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July 23, 2015

Indiana Trade Secret Litigation: Angie’s List Alleges Theft of Trade Secrets by Amazon Local and Employees

Indianapolis, Indiana – Indiana intellectual property lawyers for Angie’s List Inc. of Indianapolis, Indiana sued in the Southern District of Indiana alleging theft of trade secrets. The Defendants in this litigation are AmazonLocal LLC of Seattle, Washington, Michael Albo, Kristin Baker, Dan Beary, Colton Bozigian, Jake Connerton, Adam DiVincenzo, Brandon Goodwyn, Kristen Haught, Justin Hillman, Amit Jain, Joshua Keezer, Olivia Landergan, Daniel Malamud, Raissa Masket, Samantha McDonald, Jason Patrao, Sharon Porter, Darren Reinstein, Billy Restrepo, Michael Shmunis, and Jacquelyn Vail.

In its 42-page complaint, Angie’s List alleges that competing business Amazon Local

and some of its employees misappropriated proprietary information belonging to Angie’s List by fraudulently obtaining membership accounts and, using this members-only access, obtained and misused proprietary information about thousands of service providers about which Angie’s List had gathered data.

July 20, 2015

Indiana Trademark Litigation: Trademark Infringement Litigation to Proceed in Federal Court

By Overhauser Law Offices, LLC

Indianapolis, Indiana – An Indiana state court complaint filed by Indiana trademark attorneys for 7E Fit Spa Licensing Group LLC, 7E Holdings 1 LLC, and 7E LLC was removed to the Indianapolis Division of the Southern District of Indiana upon the request of trademark lawyers for Defendants 7EFS of Highlands Ranch, LLC, Spectrum Medspa, Gordon Smith and Jane Smith.

Plaintiffs contend that they entered into various agreements with Defendants, including licensing and operating agreements, and that Defendants breached portions of one or more of the agreements in the operation of Defendants’ Littleton, Colorado business establishment.

Defendants are accused of violating the Lanham Act – 15 U.S.C. § 1114(a), 15 U.S.C. § 1125(a) and 15 U.S.C. § l 125(c) – as well as common law trademark infringement, unfair competition, breach of contract, tortious interference, breach of fiduciary duties and conversion.

May 20, 2015

Indiana Trademark Litigation: Integrity Trade Services Sues Ex-Employees Alleging Conspiracy and Conversion

By Overhauser Law Offices, LLC

South Bend, Indiana – Trademark attorneys for Integrity Trade Services, Inc. (“ITS”) of Frankfort, Illinois filed an intellectual property complaint in the Northern District of Indiana naming as Defendants Integrity Employment Partners, LLC, Integrity Trade Services, LLC, Janice Hernandez, James Hernandez, Michaela Williams, and Jason Reis, all of Indiana, and alleging multiple claims, including trademark infringement, conversion of ITS trade secrets, breach of contract, and tortious interference with business relationships.

ITS is a national staffing services company, doing businesses in multiple states, including Indiana, Florida, Illinois, and Texas. ITS is wholly owned by John E. Cumbee, III. In 2008, ITS acquired all of the operational assets of the Knox, Indiana branch of a staffing company owned by CES America, Inc. ITS also hired most, if not all, of the CES employees then working at the Knox facility, including defendants James and Janice Hernandez.

ITS contends that, since purchasing the Knox facility, it has invested well over $1 million to build the Knox business and the ITS brand as it is related to that facility. It asserts in this federal lawsuit, inter alia, that Defendants conspired to convert ITS’ customers, employees and trade secrets for their own use.

The accused in this case are husband and wife Janice Hernandez and James Hernandez; several family members of Janice Hernandez, including Michaela Williams, and Jason Reis; and two entities apparently owned by the Hernandezes, Integrity Employment Partners, LLC, Integrity Trade Services, LLC.

