acolyte technologies v. jeja international et. al

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    1317.010\9998Com laint

    Mark D. Kremer (SB# 100978)[email protected]

    CONKLE, KREMER & ENGELProfessional Law Corporation3130 Wilshire Boulevard, Suite 500Santa Monica, California 90403-2351

    Phone: (310) 998-9100 Fax: (310) 998-9109

    Steven [email protected]

    Richard S. [email protected]

    GOTTLIEB, RACKMAN & REISMAN, P.C.270 Madison AvenueNew York, New York 10016Telephone: (212) 684-3900Facsimile: (212) 684-3999

    Attorneys for PlaintiffAcolyte Technologies Corporation

    UNITED STATES DISTRICT COURT

    SOUTHERN DISTRICT OF CALIFORNIA

    ACOLYTE TECHNOLOGIESCORPORATION, a New York

    corporation,

    Plaintiff,

    v.

    JEJA INTERNATIONALCORPORATION LIMITED, a foreign

    corporation; EVELYN KIM, anindividual; INHO KIM, an individual;CHOONG BIN LIM, an individual;SOOK JA LIM, an individual; CEONGLIM an individual; and DOES 1-10,

    Defendants.

    CIVIL ACTION NO.

    COMPLAINT FORINFRINGEMENT OFU.S. PATENT NOS. D633,232 &D642,299 AND UNFAIRCOMPETITION

    '11CV2012 CABMMA

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    1317.010\9998-1-Com laint

    Plaintiff, Acolyte Technologies Corporation, (hereinafter plaintiff and/or

    Acolyte), by way of its Complaint against the corporate defendant Jeja

    International Corporation, Limited (Jeja), and individual defendants Evelyn Kim,

    Inho Kim, Choong Bin Lim, Sook Ja Lim and Ceong Lim, all d/b/a La Bonita

    (hereinafter collectively the individual defendants), and Does 1-10, alleges as

    follows:

    NATURE OF ACTION

    1. Through the design of innovative LED lighting products, Acolytecreated and established a market for lighting products that are used to adorn and

    lighten dcor and floral arrangements. Plaintiff is the recognized leader in this new

    industry. As alleged herein, the defendants have slavishly copied and sold

    plaintiffs original and protected product designs and engaged in acts of unfair

    competition.

    2. Through this action and the accompanying documents, plaintiff seeks apreliminary and permanent injunction against defendants. Plaintiff also seeks

    damages for the willful, malicious and deliberate design patent infringement, unfair

    competition and related wrongful activities. Plaintiffs claims arise and are asserted

    under the patent laws of the United States, 35 U.S.C. 100 et seq., and the common

    law.

    THE PARTIES

    3. Acolyte is a New York corporation, with an office and place ofbusiness located at 44 East 32nd Street, New York, New York 10016.

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    1317.010\9998-2-Com laint

    4. Acolyte creates, designs, imports, and distributes LED lightingproducts throughout the United States and the world. Acolytes LED lighting

    products are protected by patents and are well-known and recognized in the industry

    and by the purchasing public.

    5. Upon information and belief, defendant Jeja is a foreign corporationincorporated in Hong Kong and located at Flat/Rm 611 6/F Ricky CTR 36 Chong

    Yip Street, Kwun Tong Kowloon, Hong Kong. As an integral part of its business

    Jeja markets and sells LED lighting products for event and floral design to

    importers, suppliers and also directly to wholesale customers throughout the United

    States.

    6. Upon information and belief, the individual defendants together dobusiness under the name La Bonita. Together, the individual defendants own and

    operate a store that sells LED lighting products for event and floral design to local

    customers. La Bonita is located at 693 Palomar Street, Chula Vista, California

    91911.

    7. Upon information and belief, defendants Does 1-10 are individualsand/or business entities whose identities are presently unknown to plaintiff. To the

    extent their identities become known to plaintiff, the Doe defendants will be joined

    and the activities in which they engaged will be further pleaded in an Amended

    Complaint.

