xstatic v. hsiao & montano - complaint

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  • 8/10/2019 Xstatic v. Hsiao & Montano - Complaint

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    UNITED STATES

    DISTRICT

    COURT

    FOR

    THE SOUTHERN DISTRICT OF NEW

    XSTATIC PRO INC., a New York corporation

    dba XSTATIC

    PRO

    LIGHTING dba PRO X dba

    PROX dba PRO X DIRECT dba PROX DIRECT

    dba

    PRO

    X CASES dba PROX CASES,

    Plaintiff,

    v

    HSIAO & MONTANO, INC., a California

    corporation dba

    ODYSSEY INNOVATIVE

    DESIGNS,

    Defendant.

    7

    Tl CV 9890

    Cas e No :

    COMPLA INT

    DEMAND FOR JURY TR IAL

    r .1

    >-r\

    PlaintiffXstatic Pro

    Inc.

    dbaXstatic Pro Lighting dba ProX dbaProXdba ProX, S

    Direct

    dbaProX

    Direct

    dbaProX

    Cases

    dbaProX Cases ( ProX Cases ), for its

    ~

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    of ProX Cases and Odyssey are citizens of different states, and the amount in controversy

    exceeds, 75,000,

    exclusive

    of interests and costs.

    2. This Court possesses general personal jurisdiction over Defendant Hsiao

    & Montano, Inc.

    dba

    Odyssey Innovative Designs ( Odyssey ), pursuant to N.Y.

    C.P.L.R. 301, because Odyssey is engaged in such a continuous and systematic course

    of

    doing

    business in

    New

    York as to warrant finding it present in the jurisdiction. In

    addition, this Court possesses personal jurisdiction over Odyssey, pursuant to N.Y.

    C.P.L.R. 302(a)(1), because Odyssey transacts business within this state, including in

    this judicial district,

    and

    contracts to supply goods or services in the state, including in

    this judicial district. Without limitation, Odyssey sells and distributes DJ cases and

    related products through authorized dealers in New York and throughout the United

    States. This Court also possesses personal jurisdiction over Odyssey, pursuant to N.Y.

    C.P.L.R. 302(a)(2) and/or (3), as

    Odyssey's

    tortious acts enumerated herein have been

    committed in the

    State

    of

    New York, or

    have

    been committed

    outside of

    New

    York bu t

    caused injury to person or property within the State ofNew York. That is, the result of

    Odyssey's tortious acts has caused injury to plaintiffProX Cases in New York.

    3. Venue is proper in this District under 28 U.S.C. Sections 1391(a) and (b)

    and 1400(a), since Odyssey resides or

    may

    be found in this District

    and

    a substantial

    portion

    of

    the misconduct by Odyssey here alleged occurred in this District.

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    THE

    PART IES

    4. PlaintiffXstatic Pro Inc. dbaXstatic ProLighting dbaProX dba ProXdba

    Pro

    XDirect dba

    ProX

    Direct dba

    Pro

    XCases dba

    ProX Cases ( ProX Cases )

    isaNew

    York corporation

    having

    a

    place

    of

    business

    at

    901 Essex

    St,Brooklyn, NewYork

    11208.

    5. ProX Cases is a manufacturer and distributor ofDJ cases and related DJ

    equipment. ProX

    Cases

    displays

    its

    products

    at

    trade

    shows,

    and distributes

    its

    products

    via a network o f

    customers/retailers.

    6.

    Defendant

    Hsiao

    &

    Montano,

    Inc.

    dba

    Odyssey

    Innovative

    Designs

    ( Odyssey ) is a California corporation with a business address at 809 W. Santa Anita

    St., San Gabriel, California 91776.

    7. Odyssey manufactures and distributes DJ cases and related DJ products in

    direct competition with ProX Cases. Odyssey

    distributes

    itsDJcases

    and

    related

    products

    through

    authorized dealers

    located

    throughout the

    United

    States, including inNew

    York.

    F AC TS COMMON TO

    ALL CLAIMS

    8. Odyssey claims to be the owner by assignment

    of

    United States Patent No.

    7,614,521 ( the '521 patent).

    9. Odyssey also claims to be the owner by assignmentof United States

    DesignPatentNo.D643,213 ( the '213 designpatent ).

    10. Odyssey has assertedto various entities, includingProXCases and its

    customers/retailers, that certain of ProXCases' products infringeoneor more claimsof

    the '521 patent and/or the '213 design patent.

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    11. In particular, Odyssey caused the removal of all of ProX Cases' products

    from the DJ Expo 2012 trade show in August 2012 in Atlantic City, New Jersey by

    communicating its false allegations of patent infringement

    of

    the '521 patent and/or the

    '213 design patent to DJ Expo 2012 personnel who subsequently expelled ProX Cases

    f rom t he t ra de s how.

    12. Even before the removal of all of ProX Cases' products, Odyssey's false

    allegations of patent infringement forced ProX Cases to use the time it would have spent

    answering customer questions about its products, instead fending of f

    Odyssey's

    false

    allegations. The result

    of

    all thisOdyssey's false allegations and ProX Cases having to

    address themresulted in a bad impression of ProX Cases among show attendees.

    13. In addition, Odyssey contac ted cer ta in ProX Cases' customers/retailers

    advising them that certain

    of

    ProX Cases' products infringe the '521 patent and/or the

    '213 design patent, thereby causing those ProX Cases' customers/retailers to cease

    purchasing and/or offering for sale ProX Cases' products.

    14. Odyssey not only disparaged ProX Cases' products but also threatened

    ProX Cases' customers/retailers with infringement actions if those ProX Cases'

    customers/retailers sold ProX Cases' allegedly infringing products and even refused to

    provide Odyssey products to those ProX Cases' customers/retailers for sale to end users

    if

    those ProX Cases' customers/retailers were also stocking or advertising ProX Cases'

    products.

    15. By letter dated December 18, 2012, counsel for ProX Cases provided

    counsel for Odyssey with a detailed non-infringement analysis for the '521 patent, clearly

    showing that ProX Cases' products do not infringe any claim

    of

    the '521 patent, either

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    literally or under the doctrine

    of

    equivalents. (A copy

    of

    the December 18, 2012 letter is

    attached as Exhibit A).

    16. By letter dated July 9, 2013, in response to a February 3, 2013 letter from

    Odyssey's counsel to ProX Cases, counsel for ProX Cases provided counsel for Odyssey

    with a non-infringement analysis for the '213 design patent, clearly showing that the

    accused ProX Cases' products do not infringe the '213 design patent. Counsel for ProX

    Cases also provided an invalidity analysis for the '213 design patent, clearly showing that

    the '213 design patent is invalid as anticipated by or obvious over prior art designs. (A

    copy of the July 9, 2013 letter is attached as Exhibit B).

    17. Moreover, no good faith analysis could have provided Odyssey a basis for

    believing that ProX Cases' products infringe the '521 or '213 patents.

    18. Certainly, after seeing ProX Cases' non-infringement analysis, Odyssey

    could not have a good faith beliefthat ProX Cases' products infringe any claim

    of

    the

    '521 patent.

    19. Certainly, after seeing ProX Cases' non-infringement and invalidity

    analyses, Odyssey could not have a good faith beliefthat ProX Cases' products infringe

    the '213 design patent.

    20. Indeed, in light of the extent

    of

    ProX Cases' non-infringement positions as

    set forth in the December 18, 2012 and July 9, 2013 letters, respectively, no reasonable

    reading of the '521 patent and the '213 design patent could lead one to believe that ProX

    Cases' products infringed either ofOdyssey's patents.

    21. Importantly, at no point did Odyssey or its counsel respond to either the

    December 18, 2012 letter or the July 9, 2013 letter. That is, neither Odyssey nor its

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    counsel ever attempted to refute ProXCases' proofof patentnon-infringement and(in

    the case of the '213 design patent) invalidity.

    22. Both before and subsequent to the December 18, 2012 and July 9, 2013

    letters, Odyssey threatenedProXCases' customer/retailers that Odysseywouldnot allow

    those customers/retailers to stock Odyssey's products if they continued to sell ProX

    Cases' products, which Odyssey continues to assert infringe the '521 patent and/or the

    '213 design patent.

    23. In addition, at least one customer/retailer of ProXCaseswas cut off' by

    Odyssey for refusingto complywithOdyssey's demandto stop sellingProXCases

    products.

    24. On July 8, 2013, after Odyssey had been provided with the December

    2012 non-infringement analysis for the '521 patent, CarlosGonzalezof Odysseyemailed

    one of ProX Cases' customers/retailers, KPODJ, advising it to remove links to three

    of

    ProXCases' products from its website, saying I prefer you hearing this fromme before

    our legal teamget involved. Please remove the following links

    from

    yourwebsite as they

    arepatent infringement products. WhenProXCases' customer/retailer askedwhyProX

    Cases' products allegedly infringedOdyssey's (unidentified) patent, Gonzalez (on behalf

    ofOdyssey) replied, Anything that has a slidemechanism ontheir case is a patent

    infringement. (Copyof July 8, 2013 email stringat ExhibitC).

    25. As set forth in the December 2012non-infringement analysis, the presence

    of a slidemechanism, alone, in the claimsof the '521 patent the onlyone of the

    Odyssey patents claiming anything relating to a slide mechanism is insufficient to

    give rise to a claim for patent infringement.

