hanesbrands v. lululemon - complaint
TRANSCRIPT
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UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF NORTH CAROLINA
HANESBRANDS INC.,
Plaintiff,
v.
LULULEMON ATHLETICACANADA INC.,
Defendant. _______________________________
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Civil Action No. 1:13-cv-
COMPLAINT FOR DECLA
JUDGMENT
JURY TRIAL DEMAND
Through counsel, Plaintiff Hanesbrands Inc. (“HBI” or “Plaintiff”)
lawsuit against Defendant lululemon athletica canada inc. (“lululemon” or “D
and alleges as follows:
THE PARTIES
1. HBI is a corporation organized under the laws of the State
with its principal place of business at 1000 East Hanes Mill Road, Winston-S
Carolina, 27105. HBI sells branded apparel products such as T-shirts, b
men’s underwear, kids’ underwear, socks, hosiery, casualwear, and activewe
tank tops that incorporate an attached bra. HBI does business in the sta
Carolina and this judicial district.
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and belief, lululemon does business in the state of North Carolina and
district.
JURISDICTION AND VENUE
3. HBI brings its claims pursuant to the Declaratory Judgment Ac
28 U.S.C. §§ 2201 and 2202, and pursuant to the patent laws of the U
including, but not limited to, 35 U.S.C. §§ 271, 281, 284, and 285.
4. Subject matter jurisdiction exists pursuant to 28 U.S.C. §
1338(a).
5. Upon information and belief, this Court has personal juris
lululemon under at least N.C. GEN. STAT. §1-75.4, as lululemon has suffici
with North Carolina under the parameters of that statute. Upon informatio
lululemon has purposefully advertised, sold, and distributed its products to c
North Carolina and in this judicial district through retail stores, including on
store located in Greensboro, North Carolina, as well as through its interact
Upon further information and belief, lululemon has also advertised, sold an
its products into the stream of commerce in the United States with the reaso
and expectation that such products would periodically flow into North Caro
this judicial district.
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substantial portion of the acts giving rise to the claims at issue in this litigati
in this district.
LULULEMON’S CLAIM THAT HBI AND TARGET
INFRINGE THE ‘665 DESIGN PATENT
7. lululemon claims to be the sole owner of United States Desig
D654,665S (the “‘665 Design Patent”).
8. On October 30, 2013, lululemon sent a letter to HBI and i
Target, accusing them of making and selling tank tops (the “Accused Pro
infringe the ‘665 Design Patent. Among other things, lululemon’s letter de
HBI and Target: (a) immediately cease and desist manufacturing, importing
selling or distributing the Accused Products or any products similar thereto
numerous representations and warranties confirming that all such activitie
and would not recommence; (c) agree to a press release stating that HBI and
infringed the ‘665 Design Patent and would no longer be manufacturing an
Accused Products; (d) produce extensive documentation relating to
manufacturing, sales and inventory of the Accused Products; and (e) enter i
agreements stipulating to pay lululemon liquidated damages of $50 per garm
future sales of any allegedly infringing garments. (Ex. A, October 30, 2013
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the underlying declaratory judgment action in order to preserve its rights and
its customer to continue selling the Accused Products and any other tank / b
similar thereto.
10. Upon information and belief, the Accused Products do not infri
Design Patent.
11. Upon information and belief, the ‘665 Design Patent is invalid
meet the requirements of 35 U.S.C. §§ 101, 102, 103, and/or 112, in view
limited to, material prior art and other information that indicates that the
Patent was anticipated or would have been obvious at the time the claimed d
made, and the fact that the figures of the ‘665 Design Patent are vague and ind
12. Due to lululemon’s assertion of the ‘665 Design Patent against
customer, there is an actual and justiciable controversy between the partie
the infringement and validity of that patent arising under the Patent Act (tit
§§ 1 et seq).
13. HBI is entitled to have the alleged infringement issue resolved
a declaratory judgment of non-infringement and/or invalidity in order
uncertainty created by lululemon’s assertion of infringement and threats to
seek injunctive relief against HBI and its customer if lululemon’s demands w
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COUNT ONE
Declaratory Judgment of Non-Infringement of U.S. Design Patent No. D
14. HBI restates and incorporates by reference the allegations in P
though 13 of the Complaint.
