GlobalTap v. Petersen Mfg. - Complaint

Case: 1:18-cv-05383 Document #: 1 Filed: 08/08/18 Page 1 of 37 PageID #:1
UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
GlobalTap, LLC )
)
Plaintiff, ) No.
)
v. )
) JURY TRIAL DEMANDED
Petersen Manufacturing Co. Inc. )
Chris Petersen, Mike Siemer, W.W. )
Grainger, Inc., Zoro Tools, Inc. , )
Park n’ Pool, Inc., Neobits, Inc., and )
Careforde Safety, Inc. )
)
Defendants. )
Verified Complaint
Plaintiff, GlobalTap, LLC (“GlobalTap”), through its undersigned counsel,
Patterson Law Firm, LLC, and for its Verified Complaint against Defendants,
Petersen Manufacturing, Co. (“Petersen”), Chris Petersen (“C. Petersen”), Mike
Siemer (“Siemer”), W.W. Grainger, Inc. (“Grainger”), Zoro Tools, Inc. (“Zoro”),
Park n’ Pool, Inc. (“Park n’ Pool”), Neobits, Inc. (“Neobits”), and Careforde
Safety, Inc. (“Careforde”) (collectively “Defendants”), hereby alleges as follows:
The Parties
1. GlobalTap was founded by Daniel H. Whitman (“Whitman”) “to provide
people with a more innovative, and compelling way to connect with each other
through easier access to clean, free drinking water.” GlobalTap is a Michigan
limited liability company with its principal place of business located at 18075
Mt. Zion Rd., Galien, Michigan. GlobalTap does substantial business in Illinois,
including in Cook County, Illinois.