    8. Upon information and belief, Does 1-10 are engaged in the business ofimporting and distributing LED lighting products for event and floral design which

    are alleged herein to infringe Acolytes rights.

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    1317.010\9998-3-Com laint

    9. Upon information and belief, Does 1-10 purchase infringing LEDlighting products from Jeja and sell those products to the individual defendants and

    other individuals or entities in the United States. Accordingly, the identities of

    Does 1-10 are known to Jeja, and one or more of Does 1-10 are known to the

    individual defendants.

    JURISDICTION AND VENUE

    10. Upon information and belief, Jeja and the individual defendants dobusiness in the State of California and in the United States by selling LED lighting

    products and other merchandise to customers in California and in the United States.

    11. Upon information and belief, Jeja also does business in the State ofCalifornia by virtue of the interactive and non-passive website owned and operated

    by it which is accessible and accessed by customers in the State of California, and

    through which the products at issue herein are advertised, marketed and sold to

    customers in California. The website owned and operated by Jeja is

    www.jejahk.com.

    12. Upon information and belief, all of the defendants reside and/ortransact business in this judicial district, and this Court therefore has personal

    jurisdiction over defendants.

    13. This Court has jurisdiction over the subject matter of this actionpursuant to 28 U.S.C. 1331 and 1338(a) and (b).

    14. This Court has diversity jurisdiction over this dispute under 28 U.S.C1332 since this dispute exceeds $75,000 and is between citizens of different states.

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    1317.010\9998-4-Com laint

    15. This Court has supplemental jurisdiction over the state law causes ofaction pursuant to 28 U.S.C. 1367.

    16. Venue is proper in this district under 28 U.S.C. 1391(b) and (c),and/or 28 U.S.C. 1400(b).

    FACTS COMMON TO ALL COUNTS

    A. ACOLYTES INTELLECTUAL PROPERTY RIGHTS

    17. Prior to Acolytes entry into the marketplace, there were an extremelylimited number of products available that were effective in visually enhancing an

    event or floral arrangement for a reasonable cost. The dearth of desirable products

    led to a need for elegant and innovative lighting products that could be used to adorn

    and lighten the environment, dcor and floral arrangements.

    18. After its inception in 2002, Acolyte addressed this need by creating,designing, manufacturing, marketing and selling its new and original wireless LED

    lighting products.

    19. Acolytes products were and continue to be meticulously designed andengineered according to Acolytes product specifications, using Acolytes own

    product molds. The design and engineering process was and continues to be apainstaking process that often takes about year to conclude from the time of

    conception through to completion, with multiple revisions along the way. Acolytes

    products are constructed using high-quality materials and electronic components

    that meet Acolytes specifications and demands for quality and excellence that are

    only found in authentic Acolyte products.

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    1317.010\9998-5-Com laint

    20. Through the hard work of its management and dedicated employees,Acolyte developed an extremely successful business designing, manufacturing,

    marketing, and selling many different types of LED lighting products on a

    wholesale basis throughout the United States and in various markets around the

    world.

    21. As a result, many LED lighting products sold by Acolyte have enjoyedtremendous success and notoriety with its customers. Among Acolytes greates

    successes is its original waterproof LED lighting device marketed under the

    trademark SUBMERSIBLE since 2005.

    22. Acolyte regularly markets, advertises and promotes itsSUBMERSIBLE products in industry publications such as Flowers &, Florists

    Review and other print publications. Acolyte also attends and participates in

    various trade shows throughout the United States.

    23. In addition to Acolytes own advertising in industry and trademagazines and at trade shows throughout the United States, Acolyte also utilizes a

    group of independent sales representatives that market and promote Acolytes

    SUBMERSIBLE product line to customers across the United States on behalf of

    and for the benefit of Acolyte.

    24. As a result of its own advertising and promotional activities and thoseof its sales representatives, as well as its own commercial success, Acolyte has built

    up a significant amount of goodwill under its SUBMERSIBLE product line in the

    industry and with its customers.