15. lululemon has asserted that HBI and its customer have infri
infringing the ‘665 Design Patent by selling the Accused Products.
16. The Accused Products do not infringe any valid claim of the
Patent.
17. Due to lululemon’s assertion of the ‘665 Design Patent against
customer, there is an actual and justiciable controversy between the parties
the infringement of that patent arising under the Patent Act (title 35 U.S.C. §§
18. A judicial declaration is necessary and appropriate so tha
ascertain its rights with respect to the ‘665 Design Patent.
19. HBI requests that the Court enter a declaratory judgment that
customers have not infringed and are not infringing any valid claim of the
Patent.
COUNT TWO
Declaratory Judgment of Invalidity of U.S. Design Patent No. D654
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b. that this Court declare the ‘665 Design Patent invalid;
c. for an injunction permanently restraining lululemon and its em
agents from asserting that HBI or its customers have infri
infringing the ‘665 Design Patent;
d. that this Court award HBI its costs and attorneys’ fees associa
action; and
e. that this Court grant such other and further relief to HBI as thi
deem just and equitable and as the Court deems appropriate.
REQUEST FOR JURY TRIAL
In accordance with Rule 38 of the Federal Rules of Civil Pro
respectfully requests a jury trial on all issues triable to a jury in this action.
This 15th day of November, 2013.
/s/ John F. Morrow, Jr.John F. Morrow, Jr. (N.C. State Bar No. 23David R. Boaz (N.C. State Bar No. 44229)WOMBLE CARLYLE SANDRIDGE & R Attorneys for Hanesbrands Inc.
One West Fourth StreetWinston-Salem, NC 27101Telephone: 336-721-3584Facsimile: 336-733-8429j @
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EXHIBIT A
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PERG MENT GILM N CEPED P Serving the Change Protecting Your Creations
163 Madison Avenue, Suite 110 • Morristown, NJ 07960 • T 973.998.7722 • F 973.998.7720 • www.pgclawgroup.com
ViaFed x
Target Corporation
1000 Nicollet Mall
Minneapolis, MN 55403
Phone: (612) 304-6073
October 30, 2013
MICHAEL R GILMAN ES PARTNER
NY AND CT BARSONLY
[email protected]@qilmanperqament.com
ATTN: Legal Department and/or Timothy Baer, Esq - General Counsel
ViaFed x
Hanesbrands Inc. d/b/a Champion
1000 E Hanes Mill Road
Winston-Salem, NC 27105
Phone: (336) 519-2299
ATTN: Legal Department and/or Joia Johnson, Esq. - General Counsel
Re Target Corporation and Hanesbrands Inc d/b/a Champion -
Notice o Design Patent Infringement
Dear Sir/Madam or Mr. Baer and Ms. Johnson:
Our ftrm represents lululernon athletica canada inc. (hereinafter lululemon ) of
Vancouver, BC, Canada, in connection with its intellectual property rights, and in particular, its
patent rights lululemon is a designer and manufacturer of innovative athletic apparel for yoga,
running and most other athletic and athletic-related pursuits. Relevant examples of two of our
client' s products are the No Limits Tank for which we direct your attention to our client's
website at http :/ shop .lululemon.corn/products/clothes-accessories/tanks-light support/No-Limit
Tank-32775 and the Practice Freely Tank, not currently in stores, but which you can see in one
of the pictures on the following webpage http://www.lululemon.com/cornmunitylblog/find-the
yoga-tank-for-you/?sli=1
Our client has been selling these tanks across the United States and in Canada since late
2009, at its lululemon athletica stores. Such stores are located in at least 45 states, including, but
not limited to locations in New Jersey and New York. lululemon s tanks are also available in
numerous countries worldwide through lululernon's online store, and strategic sales partners.
' Patents • Trademarks • Copyrights • Licensing • t igation
New York Office: 3 15 Madison Aven ue , Suite 901, New Yo rk, New York 10017, Tel: 212.807.4171, Fax: 212.957.1912
(MICHAEL R G ILMA N, A NAME PARTN ER, IS A MEMBER OF THE NY AND CT BARS ONLY)
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Target Corporation and Timothy R. Baer, Esq.