2. Whitman is a Michigan citizen. Whitman is the only member of
GlobalTap.
3. Petersen is an Iowa corporation with its principal place of business at
2471 Hwy. 30, Denison, Iowa. According to Petersen’s website, “Petersen
Manufacturing Site Furnishings is a nationally recognized leader in the
production of high-quality precast concrete site amenities” and its “concrete
products are manufactured in Denison, Iowa, and have representation in every
state, Canada, Puerto Rico, Hong Kong, and Mexico by authorized Petersen
representatives.” https://www.petersenmfg.com/about.asp (accessed on July
24, 2018).
4. C. Petersen is, upon information and belief, an Iowa citizen.
5. Siemer is, upon information and belief, an Iowa citizen.
6. Grainger is an Illinois corporation with its principal place of business in
Lake Forest, Illinois.
7. Zoro is a Delaware corporation with its principal place of business in
Buffalo Grove, Illinois.
8. Upon information and belief, Park n’ Pool is a Virginia corporation with
its principal place of business in Lexington, Virginia.
9. Upon information and belief, Neobits is a California corporation with its
principal place of business in Santa Clara, California.
10. Careforde is a Delaware corporation with its principal place of business
in Chicago, Illinois.
Jurisdiction and Venue
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11. This Court has jurisdiction over the subject matter of this action
pursuant to 28 U.S.C. §§ 1331 and 1338(a), which grants the district courts
“original jurisdiction of any civil action arising under any Act of Congress
relating to patents . . . and trademarks,” and 28 U.S.C. § 1367, which provides
for “supplemental jurisdiction over all other claims that are so related to claims
in the action within such original jurisdiction that they form part of the same
case or controversy under Article III of the United States Constitution.”
12. This Court has personal jurisdiction over Petersen pursuant to Federal
Rule of Civil Procedure 4 and 735 ILCS 5/2-209(a) and (b) because, among
other things, Petersen has transacted business in Illinois, including but not
limited to conducting business with Illinois companies and companies
operating in Illinois, including GlobalTap, made or performed a contract within
Illinois, and committed tortious acts in Illinois. Petersen, through its agents,
attended meetings in Chicago with GlobalTap to discuss the manufacture of
GlobalTap products. Petersen has sold and continues to sell products
infringing on GlobalTap’s intellectual property within Illinois.
13. This Court has personal jurisdiction over C. Petersen pursuant to
Federal Rule of Civil Procedure 4 and 735 ILCS 5/2-209(a) and (b) because,
among other things, C. Petersen is president of Petersen and has transacted
business on Petersen’s behalf with Illinois companies and companies operating
in Illinois, including GlobalTap.
14. This Court has personal jurisdiction over Siemer pursuant to Federal
Rule of Civil Procedure 4 and 735 ILCS 5/2-209(a) and (b) because, among
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other things, Siemer is a vice president of Petersen and has conducted
business on Petersen’s behalf with Illinois companies and companies operating
in Illinois, including GlobalTap. Siemer traveled to Chicago to meet with
Whitman to discuss Petersen manufacturing GlobalTap’s products.
15. This Court has personal jurisdiction over Grainger pursuant to Federal
Rule of Civil Procedure 4 and 735 ILCS 5/2-209(b), because it is an Illinois
corporation with its principal place of business in Illinois.
16. This Court has personal jurisdiction over Zoro pursuant to Federal Rule
of Civil Procedure 4 and 735 ILCS 5/2-209(b), because its principal place of
business is located in Illinois.
17. This Court has personal jurisdiction over Park n’ Pool pursuant to
Federal Rule of Civil Procedure 4 and 735 ILCS 5/2-209(a), because it has
transacted business in Illinois by virtue of its advertising and sales of products,
including products marketed as GlobalTap products, to individuals and entities
located in Illinois.
18. This Court has personal jurisdiction over Neobits pursuant to Federal
Rule of Civil Procedure 4 and 735 ILCS 5/2-209(a), because it has transacted
business in Illinois by virtue of its advertising and sales of products, including
products marketed as GlobalTap products, to individuals and entities located
in Illinois.
19. This Court has personal jurisdiction over Careforde pursuant to Federal
Rule of Civil Procedure 4 and 735 ILCS 5/2-209(b), because its principal place
of business is located in Illinois.
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20. Venue is proper in this district pursuant to 28 U.S.C. §§ 1391(b) and (c)
and 1400, because at least three Defendants are located in this district and a
substantial portion of the facts giving rise to this claim occurred in this district.
The initial negotiations between GlobalTap and Petersen occurred in Chicago,
Illinois and involved Petersen representatives, including Siemer, traveling to
Chicago to meet with Whitman. Further, Grainger, Zoro, and Careforde are
located in Cook County, Illinois and purchased infringing products from
Petersen and subsequently marketed and sold those infringing products to
others.
Factual Background
21. GlobalTap was founded in 2008 with the goal of providing people with
easy access to clean, free water in cities, schools, and communities around the
world.
22. In 2009, Whitman, along with Anastasios Karahalios (“Karahalios”) and
Andrew Burroughs (“Burroughs”), developed a design for a free-standing
outdoor water bottle filling station. At the time, there were no similar designs
on the market.
23. On December 14, 2009, Whitman, Karahalios, and Burroughs filed for a
design patent under U.S. Application No. 29/351,948. The patent issued on
March 15, 2011 as Patent No. D634,394 S (“’394 Patent”). The ’394 Patent
identified one claim, which was for “[t]he ornamental design for a water bottle
fountain, as shown and described.” See ’394 Patent, attached hereto as Exhibit
A.
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24. The design depicted a free-standing water bottle filling station, consisting
of a vertical base ending in a hook or cane shape, under which a water bottle
may be placed vertically to be filled:
25. The ’394 Patent was assigned by all three inventors to GlobalTap on
February 4, 2013. GlobalTap is the exclusive owner of all rights, title, and
interest in the ’394 Patent, and has the right to bring this suit to recover
damages for any current or past infringement.
26. On February 1, 2011, Whitman, Karahalios, and Burroughs filed for a
separate design patent under U.S. Application No. 29/384,581. The patent
issued on October 4, 2011, as Patent No. D646,348 S (“’348 Patent”). The ’348
Patent identified one claim, which was for “[t]he ornamental design for a water
bottle fountain with side bubbler, showing our new, original and ornamental
design.” See ’348 Patent, attached hereto as Exhibit B.
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27. The design depicted a free-standing water bottle filling station, consisting
