is willful and malicious,
`
`Plaintiff is entitled to exemplary damages.
`
`COUNT IV: FRAUD/CONSTRUCTIVE FRAUD
`
`33.
`
`Plaintiff incorporates by reference the foregoing averrnents.
`
`
`Fraud
`
`34.
`
`During the summer of 2018, Employee Defendants misrepresented to Carolyn
`
`Mitchell Estes, Plaintiff s owner, that Plaintiff was obligated by operation of patent law to
`
`deliver Plaintiff s certain inventory of concave systems (the “Concave Systems Inventory”) to
`
`the Copperhead Defendants in order to avoid patent infringement liability and that Copperhead
`
`Defendants would pay Plaintiff eighty thousand dollars for the Concave Systems Inventory and
`
`not the one—hundred and sixty thousand dollar market price. The Copperhead Defendants have
`
`
`
`
`
`
`
`failed to pay for the Concave Systems Inventory.
`
`35.
`
`On numerous occasions over a period of years, Donald Estes has caused CM
`
`Welding to write checks to Donald Estes for misrepresented purposes and expenses.
`
`36.
`
`Said misrepresentations were false and designed by Employee Defendants to
`
`mislead and defraud Plaintiff.
`
`37.
`
`At the time when the foregoing actions, misrepresentations, and concealment
`
`occurred, Plaintiff had no knowledge of the falsity of Employee Defendants’ representations or
`the matters concealed, and believed Employee Defendants’ representations to be true and
`
`complete, and acted reasonably by relying thereon.
`
`38.
`
`As a direct and proximate result of Employee Defendants’ actions,
`
`misrepresentations, concealment, and fraud, Plaintiff has suffered monetary damages in an
`
`amount according to proof.
`
`39.
`
`Because Employee Defendants’ actions have been willful and malicious, Plaintiff
`
`is entitled to recover exemplary damages.
`
`Constructive Fraud ‘
`
`40.
`
`As employees of Plaintiff, Employee Defendants owed Plaintiff a fiduciary duty
`
`to deal fairly, honestly, and openly with Plaintiff.
`
`41.
`Employee Defendants breached their duties to Plaintiff by failing to disclose to
`Plaintiff that (i) Employee Defendants were negotiating secret terms with the Copperhead
`
`Defendants; (ii) Employee Defendant were attempting to divert Plaintiff’ s inventory and the CM
`
`Intellectual Property and Proprietary Information to the Copperhead Defendants; (iii) Donald
`
`Estes was attempting to assign the CM Welding Patents to CSM Corp; and (iv) Donald Estes
`
`diverted customer payments to his personal account.
`
`
`
`
`
`
`
`
`
`42.
`
`Employee Defendants’ conduct has been of a character that would prevent
`
`Plaintiff’s inquiry into the nature of their actions and, as such, has constituted conduct that was
`
`likely to create an injustice.
`
`43.
`Plaintiff relied upon Employee Defendants to make only truthful representations
`to Plaintiff, and to conceal nothing from Plaintiffregarding the actions ofEmployee Defendants
`
`with respect to the business operations and property of Plaintiff. ln reliance upon those
`
`understandings, Plaintiff did repose special faith and trust in Employee Defendants and did rely
`
`upon Employee Defendants to fully and faithfully, and with the utmost good faith, carry out their
`
`obligations as Plaintiff’s employee and agent. In the absence of Employee Defendants’
`
`misrepresentations and Plaintiffs reliance thereon, Plaintiff would not have suffered loss of or
`
`damages to its property.
`
`44.
`
`At the time the foregoing misrepresentations and concealment occurred, Plaintiff
`
`had no knowledge of the falsity of Employee Defendants’ representations or the matters
`
`concealed, and believed their representations to be true and complete, and acted reasonably in
`
`reliance thereon.
`
`45.
`
`Employee Defendants concealed their conduct with intent to defraud Plaintiff.
`
`46.
`
`Employee Defendants’ wrongful conduct, as stated herein, has worked a
`
`constructive fraud on Plaintiff. By their conduct and concealment, Employee Defendants have
`
`gained personal advantage from diversion of Plaintiffs money and property at the expense of
`
`Plaintiff.
`
`47.
