Zhou v. Mystery Defendants - Complaint

Case 4:19-cv-00590 Document 1 Filed 08/07/19 Page 1 of 9 PageID #: 1
IN THE UNITED STATES DISTRICT COURT

FOR THE EASTERN DISTRICT OF TEXAS
SHERMAN DIVISION
XIANXUE ZHOU
Plaintiff,
v. Civil Action No. 4:19-cv-590
THE PARTNERSHIPS and

UNINCOPORATED ASSOCIATIONS
IDENTIFIED ON SCHEDULE “A”
Defendant.
COMPLAINT
Plaintiff Xianxue Zhou (“Zhou” or “Plaintiff”) hereby brings the present action against the
Partnerships and Unincorporated Associations identified on Schedule A attached hereto
(collectively, “Defendants”) and alleges as follows:
JURISDICTION AND VENUE
1. This is an action for infringement of the U.S. Patent No. D833,267 (“the ’267
Patent”) arising under 35 U.S.C. §§ 271(a)-(b), 281, and 284 - 85. This Court has subject matter
jurisdiction over this action under 28 U.S.C. §1331 and §1338(a).
2. Venue is proper in this district under 28 U.S.C. § 1400(b). Upon information and
belief, each Defendant has sold infringing items in the United States, including the State of Texas.
Furthermore, Venue is proper in this district under 28 U.S.C. § 1391 this Court may properly
exercise personal jurisdiction over Defendants since each of the Defendants directly targets
business activities toward consumers in the United States, including Texas, through at least the
fully interactive, commercial Internet stores operating under the Online Marketplace Accounts
identified in Schedule A attached hereto (collectively, the “Defendant Internet Stores”).
1

Specifically, Defendants are reaching out to do business with Texas residents by operating one or
more commercial, interactive Defendant Internet Stores through which Texas residents can
purchase products featuring Plaintiff’s patented design. Each of the Defendants has targeted sales
from Texas residents by operating online stores that offer shipping to the United States, including
Texas, accept payment in U.S. dollars and, on information and belief, has sold products featuring
Plaintiff’s patented design to residents of Texas. Each of the Defendants is committing infringing
acts in Texas, is engaging in interstate commerce, and has wrongfully caused Plaintiff substantial
injury in the State of Texas.
INTRODUCTION
3. This action has been filed by Plaintiff to combat online infringers who trade upon
Plaintiff’s reputation and goodwill by selling and/or offering for sale unauthorized and unlicensed
products, namely the video doorbell stents shown in Exhibit 1, that infringe Plaintiff’s patented
design, U.S. Patent No. D833,267 (the “Infringing Products”). The Defendants create the
Defendant Internet Stores by the dozens and design them to appear to be selling genuine products,
while actually selling Infringing Products to unknowing consumers. The Defendant Internet Stores
share unique identifiers, such as using the same product images, same advertising, design elements
and similarities of the infringing products offered for sale, establishing a logical relationship
between them and suggesting that Defendants’ operation arises out of the same transaction,
occurrence, or series of transactions or occurrences. Defendants attempt to avoid liability by going
to great lengths to conceal both their identities and the full scope and interworking of their
operation. Plaintiff is forced to file this action to combat Defendants’ infringement of its patented
design, as well as to protect unknowing consumers from purchasing Infringing Products over the
Internet. Plaintiff has been and continues to be irreparably damaged from the loss of its lawful
2

patent rights to exclude others from making, using, selling, offering for sale, and importing its
patented design as a result of Defendants’ actions and seeks injunctive and monetary relief.
THE PARTIES
4. Plaintiff Xianxue Zhou is an individual residing in Shenzhen, China. Plaintiff is
the inventor and owner of U.S. Design Patent No. D833,267 titled “Door Stent.”
5. Plaintiff operates the HOMONO Amazon store which offers for sell Video
Doorbell stents which practices the ’267 Patent. Plaintiff has established its product as the first to
market and has an established reputation and reviews.
6. Plaintiff’s Video Doorbell stents have been well received by customers installing
video doorbells who desire a wider angle of viewing, with numerous positive reviews on Amazon
as well as third party reviews. See e.g. https://the-gadgeteer.com/2018/03/13/adjust-the-angle-of-
your-ring-doorbell-for-a-perfect-view-of-whos-at-the-door/
7. Plaintiff is the lawful owner of all rights, title, and interest in the ’267 Patent. The
’267 Patent was duly issued on November 13, 2018. Attached hereto as Exhibit 2 is a true and
correct copy of the ’267 Patent.
8. Plaintiff has not granted a license or any other form of permission to Defendants
with respect to the patent design or the ’267 Patent.
9. Defendants are individuals and business entities who, upon information and belief,
reside in the People’s Republic of China or other foreign jurisdictions. Defendants conduct
business throughout the United States, including within the State of Texas and this Judicial
District, through the operation of the fully interactive, commercial online marketplaces operating
under the Defendant Internet Stores. Each Defendant targets the United States, including Texas,
3

