Wang v. Jie - Complaint
Wang v. Jie - Complaint
Defendants.
COMPLAINT
Plaintiffs Xiaobing Wang and Liangqing Li (“Plaintiff”) hereby sue Defendants, Gua Jia
INTRODUCTION
1. This action has been filed by Plaintiffs to combat e-commerce store operators who
trade upon Plaintiffs’ reputation and goodwill by offering for sale and/or selling unauthorized and
unlicensed products, mainly including magnetic suspension devises, using infringing versions of
Plaintiffs’ federally registered patent US 8,294,542 (the “Infringing Products”). Defendants create
e-commerce stores operating under one or more Seller Aliases that are advertising, offering for
sale, and/or selling Infringing Products to unknowing consumers. Defendants attempt to avoid and
mitigate liability by operating under one or more Seller Aliases to conceal both their identity and
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2. Plaintiffs are forced to file this action to combat Defendants’ infringement of its
federally registered patent as well as to protect unknowing consumers from purchasing Infringing
infringing the Patent-in-Suit. However, Plaintiffs have identified additional seller aliases who have
4. Plaintiffs have been and continue to be irreparably damaged through loss of market
share, loss of future sales, inability to realize a return on investment, consumer confusion, dilution,
and tarnishment of its valuable patent rights as a result of Defendants’ actions and seeks injunctive
PARTIES
6. Plaintiffs are the inventors and owners of United States Patent No. 8,294,542
7. Plaintiffs make and sell a range of magnetic suspension products under the Patent-
8. Plaintiffs put large efforts and money into developing the Patent-in-Suit to
$160,000.00 in 2006.
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10. Since development, Plaintiffs have invested significant time, money, and
manpower into the promotion of the Patent-in-Suit products, including advertising, promotions,
11. Plaintiffs started to launch the Patent-in-Suit products and received great
commercial success in China. Due to the protection provided by the counterpart Chinese patent,
13. The above U.S. registration for the Patent-in-Suit is valid, subsisting, and in full
14. Plaintiffs’ products protected by the Patent-in-Suit quickly won market recognition
due to its excellent performance, user-friendly and innovative design, novel limitations, and high-
quality user experience. Plaintiffs’ products protected by the Patent-in-Suit have been widely
16. However, based on the Patent-in-Suit’s unique design, novel limitations, and
market popularity, Plaintiffs became aware of multiple sellers on various online platforms who
also started to sell products virtually identical to the claimed Patent-in-Suit. As mentioned,
Plaintiffs have been previously successful against anonymous seller alias groups infringing the
Patent-in-Suit, which helped reduce the mass infringement. However, Plaintiffs have identified
additional aliases who are also selling Infringing Products. As such, Plaintiffs filed this action to
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combat these Seller Aliases listed on Schedule A who are harming Plaintiffs by offering to sell,
17. This infringing behavior by Defendants severely impact Plaintiffs’ patent rights and
undermines the fair competition environment in the market. The sales of Plaintiffs’ products
protected by the Patent-in-Suit have dropped significantly and Plaintiffs’ market share has been
illegally eroded.
18. The infringing behavior of these Seller Aliases has diminished Plaintiffs’ patent
rights and resulted in loss of exclusivity. Plaintiffs have not been able to realize the return of
19. Plaintiffs have lost profit, market share, sales volume, marketplace rankings and
visibility, control over the rights in the claimed invention, reputation, associated goodwill, and
20. Plaintiffs have not entered a contract with or licensing agreement with Defendants
21. Plaintiffs filed this action to combat these Seller Aliases’ “swarm of attacks” on the
Patent-in-Suit because filing individual causes of action against each infringer ignores the form of
associations who target sales to Pennsylvania residents by setting up and operating various
“storefronts” under aliases via online retail websites accepting U.S. Dollars. Defendants target
Pennsylvania consumers by selling, offering to sell, and/or shipping products that infringe the
Patent-in-Suit.
