Case 5:14-cv Document 1 Filed 11/06/14 Page 1 of 12 Page ID #:1

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1 Case :-cv-00 Document Filed /0/ Page of Page ID #: 0 KATHERINE K. HUANG (State Bar No. ) CARLOS A. SINGER (State Bar No. ) HUANG YBARRA SINGER & MAY LLP 0 South Hope Street, Suite 0 Los Angeles, CA 00-0 Telephone: () -00 Katherine.Huang@hysmlaw.com Carlos.Singer@hysmlaw.com Attorneys for Plaintiff QUANEX IG SYSTEMS, INC. UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA QUANEX IG SYSTEMS, INC., an Ohio corporation, vs. Plaintiff, ATN HOLDING INC., a California corporation; GREEN WORLD WINDOWS AND DOORS CORP., a California corporation; CR WINDOWS AND DOORS, INC., a California corporation; REY NEA, an individual; and DOES through 0, inclusive, Defendants. CASE NO. :-cv-00 COMPLAINT FOR [] PATENT INFRINGEMENT [] FEDERAL TRADEMARK INFRINGEMENT AND UNFAIR COMPETITION [] COMMON LAW TRADEMARK INFRINGEMENT AND UNFAIR COMPETITION [] UNFAIR COMPETITION IN VIOLATION OF CAL. BUS. & PROF. CODE 0 ET SEQ. [] FALSE ADVERTISING IN VIOLATION OF CAL. BUS. & PROF. CODE 00 ET SEQ. DEMAND FOR JURY TRIAL COMPLAINT

2 Case :-cv-00 Document Filed /0/ Page of Page ID #: 0 Plaintiff Quanex IG Systems, Inc., for its Complaint against Defendants ATN Holding Inc., Green World Windows and Doors Corp., CR Windows and Doors, Inc., and Ray Nea, alleges as follows: INTRODUCTION. This is an action for infringement of five patents and a trademark assigned to Plaintiff Quanex IG Systems, Inc. relating to spacer and sealant assemblies that are used in the manufacture of multi-pane, insulated windows. Plaintiff owns the patent rights to the spacer and sealant assemblies, which are manufactured and marketed by Plaintiff under the trademark Duraseal. Plaintiff also owns the patent rights to the multi-pane windows in which the patented spacer and sealant assemblies are used as the structure between, and adhering to, the glass panes of the windows.. Defendants have made, used, offered to sell, and sold spacer and sealant assemblies that are knock-offs of Plaintiff s patented inventions, and may be continuing to do so. Defendants have also falsely advertised their windows as containing Plaintiff s patented inventions and have used Plaintiff s Duraseal trademark on their website and in their marketing materials, all without authorization from Plaintiff.. Defendants willful infringement of Plaintiff s rights have caused, and continue to cause, irreparable harm and damage to Plaintiff. JURISDICTION AND VENUE. This action arises under the patent and trademark laws of the United States. The Court has subject matter jurisdiction over the claims in this action pursuant to U.S.C.,, and (a).. This Court has personal jurisdiction over the defendants pursuant to Federal Rule of Civil Procedure and California Code of Civil Procedure Venue is proper under U.S.C. (b) and (c) and 00(b). The defendants reside in this district, and have committed acts of infringement and have COMPLAINT

3 Case :-cv-00 Document Filed /0/ Page of Page ID #: 0 a regular and established place of business in this district. THE PARTIES. Plaintiff Quanex IG Systems, Inc. ( Quanex ) is a corporation organized and existing under the laws of the State of Ohio, with a principal place of business in Houston, Texas. Quanex manufactures building products, including spacer and sealant assemblies that are used in multi-pane windows, and continually conducts research to develop innovative, energy-efficient insulating glass systems.. Upon information and belief, Defendant ATN Holding Inc. ( ATN ) is a corporation organized and existing under the laws of the State of California, with its principal place of business at 0 Wabash Drive, Mira Loma, CA. Upon information and belief, ATN does business under at least the following fictitious names: ATN Window and Door Corp., Green World Windows and Doors Corp., and Green World Windows.. Upon information and belief, Defendant Green World Windows and Doors Corp. ( Green World ) is a corporation organized and existing under the laws of the State of California, with its principal place of business at 0 Wabash Drive, Mira Loma, CA. Upon information and belief, Green World does business under the fictitious name CR Windows and Doors. 0. Upon information and belief, Defendant CR Windows and Doors, Inc. ( CR Windows ) is a corporation organized and existing under the laws of the State of California, with its principal place of business at 0 Wabash Drive, Mira Loma, CA. Upon information and belief, CR Windows was formed on April,, is owned by Rey Nea, and operates a retail store that sells ATN s windows.. Upon information and belief, Defendant Rey Nea is a natural person who is, and at all relevant times was, a citizen of California residing within this district. Upon information and belief, Mr. Nea is an owner of ATN, Green World, and CR Windows, and actively directed, aided, abetted, and induced these COMPLAINT