`
`As a direct and proximate result of said constructive fraud, Employee Defendants
`
`have been unjustly enriched, and Plaintiff has suffered monetary damages in an amount
`
`according to proof.
`
`
`
`
`
`48.
`
`Because Employee Defendants’ actions have been willful and malicious, Plaintiff
`
`is entitled to recover exemplary damages.
`
`COUNT V: DECEPTION
`
`Plaintiff incorporates by reference the foregoing averments.
`
`Employee Defendants knowingly and intentionally misapplied entrusted property
`
`49.
`
`50.
`
`of Plaintiff in a manner that Employee Defendants knew was unlawful, or that Employee
`
`Defendants knew involved a substantial risk of loss or detriment to Plaintiff, in violation of IC §
`
`3 5 -43 ~5 —3 .
`
`51.
`
`Plaintiff has suffered damages as a result of Employee Defendants’ acts of
`
`deception.
`
`52.
`
`Plaintiff is entitled to recover its attorneys’ fees and costs and treble damages
`
`pursuant to IC § 34-24-3-1.
`
`53.
`Because Employee Defendants’ above-alleged conduct is willful and malicious,
`Plaintiff is entitled to exemplary damages.
`V
`
`COUNT VI: DECLARATORY JUDGMENT — INVENTIONS
`
`Plaintiff incorporates by reference the foregoing averrnents.
`
`This is an action for a declaratory judgment, pursuant to IC 34-14-1-1 et seq, and
`
`54.
`
`55.
`
`Indiana Trial Rule 57. There exists an actual controversy between Plaintiff and Defendants,
`
`within the jurisdiction of this Court, involving the rights, duties and obligations of the parties,
`
`which controversy may be determined by a judgment of this Court, without other suits.
`
`56.
`
`Taylor 1P does not acknowledge CM Welding as Taylor lP’s client, the owner-in-
`
`fact of the CM Intellectual Property, and the beneficial owner of the CM Welding Patents.
`
`Taylor IP has not voluntarily, timely, and fully disclosed to Plaintiff the conduct of Taylor IP
`
`
`
`
`
`alleged herein,
`
`57.
`
`Taylor IP has a client relationship with Plaintiff. Under the law of agency, Taylor
`
`IP and Donald Estes have a fiduciary duty to CM Welding as the owner of the CM Intellectual
`
`Property, including the trade secrets and other intellectual property disclosed in the CM Welding
`
`Patents. Pursuant to the Restatement (Third) of Agency, the fiduciary duty of Taylor IP and
`
`Donald Estes to CM Welding includes the following components.
`
`0 General Fiduciary Principle: An agent has a fiduciary duty to act loyally for the
`
`princip‘al’s benefit in all matters connected with the agency relationship.
`
`0 Competition: Throughout the duration of an agency relationship, an agent has a duty
`
`to refrain from competing with the principal and from taking action on behalf of or
`
`otherwise assisting the principal’s competitors.
`
`0 Use of Principal’s Property; Use of Confidential Information: An agent has a duty (1)
`
`not to use property of the principal for the agent’s own purposes or those of a third
`
`party; and (2) not to use or comrnunicate confidential information of the principal for
`
`the agent’s own purposes or those of a third party.
`
`0 Duty of Good Conduct: An agent has a duty, within the scope of the agency
`
`relationship, to act reasonably and to refrain from conduct that is likely to damage the
`
`principal’s enterprise.
`
`58.
`
`Neither Taylor IP nor Donald Estes is or ever has been authorized by Plaintiff to
`
`disclose any of the CM Intellectual Property, the CM Welding Patents, or any other associated
`
`patents and patent applications to CSM or the Copperhead Defendants.
`
`59.
`
`Neither Taylor IP nor Donald Estes is or ever has been authorized by Plaintiff to
`
`assign or license any of the CM Intellectual Property, the CM Welding Patents, or any other
`
`
`
`
`
`associated patents and patent applications to CSM or the Copperhead Defendants.
`
`60.
`
`Pursuant to Rule of Trial Procedure 57, Plaintiff requests a speedy hearing of this
`
`action for a declaratory judgment.
`
`COUNT VII: DECLARATORY JUDGMENT — TRADEMARIQ
`
`Plaintiff incorporates by reference the foregoing averments.
`
`This is an action for a declaratory judgment, pursuant to IC 34-14-1-1 et seq, and
`
`61.