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23. Based on the Seller Alias names and limited available information, Defendants
reside and operate in the People’s Republic of China or other foreign jurisdictions with lenient
intellectual property enforcement systems or redistribute products from the same or similar sources
in those locations. Aa a result, Defendants have the capacity to be sued pursuant to Federal Rule
24. Upon information and belief, Defendants either individually or jointly, operate one
or more e-commerce stores under the Seller Aliases listed in Schedule A. Through fictitious Seller
Aliases and the anonymity allowed by marketplace platforms, Defendants purposely conceal their
identity and the full scope of their operations, making it virtually impossible for Plaintiffs to learn
Defendants’ true identity and the scope of their infringing network operations.
25. At present, Defendants can only be identified through their storefronts names and
other limited publicly available information. No credible information regarding Defendants’ true
identity and nature appear public. Plaintiffs will voluntarily amend its Complaint as needed if
Defendants provide additional credible information regarding their identity and location.
26. Third party online platforms do not adequately subject sellers to verification and
confirmation of their identities and products, allowing infringers to “routinely use false or
inaccurate names and addresses when registering with these e-commerce platforms.” Exhibit D,
Daniel C.K. Chow, Alibaba, Amazon, and Counterfeiting in the Age of the Internet, 40 NW. J.
INT’L L. & BUS. 157, 186 (2020). “At least some e-commerce platforms, little identifying
information is necessary for [an infringer] to begin selling” and recommending that “[s]ignificantly
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Counterfeit and Pirated Goods prepared by the U.S. Department of Homeland Security’s Office
of Strategy, Policy, and Plans. Because these online platforms generally do not require a seller to
identify the underlying business entity, infringers can have many different profiles that can appear
unrelated even though they are commonly owned and operated. Id. at 39.
conduct when registering the Seller Aliases by providing false, misleading and/or incomplete
information to e-commerce platforms to prevent discovery of their true identities and the scope of
28. The e-commerce stores operating under the Seller Aliases appear sophisticated and
accept payment in U.S. dollars via credit cards, Alipay, Amazon Pay, and/or PayPal. The e-
commerce stores operating under the Seller Aliases include content and images that make it very
difficult for consumers to distinguish such stores from an authorized retailer of the Patent-in-Suit
products.
29. E-commerce store operators like Defendants regularly register new seller aliases
for the purpose of offering for sale and selling Infringing Products. Such seller alias registration
patterns are one of many common tactics used by e-commerce store operators like Defendants to
conceal their identities and the scope of their infringing operations. Such tactics help Defendants
avoid being shut down. Even after being shut down through enforcement efforts, such e-commerce
store operators may conveniently register another storefront under another seller alias and continue
30. Defendants use different fake names and payment accounts to keep selling despite
Plaintiffs’ actions. They also have bank accounts outside this Court’s reach and move money there
regularly to avoid paying any monetary judgment to Plaintiffs. In fact, financial records from
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similar cases show that off-shore sellers frequently transfer money from U.S. accounts to foreign
ones on a regular basis to avoid paying any judgment ordered by a court of law.
31. Upon information and belief, Defendants are in communication with one another
via WeChat and QQ.com chat rooms and through websites such as sellerdefense.cn,
kaidianyo.com, and kuajingvs.com, that provide litigation specific content to warn anonymous
seller alias networks of upcoming lawsuits against their many respective product listings.
32. Even though Defendants operate under multiple fictitious Seller Aliases, the e-
commerce stores operating under the Seller Aliases share unique identifiers establishing a logical
relationship, such as templates with common design elements that intentionally omit any contact
information, the same registration patterns, the same accepted payment methods, the same
check-out methods, the same keywords and titles, the same or similar product descriptions,
the same advertising tactics, the same or similar images and videos, similarities in pricing and
33. Defendants’ Infringing Products were manufactured by and come from a common
source based on the same irregularities and virtual identicality of each of Defendants’ products,
34. Each Defendant, in a virtually identical manner, attempts to avoid liability by going
to great lengths to conceal both their identities and the full scope and interworking of their
operation, utilizing fictitious Seller Aliases and providing no further identifying information,
35. Defendants are making, using, offering for sale and/or selling of the same accused
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36. Defendants are working in active concert to knowingly and willfully manufacture,
import, distribute, offer for sale, and sell Infringing Products in the same transaction, occurrence,
or series of transactions or occurrences. Alternatively, Plaintiffs assert any right to relief against
37. All Defendants take advantage of a set of circumstances the anonymity and mass
reach the internet affords to sell counterfeit and infringing goods across international borders and
violate Plaintiffs’ intellectual property rights with impunity. All Defendants can easily and quickly
transfer or conceal their funds in their use payment and financial accounts to avoid detection and
liability in the event that the Plaintiffs’ infringing efforts are discovered, or Plaintiffs obtains a
monetary award. All Defendants understand that their ability to profit through anonymous internet
stores is enhanced as their numbers increase, even though they may not all engage in direct
communication or coordination.