Defendant James Hernandez (“James”) worked for ITS from the time that ITS acquired the business until April 30, 2015 when he was fired. ITS asserts that James engaged in a conspiracy to solicit away and convert (a) ITS’ office employees at the Knox location, (b) at least the active ITS field employees servicing the Knox location, and (c) customers comprising the Knox-area business. He is accused of attempting to transfer them to Integrity Employment Partners, LLC, an Indiana limited liability company formed to process the Knox business converted from ITS for his benefit and the benefit of the other co-conspirators.

Defendant Janice Hernandez (“Janice”), also became employed by ITS when ITS was acquired from its prior owner. She has been accused of not only being an integral part of the alleged conspiracy but also of being “likely its “‘mastermind.'” Defendant Michaela Williams is Janice’s daughter. Defendant Jason Reis is the ex-son-in-law of James and Janice, having been married to another of Janice’s daughters.

ITS states that, in the last two weeks in April 2015, it discovered various anomalies in the Knox business. These anomalies alerted ITS to the activities that triggered this federal lawsuit. They included a drop off in weekly gross sales, the formation of Integrity Employment Partners, LLC (“IEP”), and checks issued by existing ITS customers made payable to IEP (and not ITS).

Defendants are accused of orchestrating a scheme to confuse ITS’ customers and employees regarding with which staffing businesses using the name “Integrity” – Plaintiff’s firm or Defendants’ firms – those customers and employees were transacting business. In doing so, ITS contends, Defendants attempted with some success to convert ITS’ business assets and relationships for Defendants’ benefit. Allegations of criminal conduct by Defendants were also made. In a 48-page complaint, filed by trademark lawyers for Plaintiff, those claims and others are made:

• Count I: Federal Trademark Infringement
• Count II: Federal Unfair Competition
• Count III: Illinois Deceptive Trade Practices Act
• Count IV: Breach of Fiduciary Duty
• Count V: Breach of Agreement
• Count VI: Tortious Interference with Contract
• Count VII: Tortious Interference with Business Relationships
• Count VIII: Conversion
• Count IX: Computer Fraud and Abuse Act
• Count X: Uniform Trade Secrets Act
• Count XI: Civil Conspiracy
• Count XII: Unjust Enrichment

• Count XIII: Breach of Contract

Plaintiff asks the court for, inter alia, injunctive relief, compensatory damages, punitive damages, attorneys’ fees, interest and costs.

May 6, 2015

Indiana Intellectual Property Litigation: J & J Sports Alleges Illegal Interception in Two New Lawsuits

By Overhauser Law Offices, LLC

Hammond, Indiana – An intellectual property attorney for J & J Sports Productions, Inc. (“J & J Sports”) of Campbell, California filed two federal lawsuits in the Northern District of Indiana, both alleging illegal interception of a cable signal for the Floyd Mayweather, Jr. v. Robert Guerrero, WBC Welterweight Championship Fight Program (“Program”). One lawsuit named Jorge Zamora, individually and d/b/a El Sombrero Bar of East Chicago, Indiana. The other lawsuit named JP & P, Corporation and Jose L. Gonzalez, individually, both d/b/a Michigan Avenue Bar and Grill of Hammond, Indiana.

J & J Sports states that it is the exclusive domestic commercial closed-circuit distributor of the Program. It has sued multiple Defendants, both individually and doing business as commercial entities, under the Communications Act of 1934 and The Cable & Television Consumer Protection and Competition Act of 1992. Specifically, Defendants have been accused of violating 47 U.S.C. § 605 and 47 U.S.C. § 553 by displaying the Program at issue on May 4, 2013 without an appropriate license. A count of conversion is also included.

Plaintiff has sued two Defendants as individuals, alleging that they had the right and ability to supervise the activities of the commercial establishments that allegedly engaged in the illegal interception. J & J Sports asserts that the activities that they supervised included the unlawful interception of Plaintiff’s Program. J & J Sports contends that the individual Defendants specifically directed the employees of the restaurants to unlawfully intercept and broadcast Plaintiff’s Program at the commercial establishments or, if they did not, that the actions of the employees of the restaurants are directly imputable to the Defendants sued as individuals by virtue of their purported responsibility for the activities of their respective restaurants. In the second lawsuit, a corporate Defendant has also been sued. This lawsuit also lists “Loida Chavarria as a Defendant in paragraph 10, although she has not been listed as a Defendant in the caption of the complaint.