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    1317.010\9998-6-Com laint

    Acolytes Design Patent Rights

    25. In recent years, Acolyte has expanded its SUBMERSIBLE productline and sought to protect a number of its newer designs via design patents. In

    particular, since 2009, Acolyte has filed numerous applications for design protection

    in the United States and in a number of countries throughout the world, including

    China, Japan, Europe and Canada.

    26. As a result of Acolytes design application filing program, many ofAcolytes newer LED lighting products are already protected by design patents (or

    analogous forms of protection) in the United States, Europe, China, Canada and

    Japan.

    27. For example, one of Acolytes designs is covered by U.S. DesignPatent No. D 633,232 and is entitled Lighting Device (the 232 patent). The

    application for the 232 design patent was filed on November 10, 2009. On

    February 22, 2011, the U.S. Patent Office issued the 232 patent which claimed the

    ornamental design for a lighting device as shown and described. A copy of this

    patent is attached hereto as Exhibit A. An illustration of the lighting device that is

    shown and protected by the 232 patent is presented below:

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    1317.010\9998-7-Com laint

    28. Another related Acolyte design is covered by U.S. Design Patent NoD 642,299 and is entitled Lighting Device (the 299 patent). The application for

    the 299 design patent was filed on April 30, 2010. On July 26, 2011, the U.S

    Patent Office issued the 299 patent which claimed the ornamental design for a

    lighting device as shown and described. A copy of this patent is attached hereto as

    Exhibit B. An illustration of the lighting device that is shown and protected by the

    299 patent is presented below:

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    1317.010\9998-8-Com laint

    29. One of the Acolyte products that embodies the designs shown andclaimed in the 232 patent and the 299 patent is the Acolyte SUB-9 lighting

    device which is shown below:

    30. The SUB-9 is a waterproof lighting device having an array of LEDsdisposed within a translucent, plastic housing. The SUB-9 lighting device

    represents one of a number of LED lighting products added to Acolytes

    SUBMERSIBLE product line.

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    1317.010\9998-9-Com laint

    B. DEFENDANT JEJA INFRINGES ACOLYTES DESIGN PATENTRIGHTS

    31. Upon information and belief, the corporate defendant Jeja InternationalCorp. manufactures, advertises and sells LED lighting devices to supplier(s) and

    customers located in the United States that infringe the 232 patent and the 299

    patent.

    32. Jejas infringing products are advertised on its website located atwww.jejahk.com. A copy of Jejas website showing the infringing products is

    attached hereto as Exhibit C.

    33. The infringing lighting devices advertised and sold by Jeja are a virtualcopy of the designs that are protected by Acolytes 232 patent and the 299 patent

    (Copycat SUB-9 Lighting Device).

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    1317.010\9998-10-Com laint

    34. For comparison, a photograph of the Copycat SUB-9 Lighting Deviceas advertised and sold by Jeja through its website is shown beside the designs

    protected by the 232 patent and the 299 patent:

    COPYCAT SUB-9 232 DESIGN PATENT

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    1317.010\9998-11-Com laint

    COPYCAT SUB-9 299 DESIGN PATENT

    35. Moreover, a true and accurate electronic copy of Jejas quotation sheet with prices and minimum order quantities (MOQ) depicting the Copycat SUB-

    9 Lighting Device and a 14-LED version thereof is attached hereto as Exhibit D.

    36. A photograph of the Copycat SUB-9 Lighting Device as depicted in theJeja quotation sheet is depicted below:

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    1317.010\9998-12-Com laint

    37. Jejas Copycat SUB-9 Lighting Device and the infringing 14-LEDversion thereof are available for viewing on the web on Jejas website at

    http://www.jejahk.com/en/pro.asp?action=overmore.

