COMPLAINT
NOW COMES Plaintiff, RAZ Imports, Inc. and respectfully files this Complaint for
Design Patent Infringement against Defendant, The Gerson Companies, alleging as follows:
NATURE OF LAWSUIT
1. This is an action for copyright infringement and arises under the United States
Copyright Act, 17 U.S.C. § 101, et seq., based on acts of copyright infringement in the United
States.
2. This is also an action for design patent infringement and arises under the United
States Patent Act, 35 U.S.C. § 101 et seq. based on acts of design patent infringement in the
United States.
3. This is also an action for fraudulent misrepresentation arising under Kansas law.
THE PARTIES
State of Texas and having its principal place of business at 1020 Eden Road, Arlington, Texas
76001.
decorations and home accents. RAZ sells Christmas, Easter, Spring, Halloween, Thanksgiving
and Fall décor as well as floral items.
view items offered for sale by RAZ for purchase, request and download catalogs and perform
other actions. Additionally, RAZ maintains several show-rooms across the country, including a
showroom at the “Dallas Market Center,” Dallas World Trade Center, 2050 N. Stemmons
Freeway, Suite 340, Dallas, TX 75207, where many of RAZ’s current products are on display
and available for order.
that maintains its headquarters and principal place of business at 1450 S. Lone Elm Rd., Olathe,
KS 66061.
8. Gerson is also a wholesale importer of seasonal merchandise and sells and offers
retailers may order items that Gerson offers for sale. Gerson also utilizes space at the Keith
Smith Ltd. showroom at the “Dallas Market Center,” Dallas World Trade Center, 2050 N.
Stemmons Freeway, Showroom 200-WTC, 2nd Floor, Dallas, TX 75207, where many of
10. As an action for copyright infringement under the Copyright Act and for design
patent infringement under the Patent Act, this Court has exclusive jurisdiction under 28 U.S.C. §
1331 and § 1338.
11. Further, as an action for fraudulent misrepresentation under Kansas law, this
and resides in the State of Kansas. This Court also has personal jurisdiction over Defendant
understanding that such products are sold in the State of Kansas. Accordingly, the acts by
Defendant Gerson cause injury to Plaintiff RAZ within this District. Upon information and
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belief, Defendant Gerson derives substantial revenue from the sale of infringing products within
this District, expects its actions to have consequences within this District and derives substantial
13. Venue is proper within this District under 28 U.S.C. §§ 1391(b) and (c) as well as
1400(a) and (b). Defendant Gerson is located in this judicial district and because a substantial
part of the acts and omissions giving rise to the claims outlined herein occurred in this judicial
district.
BACKGROUND
14. Plaintiff RAZ is a wholesale importer of seasonal merchandise. The products that
RAZ develops are sold to retailers nationwide. RAZ’s direct customers range from small gift
shops to large “big box retailers.” RAZ products can also be purchased from online retailers
such as Amazon.com.
15. In part, RAZ competes in the marketplace through its innovation of new products.
A prime example of RAZ’s innovative approach to design is embodied in its series of water
lanterns. Water lanterns are RAZ’s unique twist on the classic snow-globe, which combine a
central scene – for example, a Christmas Tree and Snowman – placed within an ornamental shell
that is often designed to evoke an old-fashioned oil lantern. Different central scenes are offered,
such as other Christmas themes (such as Santas, Sleighs, Nativities, Christmas trees, etc.),
Halloween themes or Spring/Easter themes. Similarly, the ornamental lantern shell is offered in
various shapes, styles, finish colors, textures or scroll work.
16. RAZ has taken steps to protect its innovative water lantern products by registering
certain designs with the United States Copyright Office and applying for and receiving design
patents from the United States Patent and Trademark Office.
17. In that regard, RAZ now brings the instant case alleging infringement of one
copyright and two design patents owned by RAZ against Defendant Gerson.
RAZ’s Copyright and Design Patents
106-034, entitled “Lantern Santa” from the United States Copyright Office. A true and correct
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submitted a sample to the United States Copyright Office in the form of an image of the design.
