Case 4:22-cv-00965 Document 44 Filed on 03/10/23 in TXSD Page 1 of 25
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE SOUTHERN DISTRICT OF TEXAS
`HOUSTON DIVISION
`
`
`C&M OILFIELD RENTALS, LLC
`D/B/A C-MOR ENERGY SERVICES,
`
`
`Plaintiff,
`
`
`
`v.
`
`
`ENSIGN US SOUTHERN DRILLING
`LLC,
`
`
`Defendant.
`
`
`
`§
`§
`§
`§
`§
`§
`§
`§
`§
`§
`§
`
`
`
`
`Civil Action No. 4:22-cv-00965-ASH
`
`
`JURY TRIAL DEMANDED
`
`PLAINTIFF C&M OILFIELD RENTALS, LLC’S SECOND AMENDED COMPLAINT
`
`Plaintiff C&M Oilfield Rentals, LLC d/b/a C-MOR Energy Services (“C&M”), by and
`
`through its undersigned attorneys, files this Second Amended Complaint and Request for
`
`Permanent Injunction against Defendant Ensign US Southern Drilling LLC (“Ensign”), and alleges
`
`as follows:
`
`NATURE OF THE ACTION
`
`1.
`
`This action seeks legal and equitable relief based on Ensign’s unlawful
`
`infringement of C&M’s U.S. Patent No. 10,976,016 (“the ’016 Patent”) and U.S. Patent No.
`
`10,900,626 (“the ’626 Patent”) (collectively, “the Asserted Patents”), which generally relate to
`
`lighting systems that may be used on drilling rigs, and breach of contract.
`
`PARTIES
`
`2.
`
`C&M is a Wyoming limited liability company with its principal place of business
`
`located at 3429 Cottonwood Ave., Cody, Wyoming 82414.
`
`3.
`
`On information and belief, Ensign US Southern Drilling LLC is a Delaware limited
`
`liability company with a principal place of business at 15015 Vickery Drive, Houston, Texas
`
`77032.
`
`1
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`C&M Oilfield Rentals Ex. 2001 - Page 1
`Ensign US Southern Drilling LLC v. C&M Oilfield Rentals LLC
`IPR2023-00804 - U.S. Patent No. 10,976,016
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`

`

`Case 4:22-cv-00965 Document 44 Filed on 03/10/23 in TXSD Page 2 of 25
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`4.
`
`On information and belief, the registered agent for Ensign US Southern Drilling
`
`LLC is CT Corporation System, located at 1999 Bryan Street, Suite 900, Dallas, Texas 75201.
`
`JURISDICTION AND VENUE
`
`5.
`
`The Court has subject matter jurisdiction pursuant to 28 U.S.C. §§ 1331 (federal
`
`question) and 1338 (action arising under an Act of Congress relating to patents) because this
`
`lawsuit arises under the Patent Laws of the United States, 35 U.S.C. §§ 1 et seq., including but not
`
`limited to §§ 271 and 281. The Court has supplemental or pendent jurisdiction over C&M’s
`
`remaining claims pursuant to 28 U.S.C. § 1367 because such claims are so related to C&M’s
`
`federal claims that they form part of the same case or controversy under Article III of the United
`
`States Constitution.
`
`6.
`
`The Court has personal jurisdiction over Ensign at least because Ensign resides in
`
`the State of Texas and in this judicial district. Further, Ensign has continuous and systematic
`
`contacts with the State of Texas pursuant to its business activities in the State, thereby purposely
`
`availing of the benefits and protections under Texas law. Arising from that activity, Ensign has
`
`committed the acts complained of herein within this judicial district. Therefore, the Court’s
`
`exercise of personal jurisdiction over Ensign comports with due process and would not offend
`
`traditional notions of fair play and substantial justice.
`
`7.
`
`Venue is proper as to Ensign pursuant to 28 U.S.C. §§ 1391 and 1400(b) at least
`
`because Ensign is subject to the Court’s exercise of personal jurisdiction. Further, Ensign has a
`
`regular and established place of business in this judicial district and has committed the acts
`
`complained of herein in at least this judicial district.
`
`A.
`
`C&M’s Development of the CROWN JEWEL
`
`FACTUAL BACKGROUND
`
`8.
`
`C&M markets, leases, and sells oilfield service equipment to customers nationwide.