Hanesbrands Inc. dlb/a Champion and Joia M. Johnson, Esq.
October 30,2013Page 4
E. Agree to issue a joint press release with our client stating essentially as follows:
Champion's andlor Hanesbrands' "C9 by Champion® Women's Layered Tank
with Bra - Assorted Colors" sold by Target infringes upon the design patent
rights of lululemon athletica canada inc. of Vancouver, BC, Canada, in its U.S.
Pat. No. D654,665S and Canadian Patent No. 136,782. As such, we will no
longer be manufacturing and then selling this item in the United States or Canada.
f you desire a garment like our C9 garment, we suggest you look to lululemon
athletica canada inc. and their No Limits Tank and Practice Freely Tank garments.
F. Produce to us all documents in the possession, custody or control of Target,Champion and or Hanesbrands Inc., regarding the creation of the infringing items;
G. f Target, Champion and/or Hanesbrands Inc. did not create the infringing items,identify your source(s) of the infringing items by name, address, contact person,
phone/fax numbers and email address;
H. f Champion/Hanesbrands Inc. is not the only supplier and/or manufacturer
involved, identify the other of your companies' supplier(s)/manufacturer(s) of theinfringing items by name, address, contact person, phone/fax numbers and email
address;
I Forward to us copies of all purchases orders by your companies to your
companies' supplier( s /manufacturer( s , and all of the invoices and bills of ladingfrom your companies' supplier(s)/manufacturer(s) to your companies: (1) for past,already filled orders for any infringing item( s ; and (2) for pending, unfilledorders, of any such infringing item(s);
J. Indicate to us the remaining quantity of any infringing items in inventory orotherwise under your companies' control, and agree to tum these items over toour client;
K. Indicate to us the quantity of such infringing items that are on order to your
supplier(s)/manufacturer(s) andlor en route to your companies from itssupplier(s )/manufacturer( s ; and
L. Representations that you will enter into a written agreement with our clientrelating to the accusations of this letter and the above representations, documents
and information, and wherein you agree to liquidated damages for any future
infringements of either of our client's above patents in the amount of US$50 perinfringing garment.
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Target Corporation and Timothy R. Baer, Esq.
Hanesbrands Inc. d/b/a Champion and Joia M. Johnson, Esq.
October 3 , 2013
Page 5
We look forward to receiving your above representations, documents and information by
the November 15 2013 deadline. Failing this, our client will thereafter require production of
documents sufficient to account for all of your sales of the infringing items in both the U.S and
Canada, along with your agreement to then compensate our client for the greater of either its lost
sales or your profits on the sale of these infringing items.
Nothing in this letter is meant as any type of waiver or relinquishment of any rights,
causes of action or defenses our client may have in this matter, this letter being solely for
notification and dispute resolution purposes.
MRG/lkm
Enclosures
Very truly yours,
c: lululemon athletica canada inc. via email w/o enclosures)K:\ iients\lul ulemon athleti ca canada Inc 019\ 019 002 target and champion dispute\1019 002 CD_notice_ltr_Target_Champion_F nal .docx
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The irector of the United States
Patent and Trademark Office
Has received an application for apatent fora new, original, and ornamental design foran article o manufacture. The title anddescription q he design are enclosed. Therequirements o law have been compliedwith, and it has been determined that a
patent on the design shall be granted underthe law.