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    26. As set forth in the December 2012 analysis, and as shown in the claims of

    the '521 patent itself (copy at Exhibit D), independent claim 1 of the '521 patent requires,

    inter alia:

    a slider member channel assembly.. .having at least one safety stop hole

    positioned nearest to the terminal end of the upper slider member channel

    therein, said hole disposed below and opposing said continuous flange...

    (Exhibit D, col. 6, lines 7-11).

    27. Independent claim 23 of the '521 patent includes the steps of, inter alia:

    providing a lower box having a lower slider member channel fastened to

    each upper side edge thereof, said member having a continuous flange

    projecting therefrom and a recessed hole positioned therein, said spring

    loaded metal ball extending there-through said lower slider

    member

    channel in stationary and transitional positions, a stop hole positioned

    therein near the extreme end of said member, said cantilever spring lever

    extending there-through said slidermember channel when in use; and

    providing an upper platform contained within the enclosure box having

    an upper slider member channel fastened to side thereof, said upper slider

    member channel having a continuous web channel projecting downward

    therefrom and a stop hole positioned therein, said spring loaded metal ball

    frictionally engaged with said upper slider member channel when in

    stationary and transitional positions . (Exhibit D, col. 8, lines 27-43).

    28. However, as set forth in the December 2012 non-infringement analysis,

    ProX Cases' products do not infringe claim 1 of the '521 patent because:

    while [ProX Cases'] Products may arguably be said to have a slider

    member channel assembly comprising at least a first or upper slider

    member

    channel

    and a second

    or

    lower

    slider member channel

    which

    telescopically slides in the lower slider member channel in a longitudinal

    axial direction, there can be no dispute that [ProX Cases'] Products lack

    at least one safety stop hole positioned nearest to the terminal end of the

    upper slider member channel therein, said hole disposed below and

    opposing said continuous flange . As clearly seen in attached Exhibits A

    and B, [ProXCases'] Products do not have any such safety stop holes

    disposed in an upper slider member. (Exhibit A at p. 3).

    29. Likewise, as set forth in the December 2012 analysis, ProX Cases'

    products do not infringe claim 23

    of

    the '521 patent because:

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    [w]hile [ProX Cases'] Products may arguably be said to have lower and

    upper slidermember channels, there can be no dispute that [ProX Cases']

    Products lack a spring loaded metal ball extending through the lower

    slider member channel, a stop hole positioned in the lower slider

    member channel, a cantilever spring lever extending through the lower

    slidermember channel , and a stop hole positioned in the upperslider

    member channel.As clearly seen in attachedExhibits A and B, [ProX

    Cases'] do not haveany suchfeatures in their lower or upper slider

    member channels.

    Further, the purpose of these structures, as described in the '521 patent, is

    to lock the upper platformto the lower box and to provide stoppositions

    of theupperplatform relative to the lowerbox.

    However,

    noneof [ProX

    Cases'] Products have any such stop positions or any such means

    of

    locking the upper platformrelative to the lower box. In fact, in [ProX

    Cases'] Products, the upper platform is not locked relative to the lower

    box. Since each

    of

    the Accused Products is missing an identical or

    equivalent part or step to evenonerequirement of oneof the independent

    claimsof the '521 patent, noneof [ProX Cases'] Products can infringe

    suchclaimsunderthedoctrine of equivalents. See, e.g.,Kustom Signals

    Inc. v. Applied Concepts

    Inc.

    264 F.3d 1326, 1333 (Fed. Cir. 2001) ( No

    claimed [limitation], or an equivalent thereof, can be absent if the doctrine

    of equivalents is invoked. ). (Exhibit A at p. 4).

    30. Accordingly, when Odyssey's representative contacted ProX Cases'

    customer/retailer on July 8, 2013,Odyssey couldnot have hada good faith beliefthat

    ProXCases' products infringe any claim

    of

    the '521 patent.

    31. In fact, as set forth above, in light

    of

    ProX Cases' extensive non

    infringement analysis, no reasonable reading of the 521 patent at any time could have

    led to the conclusion thatany of ProXCases' products infringe one ormoreof the

    patent's

    claims.

    32. As set forth

    above,

    Odyssey hasmadethe sale of its products conditional

    on the

    buyer

    ProX Cases

    customers/retailers

    notdealing inthe goods of

    Odyssey s

    competitor, specifically ProX Cases.

    33. In addition, on information and belief, Odyssey has also told its own

    customers/retailers

    thatit

    owns one

    or

    more

    patents allegedly covering its

    own,

    aswell as

    8

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    ProXCases', products. As a result, Odyssey's customershave refused to market and sell

    ProX

    Cases products, resulting in

    the

    loss

    of

    several potential

    new

    customers/retailers by

    ProX Cases.

    34. Odyssey s requirement has

    the

    effect

    of

    substantially lessening

    competition in the relevant market.

    35.

    ProX

    Cases

    is injured inits business as a result oftheOdyssey s anti

    competitive actions.

    36.

    Importantly, although Odyssey has

    spent

    considerable time and expense

    telling

    ProX

    Cases

    customers/retailers,

    and

    others, that certain

    of

    ProX

    Cases

    products

    infringe

    Odyssey s patents, and although onAugust 11, 2014 Odyssey

    commenced

    an

    action

    inFederal court against ProX Cases

    for,

    inter alia trademark infringement,

    Odyssey has never sued ProXCases for patent infringement.

    37. Odyssey's actions above alleged, interfering withProXCases' business

    relationships with its

    customers/retailers,

    were

    solely

    outof

    malice

    or through

    dishonest,

    unfair, or

    improper means,

    causing injury to those

    business

    relationships.

    38. Odyssey's improper activities havedirectly andproximately caused harm

    to ProX Cases .

    39. Odyssey's improperactivities are likely to continue unless and until

    enjoined by this Court.

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    COUNT

    I

    (VIOLATION OFSECTION

    43 a

    OFTHE LANHAM ACT, 15U.S.C. 1125 a

    FALSE ADVERTISING)

    40. ProX Cases repeats and realleges each allegation set forth above in

    Paragraphs 1-39 as though fully set forth herein.

    41. Thisclaim arises under the

    Lanham

    Act, 15U.S.C. 1051 et seq.

    42. In light of the foregoing, Odyssey's statements to ProX Cases'

    customers/retailers and

    others,

    that

    certain

    of

    ProX

    Cases' products

    infringe

    Odyssey's

    patents, constitute a false ormisleading description of fact or a

    false

    or misleading

    representation

    of

    fact about ProX Cases' products.

    43. Odyssey's false ormisleading descriptions or representations of factwere

    made in commercial advertising or promotion, including to ProX Cases'

    customers/retailers

    aswell asto persons involved with theDJExpo 2012. Odyssey's

    false ormisleading descriptions or representations of fact, namely, that certain of ProX

    Cases' products infringe Odyssey's patents, misrepresent the nature, characteristics and

    qualities of ProX Cases' goods and commercial activities.

    44. Odyssey's statements relating to patentinfringement were literally false.

    45. In

    addition,

    Odyssey's statements actually

    deceived

    orhadthe

    tendency

    to

    deceive a substantial segment of theirintended audience, namely, ProX Cases'

    customers/retailers.

    46. Odyssey's deception wasmaterial, in that it was likelyto influence the

    purchasing decision, including specifically

    whether

    to

    continue

    to purchase and/or offer

    for sale ProX Cases' products.

    47. Odyssey caused the false statements to enter interstate commerce.

    10

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    48. ProX Cases has been and continues to be damaged as a result of

    Odyssey's false statements, including at least by a lessening of the goodwill associated

    with ProX Cases' products.

    COUNT

    I I

    TRADE

    LIBEL)

    49. ProX Cases repeats and realleges each allegation set forth above in

    Paragraphs 1-48 as

    though

    fully set forth herein.

    50. This c l aim arises

    under

    the c ommon l aw o f t he S ta te o f

    New

    York.

    51. As set forth above, Odyssey published statements, namely,

    communications with specific customers/retailers

    of

    ProX Cases, that certain products of

    ProX Cases infringe one or more claims of the '521 patent and/or the '213 design patent.

    52. Odyssey's statements tended to disparage the ProX Cases products,

    namely, that they allegedly infringe one or more

    of

    Odyssey's patents.

    53. Odyssey's allegations of infringement were provably false.

    54. In making the statements to ProX Cases' customers/retailers, Odyssey

    acted with malice, with knowledge that the statement of alleged infringement was false or

    with reckless disregard for its falsity.

    55. Odyssey's malicious, false allegations of infringement were knowingly

    published to ProX Cases' customers, were derogatory to ProX Cases' business, and were

    of

    a kind calculated to prevent others namely, ProX Cases' customers/retailers

    from selling and marketing ProX Cases or otherwise interfering with ProX Cases'

    relations

    with

    others, to

    ProX Cases' detriment.

    11

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    56. As a directresultofOdyssey's false statements, ProXCases

    customer/retailers

    ceased selling and marketing ProX Cases

    products,

    and ProX Cases

    suffered damages.

    COUNT

    I I I

    (TORTIOUS INTERFERENCEWITH CONTRACTUAL RELATIONS)

    57. ProXCasesrepeats and realleges eachallegation set forth above in

    Paragraphs 1-56as though fully set forth herein.