In both of these interception complaints, the intellectual property attorney for J & J Sports listed the following counts:

• Count I: Violation of Title 47 U.S.C. § 605
• Count II: Violation of Title 47 U.S.C. § 553

• Count III: Conversion

J & J Sports asks for damages, as well as costs and attorneys’ fees.

April 22, 2015

Indiana Intellectual Property Litigation: G & G Files Another Illegal Interception Lawsuit

By Overhauser Law Offices, LLC

Indianapolis, Indiana – An intellectual property attorney for G & G Closed Circuit Events, LLC (“G & G”) of Campbell, California initiated a lawsuit in the Southern District of Indiana alleging that Elsa Valdez and Tikal #2, Inc., both of Indianapolis, Indiana, illegally intercepted and broadcast the Saul Alvarez v. Austin Trout fight program (the “Program”).

G & G states that it holds exclusive nationwide rights to the commercial, closed-circuit distribution of the Program. It has sued Elsa Valdez and Tikal #2, both individually and doing business as Sabor Latino Bar a/k/a Johnny’s Park Inn Restaurant & Bar, under the Communications Act of 1934 and the Cable & Television Consumer Protection and Competition Act of 1992.

As in another recent lawsuit brought by G & G alleging interception, Defendants have been accused of violating 47 U.S.C. § 605 and 47 U.S.C. § 553 by displaying the Program on Saturday, April 20, 2013 without an appropriate license. Regarding the claim under 47 U.S.C. §605, G & G’s Indiana federal complaint alleges that with “full knowledge that the Program was not to be intercepted…[and] exhibited” without authorization, “each and every one of the above named Defendants . . . did unlawfully … exhibit the Program” for the purpose of commercial advantage and/or private financial gain. A count of conversion is also included. The complaint asserts that Defendants’ acts were “willful, malicious, egregious, and intentionally designed to harm Plaintiff.”

In the complaint, the intellectual property lawyer for G & G listed the following counts and requests for redress:

• Count I: Violation of Title 47 U.S.C. § 605. For this count, G & G states that it is entitled to (a) statutory damages for each willful violation in an amount of $100,000, and (b) the recovery of all costs, including reasonable attorneys’ fees. Later in the complaint, the intellectual property attorney for G & G requests statutory damages of $110,000.
• Count II: Violation of Title 47 U.S.C. § 553. For this count, G & G asks the court for (a) statutory damages of $60,000 for each willful violation; (b) the recovery of all costs; and (c) and in the discretion of the court, reasonable attorneys’ fees.

• Count III: Conversion. For this count, the court is asked to order both compensatory and punitive damages from Defendants as the result of the Defendants’ allegedly egregious conduct, theft, and conversion of the program and deliberate injury to Plaintiff. G & G also seeks costs and attorneys’ fees under this count.

April 20, 2015

Indiana Intellectual Property Litigation: G & G Sues for Illegal Interception of Championship Fight

By Overhauser Law Offices, LLC

Indianapolis, Indiana – An intellectual property attorney for G & G Closed Circuit Events, LLC (“G & G”) of Campbell, California filed an intellectual property lawsuit in the Southern District of Indiana alleging that Zeferino Alvarez and Sabor Bohemio, LLC, both d/b/a El Bohemio Bar of Indianapolis, Indiana illegally intercepted and broadcast the Saul Alvarez v. Austin Trout fight program (the “Program”).

G & G states that it holds exclusive nationwide rights to the commercial, closed-circuit distribution of the Program. It has sued Zeferino Alvarez and Sabor Bohemio, LLC, both individually and doing business as El Bohemio Bar under the Communications Act of 1934 and The Cable & Television Consumer Protection and Competition Act of 1992.