4 Case :-cv-00 Document Filed /0/ Page of Page ID #: 0 corporations infringement of Quanex s rights.. Upon information and belief, ATN, Green World, CR Windows, and Mr. Nea are alter egos of each other in that there is such unity of interest and ownership among them that their separate personalities no longer exist. Failure to disregard their separate identities would result in fraud or injustice. Upon information and belief, Mr. Nea formed CR Windows after receiving Quanex s request that ATN and Green World cease and desist from selling knock-offs of Quanex s patented inventions, and has continued marketing the knock-offs through CR Windows. At the time it was available online, CR Windows website was nearly identical to ATN/Green World s website, and clicking on a link on CR Windows website directly linked to ATN/Green World s website and ATN/Green World s lifetime warranty certificate. Upon information and belief, CR Windows made its website unavailable shortly after Quanex sent ATN another letter in August regarding Defendants infringing activities.. The true names and capacities of the defendants sued herein as Does through 0, inclusive, are unknown to Quanex and therefore have been sued by fictitious names. Quanex will amend this complaint to allege their true names and capacities when they have been ascertained. Quanex is informed and believes, and thereon alleges, that each of the defendants sued herein as Does through 0 participated in or was in some way responsible for one or more of the actionable acts and conduct alleged herein. THE PATENTS IN SUIT. U.S. Patent No.,0, (the Patent ) was issued on July,. Quanex is the owner by assignment of all right, title, and interest in and to the Patent. A copy of the Patent is attached as Exhibit A.. U.S. Patent No.,, (the Patent ) was issued on February,. Quanex is the owner by assignment of all right, title, and interest in and to the Patent. A copy of the Patent is attached as Exhibit B COMPLAINT

5 Case :-cv-00 Document Filed /0/ Page of Page ID #: 0. U.S. Patent No.,, (the Patent ) was issued on February, 0. Quanex is the owner by assignment of all right, title, and interest in and to the Patent. A copy of the Patent is attached as Exhibit C.. U.S. Patent No.,, (the Patent ) was issued on April, 0. Quanex is the owner by assignment of all right, title, and interest in and to the Patent. A copy of the Patent is attached as Exhibit D.. U.S. Patent No.,, (the Patent ) was issued on June, 0. Quanex is the owner by assignment of all right, title, and interest in and to the Patent. A copy of the Patent is attached as Exhibit E.. The,,,, and Patents are hereinafter collectively referred as the Asserted Quanex Patents. QUANEX S TRADEMARK IN DURASEAL. Since 0, Quanex has manufactured and distributed spacer and sealant assemblies that are used in insulated windows under the name DURASEAL. The DURASEAL mark is registered in the principal register of the United States Patent and Trademark Office under the registration number 0.. Quanex s DURASEAL products have a strong reputation in the industry for being of high quality. Quanex has devoted substantial resources to promoting and marketing the DURASEAL mark, such that it has become distinctive and it is identified with Quanex s products. DEFENDANTS PATENT AND TRADEMARK INFRINGEMENT. Beginning at least as early as June, ATN, Green World, and Rey Nea began importing and using a knock-off of Quanex s DURASEAL spacer and sealant assembly and manufacturing and selling multi-pane windows using that knock-off. Although ATN and Green World s windows were not all manufactured with DURASEAL, ATN and Green World advertised on their website that their windows contained the DURASEAL spacer and sealant assembly COMPLAINT

6 Case :-cv-00 Document Filed /0/ Page of Page ID #: 0. Quanex obtained a sample of the knock-off, evaluated and tested it, and determined that it infringes upon the claims in the Asserted Quanex Patents. On August, and several occasions thereafter, Quanex informed ATN/Green World and Mr. Nea that they were infringing on Quanex s patents and requested that they cease and desist from their infringing activities.. Upon information and belief, ATN and Green World continued importing and using the infringing knock-off after receiving Quanex s cease and desist letter. Moreover, after receiving Quanex s cease and desist letter, ATN s owner, Defendant Rey Nea, quickly formed a new company, Defendant CR Windows, to operate a retail store to sell ATN and Green World s windows.. Although Quanex has never sold any of its DURASEAL product to CR Windows, CR Window s website -- which is a near-verbatim copy of ATN/Green World s website and links directly to ATN/Green World s website -- falsely claimed that its windows are manufactured with DURASEAL.. Upon information and belief, the knock-off sealant and spacer assemblies that ATN, Green World, CR Windows, and Ray Nea used, and may continue to be using, in their windows are of inferior quality and have failed, resulting in complaints from customers who, on information and belief, were led by Defendants to believe that the windows they purchased used genuine DURASEAL sealant and spacer assemblies. COUNT I PATENT INFRINGEMENT (Against ATN, Green World, and Rey Nea). Quanex hereby restates and realleges the allegations set forth in paragraphs through of this Complaint as though fully set forth herein.. Defendants ATN, Green World, and Rey Nea have directly infringed claims of the Asserted Quanex Patents in violation of U.S.C. (a) by, among other things, using the infringing sealant and spacer assemblies in their multi-pane windows, making the infringing multi-pane windows, offering to sell and selling COMPLAINT