    58. This claim arises under the common law of the State ofNew York.

    59. A valid

    contract

    existed between ProXCases andthe proprietors of theDJ

    Expo 2012 trade show ( DJ Expo 2012 ) inAugust 2012 inAtlantic City,

    New

    Jersey.

    60. Odysseyhad actualor constructive knowledge of this contract.

    61. Odysseyacted intentionally with the design to inducea breachof ProX

    Cases' contractwith DJ Expo 2012, without justification.

    62. ProX Cases' contract with DJ Expo 2012 was breached as a result

    of

    Odyssey's improper acts. Namely, DJ Expo2012evicted ProXCases from the trade

    showbecauseof Odyssey's falsepatent infringement claims.

    63. ProX Cases' contract with DJ Expo 2012 would have otherwise been

    performed except forthewrongful intentional acts ofOdyssey, which were thedirect and

    proximate cause

    of

    the breach.

    64. As a result

    of

    Odyssey's wrongful conduct, ProX Cases lost the

    opportunity to show and promote itsproducts, to form business relationship and to obtain

    orders for its products at the DJ Expo 2012 trade show.

    12

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    65. Odyssey's intentional improper acts were the direct and proximate cause

    of damage to ProX Cases in an amount to be determined at trial.

    COUNT IV

    COMMON LAW UNFAIR COMPETITION)

    66. ProX Cases repeats and realleges each allegation set forth above in

    Paragraphs 1-65 as though fully set forth herein.

    67 .

    This

    claim arises under

    the c ommon l aw o f the

    State

    o f

    New York.

    68. Odyssey knowingly made false allegations of patent infringement to ProX

    Cases ' customer/retai lers wit h mal ic e a nd w i th t he

    i nt en t t o c aus e

    P r oX Ca se s

    to

    be

    harmed by loss of sales and revenues and by preventing ProX Cases from securing orders

    for the sale of its products.

    69. Odyssey intended to profit at ProX Cases' expense by reducing

    competition in the market place for DJ equipment by making false allegations

    of

    patent

    infringement and causing ProX Cases to lose sales.

    70. Odyssey's acts were committed in bad faith.

    71. Odyssey's intentional improper acts were the direct and proximate cause

    of damage to ProX Cases in an amount to be determined at trial.

    JURY TR I A L

    DEMAND

    1. Pursuant to Fed. R. Civ. P. 38, ProX Cases hereby demands a trial

    by jury of all issues so triable in this matter.

    13

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    PRAYER

    FOR RELIEF

    WHEREFORE, PlaintiffXstatic Pro

    Inc.

    dbaXstatic

    Pro

    Lighting dbaPro Xdba

    ProX dba Pro XDirect

    dba ProX

    Direct

    dba

    Pro X

    Cases dba ProX Cases ( ProX

    Cases )

    requests

    that

    this

    Court enter

    judgment

    in their favor and providing the following relief:

    A.

    Entry

    of a permanent

    injunction

    against Odyssey and

    anyone

    working in

    concert withOdyssey from contacting, writing, e-mailing, advising or

    otherwise contacting any customeror retailerof ProXCases', whether

    electronically or otherwise, alleging thatanyof ProXCases'

    products

    infringe eitherthe '521 patentor the '213 designpatent;

    B. Entry of a permanent

    injunction

    against

    Odyssey

    and anyone

    working

    in

    concert withOdyssey

    from

    contacting, writing, e-mailing, advising or

    otherwise contacting any

    trade

    showrepresentative demanding that ProX

    Cases' products be removed fromdisplay on the basis that ProXCases'

    products infringe either the '521 patent or the '213 design patent;

    C.

    Entry

    of a

    permanent

    injunction

    against Odyssey

    and anyone working in

    concert

    withOdyssey from contacting,

    writing,

    e-mailing, advising or

    otherwisecontacting any customer or retailer

    of

    ProX Cases', whether

    electronically or otherwise, and refusing to allow such customer or retailer

    to stock Odyssey'sproducts unless suchcustomer or retailer stops

    stocking ProX Cases' products;

    D. An award to ProX Cases

    of

    all damages incurred in connection with

    Odyssey'sunfaircompetition/false advertising under the Lanham Act;

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    E. An award to ProX Cases of all damages incurred in connection with

    Odyssey's trade libel;

    F. An award to ProX Cases of all damages incurred in connection with

    Odyssey's tortious interference with contractual relations;

    G. An award to ProX Cases of all damages incurred in connection with

    Odyssey's unfair competition under

    New

    York law;

    H. A finding that this is an exceptional case under 15 U.S.C. 1117, and

    awarding ProX Cases its attorney's fees as the prevailing party;

    I. An award of ProX Cases' full costs, including litigation expenses, expert

    witness fees, interest, and any other amounts authorized by law, and

    attorneys' fees incurred in connection with this lawsuit;

    J. An award ofpunitive and/or exemplary damages and any other relief

    authorized by law; and

    K. Such other and further relief as this Court deems

    just

    and proper.

    Dated: November

    25,

    2014

    Respectfully submitted:

    XSTATIC

    PRO

    INC.,

    By its attorney;

    Veronica Mullally Mufioz (MM-9985)

    Clyde A. Shuman (CS-6351)

    PEARL COHEN ZEDEK

    LATZER

    BARATZ

    LLP

    1500 Broadway,

    12th

    Floor

    New York, New

    York

    10036

    (646) 878-0800

    15

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    (646) 878-0801 fax

    vmunoz@pearlcohen,com

    [email protected]

    16

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    EXH IB I T A

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    mS PEARL COHEN ZEDEK LATZER llp

    NEW

    YORK - BOSTON

    December

    18, 2012

    VIA

    E-MAIL:

    [email protected]

    COPY

    VIA

    FACSIMILE

    TO

    (949) 251-1588

    Charles C.H. Wu, Esq.

    LAW

    OFFICES

    OF WU & CHEUNG, LLP

    98 Discovery

    Irvine,

    CA

    92618-3105

    Re:

    Alleged Infringement of U.S. Patent No. 7,614,521; Demand to Cease and Desist;

    Our ref. 700716-25-01

    Dear Mr. Wu:

    This firm represents XSTATIC PRO, INC. dba PRO X CASES (hereinafter, XSTATIC ). We

    write in response to your letter

    of

    July 18, 2012 to XSTATIC asserting infringement

    of

    U.S. Patent

    No. 7,614,521 (hereinafter, the '521 patent ) by various

    of

    XSTATIC's products (hereinafter, the

    Accused Products ).

    For the reasons set forth below, there is no genuine, good faith basis for you or your client, Odyssey

    Innovative Designs (hereinafter, Odyssey ) to assert that anyof the Accused Products infringes any

    claim

    of

    the '521 patent. Moreover, as explained below, any further efforts by you or Odyssey to

    prevent XSTATIC from displaying its products (includingwithout limitation, the Accused Products)

    at trade shows, and any further interference with XSTATIC's customer relations, will result in

    litigation,with XSTATIC seeking any and all remedies availableto it in law and in equity.

    I. Non-Infringement Analysis

    In your letter

    of

    July 18, 2012, you allege that all of the Accused Products, which comprise a list of

    forty-eight

    (48)

    products, incorporate a sliding top shelf or panel for a laptop that is covered under

    the claims

    of

    Odyssey's '521 patent.

    However, there is no genuine dispute that the Accused Products do not infringe any independent

    claim

    of

    the '521 patent, either literally or under the doctrine

    of

    equivalents. As set forth below,

    none

    of

    the Accused Products literallyincludes each and every element or method step in that patent

    claim. See, e.g.,

    Frank s

    Casing

    Crew < Rental

    Tools

    Inc. v. Weatherford

    Int l Inc. 389 F.3d 1370, 1378

    (Fed. Cir. 2004) (citation omitted) ( Literal infringement requires that each and every limitation set

    forth in a claim appear in an accused product. ).

    The '521 patent includes 23 claims,

    of

    which claims 1 and 23 are independent. Claims 1 and 23

    recite:

    1. A platform and multiple box combination case and multiple box combination

    case for housing audio and electronic equipments in stationary and transitional

    modes, said platform having a forward and rearward aspect and comprising:

    a lower box having an open top and side edge defining a border of said top on

    each

    of

    two side surfaces, said box containing at least one audio or electronic device;

    1500

    Broadway, New

    York, NY

    10036,

    Tel

    646.878.0800,

    Fax

    646.878.0801

    www.pczlaw.com

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    PEARL COHEN ZEDEK

    LATZER

    llp

    NFW YORK - BOSTON

    Charles C.H. Wu, Esq.