A copy of that image is reproduced below:
20. On January 29, 2019, United States Design Patent No. D839,463 was duly and
legally issued by the United States Patent and Trademark Office (the “`463 patent”). The `463
patent has remained in force since that time and continues to be in force. A true and correct copy
including the right to bring this action for any past or present infringement of the `463 patent,
collect past damages and obtain injunctions. RAZ is the owner by assignment from the inventor,
Mr. Chen Kong Fu, and is listed as the owner/assignee on the front face of the issued `463
patent.
22. The `463 patent is entitled “Snow Globe Lantern,” another common name for
water lanterns in the industry. The `463 patent covers an ornamental design for a water lantern
into which various scenes can be placed for viewing within the central window area. For
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example, Figure 1 of the `463 patent shows a perspective view of this ornamental design:
The `463 patent includes sixteen separate figures that are directed to different views or
perspectives of RAZ’s ornamental design. As the `463 patent explains: “Dashed broken lines are
for illustrating unclaimed portions of the snow globe lantern and/or for illustrating an
environment related to the claimed design. Dashed-dot broken lines are for illustrating …
unclaimed areas of the snow globe lantern; the dashed-dot line forms no part of the claimed
design.” Exhibit B, page 1.
23. On November 5, 2019, United States Design Patent No. D866,033 was duly and
legally issued by the United States Patent and Trademark Office (the “`033 patent”). The `033
patent has remained in force since that time and continues to be in force. A true and correct copy
of the `033 patent is attached hereto as Exhibit C. The`033 patent is a continuation of the `463
patent.
24. Plaintiff RAZ is the owner of all right, title and interest in the `033 patent,
including the right to bring this action for any past or present infringement of the `033 patent,
collect past damages and obtain injunctions. RAZ is the owner by assignment from the inventor,
Mr. Chen Kong Fu, and is listed as the owner/assignee on the front face of the issued `033
patent.
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25. The `033 patent is entitled “Snow Globe Lantern” and covers an ornamental
design for a water lantern into which various scenes can be placed for viewing within the central
window area. For example, Figure 1 of the `033 patent shows a perspective view of this
ornamental design:
The `033 patent includes eight separate figures showing differing views and perspectives of the
ornamental design. As the `033 patent explains: “Dashed broken lines are for illustrating
unclaimed portions of [the design] and/or for illustrating an environment related to the claimed
design; the broken lines form no part of the claimed design.” Exhibit C, page 1.
26. RAZ’s has extensively promoted and advertised the water lantern designs
embodied in the RAZ Copyrighted Design and the `463 and `033 patents. As a result, RAZ’s
27. In December 2018, RAZ became aware of Defendant Gerson’s selling and
offering for sale unauthorized versions of designs protected by RAZ’s Copyright and then-
pending design patent applications.
28. Specifically, Defendant Gerson was importing, displaying, offering for sale and
selling unauthorized products covered by RAZ’s `463 and `033 Design Patents through
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29. Additionally, Defendant Gerson was importing, displaying, offering for sale and
selling unauthorized products covered by RAZ’s Copyrighted Design through Defendant’s
Product Number, #2497460, which is reproduced side-by-side with the photographic sample
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30. Below, this same Gerson product, SKU # 2497460, is presented side-by-side next
to Figure 1 of RAZ’s `463 and `033 Design Patents:
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31. Additionally, Gerson has been importing, displaying, offering for sale and selling
Gerson SKU # 2497500, which is presented side-by-side with RAZ’s `463 and `033 Design
Patents:
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32. Additionally, Gerson has been importing, displaying, offering for sale and selling
Gerson SKU # 249650 which is presented side-by-side with RAZ’s `463 and `033 Design
Patents:
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33. Additionally, Gerson has been importing, displaying, offering for sale and selling
Gerson SKU # 2520830 which is presented side-by-side with RAZ’s `463 and `033 Design
Patents:
Gerson SKU # 25250830 RAZ `463 Design Patent, Figure 1
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34. Importantly, Gerson appears to utilize the same SKU # for water lanterns having
the same ornamental construction, but including differing combinations of texturing, finishing
and various central scenes. For example, all of the images reproduced below are associated with
Examples of different finishes and textures utilizing the same ornamental design can been seen
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35. Gerson’s SKU # 2497460, 2497500, 2497650, 2520830, and 3499030 along with
any and all variations thereon and any other Gerson product exhibiting substantially identical
36. Plaintiff RAZ provided Gerson with actual notice of RAZ’s Copyrighted Design
and then-pending design patent applications in a letter dated January 9, 2019. This letter
(excluding its exhibits) is attached hereto as Exhibit D. This letter provided Gerson with a copy
of the Copyright Registration, copies of the then-pending design patent application and side-by-
side comparisons of RAZ’s Copyrighted Design and design patent application against the
Accused Products that RAZ was then aware of – SKU # 2497460, # 2497500 and 3499030.