7 Case :-cv-00 Document Filed /0/ Page of Page ID #: 0 infringing multi-pane windows in the United States; and importing into the United States infringing sealant and spacer assemblies.. Defendants ATN, Green World, and Rey Nea have also contributorily infringed the Asserted Quanex Patents in violation of U.S.C. (c) by offering to sell and selling within the United States, and importing into the United States, the infringing sealant and spacer assemblies. The sealant and spacer assemblies are a material part of the patented multi-pane windows, and are usually and practically used in those windows as the structure between, and adhering to, the glass panes. The sealant and spacer assemblies sold and imported by Defendants have no non-infringing uses other than those that may be unusual, far-fetched, illusory, impractical, occasional, aberrant, or experimental. Defendants know that the sealant and spacer assemblies are especially made or especially adapted for use in the patented multi-pane windows. 0. Further, Defendants ATN, Green World, and Rey Nea have actively induced infringement of the Asserted Quanex Patents in violation of U.S.C. (b). Defendants sell their windows to home builders and contractors who install the windows into homes they are constructing or renovating. These builders and contractors use of Defendants infringing windows constitutes direct infringement of the Asserted Quanex Patents. Defendants advertise their windows for use in homes, and specifically intend and encourage that their customers use the windows. Defendants know that their customers use of the windows infringes upon the Asserted Quanex Patents. Defendants have been on notice of the Asserted Quanex Patents and their infringement of those patents at least as early as August, when Quanex requested in writing that Defendants cease and desist the importation and distribution of knockoffs of Quanex s DURASEAL product.. Defendants ATN s, Green World s, and Rey Nea s infringement of the Asserted Quanex Patents has been willful.. Quanex has been harmed as a direct and proximate result of COMPLAINT

8 Case :-cv-00 Document Filed /0/ Page of Page ID #: 0 Defendants ATN s, Green World s, and Rey Nea s conduct and seeks monetary damages in an amount to be determined. If Defendants ATN, Green World, and Rey Nea are continuing to infringe upon Quanex s patents, Quanex will also seek injunctive relief. COUNT II FEDERAL TRADEMARK INFRINGEMENT AND UNFAIR COMPETITION (Against All Defendants). Quanex hereby restates and realleges the allegations set forth in paragraphs through of this Complaint as though fully set forth herein.. Defendants have made, imported, distributed, used, offered to sell and/or sold in the United States, including in this district, spacer and sealant assemblies that directly infringe Quanex s DURASEAL mark in violation of (a) of the Lanham Act, U.S.C. (a) and Federal Unfair Competition laws.. Quanex has actively marketed, promoted, and continuously sold products with the DURASEAL mark for more than five years. Defendants have used Quanex s DURASEAL mark without its authorization and traded off the goodwill and reputation created and maintained by Quanex in the DURASEAL mark.. The contemporaneous use by Defendants of the DURASEAL mark for its infringing products will inevitably lead, if it has not already done so, to confusion and mistake in the trade and deception of purchasers and to confusion as to the origin, sponsorship, or affiliation of Defendants goods. Quanex s customers may erroneously conclude that Quanex sponsors or is otherwise responsible for Defendants goods and those customers may have occasion to purchase Defendants goods erroneously, believing that Quanex s standards of quality and service apply to those goods, thereby doing great and irreparable harm to Quanex s reputation.. Defendants acts constitute a false designation of origin and a false or COMPLAINT

9 Case :-cv-00 Document Filed /0/ Page of Page ID #: 0 misleading description or representation of those goods.. Because of the acts alleged herein, Quanex has suffered and will continue to suffer damage to its business, reputation, and goodwill, and monetary damages in amount according to proof. Defendants acts have caused irreparable harm and injury to Quanex. If Defendants are continuing to infringe upon Quanex s trademarks, Quanex will also seek injunctive relief.. Defendants conduct as alleged herein is willful, wanton, malicious, oppressive, and in conscious disregard of Quanex s rights in its DURASEAL mark. Quanex is entitled to damages under U.S.C., including Defendants profits, Quanex s actual damages and the costs of this action, punitive damages, and reasonable attorneys fees. COUNT III COMMON LAW TRADEMARK INFRINGEMENT AND UNFAIR COMPETITION (Against All Defendants) 0. Quanex hereby restates and realleges the allegations set forth in paragraphs through of this Complaint as though fully set forth herein.. Defendants acts alleged herein constitute unfair competition and infringement of Quanex s common law rights in its DURASEAL mark.. Defendants have caused, and are causing, irreparable harm to Quanex, and unless permanently restrained by this Court, irreparable injury will continue.. Quanex is entitled to punitive damages because Defendants acts alleged herein are willful, wanton, malicious, oppressive, and in conscious disregard of Quanex s rights in its DURASEAL mark. COUNT IV UNFAIR COMPETITION UNDER CAL. BUS. & PROF. CODE 0 et seq. (Against All Defendants). Quanex hereby restates and realleges the allegations set forth in paragraphs through of this Complaint as though fully set forth herein COMPLAINT