of a vertical base ending in a hook or cane shape, under which a water bottle
may be placed vertically to be filled. Attached to the vertical base was a
traditional-style water fountain protruding outward, from which individuals
may drink without a water bottle:
28. The ’348 Patent was assigned by all inventors to GlobalTap on February
4, 2013. GlobalTap is the exclusive owner of all rights, title, and interest in the
’348 Patent, and has the right to bring this suit to recover damages for any
current or past infringement.
29. With the development of its patented designs, GlobalTap also developed
and began using various service marks. These include the word mark
“GLOBALTAP” (“Word Mark”) as well as a mark consisting of “GLOBALTAP”
followed by a water droplet (“Water Drop Mark”), as depicted below:
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30. GlobalTap first used the Word Mark and the Water Drop Mark in May,
2008. The Water Drop Mark was first used in commerce on December 31,
2009, while the Word Mark was first used in commerce on September 30,
2011.
31. GlobalTap has since obtained registrations for each. The Water Drop
Mark was registered on July 21, 2015, under Registration No. 4,775,089. The
Word Mark was registered on March 22, 2016, under Registration No.
4,920,350.
32. In late 2010, GlobalTap approached Petersen to discuss Petersen
manufacturing GlobalTap’s designs. GlobalTap identified Petersen as a
potential manufacturer because of its reputation and history producing other
outdoor fixtures, including benches, steel garbage cans, and concrete
fountains.
33. Before beginning negotiations, Petersen signed a “Confidential Disclosure
Agreement,” in which Petersen agreed it “will not utilize the INFORMATION
beyond the PURPOSE without first obtaining the written consent of the
DISCLOSING PARTY.” The “Purpose” was defined as exploring “their mutual
interests in [GlobalTap’s] project concerning distribution and access to water.”
The “Information” covered by the agreement expressly included GlobalTap’s
prototypes and designs.
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34. Whitman met with Rick Carstensen and Siemer in Chicago at
GlobalTap’s designer’s office. At the meeting, Whitman provided Petersen with
GlobalTap’s designs, as well as a prototype. Petersen then took the information
to their Iowa plant to provide recommendations on production.
35. Following Petersen’s review of the designs and prototype, GlobalTap and
Petersen entered into an oral contract for Petersen to manufacture GlobalTap’s
products. Pursuant to the terms of the agreement, Petersen would be
GlobalTap’s exclusive manufacturer. GlobalTap would pay Petersen up front
per unit manufactured. Petersen would provide a two-year warranty on all
products manufactured.
36. GlobalTap, in turn, would sell the units for double what Petersen
charged for their manufacture.
37. Upon reaching the oral agreement, Whitman began talking with Siemer
about putting the arrangement between GlobalTap and Petersen in writing.
Petersen offered to prepare an agreement, but no draft ever came. The
companies continued to operate under the oral agreement.
38. Sometime later, Petersen raised the idea to GlobalTap of trying to sell
some of GlobalTap’s fountains to Petersen’s existing customers. GlobalTap
agreed to permit Petersen to do so on the following terms:
a. Petersen could not advertise the fountains;
b. 50 percent of all profits from sales by Petersen would go to
GlobalTap;
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c. Petersen would provide to GlobalTap an accounting of all units
sold;
d. GlobalTap would be included in any contract with distributors and
provided an opportunity to review the terms.
39. In addition to the above, GlobalTap informed Petersen that any manuals
for the products must include GlobalTap’s name and not Petersen’s, and
include GlobalTap’s contact information.
40. The rationale is simple. GlobalTap was very concerned about its image in
the marketplace and wanted to maintain control over to whom and how its
products were sold, as well as to ensure any product issues were properly
resolved.
41. As Petersen began to ramp up production of GlobalTap’s product,
complaints began to come in from customers. Customers complained of rusting
on different parts of the fountains, scratches, missing parts, sticking buttons,
and other issues.
42. GlobalTap attempted to address the issue with Petersen in hope of
maintaining the relationship, given the significant effort associated with
identifying and reaching an agreement with a new manufacturer. Around this
time, GlobalTap also again requested to put the parties’ agreement in writing.
43. The problems with Petersen’s manufacturing persisted. To compound
matters, Petersen failed to follow through on its agreement to a two-year
warranty. While it stated it would address the customer complaints, it never
did.
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44. Petersen’s poor-quality products and failure to address customer
concerns damaged GlobalTap’s reputation and caused it to lose various
business opportunities.
45. Sometime later, GlobalTap heard through industry sources that Petersen
was signing contracts and selling GlobalTap products to distributors without
GlobalTap’s consent or authorization, and without paying GlobalTap its agreed
upon share of revenues.
46. Upon hearing this, GlobalTap immediately reached out to Petersen,
through Siemer, and instructed Petersen to stop contracting to distribute
GlobalTap products without GlobalTap’s permission. Petersen, however,
ignored the instruction. Soon, GlobalTap began to see its products advertised
by several distributors with whom GlobalTap had never contracted.
47. GlobalTap continued to attempt to memorialize its agreement with
Petersen, recognizing the significant cost associated with starting over with a
new manufacturer. Petersen, recognizing the situation, continued to string
GlobalTap along by continuing discussions of a written agreement. Petersen’s
actions, though, were merely to delay while it continued to manufacture and
sell GlobalTap products without permission.
48. GlobalTap also requested an accounting of all GlobalTap fountains sold
and to whom they were sold. GlobalTap requested copies of any agreements to
distribute GlobalTap fountains. It also demanded its portion of the revenue
from all such sales. Petersen refused. At the same time, Petersen continued to
neglect its warranty issues.
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49. Petersen continues to market GlobalTap products, including selling
fountains to major distributors such as Grainger. When confronted, Petersen
stated that it would continue to sell GlobalTap’s products and, if necessary,
would simply remove the GlobalTap name.
50. At the same time, Petersen stopped fulfilling orders placed by GlobalTap.
51. The products sold by Petersen include the designs patented under the
’394 Patent and the ’348 Patent, among other GlobalTap designs. The products
also include the Word Mark and the Water Drop Mark.