`
`2
`
`C&M Oilfield Rentals Ex. 2001 - Page 2
`Ensign US Southern Drilling LLC v. C&M Oilfield Rentals LLC
`IPR2023-00804 - U.S. Patent No. 10,976,016
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`

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`Case 4:22-cv-00965 Document 44 Filed on 03/10/23 in TXSD Page 3 of 25
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`9.
`
`C&M is a market-leading innovator in the development of modular drilling rig
`
`lighting systems.
`
`10.
`
`Generally, the construction of a well for oil and/or natural gas involves three
`
`phases: drilling, completion, and production. The drilling phase must be completed before the
`
`other two phases may begin. Well construction is very expensive, in part because the drilling rig
`
`and other pieces of equipment are rented by the day. Accordingly, once the operator of a wellsite
`
`has begun drilling, it is extremely important to finish that phase of the process as quickly as
`
`possible.
`
`11.
`
`One consequence of the need to complete drilling as quickly as possible is that
`
`operators often choose to drill around the clock, or as close to that schedule as possible. As a
`
`result, drilling activity often continues after dark. Because wellsites are almost always in remote
`
`locations, there is no readily available source of lighting to keep the wellsite illuminated during
`
`nighttime operations.
`
`12.
`
`Proper illumination during nighttime operations is exceedingly important.
`
`Wellsites are crowded and inherently dangerous workplaces, with many hazards that can cause
`
`injury to workers, and these risks are intensified if a wellsite is not adequately illuminated.
`
`13.
`
`Prior to C&M’s advances in the field, the lighting options available for wellsite
`
`operators were limited. The most common solution had long been portable light towers with
`
`halogen bulbs. There were numerous limitations with these towers, including that the towers could
`
`not be centrally located within a wellsite. As a result, an operator would be required to use multiple
`
`towers spaced around the drilling rig, but this was inefficient and created inconsistent lighting.
`
`14.
`
`Other rig-mounted lighting systems suffered from drawbacks including weight,
`
`difficulty of installation, safety concerns, limited customization, and lack of portability.
`
`3
`
`C&M Oilfield Rentals Ex. 2001 - Page 3
`Ensign US Southern Drilling LLC v. C&M Oilfield Rentals LLC
`IPR2023-00804 - U.S. Patent No. 10,976,016
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`Case 4:22-cv-00965 Document 44 Filed on 03/10/23 in TXSD Page 4 of 25
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`15.
`
`In March 2018, C&M began offering customers a new drilling rig lighting system
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`under its distinctive CROWN JEWEL® mark.
`
`16.
`
`Unlike the large, frame-based design of prior rig-mounted lighting systems, the
`
`CROWN JEWEL lighting system uses multiple small lightweight lights that attach via mounting
`
`poles and/or brackets directly to the handrail of the rig’s crown deck. The light fixture is mounted
`
`such that it may be placed in one of at least two discrete positions, a feature that allows the system
`
`to be left in place when a rig is moved.
`
`17.
`
`C&M has multiple issued U.S. patents, including U.S. Patent No. 10,976,016 (“the
`
`’016 Patent”), U.S. Patent No. 10,900,626 (“the ’626 Patent”), pending U.S. patent applications,
`
`and multiple foreign and international applications related to its novel design for a drilling rig
`
`lighting system.
`
`18.
`
`C&M has devoted substantial time, effort, and resources to the development and
`
`promotion of its CROWN JEWEL product and related patents. As a result, the CROWN JEWEL
`
`system has achieved commercial success and wide adoption through the industry.
`
`B.
`
`The ’016 Patent
`
`19.
`
`On April 13, 2021, U.S. Patent No. 10,976,016, entitled “Elevated Structure-
`
`Mounted Lighting System” (“the ’016 Patent”) was duly issued by the U.S. Patent and Trademark
`
`Office to C&M. A true and correct copy of the ’016 Patent is attached hereto as Exhibit 1A.
`
`20.
`
`As assignee of the ’016 Patent, C&M owns all right, title and interest in the ’016
`
`Patent and has all substantial rights to sue for infringement.
`
`21.
`
`Claim 1 of the ’016 Patent recites:
`
`1.