10 Case :-cv-00 Document Filed /0/ Page 0 of Page ID #:0 0. Quanex is the exclusive owner of the common law trademark rights in the DURASEAL mark. Quanex has never licensed or otherwise authorized Defendants to use the mark or any variations thereof.. Quanex is informed and believes, and thereon alleges, that Defendants, with full knowledge of the market s awareness and value of Quanex s DURASEAL mark, has traded on the goodwill associated with the mark and has misled and will continue to mislead the public into assuming that a connection between Quanex and Defendants products by continuing to use Quanex s DURASEAL mark for their products. This conduct has caused, and will continue to cause, irreparable damage to Quanex s goodwill and reputation and unjustly enrich Defendants.. By suggesting falsely a connection between Quanex and Defendants products, Defendants use of the DURASEAL mark has caused confusion or misunderstanding as to the source, sponsorship, or approval of Defendants goods. Defendants conduct constitutes unfair competition and deceptive business practices in violation of the California Business & Professions Code 0, et seq.. Defendants have caused, and are continuing to cause, monetary and irreparable harm to Quanex. Unless Defendants acts are permanently restrained by this Court, such irreparable harm will continue. In addition, as a direct and proximate result of Defendants conduct, Defendants have been unjustly enriched at Quanex s expense in a sum to be proven at trial. COUNT V FALSE ADVERTISING UNDER CAL. BUS. & PROF. CODE 00 et seq. (Against All Defendants). Quanex hereby restates and realleges the allegations set forth in paragraphs through of this Complaint as though fully set forth herein. 0. Defendants have advertised on their websites and, on information and COMPLAINT

11 Case :-cv-00 Document Filed /0/ Page of Page ID #: 0 belief, in their brochures and other marketing material, that their spacer and sealant assemblies are DURASEAL and that their windows contain DURASEAL when, in fact, Defendants were not selling DURASEAL or using DURASEAL in all of their windows. Defendants advertising was unfair, deceptive, untrue, and misleading and likely to deceive members of the public.. Defendants knew or should have known that their advertising was false and misleading. Defendants conduct constitutes false advertising in violation of the California Business & Professions Code 00, et seq.. Defendants have caused, and are continuing to cause, monetary and irreparable harm to Quanex. Unless Defendants acts are permanently restrained by this Court, such irreparable harm will continue. In addition, as a direct and proximate result of Defendants conduct, Defendants have been unjustly enriched at Quanex s expense in a sum to be proven at trial. PRAYER FOR RELIEF WHEREFORE, Quanex prays for relief as follows: A. For a judgment that Defendants ATN, Green World, and Rey Nea have infringed the Asserted Quanex Patents; B. For a judgment that Defendants ATN, Green World, CR Windows, and Rey Nea have infringed Quanex s DURASEAL trademark. C. For compensatory damages in an amount to be proven at trial; D. For a trebling of damages resulting from Defendants patent infringement due to the wilful nature of their infringement; E. For restitution in an amount to be proven at trial; F. For an order enjoining Defendants ATN, Green World, and Rey Nea and each of their officers, agents, employees, corporate affiliates, assigns, successors in interest, and all persons in active participation or concert with them, from further acts of patent infringement; COMPLAINT

12 Case :-cv-00 Document Filed /0/ Page of Page ID #: 0 G. For an order enjoining Defendants and each of their officers, agents, employees, corporate affiliates, assigns, successors in interest, and all persons in active participation or concert with them, from further acts of trademark infringement. H. For an award of interest on damages to the fullest extent permitted by law; I. For a declaration that this case is exceptional pursuant to U.S.C. ; J. For an award of attorneys fees and costs; and K. For such other and further relief as this Court deems just and proper. DATED: November, HUANG YBARRA SINGER & MAY LLP By: KATHERINE K. HUANG Attorneys for Plaintiff QUANEX IG SYSTEMS, INC. DEMAND FOR JURY TRIAL Quanex hereby demands a trial by jury on all issues triable to a jury. DATED: November, HUANG YBARRA SINGER & MAY LLP By: KATHERINE K. HUANG Attorneys for Plaintiff QUANEX IG SYSTEMS, INC COMPLAINT