    December 6, 2012

    Page 2

    at

    least

    one upper platform having a bottom surface and a side edge

    defining

    a

    border

    of

    said bottom surface on each

    of

    two side surfaces

    of

    said upper platform,

    said

    upper

    platform

    containing

    at

    least

    one electronic or accessory

    device

    capable of

    operatingwith said lowerbox

    device;

    an

    upper

    box

    having

    an open bottom and

    side edge defining

    a border of

    said

    bottom on each

    of

    two side surfaces, said box contains a concave space for housing

    at least one audio or electronic device when in a closed position;

    a slider member channel assembly comprising at least a first or upper shder

    member channel and second or lower slider member channel which telescopically

    slides in the lower slidermember channel in a longitudinal axial direction which the

    upper

    slider member channel includes

    a

    center span

    or web and the

    lower slider

    member channel includes an outwardly projecting

    angled

    flange being formed along

    and in an acute angle relationshipwith an upper rim thereof, and havingat least one

    safety

    stop hole positionednearest to the terminal end of the upper

    slider

    member

    channel therein, said hole disposed below and opposing said continuous flange;

    wherein the upper platforms is held securely togetherwith the lower box as a result

    of the upper slider member of the slider memberchannelassembly being fastened to

    the upper platform and the lower

    slider member

    of the

    slider

    member channel

    assembly

    being fastened to the lower box, and the upper slider member and the

    lower slidermember being engaged with each other

    while

    the upper platform is in

    the stationary or transitional mode; and

    at least one latch fastened adjacent to each said upper box side edge and

    extending downward to releasably

    engage

    a respective one of said lower box latch

    receptacles.

    23. For platform and box combination case having an upper and lower boxes

    with an upper platform, said case housing audio and electronicequipments, a method

    for providing in said case

    variably

    adjustable upper platform for the placement of

    additionalgears or electronic deviceswithout occupying additional space than in the

    typicalDJ boxes, saidmethod comprising the steps of:

    providing a lower box havingan open top and sideedgedefining a border of said

    top of each of two side surfaces, said box containing at least one audio equipment

    device;

    providing at least one upper platform having a bottom surface and a side edge

    defining a border

    of

    said bottom surface on each

    of

    two side surfaces

    of

    said upper

    platform, said upper platform containing at least one electronic device capable

    of

    operating with said lower box device;

    providing an upper box having an open bottom and side edge defining a border

    of

    said bottom on each

    of

    two side surfaces, said box contains a concave space for

    housing at least one electronic devicewhen in a closed position;

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    PEARL COHEN ZEDEK LATZER llp

    Charles C.H.

    Wu,

    Esq.

    NEW

    YORK - BOSTON

    December 6, 2012

    Page 3

    providing at least

    one

    latch fastened adjacent to each said upper box side

    edge

    and extending downward to releasably engage a respective one of said lower box

    latch receptacles;

    providing a lower box having a lower shder member channel fastened to each

    upper

    side

    edge

    thereof, said

    member having

    a continuous

    flange

    projecting

    therefrom and

    a

    recessed hole positioned therein,

    said

    spring loaded metal ball

    extending there-through said lower slider member channel in stationary and

    transitional positions, a stop hole positioned therein near the extreme end of said

    member, said cantilever

    spring

    lever

    extending there-through

    said slider

    member

    channel when in use;

    providing

    an upper platform contained within the

    enclosure

    box having an upper

    slider member channel

    fastened

    to

    side thereof, said upper slider member channel

    having

    a continuous

    web

    channel projecting

    downward

    therefrom

    and

    a stop

    hole

    positioned therein,

    said

    spring loaded metal

    ball frictionally

    engaged with

    said

    upper

    slider member

    channel when

    in

    stationary

    and transitional

    positions;

    means

    for

    shifting said

    upper platform

    along said

    lower box in a

    rearward

    or

    forward direction in a

    continuously

    variable

    pathwithin a limit of travel

    determined

    by

    said safety cantilever spring

    stop member

    until said audio

    orelectronic equipment

    in said

    lower

    box

    is exposed

    to

    the

    satisfaction of

    said

    operator

    and simultaneously

    allow

    the placement

    of computers or

    other

    accessories on

    the

    upper platform to

    constitute an operatingmode position;and

    means for frictionally engaging said upper and

    lower

    slider member

    channels,

    thereby securing said upper platform

    in

    said operating position.

    Each

    of

    the

    Accused

    Products

    does

    not

    infringe

    claim

    1 of

    the

    521

    patent

    because

    it

    does

    not

    include at

    least one safety stop hole positioned nearest to the terminal end of the upper slider

    member channel therein,

    said

    hole

    disposed

    below and opposing said continuous flange . This

    safety stop hole feature

    is described in

    the 521

    patent

    at column

    5,

    lines 8-16 and shown in Figs 8

    and 9.

    Attached

    as

    Exhibits

    A

    and

    Bare photographs ofthe container

    bottom

    sliding attachment assembly

    and container top sliding attachment assembly,

    respectively,

    of

    one

    of the Accused Products,

    which

    are representative of those same structures in all of

    the

    Accused Products.

    Specifically, while

    the

    Accused

    Products

    may

    arguably be said to have a slider

    member

    channel

    assembly comprising

    at

    least

    a

    first

    or upper

    slider member channel

    and a

    second

    or lower

    slider

    member

    channel

    which telescopically slides

    in

    the lower slidermember channel in a longitudinal axial

    direction, there

    can be no

    dispute

    that

    the

    Accused Products

    lack

    at

    least one safety

    stop

    hole

    positioned nearest to the terminal end of the

    upper

    slider member channel therein, said hole

    disposed below

    and opposing said continuous

    flange .

    As clearly

    seen

    in attached Exhibits

    Aand B,

    the Accused

    Products

    do not have any such safety

    stop

    holes disposed

    in

    an

    upper shder member.

    Likewise,

    each of

    the Accused Products does

    not

    infringe

    claim

    23

    of

    the

    521 patent

    because

    it

    does

    not perform the method steps of:

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    PEARL COH EN ZEDEK

    LATZER

    l lp

    ^, i

    ^T iw r

    t- NEW YORK - BOSTON

    Charles

    C.H. wu ,

    Esq.

    December 6,

    2012

    Page 4

    providing a lower box having a lower shder member channel fastened to each upper side

    edge thereof, said member having a continuous

    flange

    projecting therefrom and a recessed

    hole positioned therein, said spring loaded metal ball extending there-through said lower

    slidermember channel in stationary and transitional positions, a stop hole positioned therein

    near the extreme end of said member, said cantilever spring lever extending there-through

    said slider member channel when in use; and

    providing an upper platform contained within the enclosure box having an upper shder

    member channel fastened to side thereof, said upper shder member channel having a

    continuous web channel projecting downward therefrom and a stop hole positioned therein,

    said spring loaded metal ball frictionally engaged with said upper shder member channel

    when in stationary and transitional positions .

    The spring loaded metal ball, stop hole and cantilever spring lever features

    of

    the lower shder

    member channel and the stop hole feature

    of

    the upper slider member channel, as well as the

    interaction between them, are described in the '521 patent at column 3, lines 13-27, at column 4,

    lines 36-48 and at column 5, lines 8-32, and are shown in Figs. 8, 9, 10 and 11.

    While

    the Accused Productsmay arguably be said to have lower and upper slidermember channels,

    there can be no dispute that the Accused Products lack a spring loaded metal ball extending

    through the lower slider member channel, a stop hole positioned in the lower shder member

    channel, a cantilever springlever extending through the lowershdermember channel , and a stop

    hole positioned in the upper shder member channel. As clearlyseen in attached Exhibits A and B,

    the Accused Products do not have any such features in their loweror upper shder member channels.

    Further, the purpose of these structures, as describedin the

    521

    patent, is to lock the upper platform

    to the lower box and to provide stop positions of the upper platform relative to the lower box.

    However,none of the Accused Products have any such stop positions or any such means of locking

    the upperplatform

    relative

    to the lowerbox. In

    fact,

    in the

    Accused

    Products, the upper platformis

    not locked relative to the lower box. Since each of the Accused Products is missing an identical or

    equivalent

    part or step to evenone requirement of one of the independent

    claims

    of the

    521

    patent,

    noneof the

    Accused

    Products can

    infringe

    such

    claims

    under the doctrine of equivalents.

    See,

    e.g.,

    Kustom Signals

    Inc.

    v. Applied Concepts

    Inc.

    264 F.3d 1326, 1333 (Fed. Cir.

    2001)

    ( No claimed

    [limitation],

    or an equivalent thereof, can be absentif thedoctrineof equivalents is invoked. ).

    Still further, since the Accused Products do not infringe any independent claim, they also do not

    infringe any dependent claim. See, e.g.,

    Wolverine World Wide Inc. v.

    Nike, Inc. 38 F.3d 1192, 1199

    (Fed. Cir. 1994);

    Wahpeton

    Canvas

    Co. Inc. v.

    Frontier

    Inc. 870F.2d1546,

    1553 (Fed.

    Cir.

    1989).

    It is clear, based upon your clearly factually-incorrect allegation of infringement, that you have not

    actually

    reviewed a physical sampleof any of the Accused Products but rather only viewedthem in

    XSTATIC's product

    catalog.

    Had you actually reviewed a physical sample of any of the Accused

    Products, you would immediately have seen the construction as shown in attached Exhibits A and B,

    and immediately realized that there is at least one crucial physicalhmitation

    of

    each

    of

    claim of the

    '521 patent that is

    not

    present in any

    of

    the Accused Products, such that there can be no

    infringement.

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    PEARLCOHEN ZEDEK LATZER llp

    Charles C.H. Wu, Esq.