Other comparisons and notice to a third RAZ design application, which is still pending, was also
included. Additionally, the January 9, 2019 letter demanded that Gerson cease and desist from
infringing upon RAZ’s Copyright, provide information regarding the number of items sold and
an accounting. Finally, the letter warned that RAZ’s `463 design patent would soon issue.
37. In a letter dated January 22, 2019, Gerson responded. A copy of this latter is
attached hereto as Exhibit E. Therein, Gerson denied infringement of the copyright and the
soon-to-be-issued `463 design patent. Gerson also denied that any of the lanterns identified in
RAZ’s January 9, 2019 letter had shipped.
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38. Additionally, in its response, Gerson represented that it would change its lanterns.
Gerson provided artwork representing the redesign, which is reproduced below:
Gerson-Proposed “Redesign”
39. RAZ replied in a letter dated January 24, 2019 that based on these Gerson
representations that RAZ believed the matter resolved. A copy of this letter is attached hereto as
Exhibit F. Specifically, RAZ understood and relied upon three key representations by Gerson,
all of which were outlined in the reply: (1) “Gerson has redesigned its lantern offerings for
Christmas 2019 based on the artwork attached to the January 22, 2019 letter;” (2) No shipments
have or will be made of the SKU # 2497460, 3499030, 2497350 and 2597500 lantern
products…. Further, no lanterns having those overall appearances will be sold or offered for sale
by Gerson going forward;” and (3) “Only the redesigned lanterns will be shipped (presumably
under some separate SKU #).” Moreover, RAZ agreed that Gerson’s proposed redesign was not
infringing either the RAZ Copyrighted Design or the then-pending design patent applications.
Provided that RAZ’s understanding of Gerson’s representations was correct, RAZ was willing to
forebear and not pursue the matter in litigation – a condition expressly set forth in the RAZ reply,
Exhibit F.
40. Gerson responded by email on January 30, 2019. A copy of this email is
attached hereto as Exhibit G. Therein, Gerson “confirm[ed] the understandings set forth in the
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bullet points of [RAZ’s] letter with one exception. Although Gerson will change the lanterns
exactly as described in the letter, Gerson will still be shipping using the original SKU numbers.”
Exhibit G.
41. On February 8, 2019, RAZ was forced to write yet another letter to Gerson. A
copy of this letter is attached hereto as Exhibit H. Two problems with Gerson’s previous
representations had been discovered. First, it appeared based on a Gerson catalog available
online that Gerson was still displaying, offering for sale and selling the infringing designs and
was not offering for sale the Gerson Redesigned product. Second, these infringing products were
listed by the online catalog as “Top Sellers,” which seemed to contradict Gerson’s representation
Gerson reiterated its belief that no Copyright or Design Patent infringement existed, reiterated
that no Accused Products have shipped and that the images would be removed from Gerson’s
website.
43. Gerson did not follow through with these representations to RAZ. On August 14,
2019 RAZ was forced to write yet another letter to Gerson demanding an explanation as to why
the products Gerson agreed to remove from its website and replace with the redesigned product
were still being offered for sale. A copy of this letter is attached hereto as Exhibit J.