52. For example, as of July 24, 2018, Grainger’s website listed for sale the
fountain with the design described in the ‘348 Patent, for a price of either
$4,972 or $5,494 per unit:
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A screenshot of Grainger’s website as of July 24, 2018, is attached hereto as
Exhibit C.
53. The design is identical to or substantially indistinguishable from the
design that is the subject of the ’348 Patent and includes GlobalTap’s Word
Mark, Water Drop Mark, or both. The product comes up on Grainger’s website
by searching “globaltap.”
54. As of July 24, 2018, Grainger’s website also listed for sale the fountain
with the design described in the ’394 Patent, for a price of $4,011 per unit:
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A screenshot of the Grainger website as of July 24, 2018, is attached hereto as
Exhibit D.
55. The design is identical to or substantially indistinguishable from the
design that is the subject of the ’394 Patent and includes GlobalTap’s Word
Mark, Water Drop Mark, or both.
56. Grainger sells additional designs developed by GlobalTap and that
include GlobalTap’s Word Mark, Water Drop Mark, or both.
57. Upon information and belief, Grainger obtains the infringing products
from Petersen. GlobalTap has not authorized, licensed, or otherwise consented
to Grainger marketing or selling GlobalTap products or products including
GlobalTap’s marks, nor has it authorized Petersen to manufacture for or sell to
Grainger GlobalTap products or products including GlobalTap’s marks.
58. GlobalTap’s patented designs are also being sold by Park n’ Pool,
including the designs that are the subject of the ’394 Patent and ’348 Patent.
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Screenshots from Park n’ Pool’s website as of July 24, 2018, marketing the
patented designs are attached hereto as Group Exhibit E.
59. The designs are identical to the designs that are the subject of the ’394
and ’348 Patents and include GlobalTap’s Word Mark, Water Drop Mark, or
both. The products are identified as GLOBAL TAP products on the website.
60. Park n’ Pool sells additional designs developed by GlobalTap and that
include GlobalTap’s Word Mark, Water Drop Mark, or both.
61. Upon information and belief, Park n’ Pool obtains the infringing products
from Petersen. GlobalTap has not authorized, licensed, or otherwise consented
to Park n’ Pool marketing or selling GlobalTap products or products including
GlobalTap’s marks, nor has it authorized Petersen to manufacture for or to sell
to Park n’ Pool GlobalTap products or products including GlobalTap’s marks.
62. Other entities selling unauthorized and counterfeit versions of
GlobalTap’s patented designs include, but are not limited to, the following:
a. Zoro (see Screenshots from July 24, 2018, attached hereto as
Group Exhibit F);
b. Neobits (see Screenshot from July 24, 2018, attached hereto as
Exhibit G);
c. Careforde (see Screenshot from July 24, 2018, attached hereto as
Exhibit H).
63. The designs for sale by each of the above-referenced companies include
designs identical to the designs that are the subject of the ’394 Patent and ’348
Patent and include GlobalTap’s Word Mark, Water Drop Mark, or both. In
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addition to the designs subject to the ’394 Patent and the ’348 Patent, each of
the distributors identified herein sells various other designs developed by
GlobalTap and purporting to be GlobalTap products. GlobalTap has not
authorized the manufacture, sale, distribution, or promotion of any such
products by any of the companies identified herein.
64. Upon information and belief, each of the above-referenced companies
obtains the infringing products from Petersen. GlobalTap has not authorized,
licensed, or otherwise consented to the above-referenced companies marketing
or selling GlobalTap products or products including the GlobalTap marks, nor
has it authorized Petersen to manufacture for or to sell to the above-referenced
companies GlobalTap products or products including GlobalTap’s marks.
65. When confronted, Siemer told Whitman that Petersen is going to
continue manufacturing the patented designs and other GlobalTap products,
regardless of GlobalTap’s objections.
66. Petersen continues to manufacture and sell unauthorized versions of
GlobalTap’s patented designs and to make unauthorized use of GlobalTap’s
registered marks, despite GlobalTap making repeated requests for Petersen to
cease and desist such production and sale. Most recently, on December 5,
2017, GlobalTap sent a cease and desist letter to Petersen, directed to C.
Petersen. A copy of the December 5, 2017, letter is attached hereto as Exhibit I.
The letter demanded that Petersen cease its unauthorized use of GlobalTap’s
registered marks. Petersen refused to comply.
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67. Petersen is knowingly violating GlobalTap’s patents and registered
marks. C. Petersen and Siemer have actively participated in Petersen’s willful
infringement of GlobalTap’s intellectual property, as evidenced by Petersen’s
continued infringement despite C. Petersen and Siemer each personally having
been informed of Petersen’s unauthorized use.
Injunctive Relief
68. In various counts set forth below, GlobalTap requests preliminary and
permanent injunctive relief.
69. GlobalTap invested substantial resources in the development of its
intellectual property, including the ’394 Patent, the ’348 Patent, the Word
Mark, and the Water Drop Mark, as well as its other proprietary designs and
brand goodwill. As such, GlobalTap has a legitimate business interest and
clearly ascertainable right in need of protection.
70. Defendants have infringed and continue to infringe on GlobalTap’s
intellectual property, and to use GlobalTap’s name and designs to sell products
unauthorized by GlobalTap. Absent the injunctive relief requested herein,
GlobalTap will suffer irreparable harm. This includes lost goodwill and
reputational harm, as well as lost business opportunities, which cannot
adequately be compensated through money damages.
71. Given the egregious and willful nature of the infringement by Petersen,
and its deliberate sale of counterfeit products to distributors, including
Grainger, Zoro, Park n’ Play, Neobits, and Careforde, each of whom sell such
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counterfeit products to the public, GlobalTap is likely to be successful on the
merits of each claim in which injunctive relief is sought.
72. To deny GlobalTap injunctive relief is to permit Defendants to continue
selling counterfeit products under GlobalTap’s name. Further, GlobalTap does
not even know all of the distributors to whom Petersen has sold or is selling the
infringing products, making it otherwise impossible for GlobalTap to protect
itself in the marketplace from harm caused by the infringing products.
73. Such injunctive relief, which would prevent the manufacture and sale of
counterfeit products, is in the public interest in that it will remove
