Case: 1:16-cv-06097 Document #: 12 Filed: 06/10/16 Page 1 of 7 PageID #:312
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`UNITED STATES DISTRICT COURT
`NORTHERN DISTRICT OF ILLINOIS
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`Civil Action No.: 1:16-cv-06097
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`The Honorable Thomas M. Durkin
`
`Magistrate Judge Sidney Schenkier
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`PUBLIC, REDACTED VERSION
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`
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`THE CHAMBERLAIN GROUP INC.,
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`
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`TECHTRONIC INDUSTRIES CO. LTD.,
`TECHTRONIC INDUSTRIES NORTH
`AMERICA, INC., ONE WORLD
`TECHNOLOGIES INC., OWT
`INDUSTRIES, INC., ET TECHNOLOGY
`(WUXI) CO. LTD., and RYOBI
`TECHNOLOGIES, INC.,
`
`
`
`
`Plaintiff,
`
`
`
`v.
`
`
`
`Defendants,
`
`
`
`
`
`
`DECLARATION OF JOHN FITZGERALD IN SUPPORT OF PLAINTIFF’S
`MEMORANDUM IN SUPPORT OF ITS MOTION FOR PRELIMINARY INJUNCTION
`
`
`I, John Fitzgerald, declare as follows:
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`The Chamberlain Group Inc.’s (“CGI”) History and Products
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`1.
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`I am the Retail Commercial Controller-Americas at The Chamberlain Group, Inc.
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`(“CGI”) based in Elmhurst, Illinois. I have been with CGI since December 2013. In this
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`capacity, my responsibilities include income statement reporting, financial planning and analysis,
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`budgeting and financial forecasting functions, and assisting in management, development, and
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`implementation of overall goals, objectives, and policies.
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`2.
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`I submit this declaration in support of CGI’s motion for a preliminary injunction
`
`barring the defendants from making, using, selling, offering for sale, or importing to the United
`
`
`
`UNITED STATES DISTRICT COURT
`NORTHERN DISTRICT OF ILLINOIS
`
`
`
`
`
`
`Civil Action No.: 1:16-cv-06097
`
`The Honorable Thomas M. Durkin
`
`Magistrate Judge Sidney Schenkier
`
`PUBLIC, REDACTED VERSION
`
`
`
`THE CHAMBERLAIN GROUP INC.,
`
`
`
`
`
`TECHTRONIC INDUSTRIES CO. LTD.,
`TECHTRONIC INDUSTRIES NORTH
`AMERICA, INC., ONE WORLD
`TECHNOLOGIES INC., OWT
`INDUSTRIES, INC., ET TECHNOLOGY
`(WUXI) CO. LTD., and RYOBI
`TECHNOLOGIES, INC.,
`
`
`
`
`Plaintiff,
`
`
`
`v.
`
`
`
`Defendants,
`
`
`
`
`
`
`DECLARATION OF JOHN FITZGERALD IN SUPPORT OF PLAINTIFF’S
`MEMORANDUM IN SUPPORT OF ITS MOTION FOR PRELIMINARY INJUNCTION
`
`
`I, John Fitzgerald, declare as follows:
`
`The Chamberlain Group Inc.’s (“CGI”) History and Products
`
`1.
`
`I am the Retail Commercial Controller-Americas at The Chamberlain Group, Inc.
`
`(“CGI”) based in Elmhurst, Illinois. I have been with CGI since December 2013. In this
`
`capacity, my responsibilities include income statement reporting, financial planning and analysis,
`
`budgeting and financial forecasting functions, and assisting in management, development, and
`
`implementation of overall goals, objectives, and policies.
`
`2.
`
`I submit this declaration in support of CGI’s motion for a preliminary injunction
`
`barring the defendants from making, using, selling, offering for sale, or importing to the United
`
`
`
`Case: 1:16-cv-06097 Document #: 12 Filed: 06/10/16 Page 2 of 7 PageID #:313
`Case: 1:16-cv-06097 Document #: 12 Filed: 06/10/16 Page 2 of 7 PagelD #:313
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`States garage door openersthat infringe U.S. Patent Nos. 7,635,966 (“the ’966 patent”) and
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`7,224,275 (“the ’275 patent”).
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`3.
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`CGIdevelops, manufactures, and sells innovative access control devices,
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`including residential garage door openers, commercial door operators, perimeter access
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`solutions, home connectivity products, and related accessories. Since CGI acquired Perma
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`Powerin 1968, CGIhas created numerousjobs in the United States and in this District. CGI
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`currently employs over fill mployees in this District, including employees involved in research,
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`product development, engineering, and testing carried out in four different facilities in Elmhurst,
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`Illinois, and at least employees nationwide.
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`4.
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`CGI has made and continues to make substantial investments in the U.S. In 2015,
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`5.
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`CGIinvests significant amounts of money into research and developmentforits
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`=3.5o%
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`S
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`6.