    38. Upon information and belief, Jeja manufactures markets and sellsinfringing lighting devices, such as the Copycat SUB-9 Lighting Device and the 14-

    LED version thereof, to U.S. importers and U.S. wholesale distributors directly, via

    email and through its website www.jejahk.com.

    39. As readily apparent from the illustrations and pictures shown hereinthe Copycat SUB-9 Lighting Device and the 14-LED version thereof, which are

    marketed and sold by Jeja, share the same design features claimed in the 232 patent

    and the 299 patent.

    40. Upon information and belief, based on the similarities between theCopycat SUB-9 Lighting Device and the 14-LED version thereof, which are

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    marketed and sold by Jeja, and the designs shown in the 232 patent and the 299

    patent, an ordinary observer would be deceived into believing that the Copycat

    SUB-9 Lighting Device and the 14-LED version thereof are the patented product

    shown in these patents.

    41. Upon information and belief, Jeja is presently shipping a significantamount of infringing products into the United States.

    42. Upon information and belief, a specific shipment of infringing productsbelieved to be originating from Jeja is currently on a ship scheduled to arrive in the

    United States in September 2011. This particular shipment is more fully discussed

    in Plaintiffs motion for expedited relief which is filed concurrently with this

    Complaint.

    C. THE INDIVIDUAL DEFENDANTS INFRINGE ACOLYTES DESIGNPATENT RIGHTS

    43. The individual defendants, through their business La Bonita, market,promote and sell the lighting devices manufactured by Jeja described herein.

    44. For comparison, a photograph of the Copycat SUB-9 Lighting Deviceas sold by the individual defendants is shown beside the designs protected by the

    232 patent and the 299 patent:

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    COPYCAT SUB-9 232 DESIGN PATENT

    COPYCAT SUB-9 299 DESIGN PATENT

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    45. Upon information and belief, the individual defendants, through theirbusiness La Bonita, purchased the Copycat SUB-9 Lighting Device from a supplier

    of Jejas products who is currently unidentified but who is known to the individual

    defendants.

    D. ACOLYTE WILL SUFFER IRREPARABLE HARM

    46. Upon information and belief, all of the defendants identified hereindirectly compete with Acolyte in connection with the sale of LED lighting devices

    for event design.

    47. Upon information and belief, defendants have sold and offered for salethe Copycat SUB-9 Lighting Device to companies and individuals that would

    otherwise have purchased authentic SUB-9, SUBMERSIBLE and other related

    products from Acolyte or an authorized distributor of Acolyte.

    48. Upon information and belief, the importation, sale and offer for sale bydefendants of infringing LED lighting products is with full knowledge of Acolytes

    patent rights and business operations.

    49. Upon information and belief, the importation, sale and offer for sale bydefendants of infringing LED lighting products is done with intent to unfairly

    compete with Acolyte.

    50. Acolyte and defendants are direct competitors vying for the business ofthe same or substantially the same group of customers.

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    51. By their infringing acts, defendants have irreparably harmed Acolyteand such injury will continue and grow unless defendants are enjoined by this Court

    52. Acolyte has built its reputation on the quality and the uniqueness of itsproducts.

    53. The infringing products accused herein are more cheaply constructedand more cheaply priced than the authentic products manufactured and sold by

    Acolyte.

    54. Defendants importation, distribution, sale and offer for sale of theinfringing products accused herein, as well as other copycat products, have created

    and will continue to create confusion, irreparably damaging Acolytes reputation

    and goodwill.

    55. Defendants importation, distribution, sale and offer for sale of theinfringing products accused herein, as well as other copycat products, has

    irreparably decreased and will continue to irreparably decrease the size of Acolytes

    market share and, if not enjoined, will cost Acolyte its position as the market leader.

    56. Defendants importation, distribution, sale and offer for sale of theinfringing products accused herein, as well as other copycat products, will result in

    reduced cash flow to Acolyte and irreparable price erosion of Acolytes patentedproducts in that Acolyte will be forced to drastically change its pricing structure in

    order to compete with lower-priced, knock-off products.