unauthorized, shoddy products from the marketplace and deter future
infringers from abusing the intellectual property rights of GlobalTap and
others.
Count I – Infringement of the ’394 Patent (Petersen, C. Petersen, Siemer)
74. GlobalTap incorporates by reference the allegations in paragraphs 1
through 73 as though fully set forth herein.
75. GlobalTap is the owner of the ’394 Patent, including all rights to enforce
the patent, by virtue of assignment to GlobalTap by all inventors executed on
February 4, 2013.
76. Petersen has infringed the ’394 Patent, in violation of 35 U.S.C. §§ 271(a)
and 289, by manufacturing and selling in the United States, without license or
other authorization, products identical to or substantially indistinguishable
from the design subject to the ’394 Patent.
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77. Upon information and belief, third parties, including Petersen’s
customers, have infringed and continue to infringe the ’394 Patent, in violation
of 35 U.S.C. §§ 271(a) and 289, by selling in the United States, without license
or other authorization, products identical to or substantially indistinguishable
78. Petersen has induced infringement, and continues to induce
infringement, of the ’394 Patent, in violation of 35 U.S.C. § 271(b). Petersen
actively, knowingly, and intentionally induced, and continues to actively,
knowingly, and intentionally induce, infringement of the ’394 Patent by selling
or otherwise supplying products that are identical to or substantially
indistinguishable from the design subject to the ’394 Patent, with the
knowledge and intent that third parties will use, sell, or offer for sale the
infringing products in the United States. Petersen knowingly encourages and
facilitates the infringement by promoting the infringing products and
advertising them for sale to its customers, including distributors intending to
resell the products.
79. C. Petersen and Siemer actively, knowingly, and intentionally aided and
abetted Petersen’s infringement of the ’394 Patent, in violation of 35 U.S.C. §
271(b). C. Petersen and Siemer were informed and aware of the ’394 Patent and
instructed or facilitated Petersen’s manufacture and continued manufacture of
products using the design subject to the ’394 Patent for sale in the United
States.
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80. Petersen’s continued infringement of the ’394 Patent with actual
knowledge of the ‘394 Patent is a willful violation of GlobalTap’s patent rights.
81. GlobalTap has suffered and continues to suffer damages as a result of
Petersen’s continued and willful infringement of its patent rights.
82. GlobalTap presently lacks the ability to fully understand the scope of its
damages because Petersen has withheld and refused to disclose to GlobalTap
the total number of units it manufactured, the total number it sold, to whom
the units were sold, and the price at which the units were sold, along with
other significant information.
WHEREFORE, Plaintiff, GlobalTap, LLC, respectfully requests that this
Honorable Court enter judgment in its favor and against Defendants and award
Plaintiff compensatory damages pursuant to 35 U.S.C. § 289; punitive damages
pursuant to 35 U.S.C. § 284; preliminary and permanent injunctive relief
pursuant to 35 U.S.C. § 283; an accounting of all units manufactured and
sold, and revenue derived therefrom; attorney fees and costs pursuant to 35
U.S.C. § 285; and such other relief as the Court deems proper under the
circumstances.
Count II – Infringement of the ’394 Patent (Grainger, Park n’ Pool, Zoro, Neobits,
Careforde)
February 4, 2013.
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85. Grainger, Park n’ Pool, Zoro, Neobits, and Careforde have infringed the
’394 Patent, in violation of 35 U.S.C. §§ 271(a) and 289, by selling in the United
States, without license or other authorization, products identical to or
substantially indistinguishable from the design subject to the ’394 Patent.
these Defendants’ continued infringement of its patent rights.
damages because it lacks the any quantitative information regarding the total
number of units sold by these Defendants and to whom the units were sold,
along with other significant information.
Honorable Court enter judgment in its favor and against Defendants, and
award Plaintiff compensatory damages pursuant to 35 U.S.C. § 289;
preliminary and permanent injunctive relief pursuant to 35 U.S.C. § 283; an
accounting of all products purchased and sold, and revenue derived therefrom;
attorneys fees and costs pursuant to 35 U.S.C. § 284; and such other relief as
the Court deems proper under the circumstances.
Count III – Infringement of the ’348 Patent (Petersen, C. Petersen, Siemer)
February 4, 2013.
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90. Petersen has infringed the ’348 Patent, in violation of 35 U.S.C. §§ 271(a)
and 289, by manufacturing and selling in the United States, without license or
other authorization, products identical to or substantially indistinguishable
91. Upon information and belief, third parties, including Petersen’s
customers, have infringed and continue to infringe the ’348 Patent, in violation
of 35 U.S.C. §§ 271(a) and 289, by selling in the United States, without license
or other authorization, products identical to or substantially indistinguishable
infringement, of the ’348 Patent, in violation of 35 U.S.C. § 271(b). Petersen
actively, knowingly, and intentionally induced, and continues to actively,
knowingly, and intentionally induce, infringement of the ’348 Patent by selling
or otherwise supplying products that are identical to or substantially
indistinguishable from the design subject to the ’348 Patent, with the
knowledge and intent that third parties will use, sell, or offer for sale the
infringing products in the United States. Petersen knowingly encourages and
facilitates the infringement by promoting the infringing products and
advertising them for sale to its customers, including distributors intending to
resell the products.
93. C. Petersen and Siemer actively, knowingly, and intentionally aided and
abetted Petersen’s infringement of the ’348 Patent, in violation of 35 U.S.C. §
271(b). C. Petersen and Siemer were informed and aware of the ’348 Patent and
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instructed or facilitated Petersen’s manufacture and continued manufacture of
products using the design subject to the ’348 Patent for sale in the United
States.
94. Petersen’s continued infringement of the ’348 Patent with actual
knowledge of the ’348 Patent is a willful violation of GlobalTap’s patent rights.
Petersen’s continued and willful violation of its patent rights.
Plaintiff compensatory damages pursuant to 35 U.S.C. § 289; punitive damages
pursuant to 35 U.S.C. § 284; preliminary and permanent injunctive relief
sold, and revenue derived therefrom; attorney fees and costs pursuant to 35
U.S.C. § 285; injunctive relief; and such other relief as the Court deems proper
under the circumstances.
Count IV – Infringement of the ’348 Patent (Grainger, Park n’ Pool, Zoro, Neobits,
Careforde)