`
`A modular lighting system mounted on a rig, the modular lighting system
`comprising:
`
`a plurality of light units, each light unit separately attached to a crown deck
`of the rig, and each light unit comprising:
`
`4
`
`C&M Oilfield Rentals Ex. 2001 - Page 4
`Ensign US Southern Drilling LLC v. C&M Oilfield Rentals LLC
`IPR2023-00804 - U.S. Patent No. 10,976,016
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`

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`Case 4:22-cv-00965 Document 44 Filed on 03/10/23 in TXSD Page 5 of 25
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`a mounting pole;
`
`a light fixture comprising one or more lights; and
`
`a bracket configured to attach the mounting pole to the crown deck
`of the rig.
`
`22.
`
`Claim 2 of the ’016 Patent recites:
`
`2.
`
`The lighting system of claim 1, wherein the bracket is connected to the
`crown deck of the rig using bolts.
`
`23.
`
`Claim 23 of the ’016 Patent recites:
`
`23. A rig comprising:
`
`a derrick;
`
`a crown deck at the top of the derrick; and
`
`a plurality of light units, each light unit separately attached to the crown
`deck, each light unit comprising:
`
`a mounting pole, wherein each light unit comprises a separate
`mounting pole, such that the system comprises a plurality of
`mounting poles; and
`
`a light fixture comprising one or more lights, the light fixture
`coupled to the mounting pole.
`
`24.
`
`C&M has practiced the ’016 Patent in connection with installing and leasing its
`
`CROWN JEWEL.
`
`25.
`
`C&M has marked and continues to virtually mark the CROWN JEWEL with the
`
`’016 Patent pursuant to 35 U.S.C. § 287(a) at https://cmorenergy.com/crown-jewel-lights/.
`
`C.
`
`The ’626 Patent
`
`26.
`
`On January 26, 2021, U.S. Patent No. 10,900,626, entitled “Elevated Structure-
`
`Mounted Lighting System” (“the ’626 Patent”) was duly issued by the U.S. Patent and Trademark
`
`Office to C&M. A true and correct copy of the ’626 Patent is attached hereto as Exhibit 1B.
`
`5
`
`C&M Oilfield Rentals Ex. 2001 - Page 5
`Ensign US Southern Drilling LLC v. C&M Oilfield Rentals LLC
`IPR2023-00804 - U.S. Patent No. 10,976,016
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`

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`27.
`
`As assignee of the ’626 Patent, C&M owns all right, title and interest in the ’626
`
`Patent and has all substantial rights to sue for infringement.
`
`28.
`
`Claim 9 of the ’626 Patent recites:
`
`9.
`
`A rig comprising:
`
`a derrick;
`
`a crown deck at the top of the derrick comprising a handrail; and
`
`a plurality of light units attached to the handrail, each light unit comprising:
`
`a mounting pole, wherein each light unit comprises a separate
`mounting pole, such that the system comprises a plurality of
`mounting poles; and
`
`a light fixture comprising one or more lights, the light fixture
`coupled to the mounting pole.
`
`29.
`
`Claim 19 of the ’626 Patent recites:
`
`19.
`
`A method for illuminating a wellsite, comprising:
`
`mounting a plurality of mounting poles on a crown deck of a rig, wherein
`each of the plurality of mounting poles is attached to a handrail of
`the crown deck;
`
`mounting a plurality of lights to the plurality of mounting poles, wherein
`each of the plurality of mounting poles supports at least one of the
`plurality of lights, and each of the plurality of lights is mounted to
`only one of the plurality of mounting poles; and
`
`illuminating the wellsite using the plurality of lights.
`
`30.
`
`C&M has practiced the ’626 Patent in connection with installing and leasing its
`
`CROWN JEWEL.
`
`31.
`
`C&M has marked and continues to virtually mark the CROWN JEWEL with the
`
`’626 Patent pursuant to 35 U.S.C. § 287(a) at https://cmorenergy.com/crown-jewel-lights/.
`
`6
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`C&M Oilfield Rentals Ex. 2001 - Page 6
`Ensign US Southern Drilling LLC v. C&M Oilfield Rentals LLC
`IPR2023-00804 - U.S. Patent No. 10,976,016
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`Case 4:22-cv-00965 Document 44 Filed on 03/10/23 in TXSD Page 7 of 25
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`D.
`
`Ensign’s Non-C&M Lighting System
`
`32.