    NEW

    YORK - BOSTON

    December 6, 2012

    Page 5

    I I . Tor t ious

    Interference

    We are informed by XSTATIC that Odyssey forced removal

    of

    XSTATIC's products from the DJ

    Expo 2012 trade show in August 2012 in Atlantic City, New Jersey by communicating its allegations

    of

    infringement

    of

    the '521 patent to DJ Expo 2012 personnel. We also are informed that you

    and/or Odyssey presently is/are contacting XSTATIC's customers and advising them that

    XSTATIC's products infringe the '521 patent, causing them to cease purchasing XSTATIC's

    products. While you and Odyssey heretofore arguably may have had a good faith belief that

    XSTATIC's products infringed one or more claims

    of

    the '521 patent, in hght

    of

    the foregoing

    infringement analysis, any such good faith belief clearly is overcome, and you no longer have any

    such

    good

    faith belief.

    Accordingly, any further efforts by you and/or Odyssey to prevent XSTATIC from displaying its

    products at future trade shows (including widiout limitation, the 2013 NAMM trade show that is

    scheduled to take place in Anaheim, California in January 2013), and any further contact with

    XSTATIC's actual or prospective customers by you or your client, alleging infringement

    of

    the '521

    patent by any

    of

    its products (includingwithout limitation, the Accused Products), will constitute at

    least tor tious inter ference with contractual relations

    under

    California law, as well as tortious

    interference with business relations and tortious interference with prospective economic advantage

    under New York law.

    Byway

    of

    example only, with respect specifically to the second cause

    of

    action, any future bad faith,

    unwarranted and intentional efforts byyouand/or Odyssey to preventXSTATIC from displaying its

    products at any future trade shows, or any direct or indirect contact with XSTATIC's actual

    customers to advise them of (non-existent) infringement of the '521 patent, will be deemed to

    constitute knowing and intentional interference by Odyssey in a known business relationship of

    XSTATIC's, either

    solely

    out

    of

    malice or through dishonest, unfair, or improper means, causing

    injury to the relationship. See,e.g.,

    Carvel

    Corp. v. Noonan 350 F.3d 6, 17 (2d Cir.

    2003).

    Such improper activities by Odyssey clearlywill result in harm to XSTATIC and willleave XSTATIC

    no choice but to pursue the legal and equitable remedies available to it, in the appropriate United

    States

    Distr ict

    Court .

    Pleasenote that XSTATIC would like an amicable resolution to this matter. However, should you

    persist in your

    baseless

    allegations of infringement,my chent willhave no choice but to

    aggressively

    and vigorously defend its position.

    Please

    be advised that nothing in this letter shall constitute a waiverof any of XSTATIC's rights or

    remedies to which XSTATIC may be entitled in law and/or equity, including the right to institute

    su it f o r to rt ious in te rf er ence.

    Sincerely Yours,

    iM^u^X

    Morey B.Wildes

    Pearl Cohen Zedek Latzer, LLP

    Cc: VikramM. Reddy, Esq. ([email protected])

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    EXHIBIT A

  • 8/10/2019 Xstatic v. Hsiao & Montano - Complaint

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    V

    EXHIBIT

    .

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    EXH IB I T B

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    B

    PEARL

    COHEN ZEDEK LATZER l lp

    NEW YORK -

    BOSTON

    July 9, 2013

    Direct

    Dial: 646-878-0849

    Direct

    E-mail:

    [email protected]

    VIA

    E-MAIL: [email protected]

    COPY

    VIA FACSIMILE TO

    (949)

    251-1588

    Charles C.H. Wu,Esq.

    LAW OFFICES

    OF

    WU & CHEUNG, LLP

    98 Discovery

    Irvine, CA 92618-3105

    Re:

    Alleged Infringement of U.S.

    Design

    PatentNo.

    D643,213;

    Ourref. 700716-25-01

    Dear

    M r. W u :

    As you

    know from

    myletter ofDecember 18, 2012, we represent

    XSTATIC

    PRO,

    INC.

    dba

    PRO

    X

    CASES

    (hereinafter,

    XSTATIC ), and we now

    write

    in response to your February

    3,

    2012 letter to

    XSTATIC

    asserting infringement

    of

    U.S. Design

    Patent No. D643,213 (hereinafter, the 13 design

    patent ) by

    various

    ofXSTATIC s products (hereinafter, the Accused Products ).

    For the reasons set forth below, there

    is no

    genuine, good

    faith basis

    for

    you or

    your client, Odyssey

    Innovative

    Designs (hereinafter,

    Odyssey )

    to

    assert

    that any of the Accused Products infringes the

    13 design patent. In addition, as set forth below, it is also

    likely

    that

    the 213

    design patent is

    invalid

    over the

    prior

    art. Moreover,

    as

    explained

    below,

    any further efforts

    by you or

    Odyssey

    to

    prevent XSTATIC from displaying

    its

    products (including without

    limitation,

    the Accused Products)

    at

    trade shows, and any further interference

    with XSTATIC s

    customer relations, will result

    in

    litigation, with XSTATIC seeking any and

    all

    remedies

    available

    to it in law and in

    equity.

    I. Non-Infringement

    of

    U.S. Design Patent No.

    D643,213

    A. Elements

    of

    the Claimed Design

    The 13 design patent consists ofone claim and seven

    (7) drawings.

    The perspective, front

    and

    rear

    view figures, respectively, are as follows:

    1500 Broadway, New

    York, NY

    10036, Tel 646.878.0800, Fax 646.878.0801

    www.pczlaw.com

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    PEARL

    COHEN

    ZEDEK

    LATZER llp

    Charles C.H. Wru, Esq.

    July 9, 2013

    Page 2

    NEW YORK BO S TO N

    During the prosecution of the '213 design patent, the Examiner cited several patents with

    various

    arrangements of edge pieces, corner pieces, screws, locks and handles, and allowed the audio

    equipment case design as depicted in the 13 design patent, having the specific

    arrangement

    of the

    edge

    pieces, comer

    pieces, screws, locks

    and handle, to

    issue

    over

    these references.

    The patented

    audio equipment case includes two locking mechanisms and a handle between them on its front

    surface

    (see

    Figures

    1 and 7), two

    hinge mechanisms

    on its back surface

    (see

    Figure 2), and

    unadorned

    side

    surfaces

    (i.e.,

    no

    such locking

    or

    hinge

    mechanisms

    on the

    side

    surfaces)

    (see

    Figures

    5 and 6), and a corner piece on each corner. The

    locking

    mechanisms, handle, hinge mechanisms

    and corner pieces each show

    a

    specific

    ornamental

    aspect.

    That is, the

    claim

    of the

    13 design

    patent

    does

    not

    cover

    the combination of

    locking mechanisms,

    handle,

    hinge mechanisms

    and

    corner pieces

    shown

    in the

    drawings,

    but

    rather

    is

    limited

    to the

    combination

    of

    locking

    mechanisms, handle, hinge mechanisms and corner pieces having the specific ornamental features

    shown in the drawings.

    In addition, by

    filing

    replacement drawings as depicted

    above,

    the apphcant made clear that an audio

    equipment case

    with a

    black

    body and

    black edge pieces,

    corner

    pieces, screws, locks

    and handles

    was

    claimed.

    Therefore,

    the

    patented ornamental design

    of an

    audio equipment case

    as

    claimed

    in the 213

    design

    patent

    requires

    both the

    specific

    arrangement

    and

    ornamental

    design

    of the

    edge

    pieces,

    corner

    pieces, screws,

    locks and handle on the audio equipment case as shown, as wellas a black-on-black

    color scheme

    of

    the audio equipment case.

    B.

    Non-Infringement

    Analysis

    In

    your

    letter

    of February 3, 2012, you allege that all of theAccused Products,

    which

    comprise a

    list

    of thirty (30) of XSTATIC s products, as shown in printouts from

    XSTATIC s

    catalog or web

    site,

    incorporate a

    black-on-black

    ornamental

    design

    that is

    covered under

    the

    claim

    of Odyssey s 213

    design patent.

    You

    state that Odyssey s position is thatProX manufacture, sale andmarketing of

    DJ

    equipment cases

    witha

    black

    on

    black design

    ...

    infringes

    Odyssey s '213Patent.

    However, we point out that a black-on-black ornamental design is not the only claimed feature of

    the

    213 design patent.

    In

    fact,

    the

    13 design

    patent also

    requires

    the

    specific ornamental

    arrangement

    of

    edge pieces,

    corner

    pieces, screws, locks

    and

    handle

    on the

    audio equipment case

    as

    depicted therein,

    namely

    two

    locking

    mechanisms

    and

    a

    handle

    on the

    front surface,

    a

    hinge

    mechanism on the back surface, a corner

    piece

    on each of the eight corners, and unadorned side

    surfaces, all

    with the specifically-depicted ornamental design.

    It isunderstood that the scope of a

    design

    patent is limited to its ornamental aspects

    alone

    and

    does

    not

    extend

    to

    any functional elements

    of the

    claimed

    article.

    See,

    e.g.,

    Richardson

    Stanley

    Works, Inc.,

    597

    F.3d

    1288 (Fed.Cir. 2010) (citation omitted). In order for theAccused Products to

    infringe

    the

    design

    claim

    of the '213 design patent, an ordinary observer must be deceived as to whether the

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    PEARL GOHEN ZEDEK LATZER llp

    Charles C.H.

    Wu,

    Esq.

    NEW YORK

    -

    BOSTON

    July 9, 2013

    Page 3

    Accused

    Products are

    the

    same as

    the

    patented

    design,

    or

    the

    Accused Products must

    embody the

    patented design

    or

    any colorable imitation thereof. See, e.g., Egyptian

    Goddess,

    Inc. Swisa, Inc., 543

    F.3d

    665, 680

    (Fed.Cir.