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February 4, 2013.
99. Grainger, Park n’ Pool, Zoro, Neobits, and Careforde have infringed the
’348 Patent, in violation of 35 U.S.C. §§ 271(a) and 289, by selling in the United
States, without license or other authorization, products identical to or
substantially indistinguishable from the design subject to the ’348 Patent.
100. GlobalTap suffered and continues to suffer damages as a result of these
Defendants’ continued infringement of its patent rights.
damages because it lacks any quantitative information from these Defendants
regarding the total number of units they have sold and the price at which the
units were sold, along with other significant information.
Honorable Court enter judgment in its favor and against Defendants, and
award Plaintiff compensatory damages pursuant to 35 U.S.C. § 289; attorney
fees and costs pursuant to 35 U.S.C. § 284; preliminary and permanent
injunctive relief pursuant to 35 U.S.C. § 283; an accounting of all units
purchased and sold, and any revenue derived therefrom; and such other relief
as the Court deems proper under the circumstances.
Count V – Lanham Act (Petersen, C. Petersen, Siemer)
102. GlobalTap incorporates by references the allegations in paragraphs 1
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103. GlobalTap owns valid, protectable marks in the Word Mark and Water
Drop Mark.
104. GlobalTap’s water fountains also have a distinctive design. Two such
designs are patented, as set forth above. GlobalTap, however, developed
additional designs incorporating distinctive GlobalTap features and
characteristics.
105. Petersen has used and continues to use the Word Mark and Water Drop
Mark on products manufactured and sold in the United States, without license,
consent, or other authorization. Petersen has used the Word Mark and Water
Drop Mark in marketing, promoting, or advertising of the infringing products,
including, but not limited to, by promoting the products as genuine GlobalTap
products and including the GlobalTap name on the products, manuals, and
marketing materials.
106. Petersen’s use of the Word Mark and Water Drop Mark is likely to
confuse consumers because it is used in conjunction with GlobalTap’s
patented designs, as well as the other designs developed by GlobalTap, and
Petersen was previously authorized to manufacture GlobalTap products.
107. Petersen’s use of GlobalTap’s Word Mark and Water Drop Mark in
conjunction with GlobalTap’s designs amounts to counterfeiting, in that
Petersen is producing identical or substantially indistinguishable products
under the GlobalTap name without GlobalTap’s license, consent, or
authorization.
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infringement, of the Word Mark and Water Drop Mark. Petersen actively,
knowingly, and intentionally induced, and continues to actively, knowingly,
and intentionally induce, infringement of the Word Mark and Water Drop Mark
by selling or otherwise supplying products making unauthorized use of the
Word Mark and Water Drop Mark, with the knowledge and intent that third
parties will use, sell, or offer for sale the infringing products in the United
States. Petersen knowingly encourages and facilitates the infringement by
promoting the infringing products and advertising them for sale to its
customers, including to distributors intending to resell the products.
109. These include, but are not limited to, Grainger, Park n’ Play, Zoro,
Neobits, and Careforde, each of which markets and sells multiple products
including GlobalTap’s Word Mark and Water Drop Mark, without authorization
or consent from GlobalTap for use of its registered marks. Each of these
entities is selling counterfeit GlobalTap products, which are likely to confuse
consumers and lead them to believe the products marketed and sold are
authorized GlobalTap products.
110. Peteresen’s manufacture and sale of counterfeit products is willful.
GlobalTap, on multiple occasions, informed C. Petersen and Siemer that
Petersen must stop the unauthorized use of the Word Mark and Water Drop
Mark to manufacture and sell products based upon GlobalTap’s designs,
including sending a cease and desist letter. As evidenced by the continued
presence of infringing product for sale through major distribution channels
26
without GlobalTap’s authorization, Petersen has made a conscious decision to
disregard GlobalTap’s rights in the Word Mark and Water Drop Mark.
111. Further, C. Petersen and Siemer willingly and knowingly participated in
the manufacture and sale of products making unauthorized use of the Word
Mark and Water Drop Mark, including by personally informing Whitman that
Petersen would continue to manufacture GlobalTap’s products without regard
to GlobalTap’s rights. C. Petersen and Siemer were each told to stop the
unauthorized use of GlobalTap’s Word Mark and Water Drop Mark, yet they
personally directed Petersen to continue to manufacture and sell the infringing
products.
112. GlobalTap has suffered substantial damages as a result of Defendants’
unauthorized and counterfeit use of the Word Mark and Water Drop Mark, as
well as its patented and distinct designs, including lost profits, lost business
opportunity, and reputational harm.
113. GlobalTap’s brand and reputation, in particular, have been damaged by
the sale of shoddy counterfeit products, which do not meet GlobalTap’s
specifications.
27
compensatory damages or statutory damages pursuant to 15 U.S.C. § 1117(c);
treble damages pursuant to 15 U.S.C. § 1117(b); attorney fees and costs
pursuant to 15 U.S.C. § 1117(a); preliminary and permanent injunctive relief
sold, and revenue derived therefrom; and such other relief as the Court deems
proper under the circumstances.
Count VI – Lanham Act (Grainger, Park n’ Pool, Zoro, Neobits, Careforde)
116. GlobalTap owns valid, protectable marks in the Word Mark and Water
Drop Mark.
117. GlobalTap’s water fountains also have a distinctive design. Two such
designs are patented, as set forth above. GlobalTap, however, developed
additional designs incorporating distinctive GlobalTap features and
characteristics.
118. Grainger, Park n’ Pool, Zoro, Neobits, and Careforde have used and
continue to use the Word Mark and Water Drop Mark on products sold in the
United States, without license, consent, or other authorization, and in relation
to the marketing, promotion, or advertising of the infringing products,
including, but not limited to, promoting the products as genuine GlobalTap
28
products and including the Word Mark and Water Drop Mark on the products,
manuals, and marketing materials.
119. This unauthorized use of the Word Mark and Water Drop mark is likely
to confuse consumers because it is used in conjunction with GlobalTap’s
patented designs, as well as other designs developed by GlobalTap.
120. Grainger, Park n’ Pool, Zoro, Neobits, and Careforde’s use of GlobalTap’s
Word Mark and Water Drop Mark in conjunction with GlobalTap’s designs
amounts to counterfeiting, in that each of these Defendants is selling identical
or substantially indistinguishable products under the GlobalTap name and
including the Word Mark and Water Drop Mark without GlobalTap’s license,
consent, or authorization. These Defendants acted and are acting willfully in
disregard of GlobalTap’s rights.
121. GlobalTap has suffered substantial damages as a result of the
unauthorized and counterfeit use of the Word Mark and Water Drop Mark, as
well as its patented and distinct designs, including lost profits, lost business
opportunity, and reputational harm.
the sale of shoddy counterfeit products, which do not meet GlobalTap’s
specifications.
damages because it lacks quantitative information regarding the total number
of units these Defendants have sold and the price at which the units were sold,
along with other significant information.
29
compensatory damages or statutory damages pursuant to 15 U.S.C. § 1117(c);
treble damages pursuant to 15 U.S.C. § 1117(b); attorney fees and costs
pursuant to 15 U.S.C. § 1117(a); preliminary and permanent injunctive relief
pursuant to 15 U.S.C. § 1116; an accounting of all units purchased, sold, and
any revenue derived therefrom; and such other relief as the Court deems
proper under the circumstances.
Count VII – Breach of CDA (Petersen)
124. GlobalTap incorporates by reference paragraphs 1 through 73 as though
fully set forth herein.
125. GlobalTap and Petersen executed a valid and binding contract when each
side executed the CDA.
126. Under the CDA, GlobalTap provided Petersen access to its proprietary
information, including designs and prototypes, to determine whether Petersen
could manufacture GlobalTap’s products.
127. The CDA limited Petersen’s use of GlobalTap’s information to further the
purpose of determining whether the parties could work together in the
manufacture and distribution of GlobalTap products.
128. The CDA expressly stated that it “will not carry with it any express or
implied license under any intellectual property rights of the other.”
129. Petersen breached the CDA by using GlobalTap’s intellectual property,
including its designs and registered marks, to manufacture and distribute
30
products based upon GlobalTap’s intellectual property without GlobalTap’s
authorization or consent.
130. Petersen further breached the CDA by not returning GlobalTap’s
intellectual property and proprietary information to GlobalTap, including failing
to return the prototype provided to Petersen by GlobalTap.
131. GlobalTap fully performed all of its obligations under the contract,
including all conditions precedent.
132. GlobalTap has suffered damages as a result of Petersen’s breach,
including ,but not limited to, lost profits.
Honorable Court enter judgment in its favor and against Defendant, Petersen
Manufacturing Co., and award Plaintiff damages in an amount to be proven at
trial, an accounting of all units manufactured and sold and revenue derived
therefrom, and such other relief as the Court deems proper under the
circumstances.
Count VIII – Breach of Oral or Implied Contract (Petersen)
31
135. GlobalTap and Petersen entered into a valid, binding oral or implied
contract. Under the agreement, GlobalTap agreed to use Petersen as its
exclusive manufacturer and to pay Petersen for the production and shipment of
GlobalTap products. Petersen agreed to manufacture GlobalTap products sold
by GlobalTap and to provide a two-year manufacturer’s warranty.
136. The agreement did not grant Petersen any license or authorization to
manufacture and sell GlobalTap products other than as directed by GlobalTap.
137. The oral agreement was modified later. The modification allowed Petersen
to market and distribute GlobalTap products to other potential customers.
Petersen, however, was required to pay GlobalTap fifty percent of the revenue
for any units it sold directly, to obtain GlobalTap consent before entering into
any contracts with distributors, to include GlobalTap in the agreements with
any distributors, and to provide GlobalTap an accounting of all units Petersen
sold.
138. Petersen did not have an absolute license to manufacture and sell
GlobalTap products.
139. Petersen breached the oral contract by manufacturing and selling
GlobalTap products without authorization to unauthorized distributors.
Petersen further breached the oral contract by failing to pay GlobalTap any
royalty for units sold by Petersen and failing to provide GlobalTap an
accounting of units sold.
32
140. GlobalTap is unaware of the number of units sold, or even of all the
distributors to which Petersen has sold products. It has, however, identified
several through its own research, including Grainger.
141. Petersen also breached the oral contract by failing to perform on the two-
year warranty, despite numerous claims and complaints being received on
products manufactured by Petersen.
142. Petersen further breached the oral contract by refusing to fill orders
placed by GlobalTap.
143. GlobalTap fully performed all of its obligations under the contract,
including all conditions precedent.
144. GlobalTap has suffered damages as a result of Petersen’s breach,
including lost royalty revenue, lost business opportunities, and reputational
harm.
Petersen’s unauthorized production of products purporting to be GlobalTap
products and incorporating GlobalTap’s Word Mark and Water Drop Mark but
failing to meet GlobalTap’s specifications. Petersen compounds the issue by
failing to respond to or address customer complaints or claims submitted
under the two-year manufacturer’s warranty.
33
WHEREFORE, Plaintiff, GlobalTap, LLC, respectfully requests this
Manufacturing Co., and enter an award of damages in an amount to be
determined at trial, an accounting of all units manufactured and sold and
revenue derived therefrom, and such other relief as the Court deems proper
Count IX – Tortious Interference (Petersen)
148. GlobalTap had a reasonable expectation that it would derive benefit from
selling its products to a variety of distributors. An interest in the marketplace
existed for GlobalTap’s products, as evidenced by Petersen’s ability to sell such
products behind GlobalTap’s back.
149. Petersen knew GlobalTap expected to sell its products and to receive
revenue from such sales, including sales to companies such as Grainger, Zoro,
Careforde, Neobits, and Park n’ Pool, among others. Petersen possessed this
knowledge based upon its conversations with GlobalTap and GlobalTap’s
decision to hire Petersen as its exclusive manufacturer.
150. Petersen intentionally interfered with GlobalTap’s expectations by selling
to various distributors, including Grainger, Zoro, Careforde, Neobits, and Park
n’ Pool, among others, behind GlobalTap’s back and depriving GlobalTap of any
34
value resulting from such sales. Petersen further interfered with GlobalTap’s
expectations by refusing to disclose the names of distributors with whom
Petersen contracted, thereby preventing GlobalTap from contacting the
distributors directly.
151. Petersen prevented GlobalTap from selling its products to other
distributors by refusing to fulfill orders placed by GlobalTap. To the extent
Petersen did provide any product, it was of poor quality.
152. As a direct and proximate result, GlobalTap has been unable to capitalize
on its products and its intellectual property to maintain or develop
relationships with distributors from whom GlobalTap reasonably expected to
receive revenue.
Manufacturing Co., and enter an award of damages in an amount to be
determined at trial, an accounting of all units manufactured and sold and
revenue derived therefrom, and such other relief as the Court deems proper
35
Respectfully submitted,
_____________________________
Kristi L. Browne
Peter J. Evans
PATTERSON LAW FIRM, LLC
One North LaSalle, Suite 2100
Chicago, Illinois 60602
(312) 223-1699 - Telephone
kbrowne@pattersonlawfirm.com
pevans@pattersonlawfirm.com
Counsel for Plaintiff
36
VERIFICATION
The undersigned, under penalties pursuant to the Federal Rules of Civil