`
`Ensign is in the business of providing oilfield services to the oil and natural gas
`
`industry, such as drilling, well servicing, equipment rentals and transportation. See Ensign,
`
`https://www.ensignenergy.com (last visited Mar. 8, 2023).
`
`33.
`
`C&M has been hired to provide and install its CROWN JEWEL lighting systems
`
`on more than 25 Ensign drilling rigs to date, including Ensign 101, Ensign 119, Ensign 138, Ensign
`
`147, Ensign 153, Ensign 157, Ensign 161, Ensign 451, Ensign 762, Ensign 774, Ensign 778,
`
`Ensign T52, Ensign T121, Ensign T123, Ensign T134, Ensign T136, Ensign T225, and Ensign
`
`T445.
`
`34.
`
`On or about December 17, 2020, Ensign hired C&M to install a C&M CROWN
`
`JEWEL lighting system on Ensign 778. Exhibit 2, Ensign 778 Rig Up Invoice.
`
`35.
`
`On or about August 31, 2021, Ensign hired C&M to install a C&M CROWN
`
`JEWEL lighting system on Ensign 774. Exhibit 3, Ensign 774 Rig Up Invoice.
`
`36.
`
`In or around February 2022, Ensign began replacing C&M lighting systems with
`
`non-C&M lighting systems on multiple Ensign rigs. On information and belief, Ensign has
`
`replaced C&M’s CROWN JEWEL lighting systems with non-C&M lighting systems on at least
`
`Ensign rigs identified as “Ensign 774” and “Ensign 778,” as shown below.
`
`37.
`
`On or about February 9, 2022, at Ensign’s behest, C&M performed an
`
`uninstallation (also known as a “rig down”) of the C&M CROWN JEWEL lighting system from
`
`Ensign 774.
`
`38.
`
`In connection with C&M’s delivery, installation,, safety inspections, and rig down
`
`of the CROWN JEWEL lighting systems, Ensign received and executed various documents,
`
`including delivery tickets and invoices, as well as an Acknowledgement of Receipt of Documents
`
`and Consent to Terms and Conditions, which acknowledged that Ensign had read, understood, and
`
`7
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`C&M Oilfield Rentals Ex. 2001 - Page 7
`Ensign US Southern Drilling LLC v. C&M Oilfield Rentals LLC
`IPR2023-00804 - U.S. Patent No. 10,976,016
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`agreed to be bound by the terms of: (1) C-MOR Energy Services Job Safety Analysis – Rig Down;
`
`(2) C-MOR Energy Services Rig Down Inspection; and (3) C-MOR Energy Services Rig Down
`
`Invoice. Exhibit 4, Ensign 774 Rig Down Documents.
`
`39.
`
` On information and belief, the documents were executed by Ensign employees
`
`acting as appropriate, authorized representatives of Ensign. Ensign’s Purchasing Manager, Mike
`
`McClanahan, directed C&M to coordinate with Ensign’s rig superintendents and rig managers for
`
`on-site performance of work, such as installation and rig down. C&M performed on-site work,
`
`including delivery, installation, safety inspections, and rig down of the CROWN JEWEL lighting
`
`systems based on the belief that such Ensign employees had the authority to execute the documents
`
`required to perform such work. C&M would not have performed delivery, installation, safety
`
`inspections, or rig down of the CROWN JEWEL lighting systems without this authorization.
`
`40.
`
`The Acknowledgement of Receipt of Documents and Consent to Terms and
`
`Conditions and C-MOR Energy Services Rig Down Inspection prohibited Ensign from engaging
`
`in any business that would be deemed similar to C&M’s business without C&M’s consent and
`
`prohibited Ensign from developing, leasing, or purchasing any directly competitive rig-mounted
`
`lighting system within 12 months of rigging down. Exhibit 4, Ensign 774 Rig Down Documents.
`
`41.
`
`On or after February 9, 2022, Ensign mounted and/or used a non-C&M lighting
`
`system on Ensign 774, as shown below in Figure 1:
`
`8
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`C&M Oilfield Rentals Ex. 2001 - Page 8
`Ensign US Southern Drilling LLC v. C&M Oilfield Rentals LLC
`IPR2023-00804 - U.S. Patent No. 10,976,016
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`Case 4:22-cv-00965 Document 44 Filed on 03/10/23 in TXSD Page 9 of 25
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`
`
`
`
`Fig. 1: Ensign 774 with non-C&M lighting system (photo taken on or about Mar. 15, 2022).