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`Basedatleast in part on this research and development, CGI’s products have a
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`reputation for safety, security, connectivity, and reliability, and CGI has received accoladesas an
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`Case: 1:16-cv-06097 Document #: 12 Filed: 06/10/16 Page 3 of 7 PageID #:314
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`innovation leader in its field of technology. I attached as Exhibit B a number of third party
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`reviews and accolades of CGI’s technology.
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`7.
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`CGI is currently the market leader in the field of residential garage door openers
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`in the United States. For example, CGI’s LiftMaster® products, the leading brand of
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`professionally installed garage door openers in the United States, and CGI’s do-it-yourself
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`Chamberlain® products are present in a majority of residential garages in America. Today, tens
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`of millions of U.S. households have CGI’s GDOs (LiftMaster®, Chamberlain®, and private
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`labeled GDOs) installed in their garages.
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`8.
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`CGI’s MyQ® technology allows users to remotely monitor and control garage
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`doors, lights, and gates in their homes and businesses with their smartphones. Products
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`incorporating CGI’s MyQ® technology have been particularly singled out for industry and
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`consumer praise. I attached articles showing examples of this industry praise as Exhibit C.
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`9.
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`CGI’s MyQ® technology is not only highly praised; products incorporating this
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`technology have also been commercially successful. For example, Model No. HD950WF, is one
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`of CGI’s best-selling WiFi units and one of CGI’s top-grossing models in 2015.
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`3
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`Case: 1:16-cv-06097 Document #: 12 Filed: 06/10/16 Page 4 of 7 PageID #:315
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`The Ryobi Garage Door Opener
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`10.
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`None of the defendants (“TTI”) were direct competitors with CGI before April
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`2016. Before then, TTI was not in the garage door opener space at all. TTI’s new product the
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`Ryobi GD200 garage door opener (“Ryobi GDO”)—directly competes with CGI’s products.
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`The Ryobi GDO, like all Ryobi products, is sold exclusively at Home Depot and has been
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`available in stores since approximately mid-April.
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`Ryobi’s Product Has and Will Decrease CGI’s Share of the Market
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`11.
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`The demand for garage door openers is relatively inelastic, as it is necessarily
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`limited by the number of garages.
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`Unlike items that consumers buy more than one of like consumables or like groceries, consumers
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`only have a certain number of garage doors and only need, at most, one garage door opener per
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`garage door.
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`12.
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`.
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`13.
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`TTI’s entrance to this market with the Ryobi GDO directly competes with CGI’s
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`products. As a result of this head-to-head competition, every sale of the Ryobi GDO is a
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`potential lost sale of one of CGI’s products. A sale CGI cannot make up because of the type of
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`market for these products.
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`14.
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`4
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`Case: 1:16-cv-06097 Document #: 12 Filed: 06/10/16 Page 5 of 7 PageID #:316
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`15.
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`16.
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`CGI also anticipates that TTI’s entrance will harm CGI’s garage door accessory
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`market.
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`17.
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`CGI anticipates that TTI’s entrance to the market will also harm CGI by diverting
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`potential customer recommendations. Customer recommendations and referrals are particularly
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`valuable forms of marketing.
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` Losing these customers
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`5
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`Case: 1:16-cv-06097 Document #: 12 Filed: 06/10/16 Page 6 of 7 PageID #:317
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`means CGI will make fewer sales to the customers’ friends, families, and neighbors, harming
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`CGI in a way that is impossible to measure.
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`18.
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`Prior to the entrance of the Ryobi product into the marketplace (and at Home
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`Depot), Home Depot promoted CGI’s WiFi-enabled HD950WF garage door opener as part of its
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`“connected” line of products. Now, Home Depot is not only promoting the Ryobi product as
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`part of that line, but it is aggressively running advertisements that do not even mention the CGI
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`products. For example, attached as Exhibit E are photographs of Home Depot’s Father’s Day
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`advertising flyer, effective from June 9, 2016 to June 22, 2016. Attached as Exhibit F are
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`photographs of Home Depot endcaps advertising the Ryobi GDO.
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`19.
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` The Ryobi GDO is priced at $248 at Home Depot. I attached as Exhibit G a Home
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`Depot pricing page showing this price. The Ryobi GDO is advertised as having a 2HPS motor
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`and features WiFi connectivity. CGI’s comparable model at Home Depot (the HD950WF) has a
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`list price in most markets of $268. See Exhibit H. The comparable CGI unit has a 1-1/4 HPS
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`motor and features WiFi connectivity. The Ryobi GDO is being offered with sales incentives,
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`including a free “accessory” with every sale.
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`20.
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`Case: 1:16-cv-06097 Document #: 12 Filed: 06/10/16 Page 7 of 7 PageID #:318
`Case: 1:16-cv-06097 Document #: 12 Filed: 06/10/16 Page 7 of 7 PagelD #:318
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`21.
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`BO—
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`22.
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`I declare under penalty of perjury under the laws ofthe United States that the foregoing is
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`true and correct. Executed in Illinois this tenth day of June, 2016.
`
`Retail Commercial Controller - Americas
`The Chamberlain Group, Inc.
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`7
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