Case 1:17-cv-05735 Document 1 Filed 07/28/17 Page 1 of 9

IN THE UNITED STATES DISTRICT COURT

FOR THE SOUTHERN DISTRICT OF NEW YORK

INTERNATIONAL SALES, INC.,

Plaintiff,

v. CASE NO. 1:17-cv-5735

THE CONTAINER STORE GROUP,

INC., COMPLAINT

and

RICHARDS HOMEWARES, INC.,

Defendants.

Plaintiff International Sales, Inc. (International Sales or Plaintiff) for its

complaint against defendants The Container Stores Group, Inc. (TCS) and Richards

Homewares, Inc. (Richards) (collectively Defendants) alleges as follows:

NATURE OF ACTION

1. This is an action for patent infringement under 35 U.S.C. 271, et seq. for

infringement of United States Design Patent Nos. D733,540 and D734,135 (collectively

the Patents-in-Suit, respectively the D540 Patent and the D135 Patent), both of

which are attached hereto.

JURISDICTION AND VENUE

2. This action arises under the Patent Act, 35 U.S.C. 1, et seq.

3. Subject matter jurisdiction is proper in this Court under 28 U.S.C. 1331 and

1338.
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4. This Court has personal jurisdiction over TCS because at least a portion of the

infringements alleged herein occurred in the State of New York and in this District, and

because TCS regularly does business, engages in other persistent courses of conduct, or

derives revenue from goods and services provided to individuals in the State of New

York and in this District, through TCSs electronic commerce website

http://www.containerstore.com/welcome.htm and through its six retail stores located in

the State of New York, including four retail stores located in this District

5. Venue is proper in this District with respect to TCS under 28 U.S.C. 1400(b)

because TCS has regular and established places of business in this District in the form of

four retails stores, and because TCS has committed acts of infringement in this District

through such retail stores and through its electronic commerce website.

6. This court has personal jurisdiction over Richards because Richards transacts

business in the State of New York and because it maintains its national sales office in the

State of New York.

7. Venue is proper in this District with respect to Richards under 28 U.S.C.

1400(b) because Richards maintains a regular and established place of business in this

District in the form of its national sales office located at 230 Fifth Avenue, Suite 1700,

New York, NY 10001, and because, upon information and belief, it has committed acts of

infringement in this District at least by offering to sell and selling the Infringing Products

to TCS through its national sales office in this District.

THE PARTIES

8. International Sales, Inc. is a Virginia corporation with its principal place of

business at 576 North Birdneck Road, Suite 712, Virginia Beach, VA 23451.

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9. Defendant The Container Store Group, Inc. is a Delaware corporation with a

principal place of business at 500 Freeport Parkway, Coppell, Texas 75019.

10. Defendant Richards Homewares, Inc. is an Oregon corporation with a principal

place of business at 10675 N. Lombard St., Portland, Oregon 97203.

FACTUAL ALLEGATIONS

11. Plaintiff is a seller of home goods, including particularly bed lifts having a design

shown in the Patents-In-Suit.

12. On May 10, 2013 Plaintiff filed U.S. patent application Nos. 29/442,761 and

29,442,762 with the U.S. Patent and Trademark Office (the PTO), seeking to obtain

patent protection for its design for a bed lift.

13. On July 7, 2015 the PTO issued U.S. Design Patent No. D733,540 and on July 14,

2015 the PTO issued U.S. Design Patent No. D734,135.

14. The D540 and the D135 patents are subsisting and in force.

15. Plaintiff International Sales, Inc. is the owner of record of the 540 and the 135

patents.

16. Since approximately April 2016, International Sales has been systematically and

continuously marking the bed lifts and the boxes of the bed lifts it sells with the numbers

of the Patents-In-Suit.

17. Without the authorization or consent of International sales, Defendants are

making, using, offering for sale, selling, and/or importing infringing model number 1985-

4, The Container Store SKU # 10068860 (the Infringing Product), pictured below:

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18. TCS offers to sell and sells the Infringing Products to retail customers through its

nationwide network of approximately 90 retail stores and through its e-commerce

website.

19. The Infringing Products are manufactured abroad; Richards imports them into the

United States and offers to sell and sells them to TCS.

20. Upon information and belief, TCS began selling the Infringing Products in early

or mid 2016.

21. Richards website www.richardshomewares.com directs customers to its National

Sales Office and lists the phone number 212-889-0932 and the contact email address

jgarey@beaconny.com for the National Sales Office.

22. The phone number and the email address correspond to Suite 1700 at 230 Fifth

Avenue, New York, NY 10001.

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23. The directory of the building housing Richards national sales office lists

Richards Homewares, Inc. for suite 1700, along with the contact information for Jamie

Garey and same phone number appearing on Richards website.

24. The door of suite 1700 of the building that houses Richards national sales office

displays the name Richards as well as the name beacon products inc., E. GAREY,

and N. Marzano.

25. Richards national sales office in this District displays maintains a stock of

Richards branded items for sale on display.

26. When a potential customer visits Richards national sales office in this District, a

sales agent provides the full Richards catalog on a usb thumb drive.

27. When a potential customer visits Richards national sales office in this District, a

sales agent asks the customer to fill out a new customer form that is titled Richards

Homewares Customer Form.