Therefore, this
United States atent
Grants to the person s) having title to thispatent the right to exclude others from mak-
ing, using, offering for sale, or selling thedesign throughout the United States o
America or importing the design into theUnited States ofAmerica for the tenn o
fourteen years from the date o grant o hispatent, subject to any disclaimer under 35u s c 253.
lJireCJor o he United tater Parent and iradePJork Office
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U.S. Patent Feb.28 2012 Sheetl oflUS D654 665 S
FIG 1
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U.S. Patent Feb.28 2012 Sheet 3 o l ) US D654 665 S
FIG 3
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US. PatentFeb. 28 2012
Sheet4of G
U D654 665 S
FIG 4
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U.S. Patent Feb.28 2012 SheetS oflUS D654 665 S
FIG S
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U S Patent Feb.28 2012 Sheet 6 of10 US D654 665 S
FIG 6
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I
I
U.S. Patent Feb. 28 2012 Sheet 7 of1 US D654 665
FIG 7
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U.S. Patent Feb.28 2012 Sheet 8 ofl US D654 665 S
FIG 8
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U S PatentFeb.28 2012
Sheet 9 ofl )US D654 665 S
IG
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U.S. Patent Feb.28 2012 Sheet10of10US D654 665 S
FIG 10
Office de Ia propriereintellectuelle
CanadianIntellectual Property
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du anada
Un organlsmed lndustrie Canada
Office
An Agency ofIndustry canada
r q z ~ ~ c f ~ g e o i rY j ~ d ~ ~ Y ? ~ t e o /
L'enregistrement est v<UJ.uc< ' Q } i . F ~ j j [ ; ~ t e e i ; ; ~ ) t ccompter de la date d ' e l : r r e ~ ~ ~ Jdessous, a ondition que
rtg:tigr1jsvalid for ten years from the
> 1 ~ · ffi(:he<tted below, subject to
• t i J J ~ pres•:ril)ed maintenance fee.• •
rut ete acqmte.
Date d' enregistrement /IWgi.s l:mtion. date
Proprietaire Proprietor:
22.85 '- - '· 'BRITISH VJ.LUl Vl.L>l.n.,
VSN3G9
lv1embre du personnel du bureau du commissaire aux brevetsOfficer of the Office of the Commissioner of Patents
Certificat delivn le /Certificate issued: 14/03/2011
Canada CiPO 00200}03-ii
0 PIC CI P 0
Nu.mb-o d'enregistrernent- Registration Number. 136782
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DEMANDE D ENREGISTREMENT
D UN DESSIN INDUSTRIEL
Le demandeur,
APPLICATION FOR REGISTRATION
OF AN INDUSTRIAL DESIGN
The applicant, LULULEMON ATHLETICA CANADA INC.
dont l adresse complete est ,whose complete address is
2285 a RK DRIVE, VANCOUVER, BRITISH COLUMBIA, CANADA, VSN 3G9
demande 'enregistrement d'un dessin pour un(e)
hereby requests registration of a design for a(n) TANK TOP
dont il est le proprietaire.of which the applicant is the proprietor.
la connaissance du proprietaire, personne d'autre que le premier proprietaire du dessin n'en faisait usagelorsque celui-ci en a fait le choix.
The design was not, to the proprietor's knowledge, in use byany person other th n the first proprietor at the timethe design was adopted bythe first proprietor.
Description du dessin
Description of the designThe design comprises the features of shape, ornament, pattern, and configuration of a TANK TOP as shown inthe drawings. The drawings show two variants. FIGS. 1·7 show the first variant and FIGS. 8-14 show thesecond variant.
FIG. 1 is a front view of a tank top according to a first variant of the design;FIG. 2 is a rear view thereof;FIG. 3 is a left side view thereof;FIG. 4 is a right side view thereof;FIG. 5 is a top view thereof;
FIG. 6 is a bottom view thereof;FIG. 7 is a front perspective view thereof;FIG. 8 s a front view of a tank top according to a second variant of the design;FIG. 9 is a rear view thereof;FIG. 10 is a left side view thereof;FIG. 11 s a right side view thereof;FIG. 12 s a top view thereof;FIG. 13 s a bottom view thereof; and,FIG. 14 is a front perspective view thereof.
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A remplir seulementsi le dernandeur a un rnandataire/To be completed only i f an applicant has an agent
Nom du mandataire Name of Agent :MCCARTHY TETRAULT LLP
Adresse complete Complete address :1BOX 48, SUITE 5300, TORONTO DOMINION BA.i\.i K TOWER 66 WELLINGTON STREET
WEST TORO.1\lTOONTA.RIO, CANADAM5K1E6
Lorsque le dernandeur n a pas d etabliss ement au Canada, le nom et 1 adresse de son
REPRESENTANT A.UXFINS DE SIGN IFICATION au Canada doiventetre indiques.
f an applicant has no place of business in Canada, the name and address of a REPRESENTATIVE
FOR SERVICE in Canada must be provided.