38. The natural and intended byproduct of Defendants’ logically related actions is the
erosion and destruction of the goodwill associated with Plaintiffs’ intellectual property rights and
39. The e-commerce stores operating under the Seller Aliases offer to sell, and stand
ready, willing, and able to, and upon information and belief do, sell and ship Infringing Products
40. Questions of fact common to all Defendants will arise inherently do to the identical
anonymous nature and foreign status of Defendants – requiring the same methods to investigate,
uncover, and collect evidence about infringing activity, and based upon Defendants selling the
same Infringing Products – requiring the same legal and factual infringement analysis. See
Exhibits B-C.
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distribution, offering for sale, and sale of Infringing Products, including the sale of Infringing
Products into Pennsylvania, is likely to cause and has caused confusion, mistake, and deception
42. This is an action for infringement of the Patent-in-Suit arising under 35 U.S.C. §§
271(a), 281, and 284 – 85. This Court has original subject matter jurisdiction over this claim under
43. Personal jurisdiction is proper because Defendants directly target consumers in the
United States, including in Pennsylvania, through at least the fully interactive commercial Internet
stores operating under the Seller Aliases, where Defendants advertise, display, offer to sell, and
stand ready, willing, and able to, and upon information and belief do, sell and ship Infringing
Products to residents within the Western District of Pennsylvania. See Exhibit C. As a result, each
Defendant has purposefully availed themselves of the privilege of conducting business in the
forum state or purposefully directed their patent infringement activities at the state; Plaintiffs’
injuries stems from the Defendants’ forum-related activities of offering to sell, selling, and
shipping Infringing Products to the forum-state; and the exercise of personal jurisdiction comports
44. Pennsylvania also authorizes personal jurisdiction over the Defendants pursuant to
42 Pa. Cons. Stat. § 5322 (a). Upon information and belief, Defendants are systematically directing
or targeting their business activities at consumers in the United States, including Pennsylvania,
through Internet platforms with such as Amazon.com, eBay.com, and/or Walmart under the Seller
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Aliases, through which consumers in the United States, including Pennsylvania, can and do view
Defendants’ Infringing Products listings, communicate with Defendants regarding their respective
Infringing Products, place orders for Defendants’ Infringing Products, and ship Defendants’
discussed above, the level of interactivity is high, where consumers of Pennsylvania can:
communicate to Defendants about Infringing Products, view the Infringing Products, purchase the
Infringing Products, and ship the Infringing Products to their respective Pennsylvania addresses.
Defendants, through anonymous Seller Aliases, utilize Amazon.com and other marketplace
platforms for the sole purpose of conducting business transactions, as described above. The
Internet webpages owned and operated by Defendants, as described above, are purely commercial
in nature. The level of interactivity of these marketplace platform listings owned and operated by
Defendants are extremely high and establish regular business with the U.S. and Pennsylvania, as
described above.
Procedure 4(k)(2), where “a claim that arises under federal law, serving a summons or filing a
waiver of service establishes personal jurisdiction over a defendant if: (A) the defendant is not
subject to jurisdiction in any state's courts of general jurisdiction; and (B) exercising jurisdiction
is consistent with the United States Constitution and laws.” Based on the limited information found
on Defendant’s Infringing Product listings and based on the Seller Aliases names of foreign origin,
each of the Defendants is a foreign entity or unincorporated association not subject to any state’s
courts general jurisdiction, and exercising jurisdiction is consistent with the United States
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1391 because a substantial part of the events that give rise to the claim occur within this District,
Defendants have committed acts of infringement in and have significant contacts within this
District – as described above, and Defendants as delineated in Schedule A are directly targeting
their business activities of offering to sell, selling, and shipping the Infringing Products to this
District.
and based on the Seller Aliases themselves, each of the Defendants is a foreign entity or individual,
and “a defendant not resident in the United States may be sued in any judicial district.” 28 U.S.C.