`
`42.
`
`On or about February 24, 2022, at Ensign’s behest, C&M rigged down the C&M
`
`CROWN JEWEL lighting system from Ensign 778.
`
`43.
`
`As part of the rig down for Ensign 778, Ensign executed the same documents as
`
`listed above for the rig down of Ensign 774 and were therefore bound by the same prohibitions.
`
`Exhibit 5, Ensign 778 Rig Down Documents.
`
`44.
`
`On or after February 24, 2022, Ensign mounted and/or used a non-C&M lighting
`
`system on Ensign 778, as shown below in Figure 2:
`
`9
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`C&M Oilfield Rentals Ex. 2001 - Page 9
`Ensign US Southern Drilling LLC v. C&M Oilfield Rentals LLC
`IPR2023-00804 - U.S. Patent No. 10,976,016
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`Case 4:22-cv-00965 Document 44 Filed on 03/10/23 in TXSD Page 10 of 25
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`
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`Fig. 2: Ensign 778 with non-C&M lighting system (photos taken on or about Mar. 11, 2022).
`
`45.
`
`On information and belief, neither of the Ensign 774 and 778 lighting systems
`
`installed by Ensign appear to include proper safety measures, such as proper safety retention
`
`devised by C&M that has become industry standard.
`
`46.
`
`In connection with many of the rigs listed in Paragraph 33, Ensign similarly agreed
`
`to refrain from activities that directly compete with C&M’s lighting business.
`
`47.
`
`On information and belief, Ensign has replaced C&M’s CROWN JEWEL lighting
`
`systems on multiple rigs listed in Paragraph 33 with other lighting systems that compete with
`
`C&M’s CROWN JEWEL lighting systems.
`
`CAUSES OF ACTION
`
`Count 1: Infringement of the ’016 Patent
`
`48.
`
`C&M incorporates by reference and realleges the above paragraphs as though fully
`
`set forth herein.
`
`10
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`C&M Oilfield Rentals Ex. 2001 - Page 10
`Ensign US Southern Drilling LLC v. C&M Oilfield Rentals LLC
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`49.
`
`50.
`
`C&M is the owner of all right, title, and interest in and to the ’016 Patent.
`
`As the owner of the ’016 Patent, C&M is authorized and has standing to bring legal
`
`action to enforce all rights arising under the ’016 Patent.
`
`51.
`
`52.
`
`The ’016 Patent is presumed valid pursuant to 35 U.S.C. § 282.
`
`Ensign is not licensed to make, use, sell, offer to sell, or import any product or
`
`service that is covered by the claims of the ’016 Patent, except as expressly authorized by C&M
`
`subject to the agreements listed herein.
`
`53.
`
`On information and belief, Ensign, either alone or in concert with others and
`
`without authorization or license from C&M, has directly infringed and will continue to infringe,
`
`either literally or under the doctrine of equivalents, one or more claims of the ’016 Patent in
`
`violation of 35 U.S.C. § 271, by making, using, selling, leasing, importing, installing, supplying,
`
`and/or offering to sell or lease an infringing lighting system in the United States.
`
`54.
`
`On information and belief, Ensign installed and/or used the lighting system on
`
`Ensign 778, thereby infringing at least claims 1, 2, and 23 of the ’016 Patent, as shown in C&M’s
`
`Preliminary Infringement Contentions served December 13, 2022, which C&M incorporates by
`
`reference and realleges as though fully set forth herein. By way of nonlimiting example, Ensign’s
`
`installation and use of the lighting system installed on Ensign 778 infringes independent claim 23,
`
`as annotated below.