    2008); GorhamMjg. Co.

    White, 81

    U.S. 511,

    528 (1871). SpecificaUy,

    each

    of

    these Accused

    Products

    must

    incorporate both a

    black-on-black surface

    color

    design and the

    specific

    ornamental arrangement of edge pieces, corner pieces,

    screws,

    locks and handle shown in the '213

    design patent, which together

    would

    lead an

    ordinary

    observer to be

    deceived

    as to whether the

    Accused Products are the same as thepatented design, or embody a colorable imitation thereof.

    We have

    reviewed

    each of the Accused Products,

    and

    have determined that, while most (but not

    ah)

    of the

    Accused Products

    have a black-on-black

    exterior surface color design, none

    of the

    Accused

    Products has

    both a black-on-black

    exterior surface color

    design and

    the specific ornamental

    arrangement of edge pieces, corner pieces, screws, locks and handle as claimed in the 213 design

    patent.

    In

    fact,

    none of the

    Accused Products

    has two

    locking

    mechanisms

    and a

    handle

    on the

    front

    surface,

    a

    hinge

    mechanism on the back surface, unadorned

    side surfaces

    and eight corner

    pieces, asdepicted in the '213design patent.

    Each of the

    Accused

    Products

    has an ornamental arrangement

    of edge

    pieces,

    corner

    pieces,

    screws,

    locks and handle that

    makes

    that Accused

    Product

    appear substantially

    different

    from

    the

    audio

    equipment

    case

    claimed in the 213 design

    patent.

    Thus, each of the Accused Products is missing an

    important

    aspect of the ornamental design claimed in the

    213

    design patent

    and

    does

    not

    appear

    similar to

    the claimed

    design. As

    such,

    an ordinary observer

    would

    not be

    deceived

    into

    believing

    that

    the design of

    any

    of the Accused Products is the same as the patented design embodied in the

    213 design patent,or a colorable imitation thereof. See Egyptian Goddess,

    Inc.,

    543 F.3dat

    682-683.

    Accordingly,

    there is

    no

    genuine dispute that

    the

    Accused Products do

    not

    infringe the 213

    design

    patent.

    It

    is clear, based

    upon your factually-incorrect

    allegation

    of infringement, that

    you

    have not

    actually

    reviewed

    a

    physical sample

    of

    any

    of the

    Accused

    Products

    but

    rather

    only viewed

    them

    in

    XSTATIC s

    product

    catalog

    orweb

    site.

    Had you actually reviewed

    a

    physical sample

    of

    any

    of

    the

    Accused

    Products,

    you

    would immediately

    have realized

    that each has

    a different

    arrangement

    of

    ornamental

    features

    than

    claimed inthe 13 design

    patent, such that there can

    beno infringement.

    II. Invalidity ofU.S. Design Patent

    No.

    D643,213

    Furthermore, duringour research concerning the Accused Products,we discovered that XSTATIC

    (through

    its

    affiliate

    TOV

    USA)

    had

    been selling

    an

    audio equipment case

    with the

    exact same

    arrangement of ornamental features as claimed in the 13 design patentas farback as 2006.

    See, for example, the attached

    Exhibit

    A, which shows

    photocopies

    of a

    TOV USA DJ

    EQUIPMENT

    CASES catalog, 2006

    edition, showing

    on pages 4 and 5 audio

    equipment

    cases

    model nos.

    T-CD4

    (4 Row CD Case)

    and

    T-MC

    (Mixer Case)

    that have the identical

    arrangement

    of

    ornamental features

    as

    claimed

    in

    the

    213

    design

    patent, namely two

    locking mechanisms and

    a

    handle

    on

    the front surface,

    a

    hinge

    mechanism

    on

    the back surface,

    a

    corner piece

    on

    each

    of

    the

    eight

    corners, and unadorned side

    surfaces.

    While this catalog

    shows

    these items in a silver-on-black

    design, the arrangement

    of

    ornamental features is identical to that claimed.

    According

    to

    35 U.S.C.

    102(a),

    A

    person shall be entitled

    to a

    patent

    unless

    (1) the claimed

    invention

    was patented,

    described

    in a printed

    publication,

    or in public use, on sale, or otherwise

    available to

    the public before the

    effective filing

    date of the claimed

    invention .

    The ordinary

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    m* PEARL COHEN ZEDEK LATZER llp

    Charles

    C.H.

    Wu,

    Esq. NEW YORK

    -

    BOSTON

    July 9, 2013

    Page 4

    observer test

    is the

    sole test

    for design

    patent

    anticipation. Int'I

    Seaway Trading

    Corp.

    Walgreens Cop.

    589F.3d 1233,1240 (Fed.Cir. 2009).

    The portion of the design relating to the arrangement

    of

    ornamental features claimed in the '213

    design patent was

    clearly

    described

    inthe

    publicly available 2006 edition

    TOV

    USA catalog,

    and

    thus

    on

    sale,

    well

    before

    the July 28,

    2009

    filing date of the application for the 13 design

    patent.

    Moreover, XSTATIC

    isin possession of

    invoices

    proving

    actual

    sales of the

    audio

    equipment

    cases

    model nos.

    T-CD4 and

    T-MC

    in 2006, well before

    July

    28, 2009.

    Accordingly,

    at least the portion of

    the 13 design

    relating

    to the

    arrangement

    of

    ornamental features,

    if not

    portion relating

    to

    the

    black-on-black surface design, was well known before the filing of the 213 design patent application.

    Otherwise stated,

    an

    ordinary observer, seeing the publicly

    available

    2006

    TOV

    USA catalog

    and

    the

    claimed design of the

    13 design

    patent,

    would

    be

    deceived

    into

    believing

    thatthe

    design

    embodied

    in the

    213 design

    patentis the

    same as

    the

    designs

    in theTOV

    USA catalog,

    or a

    colorable imitation

    thereof. See

    Egyptian Goddess

    Inc. 543 F.3d at 682-683.

    Alternatively,

    the

    claimed design

    of the '213

    design

    patent is

    invahd

    as obvious over the

    2006

    TOV

    USAcatalog designs.

    A

    design

    patent may be held invahd as obvious under 35 U.S.C. 103(a) if the

    differences

    between

    the

    subject

    matter

    sought

    to be

    patented

    and the prior art

    are such

    that the

    subject

    matter

    as

    a

    whole

    would have been obvious at the time the

    invention

    was

    made

    to a person

    having

    ordinary

    skill

    in the art to which said subject matter pertains.

    In

    addressing

    a

    claim

    of

    obviousness,

    the

    ultimate inquiry

    is

    whether

    a

    claimed design would have

    been

    obvious to a designer of ordinary skill

    who

    designs

    articles

    of the type

    involved. Apple Inc.

    Samsung Electronics Co. Ltd. 678 F.3d 1314, 1329 (Fed.Cir.

    2012).

    The Federal Circuit has explained

    that:

    [t]o

    determine

    whether one of

    ordinary

    skill

    would have

    combined

    teachings

    of the

    prior art to create the

    same overall

    appearance of the same design, the finder of

    fact

    must

    employ

    a two-step

    process. First,

    one must

    find

    a

    single

    reference,

    'a

    something in existence, the design characteristics of which are basically the same as

    the

    claimed design.

    Second,

    other

    references

    may

    be

    used

    to

    modify [the primary

    reference] to create a design that has the

    same overall

    visual appearance as the

    claimed design....[T]he

    secondary references may

    only be used to modify theprimary

    reference

    if they are 'so

    related

    to the

    primary reference

    that the

    appearance

    of

    certain ornamental features in one would

    suggest

    the application of those features to

    ano ther .

    Id. (citations omitted). Once

    a piece of prior art

    has been constructed,

    thedetermination of

    invalidity

    for

    obviousness,

    like the

    determination

    of

    infringement, requires application

    of the

    ordinary

    observer test. Apatented design is obvious if thepatented design

    as

    whole is

    substantially

    the

    same,

    or

    has

    the same

    overall visual appearance,

    as theprior

    art.

    See Int7 Seaway at

    1240.

    Here,

    the 2006 TOV USA catalog constitutes the single

    reference,

    'a something in existence, the

    design characteristics

    of

    which

    are basically the same as the claimed

    design. Given

    that the sole

    difference between

    the designs

    depicted

    in

    the catalog and the

    claimed design of the

    213

    design

    patent

    is the black on

    black color scheme,

    itis

    clear

    that the

    claimed design

    would

    have been obvious

    to a

    designer

    of ordinary

    skill

    who designs articles of the type involved.

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    PEARL

    CC

    NEW

    YORK

    -

    BOSTON

    PEARL

    COHEN

    ZEDEK LATZER llp

    Charles C.H. Wu, Esq.

    July 9, 2013

    Page 5

    Therefore, in view of thispriorart,it is

    highly

    likely that theExaminer of the application for the 213

    design patent would not have allowed that

    application

    to

    issue

    as a

    design

    patent. As

    such,

    we

    believe that the '213designpatent is invahdover the prior art.

    III .

    Tort ious

    Inter ference

    We are

    informed

    byXSTATIC thatOdyssey forced removal of XSTATIC s products from the DJ

    Expo 2012 trade show inAugust 2012 in

    Atlantic City,

    New

    Jersey

    by

    communicating

    its allegations

    of

    infringement

    of

    U.S.