Procedure, hereby states that the information contained in the above
Verified Complaint is true and correct to the best of his knowledge and
belief except as to those items stated to be on information and belief as to
which the undersigned verily believes them to be true.
_____________________________
GlobalTap, LLC, by its sole
member
37
Case: 1:18-cv-05383 Document #: 1-1 Filed: 08/08/18 Page 1 of 5 PageID #:38
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DRINKING FOUNTAINS (5)
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BROWSE RELATED STORE Product Name Price
ALL PRODUCTS Globaltap - GT1300 - Non-Refrigerated Free-

MANUFACTURERS Standing Bottle Filling Station, 1 Level, Front Push
Button Dispenser Operatio Our price: $1,610.30
CATEGORIES
1 Details Call For Stock
Add To Cart
Technical Specification Item Bottle Filling Station Indoor /
Outdoor Indoor/Outdoor Number of Levels 1 ADA
Compliant Yes Height 23-1/2 Wi... Read more
CALL TOLL FREE
Globaltap - GT1500 - Non-Refrigerated Free-
1.866.636.2487 Standing Bottle Filling Station, 1 Level, Front Push
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Standing Bottle Filling Station, 1 Level, Front Push
Add To Cart

Standing Water Cooler, 2 Level, Front Push Button
Dispenser Operation Our price: $5,249.66
Add To Cart
Technical Specification Item Drinking Fountain Indoor /
Compliant Yes Height 60-1/8 Width 2... Read more
Globaltap - GT1100DB - Non-Refrigerated Free-