and has offered to sell, and, on information and belief, has sold and continues to sell Infringing
Products to consumers within the United States, including the State of Texas.
10. On information and belief, Defendants are an interrelated group of infringers
working in active concert to knowingly and willfully make, use, offer for sale, sell, and/or import
into the United States for subsequent sale or use products that infringe directly and/or indirectly
the ’267 Patent in the same transaction, occurrence, or series of transactions or occurrences.
Tactics used by Defendants to conceal their identities and the full scope of their operation make it
virtually impossible for Plaintiff to learn Defendants’ true identities and the exact interworking of
their network. In the event that Defendants provide additional credible information regarding their
identities, Plaintiff will take appropriate steps to amend the Complaint.
11. Plaintiff has not licensed or authorized Defendants to use the invention claimed in
the ’267 Patent, and none of the Defendants are authorized retailers of Plaintiff’s Products.
12. Defendants go to great lengths to conceal their identities and often use multiple
fictitious names and addresses to register and operate their network of Defendant Internet Stores.
On information and belief, Defendants regularly create new online marketplace accounts on
various platforms using the identities listed in Schedule A to the Complaint, as well as other
unknown fictitious names and addresses. Such Defendant Internet Store registration patterns are
one of many common tactics used by the Defendants to conceal their identities, the full scope and
interworking of their operation, and to avoid being shut down.
13. Even though Defendants operate under multiple fictitious names, there are
numerous similarities among the Defendant Internet Stores. The Defendant Internet Stores include
notable common features, including the same product images, accepted payment methods, check-
out methods, meta data, illegitimate SEO tactics, lack of contact information, identically or
4

similarly priced items and volume sales discounts, the same incorrect grammar and misspellings,
similar hosting services, and the use of the same text and images, including content copied from
Plaintiff’s original product listings.
14. In addition to operating under multiple fictitious names, Defendants in this case and
defendants in other similar cases against online infringers use a variety of other common tactics to
evade enforcement efforts. For example, infringers like Defendants will often register new online
marketplace accounts under new aliases once they receive notice of a lawsuit. Infringers also
typically ship products in small quantities via international mail to minimize detection by U.S.
Customs and Border Protection.
15. Further, infringers such as Defendants typically operate multiple credit card
merchant accounts and PayPal accounts behind layers of payment gateways so that they can
continue operation in spite of Plaintiff’s enforcement efforts, such as take down notices. On
information and belief, Defendants maintain off-shore bank accounts and regularly move funds
from their PayPal accounts or other financial accounts to off-shore bank accounts outside the
jurisdiction of this Court. Indeed, analysis of PayPal transaction logs from previous similar cases
indicates that offshore infringers regularly move funds from U.S.-based PayPal accounts to China-
based bank accounts outside the jurisdiction of this Court.
16. Defendants, without any authorization or license from Plaintiff, have knowingly
and willfully offered for sale, sold, and/or imported into the United States for subsequent resale or
use products that infringe directly and/or indirectly the ’267 Patent, and continue to do so via the
Defendant Internet Stores. Each Defendant Internet Store offers shipping to the United States,
including Texas, and, on information and belief, each Defendant has sold Infringing Products into
the United States, including Texas.
5