Specifically, Defendants have been accused of violating 47 U.S.C. § 605 and 47 U.S.C. § 553 by displaying the Program at issue on Saturday, April 20, 2013 without an appropriate license. Regarding the claim under 47 U.S.C. §605, the Complaint alleges that with “full knowledge that the Program was not to be intercepted…[and] exhibited” without authorization, “each and every one of the above named Defendants . . . did unlawfully … exhibit the Program” for the purpose of commercial advantage and/or private financial gain. A count of conversion is also included. The complaint asserts that Defendants’ acts were “willful, malicious, egregious, and intentionally designed to harm Plaintiff.”

In the complaint, the intellectual property lawyer for G & G listed the following counts and requests for redress:

• Count I: Violation of Title 47 U.S.C. § 605. For this count, G & G requests (a) statutory damages for each willful violation in an amount to $100,000.00, and (b) the recovery of all costs, including reasonable attorneys’ fees.

• Count II: Violation of Title 47 U.S.C. § 553. For this count, G & G asks the court for (a) statutory damages of $60,000 for each willful violation; (b) the recovery of all costs; and (c) and in the discretion of the court, reasonable attorneys’ fees.

• Count III: Conversion. For this count, the court is asked to order both compensatory and punitive damages from Defendants as the result of the Defendants’ allegedly egregious conduct, theft, and conversion of the program and deliberate injury to G&G.

March 27, 2015

Indiana Trade Secret Litigation: Precision Drone Sues Channel Masters for Misappropriating Trade Secrets

By Overhauser Law Offices, LLC

Indianapolis, Indiana – Indiana intellectual property lawyers for Precision Drone, LLC of Hamilton County, Indiana (“Precision”) commenced trade secret litigation in Hamilton County Superior Court alleging that Channel Masters, LLC of Wisconsin (“Channel”) breached its contract with Precision by improperly misappropriating and revealing trade secrets belonging to Precision.

Precision designs, engineers, manufactures and sells drones for use by farmers to monitor crops. It also develops and sells related software. Defendant Channel connects companies offering products to dealers of those products.

According to the complaint, in September 2014, Precision engaged Channel to sell the PaceSetter™ Drone to dealers of such products. To assist in Channel’s sales efforts, Precision provided Channel with equipment and training, some of which Precision contends is protected by Indiana trade secret law. As part of the sales agreement that the parties entered into, Precision states that Channel was prohibited from disclosing any of Precision’s confidential information without written authorization. The agreement also prohibited Channel from adversely interfering with Precision’s customers and prospective customers.

Plaintiff Precision alleges that, while Channel was working for Precision, it was also promoting and selling crop-imaging drones offered by AgriImage, a company that competes with Precision. Plaintiff also contends that Channel used Plaintiff’s images and training manual to demonstrate the competing AgriImage drones.

Precision claims copyright protection for the website that it uses to promote and advertise its products, as well as contending that at least one of its images was improperly displayed at a trade show by Channel, but the complaint listed no overt assertion of copyright infringement. The complaint, filed by Indiana intellectual property attorneys for Precision, instead alleges the following:

• Count I: Breach of Contract

• Count II: Misappropriation of Trade Secrets

Precision seeks judgment in its favor including damages, attorneys’ fees and costs.

Indiana copyright lawyers for Channel have removed the case to the Southern District of Indiana, arguing that such a removal is proper based both on federal question jurisdiction and diversity of citizenship.

March 12, 2015

Indiana Copyright Litigation: Joe Hand Promotions Files Two New Interception Complaints

By Overhauser Law Offices, LLC

Evansville and Hammond, Indiana – An intellectual property attorney for Joe Hand Promotions, Inc. of Feasterville, Pennsylvania filed two Indiana lawsuits, one in the Northern District of Indiana against Robert J. Matijevich and UDL, LLC, both d/b/a L F Nortons, of Lake Station, Indiana and the other in the Southern District of Indiana against John Backes and Backes Frontier, LLC, both d/b/a New Frontier Restaurant and Bar, of Evansville, Indiana. Both lawsuits allege that defendants illegally intercepted a satellite signal and broadcast protected content.