44. Gerson’s subsequent response, dated August 23, 2019 and attached hereto as
Exhibit K, asserted that it was all a mistake: “Unfortunately, these items were mistakenly
included in that catalog…. In order to avoid a pointless dispute, Gerson will ship no lanterns of
this style in response to orders of these products from the Spring 2020 catalog, but instead will
substitute the previously communicated style of lanterns used for all Christmas orders for these
depicted lanterns.”
redesigned product on its on-line website. Moreover, Gerson has not replaced the Accused
Products with the redesigned product, but rather shipped and continues to ship the Accused
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Products, despite its several representations to the contrary. Given the failure of Gerson to act in
accordance with its numerous representations to RAZ regarding implementing the redesigned
product and removing images of Accused Products from the Gerson website, RAZ is forced to
conclude that Gerson shipped Accused Products rather than the redesign products on all orders
taken for the SKU numbers associated with the Accused Products.
COUNT ONE
(Copyright Infringement)
46. Plaintiff RAZ re-alleges all of the allegations contained in paragraphs 1 through
RAZ and represents a work of authorship protectable under the Copyright Act 17 U.S.C. § 101 et
seq. A true and correct copy of the Copyright Registration for VA 2-106-034 is attached hereto
as Exhibit A. The effective date of this registration is December 8, 2017.
48. Plaintiff is the sole owner of all right, title and interest to the RAZ Copyrighted
Center showroom, and at other showrooms maintained by RAZ. Defendant Gerson also
displays, sells and offers for sale products – including upon information and belief the infringing
product – at another showroom at the same Dallas Market Center, and Gerson (or those acting on
Gerson’s behalf) had access to RAZ’s showroom at this same facility and would have had access
would have also seen an image of the RAZ Copyrighted Design on the public portion of RAZ’s
website, www.razimports.com. For example, the RAZ Copyrighted design was displayed as part
of the “What’s Trending” feature of RAZ’s public website on or about June 27, 2017 as archived
https://web.archive.org/web/20171017053506/https:/razimports.com/.
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RAZ’s “Fall and Winter Wholesale Catalog 2017” including RAZ’s Copyrighted Design is
53. Defendant Gerson began to market its unauthorized copy of RAZ’s Copyrighted
Design sometime in 2018. Specifically, Defendant Gerson was importing, displaying, offering
for sale and selling unauthorized copies of RAZ’s Copyrighted Design through Defendant’s
Product Number, #2497460, which is reproduced side-by-side with the photographic sample
submitted by RAZ when registering for the RAZ Copyrighted Design:
54. As can be seen above, the Gerson SKU # 2497460 product is substantially similar
to the RAZ Copyrighted Design.
17 U.S.C. § 501 by importing, displaying, selling and offering for sell the unauthorized Gerson
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SKU # 2497460, which represent unauthorized copies or derivative works based on the RAZ
Copyrighted Design.
56. Despite having been informed by RAZ on January 9, 2019 that it is engaging in
copyright infringement, Gerson persists and continues in its infringing activity. Further, given,
Gerson’s many broken representations to RAZ that products had not actually shipped, that a
redesigned product would be substituted for such orders and that images of Accused Products
would be removed from catalogs and websites, Gerson’s infringement of the RAZ Copyrighted
Design continues to this day and is willful.
57. As a result of Gerson’s infringement, Gerson has obtained direct and indirect
profits that it would not have realized but for its infringement. As such, RAZ is entitled to
disgorgement of Gerson’s profits that are directly and indirectly attributed to Gerson’s acts of
infringement.
58. Moreover, because RAZ’s Copyrighted Design was registered with the Copyright
Office prior to the commencement of infringement, RAZ is entitled to statutory copyright
59. Additionally, as a result of Gerson’s infringing behavior and acts, RAZ has
suffered substantially and requests that the Court issue an order impounding, seizing and/or
requiring forfeiture of all infringing designs including any copies, derivative works, molds or
other items relating to infringement to be turned over to RAZ or completely destroyed. Further,
RAZ requests that all infringing designs be removed from Gerson’s website and recalled from
COUNT TWO
60. Plaintiff RAZ re-alleges all of the allegations contained in paragraphs 1 through
59, above, as though fully set forth herein.
61. Gerson has infringed and continues to infringe the claimed ornamental design of
the `463 patent by importing, providing, selling, offering to sell, distributing without authority
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Gerson’s SKU # 2497460, 2497500, 2497650, 2520830, and 3499030 along with any and all
variations thereon and any other Gerson product exhibiting substantially identical designs, the
Accused Products.