`
`11
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`C&M Oilfield Rentals Ex. 2001 - Page 11
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`’016 Patent
`23. A rig comprising:
`a derrick;
`
`Ensign’s Lighting System
`
`derrick
`(visible
`portion)
`
`
`
`
`
`“Ensign 778”
`
`a crown deck at the top of
`the derrick; and
`
`
`crown
`deck
`
`
`
`
`
`
`
`12
`
`C&M Oilfield Rentals Ex. 2001 - Page 12
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`Case 4:22-cv-00965 Document 44 Filed on 03/10/23 in TXSD Page 13 of 25
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`’016 Patent
`
`Ensign’s Lighting System
`
`a plurality of light units, each
`light unit separately attached
`to the crown deck, each light
`unit comprising:
`
`
`
`
`
`crown deck
`
`13
`
`C&M Oilfield Rentals Ex. 2001 - Page 13
`Ensign US Southern Drilling LLC v. C&M Oilfield Rentals LLC
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`Case 4:22-cv-00965 Document 44 Filed on 03/10/23 in TXSD Page 14 of 25
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`Ensign’s Lighting System
`
`’016 Patent
`a mounting pole, wherein
`each light unit comprises a
`separate mounting pole, such
`that the system comprises a
`plurality of mounting poles;
`and
`
`mounting poles
`
`a light fixture comprising
`one or more lights, the light
`fixture coupled to the
`mounting pole.
`
`
`
`
`
`
`
`
`
`light fixtures
`
`
`
`
`
`55.
`
`On information and belief, Ensign installed and/or used on Ensign 774 a non-C&M
`
`lighting system that is identical or substantially the same as the non-C&M lighting system installed
`
`and/or used on Ensign 778, thereby infringing one or more claims of the ’016 Patent. Accordingly,
`
`Ensign’s installation and use of the lighting system installed on Ensign 774 infringes at least
`
`claims 1, 2, and 23 of the ’016 Patent for the same reasons as shown above on Ensign 778.
`
`56.
`
`Because Ensign’s unauthorized and infringing lighting systems compete directly
`
`with C&M’s CROWN JEWEL lighting system, Ensign’s infringing acts are causing, and unless
`
`restrained, will continue to cause damage and immediate irreparable harm to C&M.
`
`14
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`C&M Oilfield Rentals Ex. 2001 - Page 14
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`57.
`
`On information and belief, Ensign has and has had actual knowledge of the
`
`’016 Patent and actual knowledge that their activities constitute direct, indirect, or joint
`
`infringement of the ’016 Patent, or have willfully blinded themselves to the infringing nature of
`
`their activities, and yet continue their infringing activities.
`
`58.
`
`On information and belief, Ensign has actively induced and continue to induce
`
`others to directly infringe one or more claims of the ’016 Patent, and/or have contributed and
`
`continue to contribute to others’ infringement of one or more claims or the ’016 Patent.
`
`59.
`
`On information and belief, Ensign’s infringement of the ’016 Patent has been and
`
`will continue to be willful, deliberate, and intentional.
`
`60.
`
`As a result of Ensign’s infringement of the ’016 Patent, C&M has suffered and will
`
`continue to suffer irreparable harm for which there is no adequate remedy at law, unless Ensign is
`
`permanently enjoined by this Court. Furthermore, the public interest would be served by issuance
`
`of an injunction.
`
`61.
`
`As a result of Ensign’s infringing activities, C&M has suffered actual damages in
`
`an amount to be determined at trial. Additionally, as a result of the willful and deliberate nature of
`
`Ensign’s infringing activities, C&M is entitled to a trebling of its actual damages and is entitled to
`
`recover its attorneys’ fees and costs incurred in prosecuting this action.
`
`Count 2: Infringement of the ’626 Patent
`
`62.
`
`C&M incorporates by reference and realleges the above paragraphs as though fully
`
`set forth herein.
`
`63.
`
`64.
`
`C&M is the owner of all right, title, and interest in and to the ’626 Patent.
`
`As the owner of the ’626 Patent, C&M is authorized and has standing to bring legal
`
`action to enforce all rights arising under the ’626 Patent.
`
`15
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`Case 4:22-cv-00965 Document 44 Filed on 03/10/23 in TXSD Page 16 of 25
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`65.
`
`66.
`
`The ’626 Patent is presumed valid pursuant to 35 U.S.C. § 282.
`
`Ensign is not licensed to make, use, sell, offer to sell, or import any product or
`
`service that is covered by the claims of the ’626 Patent, except as expressly authorized by C&M
`
`subject to the agreements listed herein.
`
`67.
`
`On information and belief, Ensign, either alone or in concert with others and
`
`without authorization or license from C&M, has directly infringed and will continue to infringe,
`
`either literally or under the doctrine of equivalents, one or more claims of the ’626 Patent in
`
`violation of 35 U.S.C. § 271, by making, using, selling, leasing, importing, installing, supplying,
`
`and/or offering to sell or lease an infringing lighting system in the United States.