Joe Hand Promotions, a commercial distributor of sporting events, asserts that it was granted exclusive domestic rights to the commercial distribution of the Ultimate Fighting Championship 158: Georges St. Pierre v. Nick Diaz (“program”), which was broadcast on March 16, 2013.

Two recent complaints were filed by the intellectual property lawyer for Joe Hand Promotions in federal courts in Indiana. In each complaint, both the business entity that owns the accused establishment and an individual charged with responsibility for that establishment’s operations have been named as defendants.

The allegations against the defendants include such wrongful acts as interception, reception, publication, divulgence, display, exhibition, and “tortuous” [sic] conversion of the program. Joe Hand Promotions asserts that the acts were “willful, malicious, egregious, and intentionally designed to harm Plaintiff Joe Hand Promotions.” As a result of these alleged acts, defendants have been have been accused of violating 47 U.S.C. § 605 and 47 U.S.C. § 553. Each complaint also lists a count of conversion.

Joe Hand Promotions seeks statutory damages of $100,000 to $110,000 for each willful violation of 47 U.S.C. § 605; $10,000 for each violation of 47 U.S.C. § 553; $50,000 for each willful violation of 47 U.S.C. § 553; compensatory and punitive damages on the claim of conversion; costs, including costs incurred for the service of process and the investigation of potential wrongdoing; and attorney’s fees.

February 16, 2015

Third Member of International Computer Hacking Ring Pleads Guilty to Hacking and Conspiracy to Steal Intellectual Property; Charges Against Indiana Defendant Pending

By Overhauser Law Offices, LLC

Delaware – A third member of an international computer hacking ring has pleaded guilty to conspiring to break into computer networks of prominent technology companies to steal more than $100 million in intellectual property and other proprietary data.

Nathan Leroux, 20, of Bowie, Maryland, pleaded guilty to conspiracy to commit computer intrusions and criminal copyright infringement based on his role in the cyber theft of software and data related to the Xbox One gaming console and Xbox Live online gaming system, and popular games such as the “FIFA” online soccer series; “Call of Duty: Modern Warfare 3;” and “Gears of War 3.” Leroux has been in custody since attempting to flee into Canada from Buffalo, New York, on June 16, 2014. A sentencing hearing is set before U.S. District Judge Gregory M. Sleet of the District of Delaware on May 14, 2015.

Sanadodeh Nesheiwat, 28, of Washington, New Jersey, and David Pokora, 22, of Mississauga, Ontario, Canada, previously pleaded guilty to the same conspiracy charge on Sept. 30, 2014. They remain in custody pending their sentencing hearings, which are scheduled for April 2015. Pokora’s guilty plea is believed to have been the first conviction of a foreign-based individual for hacking into U.S. businesses to steal trade secret information. Charges against a fourth defendant, Austin Alcala, 19, of McCordsville, Indiana, remain pending.

According to Leroux’s admissions in connection with his guilty plea, he was part of the hacking conspiracy between January 2011 and September 2012. During that period, hacking group members located in the United States and abroad gained unauthorized access to computer networks of various companies, including Microsoft Corporation, Epic Games Inc., Valve Corporation and Zombie Studios. The conspirators accessed and stole unreleased software, software source code, trade secrets, copyrighted and pre-release works, and other confidential and proprietary information. Members of the conspiracy also allegedly stole financial and other sensitive information relating to the companies – but not their customers – and certain employees of such companies.

Specifically, the data theft targeted software development networks containing source code, technical specifications and related information for Microsoft’s then-unreleased Xbox One gaming console, as well as intellectual property and proprietary data related to Xbox Live and games developed for that online gaming system.