62. Moreover, on information and belief, Gerson has induced, and is inducing the
infringement of the claimed design of the `463 patent. On information and belief, the direct
infringement induced by Gerson includes at least the unauthorized sales and offers for sale of the
63. Despite having been provided actual notice by RAZ on January 9, 2019 that it is
engaging in design patent infringement, Gerson persists and continues in its infringing activity.
Further, given, Gerson’s many broken representations to RAZ that products had not actually
shipped, that a redesigned product would be substituted for such orders, and that images of
Accused Products would be removed from catalogs and websites, Gerson’s infringement of the
64. As a result of Gerson’s infringement, Gerson has obtained direct and indirect
profits that it would not have realized but for its infringement. As such, RAZ is entitled to its
lost profits, disgorgement of Gerson’s profits that are directly and indirectly attributed to
Gerson’s acts of infringement and in no instance compensation less than a reasonable royalty.
COUNT THREE
66. Defendant has infringed and continues to infringe U.S. Design Patent D866,033 at
least by importing, selling and offering to sell in the United States water lantern products under
Gerson SKU# 2497460, 2497500, 2497650, 2520830, and 3499030, which embodies the design
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67. Gerson has infringed and continues to infringe the claimed ornamental design of
the `033 patent by importing, providing, selling, offering to sell, distributing without authority
Gerson’s SKU # 2497460, 2497500, 2497650, 2520830, and 3499030 along with any and all
variations thereon and any other Gerson product exhibiting substantially identical designs, the
Accused Products.
68. Moreover, on information and belief, Gerson has induced, and is inducing the
infringement of the claimed design of the `033 patent. On information and belief, the direct
infringement induced by Gerson includes at least the unauthorized sales and offers for sale of the
69. Despite having been provided actual notice by RAZ on January 9, 2019 that it is
engaging in design patent infringement, Gerson persists and continues in its infringing activity.
Further, given, Gerson’s many broken representations to RAZ that products had not actually
shipped, that a redesigned product would be substituted for such orders and that images of
Accused Products would be removed from catalogs and websites, Gerson’s infringement of the
`463 Design Patent continues to this day and is willful.
70. As a result of Gerson’s infringement, Gerson has obtained direct and indirect
profits that it would not have realized but for its infringement. As such, RAZ is entitled to its
lost profits, disgorgement of Gerson’s profits that are directly and indirectly attributed to
Gerson’s acts of infringement and in no instance compensation less than a reasonable royalty.
COUNT FOUR
(Fraudulent Misrepresentation)
71. Plaintiff RAZ re-alleges all of the allegations contained in paragraphs 1 through
70, above, as though fully set forth herein.
72. RAZ provided Gerson with actual notice of infringement on January 9, 2019 by
letter. Exhibit D. In response, Gerson asserted while it believed (incorrectly) that the Accused
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Products did not infringe RAZ’s Copyrights or then-pending design patent applications Gerson
made several representations to RAZ in order to avoid litigation with RAZ. Exhibit E.
73. Specifically, Gerson made three material representations: (1) “Gerson has
redesigned its lantern offerings for Christmas 2019 based on the artwork attached to the January
22, 2019 letter;” (2) No shipments have or will be made of the SKU # 2497460, 3499030,
2497350 and 2597500 lantern products…. Further, no lanterns having those overall appearances
will be sold or offered for sale by Gerson going forward;” and (3) “Only the redesigned lanterns
will be shipped (presumably under some separate SKU #).” Moreover, RAZ agreed that
Gerson’s proposed redesign was not infringing either the RAZ Copyrighted Design or the then-
pending design patent applications. RAZ accepted and relied upon these representations in a
letter dated January 24, 2019. Exhibit F. Gerson understood that RAZ believed these
representations to be material and understood that RAZ was relying on Gerson’s representations
Products remain on sale at Gerson’s own website and through Gerson’s catalog and also through
a replacement, Gerson continues to ship the Accused Products. RAZ purchased examples of
75. Gerson made additional material and false misrepresentations to dissuade RAZ
from pursuing litigation. On February 8, 2019, RAZ wrote to Gerson to alert Gerson to the fact
that the Accused Products were still being offered for sale on Gerson’s website, which
contradicted Gerson’s representation that the Accused Products would be taken off the market.