    57. If defendants are not enjoined from infringing the 232 patent and the299 patent, other potential competitors will be encouraged to distribute knock-off

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    products resembling those in the asserted patents, and will flood the market with

    even more cheaply-made and cheaply-priced copycat products. Some of these

    potential competitors are Acolytes own current customers.

    58. If defendants are enjoined from infringing the 232 patent and the 299patent, other infringing competitors will be deterred from continuing to infringe

    Acolytes patents and will be deterred from doing so in the future.

    59. If defendants are not enjoined from infringing the 232 patent and the299 patent, Acolyte will lose sales of related products that are not protected by

    Acolytes patents and/or other forms of intellectual property.

    60. Due to defendants actions, Acolyte is deeply concerned that it will losea number of customers.

    61. Because of Acolytes business and reputation, as well as the value of itspatents, Acolyte will be irreparably harmed if defendants are not enjoined, and

    money damages cannot sufficiently compensate Acolyte for the damage caused by

    defendants infringing acts.

    62. In contrast, none of the defendants will suffer any recognizableirreparable harm if they are enjoined.

    COUNT I

    (Patent Infringement of U.S. Patent D 633,232)

    63. Acolyte hereby repeats and re-alleges paragraphs 1 through 63 above asif fully set forth herein.

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    64. The 232 patent, was legally issued on February 22, 2011 and isentitled Lighting Device.

    65. Acolyte is the owner, by assignment, of all right, title and interest inand to the 232 patent.

    66. Upon information and belief, defendants have manufactured, importeddistributed offered for sale and/or sold, and continue to manufacture, import

    distribute, offer for sale and/or sell LED lighting devices that infringe the 232

    patent.

    67. Defendants have been and continue to infringe the 232 patent bymanufacturing, importing, distributing, offering for sale and/or selling lighting

    devices embodying the patented invention claimed in the 232 patent and/or will

    continue to do so unless enjoined by this Court.

    68. The infringement by defendants of the 232 patent is in direct violationof Acolytes right under 35 U.S.C. 271 to exclude others from making, using

    selling and/or offering for sale products embodying the invention of the 299 patent.

    69. Upon information and belief, each infringement has been willful anddeliberate.

    70. Acolyte has been damaged by defendants infringements of the 232patent, in an amount to be determined at trial and in an amount adequate to

    compensate plaintiffs injuries.

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    71. Acolyte is entitled to an accounting for damages from defendants forthe infringement of the 232 patent.

    72. The infringement of the 232 patent by defendants has caused Acolyteto suffer irreparable harm and injury. Acolyte will continue to suffer irreparable

    harm unless an injunction is issued enjoining and restraining defendants from

    infringing the 232 patent.

    73. Acolyte has been damaged by the acts of defendants in an amount asyet unknown, but on information and belief, has caused damage or will cause

    damage to Acolyte in excess of one million dollars ($1,000,000)

    74. Acolyte has no adequate remedy at law.

    COUNT II

    (Patent Infringement of U.S. Patent D 642,299)

    75. Acolyte hereby repeats and re-alleges paragraphs 1 through 75 above asif fully set forth herein.

    76. The 299 patent, was legally issued on July 26, 2011 and is entitledLighting Device.

    77. Acolyte is the owner, by assignment, of all right, title and interest inand to the 299 patent.

    78. Upon information and belief, defendants have manufactured, importeddistributed offered for sale and/or sold, and continue to manufacture, import

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    distribute, offer for sale and/or sell LED lighting devices that infringe the 299

    patent.

    79. Defendants have been and continue to infringe the 299 patent bymanufacturing, importing, distributing, offering for sale and/or selling lighting

    devices embodying the patented invention claimed in the 299 patent and will

    continue to do so unless enjoined by this Court.

    80. The infringement by defendants of the 299 patent is in direct violationof Acolytes right under 35 U.S.C. 271 to exclude others from making, using

    selling and/or offering for sale products embodying the invention of the 299 patent.