`
`62.
`
`Indiana Trial Rule 5 7. There exists an actual controversy between Plaintiff, the Employee
`
`Defendants, and the Copperhead Defendants, within the jurisdiction of this Court, involving the
`
`rights, duties and obligations of the parties, which controversy may be determined by a judgment
`
`of this Court, without other suits.
`
`63.
`
`Plaintiff requests that the Court issue declaratory relief in favor of Plaintiff as
`
`follows: Plaintiff owns and enjoys common law rights in Indiana and throughout the United
`
`States in and to the trademark “RPR Concaves” (the “RPR Concaves Trademark”), which rights
`
`are superior to any rights which any of the Employee Defendants and Copperhead Defendants
`
`may claim in and to the use of the RPR Concaves Trademark. The Employee Defendants and
`
`Copperhead Defendants must therefore be enjoined from using the RPR Concaves Trademark or
`
`the substantial equivalents thereof for any commercial purpose.
`
`64.
`
`Pursuant to Rule of Trial Procedure 57, Plaintiff requests a speedy hearing of this
`
`action for a declaratory judgment.
`
`COUNT VIII: UNJUST ENRICHMENT
`
`Plaintiff incorporates by reference the foregoing averments.
`
`Donald Estes has used Plaintiff’ 3 property to confer a measurable benefit upon
`
`65.
`
`66.
`
`himself, the Copperhead Defendants, and CSM Corp.-
`
`10
`
`
`
`67.
`
`Donald Estes and the Copperhead Defendants and CSM Corp. have no valid legal
`
`or equitable claim to those benefits, and have been unjustly enriched thereby, and it would be
`
`inequitable for them to retain those benefits.
`
`68.
`
`Plaintiff is entitled to an award equal to the amount of the unjust enrichment of
`
`Donald Estes and the Copperhead Defendants and CSM Corp. so as to make restitution and
`
`divest the inequitable benefits from them and return those benefits to their rightful owner,
`
`Plaintiff.
`
`COUNT IX: ACTION ON ACCOUNT
`
`69.
`
`Plaintiff incorporates by reference the foregoing averments.
`
`70.
`
`Copperhead Defendants obtained delivery of the Concave Systems Inventory
`
`from Plaintiff, upon a promise by Copperhead Defendants to pay for it.
`
`71.
`
`Copperhead Defendants, having received and accepted the Concave Systems
`
`Inventory, have failed to pay for the Concave Systems Inventory.
`
`72.
`
`Plaintiff is entitled to payment on account in an amount according to proof.
`
`COUNT X: COMPUTER TRESPASS; OFFENSE AGAINST INTELLECTUAL
`PROPERTY
`
`73.
`
`74.
`
`Plaintiff incorporates by reference the foregoing averments.
`
`Plaintiff is informed and believes and based thereon alleges that Employee
`
`Defendants have committed Offense Against Intellectual Property and Computer Trespass (Ind.
`
`Code §§ 35-43—1—7 and 35—43-2-3) by knowingly and intentionally accessing and using Plaintiff‘s
`
`computers, computer systems, and computer network without the consent of Plaintiff for
`
`unauthorized purposes.
`
`75.
`
`Employee Defendants’ actions have harmed Plaintiff in an amount according to
`
`proof.
`
`ll
`
`
`
`
`
`
`
`
`76.
`
`Plaintiff is entitled to recover its attorneys’ fees and costs and treble damages
`
`pursuant to IC § 34-24-3-1.
`
`77.
`
`Because Employee Defendants’ above—alleged conduct is willful and malicious,
`
`Plaintiff is entitled to exemplary damages.
`
`COUNT XI: REPLEVIN
`Ind. Code §§ 32—35-2—1 et seq.
`
`78.
`
`Plaintiff incorporates by reference the foregoing averments.
`
`79.
`
`Donald Estes has wrongfully taken and/or unlawfully detained vehicles belonging
`
`to Plaintiff.
`
`80.
`
`The vehicles were not taken for a tax, assessment, or fine under a statute, nor were
`
`they seized under an execution or attachment against the property of Plaintiff.
`
`81.
`
`The estimated value of the vehicles is $1.2 million.
`
`82.