Exhibit H. Further, the Accused Products were listed by the online catalog as “Top Sellers,”
which contradicted Gerson’s representation that no product had actually shipped to customers.
Exhibit H. As noted above, Gerson’s Accused Products remain on sale and are currently being
shipped to customers.
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76. Again, on August 14, 2019, RAZ was forced to write yet another letter to Gerson
demanding an explanation as to why the products Gerson agreed to remove from its website and
replace with the redesigned product were still being offered for sale. A copy of this letter is
attached hereto as Exhibit J. In Gerson’s response dated August 23, 2019 and attached hereto as
Exhibit K, asserted that it was all a mistake: “Unfortunately, these items were mistakenly
included in that catalog…. In order to avoid a pointless dispute, Gerson will ship no lanterns of
this style in response to orders of these products from the Spring 2020 catalog, but instead will
substitute the previously communicated style of lanterns used for all Christmas orders for these
depicted lanterns.” Gerson’s representation was again designed to encourage RAZ to forebear
when they made or that they were made recklessly. Each instance that RAZ raised some
incongruity between Gerson’s representations and how Gerson was actually behaving, Gerson
offered excuses rather than implementing the promises it made to RAZ.
78. RAZ reasonably relied upon Gerson’s false representations. For example, RAZ
relied upon Gerson’s representation that it would cease selling and offering the Accused
Products for sale and that it would instead implement the redesigned product that Gerson. RAZ
further relied upon Gerson’s representations that it would only ship the redesigned product rather
additional eight months of infringing activity, the additional attorneys’ fees and costs associated
JURY DEMAND
Plaintiff designates Kansas City, Kansas as the place for trial in this matter.
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inducement) infringed claims of the `463 and `033 Design Patents pursuant to 35 U.S.C. § 271
and 35 U.S.C. § 289.
directors, agents, servants, employees, affiliates, attorneys and all other acting in privity or
concert with them, and their parents, subsidiaries, divisions, successors and assigns, from further
lost profits pursuant to 35 U.S.C. § 289, including pre-suit damages based on RAZ’s actual
E. Declare this case exceptional pursuant to 35 U.S.C. § 285 and award to RAZ its
reasonable attorneys’ fees and costs in this action.
17 U.S.C. § 501.
G. Declare that the Defendant Gerson has willfully infringed RAZ’s copyright under
17 U.S.C. § 504(c)(2).
I. Enter an order to impound and destroy all copies of Defendant’s infringing design
under 17 U.S.C. § 503.
J. Award Plaintiff actual damages and any additional profits of Defendant under 17
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L. Award Plaintiff its full costs and a reasonable attorneys’ fee under 17 U.S.C. §
505.
M. Award Plaintiff both pre- and post-judgment interest.
N. Award Plaintiff any and all other such relief as the Court deems appropriate.
Respectfully submitted,
POLSINELLI PC
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EXHIBIT A
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Case 2:19-cv-02699 Document 1-3 Filed 11/12/19 Page 1 of 9
EXHIBIT C
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Case 2:19-cv-02699 Document 1-4 Filed 11/12/19 Page 1 of 9
EXHIBIT D
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EXHIBIT E
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EXHIBIT F
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EXHIBIT G
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EXHIBIT H
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Case 2:19-cv-02699 Document 1-9 Filed 11/12/19 Page 1 of 2
EXHIBIT I
Case 2:19-cv-02699 Document 1-9 Filed 11/12/19 Page 2 of 2
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EXHIBIT J
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Case 2:19-cv-02699 Document 1-11 Filed 11/12/19 Page 1 of 2
EXHIBIT K
Case 2:19-cv-02699 Document 1-11 Filed 11/12/19 Page 2 of 2
Case 2:19-cv-02699 Document 1-12 Filed 11/12/19 Page 1 of 13
EXHIBIT L
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Case 2:19-cv-02699 Document 1-12 Filed 11/12/19 Page 12 of 13
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Case 2:19-cv-02699 Document 1-12 Filed 11/12/19 Page 13 of 13