    Patent No. 7,614,521 ( the 521 patent ) to DJ Expo 2012

    personnel.

    We

    also are informed

    that

    you

    and/or

    Odyssey has

    been

    contacting XSTATIC s customers and advising

    them that XSTATIC s products infringe

    either

    the 521 patent or the 213 design patent, causing

    them to

    cease purchasing XSTATIC s products.

    The

    issues relating

    to the 521 patent

    have been

    addressed inour letter of

    December 18, 2012.

    While you

    and

    Odyssey

    heretofore arguably may

    have

    had a

    good

    faidi

    belief that XSTATIC s products infringed one

    or

    more

    claims of

    the

    213

    design

    patent,

    in

    hght

    of the

    foregoing

    infringement analysis, any such

    good

    faidi

    behef

    clearly

    is

    overcome.

    Accordingly, any further efforts by you

    and/or

    Odyssey

    to

    prevent XSTATIC from displaying its

    products

    at

    future trade shows (including

    without

    hmitation,

    the DJ Expo 2013

    trade show

    scheduled

    to take

    place

    in

    Atlantic

    City, New

    Jersey

    in

    August

    2013), and any

    further

    contact

    with

    XSTATIC s actual or prospective customers byyou or your client, alleging

    infringement

    of the

    213

    design patent by any

    of its

    products (including without

    limitation,

    the

    Accused Products), will

    constitute at least tortious interference with contractual relations under California law, as well as

    tortious interference

    with business

    relations and

    tortious interference with

    prospective economic

    advantage under New York law.

    By

    way

    of

    example only,

    with respect specifically to the

    second

    cause of

    action,

    any future bad faith,

    unwarranted and intentional efforts byyou and/or Odyssey to prevent XSTATIC

    from

    displaying its

    products at any future trade shows, or any direct or indirect contact with XSTATIC's actual

    customers

    to

    advise

    themof

    (non-existent)

    infringement of the '213

    design

    patent,

    will

    be

    deemed

    to

    constitute knowing

    and intentional

    interference

    by

    Odyssey

    in a known

    business

    relationship of

    XSTATIC s, either solely

    out of

    malice

    or

    through dishonest, unfair,

    or

    improper means,

    causing

    injury

    to the relationship. See, e.g., Carvel Corp. Noonan 350 F.3d 6,

    17

    (2d Cir. 2003).

    Suchimproper activities byOdysseyclearly will result in harm to XSTATICand willleaveXSTATIC

    no choice but to pursue the

    legal

    and equitable remedies available to it, in the

    appropriate

    United

    States

    Dis tr i ct Cour t.

    Please

    note

    that XSTATIC would like

    an

    amicable resolution to this matter. However, should you

    persist in your baseless

    allegations

    of infringement, my client

    will

    have no choice butto aggressively

    and vigorously defend its position.

    Please

    be

    advised

    that

    nothing

    in

    this letter

    shall constitute

    a

    waiver

    of

    any

    of

    XSTATIC s rights

    or

    remedies to which XSTATIC

    may

    be

    entitled

    in law and/or equity, including the right to institute

    suit for tor tious

    interference.

    SincerelyYours,

    tide

    Pearl Cohea

    Zedek

    Latzer, LLP

    Cc:

    Vikram M.

    Reddy,

    Esq. ([email protected])

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    T-TT

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    EXH IB I T C

  • 8/10/2019 Xstatic v. Hsiao & Montano - Complaint

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    F

    o

    m

    o

    o

    a

    e

    *e

    rear

    of

    the

    lower

    box Furthermore, this invention

    devices

    without

    removing

    a

    device

    from

    its case. This is

    ^s

    the

    disadvantage

    of

    not allowing

    the

    user to operate a

    accomplished

    by structuring

    the case

    in, say, two

    device-

    25 laPjP

    or

    other

    accessories

    in

    tandem

    with

    the

    operation

    of

    conta.mngboxes,oneofwhichisthenoffsetfromtheother.n

    audl foments

    while in the

    field, because a variably

    an

    operating

    position to

    reveal the

    elements of

    said

    devices

    or

    adjustable platform

    for

    such use is

    not provided,

    equipment

    for access

    by an

    operator.

    0tLher devlces

    related

    to movmf abox-like

    article

    relative

    to other

    parts

    m an assembly include a variety of complex

    Widely used

    in

    the f ield of the personal delivery of

    30

    devices

    employing

    roller

    bearings

    and races. For example,

    recorded music toaudiences by for example,

    on-location

    disc y g pat No 5

    275

    492 toShirai

    teaches

    a

    slide

    unit

    mounted

    jockeys suchboxcaseshavetraditionallypermmedanopera- Qn -^ ^ fe ro]H members and irf

    tor the choice between two

    and

    only two stable

    modes.

    In

    the

    nj

    ks for lubrication similariy,

    U.S.

    Pat. No. 5,344,228

    to

    first

    of

    these, the

    transport

    mode, theupper box ofthe

    case is Kovadk

    e, a) teaches mamen t

    ofchannel

    members,

    mated with the

    lower

    box, usually

    asmall

    number

    ofhook and

    35 for

    (sets ofba^^ m

    inlermediate shde

    mem-

    latch fasteners, typically

    two

    on each of the

    two

    opposing

    ber

    ^

    fifst and

    SCond

    ^ s

    to

    faciHtate

    movement ofa

    s,des, each latch engaging only

    one

    transport

    hook. The

    dnJwer

    re]ative tQ

    g

    stati base

    llwZdlihTebm

    rolected

    for^ans

    ortaetiony

    Accordingly,

    it

    is an

    object

    of

    the

    present invention

    to

    ^ P P

    provide

    a casefor

    transporting

    and

    operating electronic

    and

    Intheother ofthe two

    states,

    viz., the

    operating mode,

    the 40

    acoustic equipment

    that

    overcomes

    thecostand

    safety prob-

    latches onthe upper

    box

    ofthebase are disengaged

    from

    the

    ]ems

    mat arecharacteristic of the prior

    art.

    lower box

    transport

    hooks, and the

    upper box

    isremoved

    and

    A

    seCond object

    of

    this invention

    to

    provide

    an

    equipment

    thus exposingthe equipment in the lower box for operat ion. case that is more multi -funct ional than convent ional cases

    An example of the foregoing tradit ional box case is the when in field use, and which permits the operatora comfort -

    Genesis ST-17A, a 17space DJ case sold by Genesis

    of

    Los 45 able degreeof continuous adjustment of a platform for com-

    Angeles, Calif.An upper box ofthe case is offset byapproxi- puters and other accessories inan operating position that suits

    mately one-halfitsdepth to achieve an operating positionthat his or her own preference, while maintaining an ergonomic

    is limited to the discrete locationallowed by the placementof and stable arrangement of the case in the operatingmode,

    the operating hooks.

    These

    hooks are fastened,

    one

    on

    each

    side of the lower box, approximately midway between the 50 SUMMARY OF THE INVENTION

    two transport hooks. For

    each

    side, the frontmost latch, the

    one that had engaged the frontmost transport hook in the A casefor housingaudio andelectronic equipment during

    transport mode, now engages the operating hook, while the stationary and transitional operations having lower and upper

    other (rearmost)latch hasnothing toengage, being located on boxes with an upper platform that may be variably shifted

    that portion ofthe upper box that is cantilevered out from the 55 rearward or forward along the lower box to expose the equip-

    lower box. The operator is thus restricted to a single, fixed ment devices inthe lower box for operation and to provide a

    operating position. Moreover, relying on such a single point platform for electronic devices and other accessories. A lower

    of contact on each side of a case to secure a heavy case box slider member channel having an outwardly projecting

    may result in undesirable and potentially dangerous loss

    of

    angled flange is mounted along the upper edge

    of

    each side

    stabili ty should any such contact point fail. Conversely, the 60 surface ofthe lower box. Additionally, an upper slider mem-

    present invention allows the placement of laptop or other ber channel having a protruding longitudinally extending

    accessories on a platform capable of variable sliding move- web is mounted along the lower edge of each side surface of

    ment resulting in multiple horizonta l adjustment points in the upper pla tform.

    accordancewith user selectedcomfort level while still allow- When the latches are disengaged and upper box removed,

    ing access to the lower box area. Additionally, the user will

    65

    the upper platform could be shifted rearward or forward in a

    not be constrained with only one selected point position so variable horizontal movement. The continuity of the upper

    that multiple sizes of computers orother accessories may be and lower slider memberchannels attached to said platform

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    US 7,614,521 B2

    toeachother in theirunassembledstateforeaseof illustration

    in the first and

    second

    embodiments.

    FIG.

    12 isa top plan view ofthe

    platform

    and

    multiple

    box

    case in the second embodiment.

    5 FIG. 13isa

    right side elevation view

    of

    the platform and

    multiple box case in the second embodiment.

    FIG.

    14isa

    right

    side

    elevation

    view ofthe

    platform

    and

    multiple box

    case exposing the upperplatform with the upper

    boxraisedfor easeof illustration in thesecondembodiment.

    10 FIG. 15isa front elevation

    view

    ofthe platform and

    mul

    tiple box case in the second embodiment.