§ 1391(c)(3).
                                   COUNT I
            INFRINGEMENT OF U.S. PATENT NO. 8,294,542 (35 U.S.C. §271(a))
48. Plaintiffs hereby re-allege and incorporate by reference the allegations set forth in
49. Defendants, directly or through intermediaries, offer to sell, sell, and ship products
50. Defendants are making, using, offering for sale, selling, and/or importing into the
United States, and Pennsylvania, for subsequent sale or use, Infringing Products that infringe
51. Defendants are directly infringing, literally infringing, and/or infringing the Patent-
52. The Infringing Products directly infringe Claim 1 of the Patent-in-Suit. For
example, they are magnetic suspension devices that include a magnetic base and a suspension
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body; the suspension body being suspended above the magnetic base, the suspension body being
provided with a receiving coil and at least one luminous body; the magnetic base being provided
with a transmitting coil, the transmitting coil transmitting an AC signal to the receiving coil; the
receiving coil converting the AC signal transmitted by the transmitting coil into electric energy
and supplying the electric energy to the luminous body for emitting light, wherein the suspension
body is provided with a plurality of luminous bodies; the luminous bodies adopt LED lamps which
are arranged inside the suspension body or on the suspension body, and are connected with the
receiving coil by electric connection, wherein a permanent magnet is arranged inside the
suspension body, and the permanent magnet is arranged symmetrically around the barycenter
vertical of the suspension body, wherein the suspension body comprises an upper case, a lower
case and a mounting ring arranged between the upper case and the lower case; a mounting part is
arranged at the middle of the mounting ring, and the luminous bodies are mounted to the mounting
part and are connected to the receiving coil via a connecting wire; the permanent magnet is an
assembly of magnets, of which the lower end is a cylindrical magnet, and the upper end is several
overlapped circular magnets; the middle of the receiving coil is provided with a through hole
corresponding to the cylindrical magnet of the permanent magnet; the lower case is provided with
a fixing pillar corresponding to the cylindrical magnet, and the middle of the fixing pillar is
provided with a fixing hole; the cylindrical magnet passes through the through hole of the receiving
coil, and then is inserted into the fixing hole; the permanent magnet is fixed at the lower end of the
lower case; the receiving coil is sleevingly arranged to the outer side of the cylindrical magnet. See
Exhibits B-C.
53. The Infringing Products directly infringe Claim 2 of the Patent-in-Suit. For
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54. The Infringing Products directly infringe Claim 3 of the Patent-in-Suit. For
example, a transmitting circuit board is arranged inside the magnetic base of the infringing product,
and the transmitting circuit board is arranged correspondingly to the transmitting coil. See Exhibits
B-C.
55. The Infringing Products directly infringe Claim 8 of the Patent-in-Suit. For
example, they are magnetic suspension devices including a magnetic base and a suspension body;
the suspension body being suspended above the magnetic base, the suspension body being
provided with a receiving coil and at least one luminous body; the magnetic base being provided
with a transmitting coil, the transmitting coil transmitting an AC signal to the receiving coil; the
receiving coil converting the AC signal transmitted by the transmitting coil into electric energy
and supplying the electric energy to the luminous body for emitting light, wherein a transmitting
circuit board is arranged inside the magnetic base, and the transmitting circuit board is arranged
correspondingly to the transmitting coil, wherein an annular ferrite is arranged inside the magnetic
base; a plurality of suspension system coils, a plurality of magnetic heads embedded in the
suspension system coils, and a magnetic suspension circuit board are arranged inside the magnetic
base; the magnetic suspension circuit board is used to control the change of the magnetism of the
suspension system coils and the magnetic heads; besides, a system sensor used to control the
suspension of the suspension body, and a central sensor used to control the work of the system
sensor are also arranged inside the magnetic base, wherein the side of the magnetic base is provided
with a through hole, and a power converter is arranged at the through hole; the power converter is
used for connecting with an external power supply to provide electricity to the magnetic
suspension circuit board and the transmitting circuit board, wherein the magnetic base is cuboid,
the lower opening of the magnetic base is provided with a base plate; a bracket is arranged in the
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magnetic base; the bracket comprises an upper mounting plate, a lower mounting plate, several
connecting plates connecting the upper mounting plate and the lower mounting plate, and a
mounting pillar connecting the middle parts of the upper mounting plate and the lower mounting
plate; the middle of the mounting pillar is provided with a containing hole; the magnetic suspension
circuit board and the transmitting circuit board are arranged on the base plate, and are separately
located at the two sides of the bracket; the ferrite is arranged to the outer side of the connecting
plates by socket joint; the system sensor is contained in the containing hole, and the central sensor
is arranged at the upper end of the containing hole correspondingly to the system sensor; the
transmitting coil is arranged at the upper end face of the upper mounting plate. See Exhibits B-C.