`
`The vehicles are believed to be detained in facilities known to and under the
`
`control of Donald Estes and/or his agents, the location of which facilities are not presently
`
`known.
`
`83.
`
`Plaintiff is entitled to return of the vehicles, or the value of the property in case
`
`delivery is not possible, and damages for the detention of the property.
`
`RELIEF REQUESTED
`
`WHEREFORE, Plaintiff respectfully requests the following relief:
`
`A.
`
`B.
`
`Compensatory damages and restitution in an amount according to proof, trebled.
`
`An injunction mandating return to Plaintiff of the Proprietary Information, vehicles,
`
`and all other tangible property of Plaintiff in the possession of any Defendant.
`
`C.
`
`An injunction mandating return by Taylor IP to Plaintiff of all invention
`
`documentation received from Donald Estes.
`
`12
`
`
`
`
`
`
`
`
`
`
`D.
`
`An injunction barring Defendants from undertaking any transaction involving the
`
`CM Intellectual Property, CM Welding Patents, the RPR Concaves Trademark, or any other
`
`associated patents, patent applications, trademark applications, trademark registrations, or other
`
`legal protections.
`
`E.
`
`A declaration that (i) Plaintiff owns the CM Intellectual Property, the CM Welding
`
`Patents, the RPR Concaves Trademark, and all rights in all applications, registrations, and issued
`
`patents protecting the CM Intellectual Property or the RPR Concaves Trademark; (ii) all
`
`assignments and licenses by or among any of the Defendants involving the CM Intellectual
`
`Property, the CM Welding Patents, or the RPR Concaves Trademark are null and void; and (iii) all
`
`Defendants are enjoined from entering into any assignment or license for the CM Intellectual
`
`Property, the CM Welding Patents, or the RPR Concaves Trademark and enjoined from any
`
`conduct contrary to Plaintiffs ownership interest in the CM Intellectual Property, the CM Welding
`
`Patents, and the RPR Concaves Trademark.
`
`F.
`
`An accounting of all revenues of the Defendants from the use and sale of any
`
`product described as “RPR'Concaves”.
`
`G.
`
`H.
`
`Exemplary damages.
`
`A finding that the conduct of Donald Estes and Steven Greeno has violated one or
`
`more sections of Indiana Code, Title 35, Article 43 and an increase in the damage award pursuant
`
`to Indiana Code, SectiOn 34—24-3-1.
`
`I.
`
`I.
`
`An award of attorney fees and costs.
`
`All such other just relief.
`
`13
`
`
`
`
`
`N In,
`
`William P. Kealey
`Attorney No. 18973-79
`Stuart & Branigin LLP
`300 Main Street, Suite 900
`PO. Box 101 0
`
`Lafayette, Indiana 47902—1010
`Telephone: (765) 428-7077
`
`Attorneyfor CM Welding, Inc.
`
`CERTIFICATE OF SERVICE
`
`I certify that on October 11, 2018, the foregoing document was served upon the following
`persons via US. first-class mail:
`
`Scott M. Kyrouac
`Wilkinson, Goeller, Modesitt,
`Wilkinson & Drummy, LLP
`333 Ohio Street
`
`Terre Haute IN 47807
`
`Alex M. Hagen
`Cadwell Sanford Deibert & Garry LLP
`200 E. 10th Street, Suite 200
`Sioux Falls SD 57104
`
`Jon A. Bragalone
`Carson, LLP
`301 W. Jefferson Blvd.
`Suite 200
`
`Fort Wayne IN 46802
`
`Richard D. Martin
`
`Attorney at Law
`12 South Main Street
`
`Frankfort IN 46041
`
`1105832-1
`
`LJl/q
`
`William P. Kealey
`
`14
`
`
`
`
`
`
`
`Baxley
`
`
`
`
`
`
`
`Exhibit B
`
`UNITED STATES PATENT AND TRADEMARK OFFICE
`Trademark Trial and Appeal Board
`P.O. Box 1451
`Alexandria, VA 22313-1451
`General Contact Number: 571-272-8500
`General Email: TTABInfo@uspto.gov
`
`March 9, 2019
`
`Opposition No. 91244035
`
`Copperhead Agricultural Products, LLC,
`Copperhead Concave Systems, LLC
`
`v.
`
`CM Welding Inc.
`
`
`By the Trademark Trial and Appe