`
`68.
`
`On information and belief, Ensign installed and/or used the lighting system on
`
`Ensign 778, thereby infringing at least claims 9 and 19 of the ’626 Patent, as shown in C&M’s
`
`Preliminary Infringement Contentions served December 13, 2022, which C&M incorporates by
`
`reference and realleges as though fully set forth herein. By way of nonlimiting example, Ensign’s
`
`installation and use of the lighting system installed on Ensign 778 infringes at least independent
`
`claim 9, as annotated below.
`
`16
`
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`Ensign US Southern Drilling LLC v. C&M Oilfield Rentals LLC
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`Case 4:22-cv-00965 Document 44 Filed on 03/10/23 in TXSD Page 17 of 25
`
`’626 Patent
`9. A rig comprising:
`a derrick;
`
`Ensign’s Lighting System
`
`derrick
`(visible
`portion)
`
`
`
`
`
`“Ensign 778”
`
`
`
`a crown deck at the top of
`the derrick, the crown deck
`comprising a handrail; and
`
`
`
`crown
`deck
`
`
`
`
`
`
`
`17
`
`C&M Oilfield Rentals Ex. 2001 - Page 17
`Ensign US Southern Drilling LLC v. C&M Oilfield Rentals LLC
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`Case 4:22-cv-00965 Document 44 Filed on 03/10/23 in TXSD Page 18 of 25
`
`’626 Patent
`
`Ensign’s Lighting System
`
`a plurality of light units
`attached to the handrail, each
`light unit comprising:
`
`a mounting pole, wherein
`each light unit comprises a
`separate mounting pole, such
`that the system comprises a
`plurality of mounting poles;
`and
`
`
`
`18
`
`
`
`
`
`
`
`C&M Oilfield Rentals Ex. 2001 - Page 18
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`Case 4:22-cv-00965 Document 44 Filed on 03/10/23 in TXSD Page 19 of 25
`
`’626 Patent
`a light fixture comprising
`one or more lights, the light
`fixture coupled to the
`mounting pole.
`
`Ensign’s Lighting System
`
`
`
`
`
`69.
`
`On information and belief, Ensign installed and/or used on Ensign 774 a non-C&M
`
`lighting system that is identical or substantially the same as the non-C&M lighting system installed
`
`and/or used on Ensign 778, thereby infringing one or more claims of the ’626 Patent. Accordingly,
`
`Ensign’s installation and use of the lighting system installed on Ensign 774 infringes at least
`
`claims 9 and 19 of the ’626 Patent for the same reasons as shown above on Ensign 778.
`
`70.
`
`Because Ensign’s unauthorized and infringing lighting systems compete directly
`
`with C&M’s CROWN JEWEL lighting system, Ensign’s infringing acts are causing, and unless
`
`restrained, will continue to cause damage and immediate irreparable harm to C&M.
`
`71.
`
`On information and belief, Ensign has and has had actual knowledge of the ’626
`
`Patent and actual knowledge that their activities constitute direct, indirect, or joint infringement of
`
`the ’016 Patent, or have willfully blinded themselves to the infringing nature of their activities,
`
`and yet continue their infringing activities.
`
`72.
`
`On information and belief, Ensign has actively induced and continue to induce
`
`others to directly infringe one or more claims of the ’626 Patent, and/or have contributed and
`
`continue to contribute to others’ infringement of one or more claims or the ’626 Patent.
`
`73.
`
`On information and belief, Ensign’s infringement of the ’626 Patent has been and
`
`will continue to be willful, deliberate, and intentional.
`
`19
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`C&M Oilfield Rentals Ex. 2001 - Page 19
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`Case 4:22-cv-00965 Document 44 Filed on 03/10/23 in TXSD Page 20 of 25
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`74.
`
`As a result of Ensign’s infringement of the ’626 Patent, C&M has suffered and will
`
`continue to suffer irreparable harm for which there is no adequate remedy at law, unless Ensign is
`
`permanently enjoined by this Court. Furthermore, the public interest would be served by issuance
`
`of an injunction.
`
`75.
`
`As a result of Ensign’s infringing activities, C&M has suffered actual damages in
`
`an amount to be determined at trial. Additionally, as a result of the willful and deliberate nature of
`
`Ensign’s infringing activities, C&M is entitled to a trebling of its actual damages and is entitled to
`
`recover its attorneys’ fees and costs incurred in prosecuting this action.