56. Defendants have been and are now actively infringing the claims of the Patent-in-
Suit in the State of Pennsylvania, in this judicial district, and other jurisdictions in the United States
57. Defendants’ offering for sale, sale, and shipments of Infringing Products have
caused and continues to cause Plaintiffs to suffer irreparable harm through loss of Plaintiffs’
exclusive patent rights, loss of market share, loss of future profits, loss of reputation, and inability
58. Defendants’ offering for sale, sale, and shipment of Infringing Products into the
United States, and Pennsylvania, was willful in nature based upon the dated history of the Patent-
popularity of the Plaintiffs’ Patent-in-Suit products, and the anonymous nature of Defendants.
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WHEREFORE, Plaintiffs demand judgment on all Counts of this Complaint and an award
and Federal Rule of Civil Procedure 65 enjoining Defendants, their agents, representatives,
servants, employees, and all those acting in concert or participation therewith, from manufacturing
b. Entry of an Order that, upon Plaintiffs’ request, any Internet marketplace website
operators and/or administrators that are provided with notice of the injunction, including but not
Walmart.com, and wish.com, identify any e-mail address known to be associated with Defendants’
respective Seller ID, and cease facilitating access to any or all e-commerce stores through which
Defendants engage in the promotion, offering for sale, and/or sale of Infringing Products.
c. Entry of an Order that, upon Plaintiffs’ request, any Internet marketplace website
operators and/or administrators who are provided with notice of the injunction, including but not
Temu,Walmart.com, and wish.com, permanently remove any and all listings offering for sale
Infringing Products via the e-commerce stores operating under the Seller IDs, including any and
all listings linked to the same seller or linked to any other alias seller identification name being
used and/or controlled by Defendants to promote, offer for sale and/or sell Infringing Products.
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d. Entry of an Order that, upon Plaintiffs’ request, any Internet marketplace website
operators and/or administrators who are provided with notice of the injunction, including but not
Walmart.com, and wish.com, immediately cease fulfillment of and sequester all goods of each
Defendant or other Seller under a Seller ID offering for sale the Infringing Product in its inventory,
infringement of its patent, but in no event less than a reasonable royalty for the use made of the
invention by the Defendants, together with interest and costs as fixed by the Court pursuant to 35
U.S.C. § 284 and that the award be trebled as provided for under 35 U.S.C. §284.
f. In the alterative, Entry of an Order awarding Plaintiffs all profits realized by Defendants
g. Entry of an Order finding that this case is exceptional and an award to Plaintiffs its
h. Entry of an Order that, upon Plaintiffs’ request, any financial institutions, payment
processors, banks, escrow services, money transmitters, or marketplace platforms, and their related
companies and affiliates, identify and restrain all funds, up to and including the total amount of
judgment, in all financial accounts and/or sub-accounts used in connection with the Seller IDs or
other domain names, alias seller identification names, or e-commerce store names or store URLs
used by Defendants presently or in the future, as well as any other related accounts of the same
customer(s) and any other accounts which transfer funds into the same financial institution
herein.
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j. Entry of an order for any further relief as the Court may deem just and proper.
Plaintiff, under Rule 38 of the Federal Rules of Civil Procedure, requests a trial by jury of
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