17. Defendants’ infringement of the ’267 Patent in the offering to sell, selling, or
importing of the Infringing Products was willful.
18. Defendants’ infringement of the ’267 Patent in connection with the offering to sell,
selling, or importing of the Infringing Products, including the offering for sale and sale of
Infringing Products into Texas, is irreparably harming Plaintiff.
COUNT I
INFRINGEMENT OF UNITED STATES DESIGN PATENT NO. D833,267
(35 U.S.C. § 271)
19. Plaintiff hereby re-alleges and incorporates by reference the allegations set forth in
the preceding paragraphs.
20. Defendants offer for sale, sell, and/or import into the United States for subsequent
resale or use Infringing Products that infringe directly and/or indirectly the ornamental design
claimed in the ’267 Patent.
21. Defendants have infringed the ’267 Patent through the aforesaid acts and will
continue to do so unless enjoined by this Court. Defendants’ wrongful conduct has caused Plaintiff
to suffer irreparable harm resulting from the loss of its lawful patent rights to exclude others from
making, using, selling, offering for sale, and importing the patented inventions. Plaintiff is entitled
to injunctive relief pursuant to 35 U.S.C. § 283.
22. Unless a preliminary and permanent injunction is issued enjoining Defendants and
all others acting on in active concert therewith from infringing the ’267 Patent, Plaintiff will be
greatly and irreparably harmed.
23. Plaintiff is entitled to recover damages adequate to compensate for the
infringement, including Defendants’ profits pursuant to 35 U.S.C. § 289. Plaintiff is entitled to
recover any other damages as appropriate pursuant to 35 U.S.C. § 284.
6

24. At all times, Plaintiff has complied with 35 U.S.C. § 287 by marking its products
with the ’267 Patent.
PRAYER FOR RELIEF
WHEREFORE, Plaintiff prays for a judgment against Defendants as follows:
1) That Defendants, their affiliates, officers, agents, servants, employees, attorneys,
confederates, and all persons acting for, with, by, through, under or in active concert with them be
temporarily, preliminarily, and permanently enjoined and restrained from:
a. offering for sale, selling, and importing any products not authorized by Plaintiff
and that include any reproduction, copy or colorable imitation of the design claimed
in the ‘267 Patent;
b. aiding, abetting, contributing to, or otherwise assisting anyone in infringing upon
the ‘267 Patent; and
c. effecting assignments or transfers, forming new entities or associations or utilizing
any other device for the purpose of circumventing or otherwise avoiding the
prohibitions set forth in Subparagraphs (a) and (b).
7

2) Entry of an Order that, upon TRX’s request, those in privity with Defendants and those
with notice of the injunction, including, without limitation, any online marketplace platforms such
as iOffer, eBay, AliExpress, Alibaba, Amazon, Wish.com, Walmart.com, and Dhgate, web hosts,
sponsored search engine or ad-word providers, credit cards, banks, merchant account providers,
third party processors and other payment processing service providers, Internet search engines
such as Google, Bing and Yahoo (collectively, the “Third Party Providers”) shall:
a. disable and cease providing services being used by Defendants, currently or in the
future, to engage in the sale of goods that infringe the ‘267 Patent;
b. disable and cease displaying any advertisements used by or associated with
Defendants in connection with the sale of infringing goods using the ‘267 Patent;
and
c. take all steps necessary to prevent links to the Defendant Internet Stores identified
on Schedule A from displaying in search results, including, but not limited to,
removing links to the Defendant Internet Stores from any search index;
3) That Plaintiff be awarded such damages as it shall prove at trial against Defendants that
are adequate to compensate Plaintiff for infringement of the ‘267 Patent, and all of the profits
realized by Defendants, or others acting in concert or participation with Defendants, from
Defendants’ unauthorized use and infringement of the ‘267 Patent;
4) That Plaintiff be awarded from Defendants, as a result of Defendants’ use and infringement
of the ‘267 Patent, three times Plaintiff’s therefrom and three times Defendants’ profits therefrom,
after an accounting, pursuant to 35 USC § 284;
5) That TRX be awarded its reasonable attorneys’ fees and costs; and
6) Award any and all other relief that this Court deems just and proper.
8

Dated this 7th day of August 2019. Respectfully submitted,
/s/ Hao Ni
Hao Ni
Texas Bar No.: 24047205
Ni, Wang & Massand, PLLC
8140 Walnut Hill Lane, Suite 500
Dallas, TX 75231
972.331.4600
97.314.0900 (facsimile)
hni@nilawfirm.com
Counsel for Plaintiff Xianxue Zhou
9