`
`Count 3: Breach of Contract
`
`76.
`
`C&M incorporates by reference and realleges the above paragraphs, as though fully
`
`set forth herein.
`
`77.
`
`On February 9, 2022, Ensign executed the Acknowledgement of Receipt of
`
`Documents and Consent to Terms and Conditions for Ensign 774.
`
`78.
`
`On February 24, 2022, Ensign executed the Acknowledgement of Receipt of
`
`Documents and Consent to Terms and Conditions for Ensign 778.
`
`79.
`
`By executing the Acknowledgement of Receipt of Documents and Consent to
`
`Terms and Conditions for Ensign 774 and Ensign 778, Ensign acknowledged that it read,
`
`understood, and agreed to be bound by the terms of: (1) C-MOR Energy Services Job Safety
`
`Analysis – Rig Down; (2) C-MOR Energy Services Rig Down Inspection; and (3) C-MOR Energy
`
`Services Rig Down Invoice.
`
`80.
`
`For example, the Acknowledgement of Receipt of Documents and Consent to
`
`Terms and Conditions for each of Ensign 774 and Ensign 778 states in paragraph 5:
`
`In consideration for the equipment and services provided by C-MOR™ to
`Company, Company and/or its Affiliates, Agents, Representatives, Subcontractors
`
`20
`
`C&M Oilfield Rentals Ex. 2001 - Page 20
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`Case 4:22-cv-00965 Document 44 Filed on 03/10/23 in TXSD Page 21 of 25
`
`or Employees shall not, in any manner represent, provide services, develop, or
`engage in any aspect of business that would be deemed similar in nature to the
`business of C-MOR™ without the written consent of C-MOR™ nor shall Company
`use any Confidential Information or Intellectual Property of C-MOR™ to develop
`any product which would compete directly or indirectly with C-MOR™ . Company
`warrants and guarantees that throughout the duration of its engagement and for a
`period of 12 months following this culmination, completion, or termination of this
`Agreement, Company shall not directly or indirectly engage in any business that
`would be considered similar in nature to with C-MOR™, its subsidiaries, and any
`current or former clients and/or Company’s. Nor shall Company solicit any client,
`vendor, officer, staff, or employee for the benefit of himself/herself or a third party
`that is or may be engaged in a similar business.
`
`81.
`
`As another example, the Acknowledgement of Receipt of Documents and Consent
`
`to Terms and Conditions for each of Ensign 774 and Ensign 778 states in paragraph 7:
`
`In consideration of C-MOR’s agreement to provide the goods/equipment to
`Company, Company and its Affiliates hereby agree, for a period of twelve (12)
`months from the date of this invoice, not to develop, lease or purchase from any
`third party any other rig-mounted lighting system(s) directly competitive with the
`Crown Jewel™ system. All parties to this document shall not use, disclose or in
`any way disseminate confidential information. Confidential information shall
`include price, terms, and timing in addition to the C-MOR Crown Jewel™ Design,
`Construction, Parts and Materials.
`
`82.
`
`As another example, the C-MOR Energy Services Rig Down Inspection for each
`
`of Ensign 774 and Ensign 778 states:
`
`In consideration for the equipment and services provided by C&M Oilfield Rentals,
`LLC, d/b/a C-MOR Energy Services™ to Company, Company shall not, in any
`manner represent, provide services, develop, or engage in any aspect of business
`that would be deemed similar in nature to the business of C&M Oilfield Rentals,
`LLC, d/b/a C-MOR Energy Services™ without the written consent of C&M
`Oilfield Rentals, LLC, d/b/a C-MOR Energy Services™ nor shall Company use
`any Confidential Information or Intellectual Property of C&M Oilfield Rentals,
`LLC, d/b/a C-MOR Energy Services™ to develop any product which would
`compete directly or indirectly with C&M Oilfield Rentals, LLC, d/b/a C-MOR
`Energy Services™. Company warrants and guarantees that throughout the duration
`of its engagement and for a period of 12 months following this culmination,
`completion, or termination, whichever occurs last, of this agreement, Company
`shall not directly or indirectly engage in any business that would be considered
`similar in nature to with C&M Oilfield Rentals, LLC, d/b/a C-MOR Energy
`Services™, its subsidiaries, and any current or former