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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


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.


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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

from the design subject to the ’394 Patent.

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)

83. GlobalTap incorporates by reference the allegations in paragraphs 1

through 73 as though fully set forth herein.

84. 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.
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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.

86. GlobalTap has suffered and continues to suffer damages as a result of

these Defendants’ continued infringement of its patent rights.

87. GlobalTap presently lacks the ability to fully understand the scope of its

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.

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;

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)

88. GlobalTap incorporates by reference the allegations in paragraphs 1

through 73 as though fully set forth herein.

89. GlobalTap is the owner of the ’348 Patent, including all rights to enforce

the patent, by virtue of assignment to GlobalTap by all inventors executed on

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

from the design subject to the ’348 Patent.

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

from the design subject to the ’348 Patent.

92. Petersen has induced infringement, and continues to induce

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.

95. GlobalTap has suffered and continues to suffer damages as a result of

Petersen’s continued and willful violation of its patent rights.

96. 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; 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)

97. GlobalTap incorporates by reference the allegations in paragraphs 1

through 73 as though fully set forth herein.


23
Case: 1:18-cv-05383 Document #: 1 Filed: 08/08/18 Page 24 of 37 PageID #:24

98. GlobalTap is the owner of the ’348 Patent, including all rights to enforce

the patent, by virtue of assignment to GlobalTap by all inventors executed on

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.

101. GlobalTap presently lacks the ability to fully understand the scope of its

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.

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; 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

through 73 as though fully set forth herein.

24
Case: 1:18-cv-05383 Document #: 1 Filed: 08/08/18 Page 25 of 37 PageID #:25

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.

25
Case: 1:18-cv-05383 Document #: 1 Filed: 08/08/18 Page 26 of 37 PageID #:26

108. Petersen has induced infringement, and continues to induce

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
Case: 1:18-cv-05383 Document #: 1 Filed: 08/08/18 Page 27 of 37 PageID #:27

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.

114. 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.

27
Case: 1:18-cv-05383 Document #: 1 Filed: 08/08/18 Page 28 of 37 PageID #:28

WHEREFORE, Plaintiff, GlobalTap, LLC, respectfully requests that this

Honorable Court enter judgment in its favor and against Defendants and award

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 manufactured and

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)

115. GlobalTap incorporates by reference the allegations in paragraphs 1

through 73 as though fully set forth herein.

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
Case: 1:18-cv-05383 Document #: 1 Filed: 08/08/18 Page 29 of 37 PageID #:29

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.

122. GlobalTap’s brand and reputation, in particular, have been damaged by

the sale of shoddy counterfeit products, which do not meet GlobalTap’s

specifications.

123. GlobalTap presently lacks the ability to fully understand the scope of its

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
Case: 1:18-cv-05383 Document #: 1 Filed: 08/08/18 Page 30 of 37 PageID #:30

WHEREFORE, Plaintiff, GlobalTap, LLC, respectfully requests that this

Honorable Court enter judgment in its favor and against Defendants and award

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
Case: 1:18-cv-05383 Document #: 1 Filed: 08/08/18 Page 31 of 37 PageID #:31

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.

133. 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 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)

134. GlobalTap incorporates by reference the allegations in paragraphs 1

through 73 as though fully set forth herein.

31
Case: 1:18-cv-05383 Document #: 1 Filed: 08/08/18 Page 32 of 37 PageID #:32

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
Case: 1:18-cv-05383 Document #: 1 Filed: 08/08/18 Page 33 of 37 PageID #:33

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.

145. GlobalTap’s brand and reputation, in particular, have been damaged by

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.

146. 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

33
Case: 1:18-cv-05383 Document #: 1 Filed: 08/08/18 Page 34 of 37 PageID #:34

the units were sold, and the price at which the units were sold, along with

other significant information.

WHEREFORE, Plaintiff, GlobalTap, LLC, respectfully requests this

Honorable Court enter judgment in its favor and against Defendant, Petersen

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

under the circumstances.

Count IX – Tortious Interference (Petersen)

147. GlobalTap incorporates by reference the allegations in paragraphs 1

through 73 as though fully set forth herein.

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
Case: 1:18-cv-05383 Document #: 1 Filed: 08/08/18 Page 35 of 37 PageID #:35

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.

153. 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 Defendant, Petersen

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

under the circumstances.

35
Case: 1:18-cv-05383 Document #: 1 Filed: 08/08/18 Page 36 of 37 PageID #:36

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

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
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EXHIBIT A
Case: 1:18-cv-05383 Document #: 1-1 Filed: 08/08/18 Page 2 of 5 PageID #:39
Case: 1:18-cv-05383 Document #: 1-1 Filed: 08/08/18 Page 3 of 5 PageID #:40
Case: 1:18-cv-05383 Document #: 1-1 Filed: 08/08/18 Page 4 of 5 PageID #:41
Case: 1:18-cv-05383 Document #: 1-1 Filed: 08/08/18 Page 5 of 5 PageID #:42
Case: 1:18-cv-05383 Document #: 1-2 Filed: 08/08/18 Page 1 of 6 PageID #:43

EXHIBIT B
Case: 1:18-cv-05383 Document #: 1-2 Filed: 08/08/18 Page 2 of 6 PageID #:44
Case: 1:18-cv-05383 Document #: 1-2 Filed: 08/08/18 Page 3 of 6 PageID #:45
Case: 1:18-cv-05383 Document #: 1-2 Filed: 08/08/18 Page 4 of 6 PageID #:46
Case: 1:18-cv-05383 Document #: 1-2 Filed: 08/08/18 Page 5 of 6 PageID #:47
Case: 1:18-cv-05383 Document #: 1-2 Filed: 08/08/18 Page 6 of 6 PageID #:48
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Globaltap Page 1 of 2
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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
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Globaltap - GT1500 - Non-Refrigerated Free-
1.866.636.2487 Standing Bottle Filling Station, 1 Level, Front Push
Button Dispenser Operatio Our price: $2,519.79
2 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

Globaltap - GT1000 - Non-Refrigerated Free-


Standing Bottle Filling Station, 1 Level, Front Push
Button Dispenser Operatio Our price: $4,259.83
3 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 60-1/8 Wi... Read more

Globaltap - GT1100 - Non-Refrigerated Free-


Standing Water Cooler, 2 Level, Front Push Button
Dispenser Operation Our price: $5,249.66
4 Details Call For Stock
Add To Cart
Technical Specification Item Drinking Fountain Indoor /
Outdoor Indoor/Outdoor Number of Levels 2 ADA
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
5 Details Call For Stock
Add To Cart
Technical Specification Item Drinking Fountain Indoor /
Outdoor Indoor/Outdoor Number of Levels 2 ADA
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 G
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email at customercare@neobits.com, or call toll free 1.866.636.2487. The best way to request a return or order cancellation is to submit this form.

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EXHIBIT H
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