Case 4:19-cv-00590 Document 1-1 Filed 08/07/19 Page 1 of 1 PageID #: 10

SHERMAN DIVISION
XIANXUE ZHOU
Plaintiff,

Defendant.
EXHIBIT 1 – SEALED DOCUMENT
This document is being filed under seal with a motion for leave to file documents under
Seal. A full version of Exhibit 1 will be filed separately under seal and will remain under seal
until further order of this court.
/s/ Hao Ni
Hao Ni

Dallas, TX 75231
972.331.4600
97.314.0900 (facsimile)
hni@nilawfirm.com

Exhibit 2

SHERMAN DIVISION
XIANXUE ZHOU
Plaintiff,

Defendant.
EXHIBIT A – SEALED DOCUMENT
This document is being filed under seal with a motion for leave to file documents under
Seal. A full version of Schedule A will be filed separately under seal and will remain under seal
until further order of this court.
/s/ Hao Ni
Hao Ni
Dallas, TX 75231
972.331.4600
97.314.0900 (facsimile)
hni@nilawfirm.com


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Case 4:19-cv-00590 Document 1 Filed 08/07/19 Page 1 of 9 PageID #: 1

IN THE UNITED STATES DISTRICT COURT

v. Civil Action No. 4:19-cv-590

THE PARTNERSHIPS and

Partnerships and Unincorporated Associations identified on Schedule A attached hereto

(collectively, “Defendants”) and alleges as follows:

JURISDICTION AND VENUE

jurisdiction over this action under 28 U.S.C. §1331 and §1338(a).

identified in Schedule A attached hereto (collectively, the “Defendant Internet Stores”).

injury in the State of Texas.

occurrence, or series of transactions or occurrences. Defendants attempt to avoid liability by going

4. Plaintiff Xianxue Zhou is an individual residing in Shenzhen, China. Plaintiff is

market and has an established reputation and reviews.

as well as third party reviews. See e.g. https://the-gadgeteer.com/2018/03/13/adjust-the-angle-of-

correct copy of the ’267 Patent.

with respect to the patent design or the ’267 Patent.

10. On information and belief, Defendants are an interrelated group of infringers

identities, Plaintiff will take appropriate steps to amend the Complaint.

interworking of their operation, and to avoid being shut down.

Plaintiff’s original product listings.

Customs and Border Protection.

based bank accounts outside the jurisdiction of this Court.

the United States, including Texas.

importing of the Infringing Products was willful.

Infringing Products into Texas, is irreparably harming Plaintiff.

the preceding paragraphs.

claimed in the ’267 Patent.

to injunctive relief pursuant to 35 U.S.C. § 283.

greatly and irreparably harmed.

23. Plaintiff is entitled to recover damages adequate to compensate for the

infringement, including Defendants’ profits pursuant to 35 U.S.C. § 289. Plaintiff is entitled to

recover any other damages as appropriate pursuant to 35 U.S.C. § 284.

with the ’267 Patent.

PRAYER FOR RELIEF

WHEREFORE, Plaintiff prays for a judgment against Defendants as follows:

1) That Defendants, their affiliates, officers, agents, servants, employees, attorneys,

temporarily, preliminarily, and permanently enjoined and restrained from:

in the ‘267 Patent;

b. aiding, abetting, contributing to, or otherwise assisting anyone in infringing upon

the ‘267 Patent; and

c. effecting assignments or transfers, forming new entities or associations or utilizing

prohibitions set forth in Subparagraphs (a) and (b).

b. disable and cease displaying any advertisements used by or associated with

realized by Defendants, or others acting in concert or participation with Defendants, from

Defendants’ unauthorized use and infringement of the ‘267 Patent;

after an accounting, pursuant to 35 USC § 284;

Dated this 7th day of August 2019. Respectfully submitted,

IN THE UNITED STATES DISTRICT COURT

v. Civil Action No. 4:19-cv-590

THE PARTNERSHIPS and

EXHIBIT 1 – SEALED DOCUMENT

until further order of this court.

Dated this 7th day of August 2019. Respectfully submitted,

Ni, Wang & Massand, PLLC

IN THE UNITED STATES DISTRICT COURT

v. Civil Action No. 4:19-cv-590

THE PARTNERSHIPS and

EXHIBIT A – SEALED DOCUMENT

until further order of this court.