Nom du representant aux fins de signification Name of representative for service :MCCARTHY TETRAULT LLP
A.dresse au Canada du representant aux fins de signification Address in Canada of representative forsemce:
BOX 48, SUITE 5300, TORONTO DOMINION BANK TOWER 66 WELLINGTON STREET
WEST TORONTO
ONTARIO CANADA
essins rawingsNumero d enregist rement- Registration Number: 136782
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Titre - Title: TANK TOP
FIG 1
essins rawingsNumero d enregistrement- Registration Number 136782
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Titr e- Title: TANK TOP
FIG.2
essins rawingsNumero d enregist rement - Registrati on Number: 136782
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Titre- Title: T NK TOP
FIG.3
;_-_
Numero d enregistrement -Regist rati on Number: 136782
essins rawings
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Titre- Title: T NK T P
FIG.4
\f
\ •
\\
\\
Numero d enregistrement - Registration Number: 136782
essins Drawings
Titre -Title: T NK T P
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FIG s
essins rawingsNumero d enregistrement- Registration Number: 136782
itre Title: TANK TOP
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FIG 6
Dessins Drawingsumero d enregistrement- Registration Number: 136782
Titre -Tit le: TANK TOP
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FIG 7
Numero d en registrement- Registration Number: 136782Dessins Drawings
Titre Title: T NK T P
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FIG 8
essins rawingsNumero d enregistrement- Registration Number: 36782
Titre -Tit le: TANK TOP
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FfG 9
essins rawingsNumero d enregistrement - RegistrationNumber 136782
itre Title: TANK TOP
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FlG 10
essins rawingsumero d enregistrement- Registration Number: 136782
itre Title: T NK T P
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FIG 11
essins rawingsNumero d enregistrement- Registration Number: 136782
itre Title: TANK TOP
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FIG.12
essins rawingsNumero d'enregi strement- Registration Number: 136782
Titre Title: TANK TOP
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FIG.13
Dessins rawingsN umero d enregistrement- Registration Number: 136782
itre Title: TANK TOP
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FIG.14
Industr ial Design
Date Printed: 15/03/2011
Title: TANK TOP
Registered Proprietor(s): LULULEMON ATHLET CA CANADA INC.
Registration No.: 136782
Date of Registration: 14/03/2011
Canadian Classification:
006.03-03
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Current Owner(s): LULULEMON ATIILETlCA CANADA JNC.
Client Refere nce Number: 202526-425084
Agent: MCCARTHY TETRAULT ll
e p r e s ~ t i v e for Service: MCCARTHY TETRAULT llCourtOrder(s): N/A
Certificate of Correction: No
Term of Protection: 10 years
Subject to payment of a rmllntenance fee
Maintenance Fee Paid:
Filing Date: 17/(18/2010
Description:
No
Other Classes S e a r u h e d ~N/A
References Considered:
Canadian Industrial Design RegistrationsRegistration
Other Publications:
= Cited by Examiner
The design comprises the features of shape, ornament, pattern, and configuration of aTANK TOP as shovtn in the drawings, The drawings show two variants. FlGS.
l 7 show the first variant and FIGS. 8 14 show the second variant.
FIG. 1 is a front view of a tank top according to a first v ariant of the design;
FIG. 2 is a rear view thereof;
FtG. 3 is a left side view thereof;
FIG. 4 is a right side view thereof;FlH 5 is a top view thereof;
FIG 6 is a bottom view thereof;
FIG. 7 is a front perspective view thereof;
FIG. 8 is a :fiunt view of a tank top according to a second variant of he design;
FlG 9 is a rear view thereof,
FIG. 10 is a left side view thereof;
FIG. 11 is a right side view thereof,
FIG. 12 is a top view thereof;
FIG. 13 is a bottom view thereof; and,
FIG. 14 is a front perspective view thereof
Correction(s): N/A
FIG 1
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AVIS AUX PROPRI.ETAIRES
ES DESSINS INDUSTRIELS
Cet enregistrement de dessin industriel est valide
jusgu' au 14 mars 2016.