    81. Upon information and belief, each infringement has been willful anddeliberate.

    82. Acolyte has been damaged by defendants infringements of the 299patent, in an amount to be determined at trial and in an amount adequate to

    compensate plaintiffs injuries.

    83. Acolyte is entitled to an accounting for damages from defendants forthe infringement of the 299 patent.

    84. The infringement of the 299 patent by defendants has caused Acolyteto suffer irreparable harm and injury. Acolyte will continue to suffer irreparable

    harm unless an injunction is issued enjoining and restraining defendants from

    infringing the 299 patent.

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    85. Acolyte has been damaged by the acts of defendants in an amount asyet unknown, but on information and belief, has caused damage or will cause

    damage to Acolyte in excess of one million dollars ($1,000,000)

    86. Acolyte has no adequate remedy at law.

    COUNT III

    (Unfair Competition and Misappropriation under the Common Law)

    87. Acolyte hereby repeats and re-alleges paragraphs 1 through 87 above asif fully set forth herein.

    88. Defendants unlawful and improper actions as set forth hereinmisappropriate and trade upon the fine reputation and goodwill of Acolyte, thereby

    injuring that reputation and goodwill, and unjustly diverting from Acolyte to

    defendants the sales and benefits rightfully belong to Acolyte.

    89. Defendants unlawful activities constitute unfair competition andmisappropriation as proscribed by the common law.

    90. Defendants acts of unfair competition and misappropriation havecaused Acolyte to sustain monetary damage, loss and injury.

    91. Defendants have engaged and continue to engage in these activitiesknowingly and willfully.

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    92. Defendants acts of unfair competition and misappropriation, unlessenjoined by this Court, will continue to cause Acolyte to sustain irreparable damage

    loss and injury.

    93. Acolyte has been damaged by the acts of defendants in an amount asyet unknown, but on information and belief, has caused damage or will cause

    damage to Acolyte in excess of one million dollars ($1,000,000)

    94. Acolyte has no adequate remedy at law.

    PRAYER FOR RELIEF

    WHEREFORE, Acolyte respectfully prays for judgment against defendants

    as follows:

    With respect to Counts I&II:

    A. That the 232 patent and the 299 patent were duly and legally issuedare valid and are enforceable;

    B. That defendants have directly infringed, contributorily infringed and/orinduced the infringement of the 232 patent and the 299 patent;

    C. That defendants have willfully infringed the 232 patent and the 299patent;

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    With respect to Count III:

    D. That defendants are liable for and unfairly competing andmisappropriating;

    With respect to all Counts:

    E. That this Court enter a preliminary and permanent injunction againstdefendants (and each of their affiliates, officers, agents, servants, employees and

    attorneys, and all persons in active concert or participation with them)

    1) enjoining defendants from committing further acts of infringement ofthe 232 patent and the 299 patent;

    2) enjoining defendants from engaging in any acts of common law unfaircompetition or misappropriation which would damage or injure

    plaintiff; and

    3) enjoining defendants from inducing, encouraging, instigating, aidingabetting or contributing to any third-party usage of Acolytes design

    patents in connection with defendants business.

    F. That defendants deliver and/or destroy all materials, packaging, labels,tags, pamphlets, brochures, signs, sales literature, stationary, advertisements

    contracts, billboards, banners, posters, documents, as well as all plates, molds,

    matrices, negatives, masters and all other means of making products which if used

    would violate the terms of the Order herein granted;

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    Exhibit No.

    Table of Exhibits

    Description Pages

    A United States Design Patent US D633,232, Lighting Device,

    dated February 22, 2011

    26-30

    B United States Design Patent US D642,299, Lighting Device,

    dated July 26, 2011

    31-35

    C Jeja Website Capture http://www.jejahk.com 36-38

    D Jeja Quote Sheet for Submersible LED Light 39-43

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    '11CV2012 CAMMA