Leroux admitted in court that he and others used the stolen intellectual property to build, and attempt to sell, counterfeit versions of the Xbox One console before its public release in November 2013. In July 2013, the FBI intercepted a counterfeit console built by Leroux, which was destined for the Republic of Seychelles.

Leroux also admitted that he developed a software exploit that allowed him and others to generate millions of “coins” for the FIFA soccer games playable on the Xbox Live platform. These coins are the virtual, in-game currency used to build a “FIFA Ultimate Team” in the games. Without the authorization of Electronic Arts, the intellectual property rights holder to the FIFA games, Leroux and others sold bulk quantities of the “FIFA coins” via online black markets.

The value of the intellectual property and other data stolen by the hacking ring, as well as the costs associated with the victims’ responses to the conduct, is estimated to range between $100 million and $200 million. To date, the United States has seized over $620,000 in cash and other proceeds related to the charged conduct.

This case was investigated by the FBI, with assistance from the Criminal Division’s Office of International Affairs, the U.S. Department of Homeland Security’s Homeland Security Investigations and Customs and Border Patrol, and the U.S. Postal Inspection Service. The investigation also has been coordinated with the Western Australia Police and the Peel Regional Police of Ontario, Canada.

The case is being prosecuted by Trial Attorney James Silver of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Edward J. McAndrew of the District of Delaware.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Charles M. Oberly III of the District of Delaware and Special Agent in Charge Stephen E. Vogt of the FBI’s Baltimore Field Office made the announcement.

December 8, 2014

Indiana Intellectual Property Litigation: J & J Sports Productions Sues Multiple Defendants for Illegal Interception of Satellite Program

By Overhauser Law Offices, LLC

Indianapolis, Indiana – An intellectual property attorney for J & J Sports Productions, Inc. of Campbell, California filed four separate lawsuits in the Southern District of Indiana alleging the illegal interception of the satellite signal for the Manny Pacquiao v. Juan Manuel Marquez, IV Welterweight Fight Program (“Program”) broadcast on December 8, 2012.

J & J Sports states that it is the exclusive domestic commercial distributor of the Program. It has sued multiple Defendants, both individually and doing business as commercial entities, under the Communications Act of 1934 and The Cable & Television Consumer Protection and Competition Act of 1992. Specifically, Defendants have been accused of violating 47 U.S.C. § 605 and 47 U.S.C. § 553 by displaying the Program at issue on December 8, 2012 without an appropriate license. A count of conversion is also included.

The Defendants in the four intellectual property complaints are Kelli Membreno, individually and d/b/a El Patron, Ramiro Barrera, individually and d/b/a El Patron, El Patron, Inc., Cassia Cortez, individually and d/b/a Regios, Taqieria Regios, Inc., Lucio Molina, individually and d/b/a La Costenita, a/k/a Restaurant La Costentia, La Costenita Enterprises, Inc., and Maria Monserrat Avalos Hernandez, individually and d/b/a El Parral Dancing Club, all of Indianapolis, Indiana.

In addition to naming the separate legal entities that apparently own the restaurants in question, Plaintiff has also sued various other Defendants as individuals, alleging that they had the right and ability to supervise the activities of the commercial establishments that allegedly engaged in the illegal interception. J & J Sports asserts that the activities that they supervised included the unlawful interception of Plaintiff’s Program. J & J Sports contends that the individual Defendants specifically directed the employees of the restaurants to unlawfully intercept and broadcast Plaintiff’s Program at the commercial establishments or, if they did not, that the actions of the employees of the restaurants are directly imputable to the Defendants sued as individuals by virtue of their purported responsibility for the activities of their respective restaurants.

In the complaints, the intellectual property attorney for J & J Sports listed the following counts:

Count I: Violation of Title 47 U.S.C. § 605.
Count II: Violation of Title 47 U.S.C. § 553.
Count III: Conversion.

J & J Sports asks for damages, as well as costs and attorneys’ fees.