N'importe quand avaut cette date vous pouvez
demander le maiutien du dessin pour une periode
supplementaire de cinq ans Les frais de maintien sont
prevus a l Annexe 2 : Tar if des droits du Reglement
sur les dessins industriels
Un del i de six mois t partir de Ia date mentionnee cihaut est possible pendant lequel on peut encore
demander e maintien du dessiu. Toutefois, un droit
supplementaire prevu a Annexe : Tari f des droits du
Reglement sur les dessins industriels doitaccompagner le paiement.
Une fois que Ia p6riode de gr ce de s:ix mois est
ecoulee, le droit d'exclusivite ne peut plus etre
maintenu. Des lors, le dessin fera partie du domaine
public.
Afm de maintenir un dessin industriel, nne demandepar ecrit ainsi que le frais complet, en monnaie
canadienne, doivent parvenir au Bureau des dessins
industriels par ou avant Ia date d'echiiance.
NOTICE TO REGISTRANTSOF ~ D U S T R I L DESIGNS
This design registration is valid until March 14, 2016.
At any time prior to that date you may request that the
design be maintained for a further five years. The
maintenance fees are as prescribed by Schedule 2:
TariffofFees of he Industrial Design Regulations.
A six-month "grace period" is allowed. A request formaintenance made after the date noted above but
within six months of that date requires n additional
amount as prescnbed by Schedule 2: TariffofFees of
the Industrial Design Regulations,
Once the six-month grace period has e l p s e d ~ the
design cau no longer be maintained and the term of
exclusive right ends, From then on, the design would
be in the public domain.
To maintain a design, a written request along with thefull fee, in Canadian dollats, must be received in the
Industrial Design Office on or before lhe due date.
•
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View Fwo.rce:J Tee&
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Case 1:13-cv-01024 Document 1-1 Filed 11/15/13 Pa e 42 of 44
ns awmner
ReM CCI Sf;l -4, 2\11:3
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Ju•t ike the Lululemon ones I have beenwantin51 mar• of
C1UU I rWQ10.20l3
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• • • • ~ r • l lGre,at YogA Top
Laura .Wg1.4,2013
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ccn&cous nd ass ts, attO I oc-n11an out rxn tnttes dtf:mtt)a.lol of d tavagt on n pt ob bty buy morr in olh r
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F"de £c t VIM FYOrite:; Tc.cb Help
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Case 1:13-cv-01024 Document 1-1 Filed 11/15/13 Pa e 43 of 44
o n v u t • iiJSod'Kt
they were falling down il btt1e bit when I bent over.
Disclaimer: Please excuse he awkward setftes coming up next.
I itm obsessed with th is tank top.
The C9 by champion Layered Ta nk wfth n ~ ~ is c opy of tile p o p ~ i l r LIAutemon
tank that' a ll the 9lrls • ~ a r i n g but f« l:otlf the price This ta nk is $22.99 and
comes in .a v.ariety of ~ o r s J ended up purch.asing ttli.s tank.
I dec;o. d to try on some shorts even thoug,., I feel salfrc.onscious wearing shorts
to the gym. They al"l . grn t for running outside
WUIUMON NO UMITS 01\PRACTICI JRULYT&m:ol\ The Hw11: ·Witldo NS lnWroet:bplc(t:r~ • .tJ h t t p . : 1 . \ ~ 1 ' . \ ' f t f l . d n m o m / t t \ . : J t a Q ~ ' • r o m l t ; ~ c : : : t i n - f r u l y - h n i : ;FM [d t Vew hwnlu Tooh Help
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Case 1:13-cv-01024 Document 1-1 Filed 11/15/13 Pa e 44 of 44
_.I do not want to ipend full
price. I would love • different
rwne brand if t .s cheaper. 1
just like the sports b r : : ~ showing
and the little bit of skin
sho'tl.irtg on the side."
Ideal Price: Sl9 .00
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