Standing Water Cooler, 2 Level, Front Push Button
Dispenser Operation Our price: $5,787.32
Add To Cart
Technical Specification Item Drinking Fountain Indoor /
Compliant Yes Height 60-1/8 Width 2... Read more
Displaying 1-5 of 5 items | Page 1 of 1 << < 1 > >>
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EXHIBIT H
EXHIBIT I

GlobalTap v. Petersen Mfg. - Complaint

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GlobalTap v. Petersen Mfg. - Complaint

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Case: 1:18-cv-05383 Document #: 1 Filed: 08/08/18 Page 1 of 37 PageID #:1

UNITED STATES DISTRICT COURT

Plaintiff, GlobalTap, LLC (“GlobalTap”), through its undersigned counsel,

Petersen Manufacturing, Co. (“Petersen”), Chris Petersen (“C. Petersen”), Mike

Safety, Inc. (“Careforde”) (collectively “Defendants”), hereby alleges as follows:

1. GlobalTap was founded by Daniel H. Whitman (“Whitman”) “to provide

through easier access to clean, free drinking water.” GlobalTap is a Michigan

including in Cook County, Illinois.

2. Whitman is a Michigan citizen. Whitman is the only member of

3. Petersen is an Iowa corporation with its principal place of business at

2471 Hwy. 30, Denison, Iowa. According to Petersen’s website, “Petersen

Manufacturing Site Furnishings is a nationally recognized leader in the

production of high-quality precast concrete site amenities” and its “concrete

products are manufactured in Denison, Iowa, and have representation in every

representatives.” https://www.petersenmfg.com/about.asp (accessed on July

4. C. Petersen is, upon information and belief, an Iowa citizen.

5. Siemer is, upon information and belief, an Iowa citizen.

6. Grainger is an Illinois corporation with its principal place of business in

Lake Forest, Illinois.

7. Zoro is a Delaware corporation with its principal place of business in

Buffalo Grove, Illinois.

8. Upon information and belief, Park n’ Pool is a Virginia corporation with

its principal place of business in Lexington, Virginia.

9. Upon information and belief, Neobits is a California corporation with its

principal place of business in Santa Clara, California.

10. Careforde is a Delaware corporation with its principal place of business

Jurisdiction and Venue

relating to patents . . . and trademarks,” and 28 U.S.C. § 1367, which provides

case or controversy under Article III of the United States Constitution.”

limited to conducting business with Illinois companies and companies

operating in Illinois, including GlobalTap, made or performed a contract within

attended meetings in Chicago with GlobalTap to discuss the manufacture of

GlobalTap products. Petersen has sold and continues to sell products

infringing on GlobalTap’s intellectual property within Illinois.

13. This Court has personal jurisdiction over C. Petersen pursuant to

among other things, C. Petersen is president of Petersen and has transacted

business on Petersen’s behalf with Illinois companies and companies operating

in Illinois, including GlobalTap.

other things, Siemer is a vice president of Petersen and has conducted

business on Petersen’s behalf with Illinois companies and companies operating

in Illinois, including GlobalTap. Siemer traveled to Chicago to meet with

Whitman to discuss Petersen manufacturing GlobalTap’s products.

Rule of Civil Procedure 4 and 735 ILCS 5/2-209(b), because it is an Illinois

corporation with its principal place of business in Illinois.

business is located in Illinois.

transacted business in Illinois by virtue of its advertising and sales of products,

including products marketed as GlobalTap products, to individuals and entities

business in Illinois by virtue of its advertising and sales of products, including

products marketed as GlobalTap products, to individuals and entities located

of business is located in Illinois.

The initial negotiations between GlobalTap and Petersen occurred in Chicago,

Illinois and involved Petersen representatives, including Siemer, traveling to

located in Cook County, Illinois and purchased infringing products from

Petersen and subsequently marketed and sold those infringing products to

22. In 2009, Whitman, along with Anastasios Karahalios (“Karahalios”) and

Andrew Burroughs (“Burroughs”), developed a design for a free-standing

may be placed vertically to be filled:

damages for any current or past infringement.

26. On February 1, 2011, Whitman, Karahalios, and Burroughs filed for a

design.” See ’348 Patent, attached hereto as Exhibit B.

may be placed vertically to be filled. Attached to the vertical base was a

traditional-style water fountain protruding outward, from which individuals

may drink without a water bottle:

current or past infringement.