    DESCRIPTION

    OF THE

    PREFERRED

    EMBODIMENTS

    and

    lowerbox isfrictionally engaged along its length,

    thereby

    permitting an operator to

    select

    variable positions to suithis

    or her preference. Therefore, the slider member channel

    assembly will include

    at

    least

    a

    first

    or

    upper

    slider

    member

    channeland secondor lower slidermemberchannelwhich

    telescopically slides in thelowerslidermemberchannel in a

    longitudinal

    axial

    direction.

    Theupper

    slider

    member

    chan

    nel includes a centerspanor web.The lowerslidermember

    channel includes an

    outwardly

    projecting

    angled

    flange. The

    center

    web and angled

    flange

    arein opposed,

    generally

    par

    allel

    relation

    to

    one

    another and slide longitudinally

    with

    respect

    to

    each

    other as

    the

    channels

    slide.

    According to another aspect ofthe invention, the upper

    slidermemberchannelhas a linearseriesof shallowconcave

    safety stop holes pre-drilled below and parallel to

    the

    flange

    portion of the

    member.

    A

    spring

    loaded metal ball tightly

    fitted inahole sufficient tohold said spring in

    the edge

    topof

    the

    box

    sides

    is

    recessed but

    slightly protruding there-through

    the

    lower

    slider member channel to frictionally engage said

    safety

    stop

    holes

    andthe

    bottom

    flange portion ofsaidlower

    slidermemberchannelto allowa smooth andfluidmovement

    ofthe upper platform.

    According

    to

    another aspect

    ofthe

    invention,

    a

    safety

    stop

    angularhole is substantially near oneofthe terminalendsof

    the upper slider member channel and

    is

    sufficiently close

    to

    said member flange that

    acantilever biased

    leverwill engage

    said angular hole atthemost

    extended outward

    position.

    These and other features of the

    present invention

    will

    become

    apparent

    from the

    following

    Description and an

    Exemplary

    Embodiments

    when taken inconjunction withthe

    claimsand drawing figures herein described.

    An

    improved

    equipment case

    10

    for transporting and oper

    ating audio and electronic devices for disc jockeys

    and

    the

    like is

    shown

    in FIG. 1. The present invention relates to

    apparatus

    for

    securely closing

    the equipment case 10 in a

    20

    transportmode,and forsafelyexposingthedevicesin a lower

    box in an

    operating

    mode.

    Access

    to devices on an upper

    platform

    11

    is

    typically gained through

    one

    or

    more panels

    on

    the

    surfaces

    ofthe

    upper

    box 12asiswell known in

    the art,

    the

    placement

    of

    which

    doors is

    not critical with respect

    tothe

    25 present

    invention.

    Referringnow to

    FIG.

    4,the

    upper

    platform 11 is

    supported

    abovethe lowerbox13 ina

    stationary

    or transitional mode.

    Theupper platform isheld securely together with thelower

    box

    when being transported from place toplace by the

    fric-

    30

    tional engagement of

    the upper

    slider member 14

    (shown

    in

    FIG. 11) fastened to the upper platform 11 with the lower

    slider

    member

    15 (shown in FIG. 11)

    fastened

    to the

    lower

    box

    13.

    While theupper platform 11isin the stationary or

    transitional mode, the upper slider member channel 14

    35

    (shown

    in FIG.11) is in

    engagement

    with the lowerslider

    member channel

    15 (shown in

    FIG. 11).

    By

    sliding outward

    into the

    cantilever

    spring lever member

    16

    (shown

    in

    FIG.

    10),

    the

    said lever

    member

    engage

    ina

    tight secure

    position

    with

    the

    upper slider

    memberchannel

    14

    (shown

    inFIG.

    11).

    40 Thus, the

    cantilever spring lever member

    16

    (shown

    in

    FIG.

    10)

    locks the upper platform

    11

    (shown in

    FIG.

    11) to the

    lower

    box

    13. By sliding inward,

    the

    cantilever spring lever

    members

    16

    (shown

    in FIG. 10)aremoved

    away

    from the

    slider member channel.

    Thus, the

    cantilever spring lever

    45 members 16

    (shown

    inFIG. 10)areno longer incontact with

    the

    safety angular

    stopping

    hole 17 (shown in

    FIG.

    9)

    and

    therefore, slides freely engaged

    tothe

    upper

    slider

    member

    channel14 (shownin FIG.11).

    Although

    right

    side

    surfaces

    18and 19(shown in

    FIG.

    4)of

    50

    the

    upper

    and lower boxes, respectively, are

    shown

    for

    pur

    poses of

    illustration,

    thediscussion

    herein

    applies equally to

    thelatchesand slidermemberchannelthataremountedonthe

    leftside surfaces (notshown)ofthe boxes.

    Now

    referring

    to

    FIG.

    13,

    first

    latch

    20,

    the

    side

    latch,

    is

    55

    disposed

    in

    close proximity

    to

    second latch

    21,

    both latches

    beinglocatedinengagementnearthe slidermemberchannels

    14,15

    (shown in

    FIG.

    11). Third latch 22(shown in

    FIG.

    7)is

    remotefromfirstandsecondlatches20,21 nearthecenterof

    the side box. All

    ofthe

    latches

    20, 21,

    22 (shown

    in

    FIG. 7)

    60 andthe corresponding latches (not shown) mounted onthe

    left side surfaces

    areina

    locked

    or

    engaging condition

    as

    illustrated

    in

    FIG. 13. When the latches 20, 21,22, (shown

    in

    FIG.

    7)

    are thus positioned

    as

    shown

    in

    FIG. 13, the equip

    ment case 23 is thereby locked in the transitional mode.

    65

    Now

    referring to

    FIG. 11,

    the

    configuration

    ofupper slider

    member channel 14 and lower slider memberchannel 15 is

    more clearly seen in FIGS. 10 and 11. The material of lower

    BRIEF DESCRIPTION OF THE DRAWING

    FIGURES

    FIG.

    1isatop

    view

    ofa

    platform

    and

    multiple

    boxcasein

    the first preferred embodiment.

    FIG.2 is a backview illustrating the lower boxwith the

    upperbox removed in the firstpreferredembodiment.

    FIG. 3 is a front view illustrating the lowerbox and the

    upper

    box initsassembled stateinthefirst

    preferred

    embodi

    men t .

    FIG. 4isa side view illustrating the

    platform,

    lower box,

    andupperboxinits

    assembled

    state with theupperboxraised

    to expose the complete platform for ease of illustration in the

    first preferred embodiment.

    FIG. 5isatop

    view

    ofa platform and

    multiple

    boxcasein

    the second preferred embodiment.

    FIG. 6 i s a front view illustrating the lowerboxwiththe

    upperbox in an offsetposition for ease of illustrationin the

    second preferred embodiment.

    FIG. 7isa side view illustrating the

    platform,

    lower box,

    and upper

    box inits

    assembled statewith

    the

    upper box raised

    to expose the complete platform for ease

    of

    illustration in the

    second preferred embodiment.

    FIG. 8isa

    bottom

    planview oftheupperslider

    element

    in

    its unassembled state in the first andsecondembodiments.

    FIG.9 is a bottomplan viewofthe lower slider element in

    its unassembledstate in the first and second embodiments.

    FIG. 10isaside elevation view ofthetopside portion ofthe

    lowerboxwith the spring, metal ball, and cantilever lever

    positioned adjacent to each other in their unassembled state

    forease of illustrationin the first andsecondembodiments.

    FIG. 11isaperspective view ofthetopside

    portion

    ofthe

    lower box with thespring, metal ball, cantilever level,

    lower

    slider

    element,

    and upper

    slider

    element

    positioned

    adjacent

  • 8/10/2019 Xstatic v. Hsiao & Montano - Complaint

    57/58

    US 7,614,521 B2

    slider

    member

    channel 15may consist of extruded aluminum

    or

    otherlight, strongmaterial that can be affixed tothe top 24

    ofthe

    lower box 25 by mounting fasteners.

    The

    material of

    upper slider member channels 14 may consist of extruded

    aluminumor otherlight, strongmaterial that can beaffixedto 5

    the sides

    of

    the upper platform 36 (shown in FIG. 7) by

    mounting fasteners.

    Still referring to FIG. 11, the continuous flange 26 projects

    upwardly from the

    upperedge

    27

    ofthe

    lower slider

    member

    channel 15. A linear series of pre-dri lled holes 28 (shown in 10

    FIG. 8), either blind or, if more economical, drilled through

    the upper slider

    member

    channel 14, is disposed parallel to

    the

    continuous web

    29.

    The

    series of

    holes

    28

    (shown

    in

    FIG.

    8) is arranged along a two-third length of said

    upper

    slider

    memberchannel 14nearesttothe terminalend containing the 15

    angular hole 30 (shown in FIG. 9).

    Now referring to FIG. 10, the spring 31 and metal ball 32

    assembly is recessed within a

    bore

    33 in the top of

    each

    side

    24 (shown in FIG. 11) ofthe lower box and extended there

    through the lower slider member channel 15 (shown in FIG. 20

    11) via pre-drilled hole 34 (shown in FIG. 9) with the metal

    ball 32 situated slightly above the planar surface 27 (shown in

    FIG. 11)

    ofthe

    lower slider

    member

    channel 15 (shown in

    FIG. 11).

    The

    cantilever spring lever 1