28. Upon information and belief, Richards national sales office located in this

District is its only sales office and its only showroom.

29. Upon information and belief, Richards transacts a substantial amount of its

business through its national sales office in this District.

30. Upon information and belief, Beacon Products, Inc. is the exclusive sales agent

for Richards.

31. Upon information and belief, Richards exercises substantial control over the

manner in which Beacon serves as Richards sales agent.

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32. Upon information and belief, Richards national sales office in this District has

continuously and systematically solicited orders and exhibited and demonstrated

Richards products.

33. Upon information and belief, sales and offers for sale of Infringing Product are

made through Richards national sales office located in this District.

COUNT I

INFRINGEMENT OF U.S. PATENT NO. D733,540

34. International Sales repeats and realleges each allegation contained in the prior

paragraphs and incorporates them herein.

35. The D540 patent claims the design as shown in the drawings contained therein.

The Infringing Product is the same, or is substantially identical to, the design claimed in

the D540 Patent as shown in the drawings contained therein.

36. An ordinary observer with an understanding of the relevant prior art of bed lifts

would be deceived into believing that the Infringing Product is the same as the patented

design of the D540 Patent.

37. Defendants have infringed and continue to infringe the D540 Patent literally

and/or under the doctrine of equivalents, by making, using, offering for sale, selling,

and/or importing the Infringing Products without the authority of International Sales.

38. Upon information and belief, Richards conduct and infringement of D540 Patent

is and has been willful and deliberate.

39. As a result of its infringement of the D540 Patent, Defendants have damaged

Plaintiff.

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40. Defendants are liable to Plaintiff in an amount to be determined at trial, which

shall be in no event less than a reasonably royalty, or, at plaintiffs election, Defendants

total profits arising from selling the infringing goods.

41. Defendants acts have caused, and unless enjoined will continue to cause,

irreparable injury and damages to Plaintiff for which there is no adequate remedy at law.

Unless enjoined by this Court, Defendants will continue to infringe the D540 patent.

COUNT II

INFRINGEMENT OF U.S. PATENT NO. D734,135

42. International Sales repeats and realleges each allegation contained in the prior

paragraphs and incorporates them herein.

43. The D135 patent claims the design as shown in the drawings contained therein.

The Infringing Product is the same, or is substantially identical to, the design claimed in

the D135 Patent as shown in the drawings contained therein.

44. An ordinary observer with an understanding of the relevant prior art of bed lifts

would be deceived into believing that the Infringing Product is the same as the patented

design of the D135 Patent.

45. Defendants have infringed and continue to infringe the D135 Patent literally

and/or under the doctrine of equivalents, by making, using, offering for sale, selling,

and/or importing the Infringing Products without the authority of International Sales.

46. Upon information and belief, Richards conduct and infringement of D135 Patent

is and has been willful and deliberate.

47. As a result of its infringement of the D135 Patent, Defendants have damaged

Plaintiff.

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48. Defendants are liable to Plaintiff in an amount to be determined at trial, which

shall be in no event less than a reasonably royalty, or, at plaintiffs election, Defendants

total profits arising from selling the infringing goods.

49. Defendants acts have caused, and unless enjoined will continue to cause,

irreparable injury and damages to Plaintiff for which there is no adequate remedy at law.

Unless enjoined by this Court, Defendants will continue to infringe the D135 patent.

WHEREFORE, International Sales, Inc. requests judgment against Defendants

as follows:

A. A judgement that Defendants conduct infringes the Patents-In-Suit in

violation of 35 U.S.C. 271 et seq.

B. A judgement that Defendants and their agents, officers, directors, servants,

employees, their successors and assigns, and all others in active concert or participation

with Defendants be permanently enjoined from directly or indirectly making, using,

offering for sale, selling, or important any product, including the Infringing Product

and/or any later or subsequent versions of the Infringing Product, that infringe the

Patents-in-Suit.

C. An Order directing Defendants to immediately destroy or deliver to

International Sales all Infringing Products, labels, advertisements, promotional materials,

business forms, catalogs, or price sheets in the possession, custody or control of

Defendants that relate to the Infringing Products.

D. An award under 35 U.S.C. 289 of Defendants total profits for all sales of

the Infringing devices.

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E. Actual damages suffered by International Sales.

F. A judgment awarding Plaintiff all damages adequate to compensate for

Defendants infringement of the patents-in-suit, and in no event less than a reasonable

royalty for Defendants acts of infringement, including treble damages based on any

infringement found to be willful, pursuant to 35 U.S.C. 284, and at Plaintiffs election,

Defendants total profits under 35 U.S.C 289, including all pre-judgment and post-

judgment interest at the maximum rate permitted by law.

G. Such other, further, and different relief as the nature of this action may require

and that the Court may deem just and proper.

Respectfully submitted,

Dated: July 28, 2017

/s/ Douglas V. Rigler
Douglas V. Rigler (DR9355)
Jeffrey M. Goehring
(Pro hac vice application to be filed)
Young & Thompson
209 Madison Street, Suite 500
Alexandria, VA 22314
Tel: (703) 521-2297
Fax: (703) 685-0573
drigler@young-thompson.com
jgoehring@young-thompson.com

Attorneys for Plaintiff International Sales,

Inc.

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EXHIBIT 1
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EXHIBIT 2
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