Case 3:19-cv-00922 Document 1 Filed 12/12/19 Page 1 of 76 PageID# 1
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`Maglula, Ltd.,
` 13 Gad Feinstein Street, Suite 236
` Rehovot 76385, Israel,
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`Plaintiff,
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`
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`v.
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`Amazon.com, Inc.,
` 410 Terry Avenue North
` Seattle, WA 98109,
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`and
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`Amazon.com Services, Inc.,
` 410 Terry Avenue North
` Seattle, WA 98109,
`
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF VIRGINIA
`Richmond Division
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`Defendants. )
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`CIVIL ACTION NO.
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`COMPLAINT FOR TRADEMARK
`COUNTERFEITING, TRADEMARK
`INFRINGEMENT, COPYRIGHT
`INFRINGEMENT, PATENT
`INFRINGEMENT, AND UNFAIR
`COMPETITION
`
`JURY TRIAL DEMANDED
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`
`
`
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`As its Complaint in this action, Plaintiff Maglula, Ltd. (“Maglula”), by its undersigned
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`attorneys, alleges as follows, upon actual knowledge with respect to itself and its own acts, and
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`upon information and belief as to all other matters.
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`NATURE OF THE CASE
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`1.
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`This is an action for trademark counterfeiting, trademark infringement, copyright
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`infringement, and unfair competition under federal, state, and/or common law arising from
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`Defendants Amazon.com, Inc.’s and Amazon.com Services, Inc.’s (collectively, “Amazon”)
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`unauthorized use of Maglula’s trademarks and copyrights in connection with the advertising,
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`distributing, displaying, offering for sale, and/or selling of unlicensed, infringing, and/or
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`1
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`

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`Case 3:19-cv-00922 Document 1 Filed 12/12/19 Page 2 of 76 PageID# 2
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`counterfeits of Maglula’s innovative loaders and unloaders (the “Accused Products”). Maglula
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`also asserts U.S. Patent No. 7,503,138 (“the ’138 patent”) and U.S. Patent No. 7,637,048 (“the
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`’048 patent”) (collectively, “the Asserted Patents”) against Amazon for the unauthorized offering
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`to sell, selling, and/or importing of the Accused Products covered by at least one claim of each of
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`the Asserted Patents.
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`2.
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`Amazon has become so overrun with counterfeit products—and its meager efforts
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`to address this problem have been so ineffective—that counterfeit products are now leaving
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`Amazon warehouses all over the United States at an alarming rate. Amazon knowingly sells
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`such products, leaving U.S. consumers and intellectual property (“IP”) owners to suffer while
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`Amazon profits handsomely, adding to its multibillion-dollar annual revenue and reported
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`trillion-dollar valuation. Amazon’s ineffective processes to stop the sale of knock-off products
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`do not apply to unregistered IP, such as trademarks protected by common law, and are easily
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`circumvented by Amazon’s business partners. Making matters worse, IP owners who try to
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`defend themselves and their valued customers utilizing Amazon’s procedures face lip service,
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`long delays, growing frustration, and significant expense—all to virtually no avail.
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`3.
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`Amazon’s proliferation of counterfeit products hurts more than just IP owners. It
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`hurts customers duped out of their hard-earned money and exposes them to poor-quality and/or
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`potentially dangerous knock-off products. Amazon’s conduct also hurts those retailers
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`committed to selling genuine products—many of whom struggle to compete with Amazon’s size,
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`scale, and pricing. Counterfeiting is a prolific problem with a widespread negative impact.
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`Amazon, as the largest online seller, contributes immensely to this problem and must be part of
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`the solution, for the sake of the IP owners, its customers, and the public at large.
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`2
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`Case 3:19-cv-00922 Document 1 Filed 12/12/19 Page 3 of 76 PageID# 3
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`4.
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`Since 2016, Amazon has and continues to:
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`a.
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`Sell knock-off products (invoiced as “Sold by: Amazon.com Services
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`Inc.”) that infringe Maglula’s patents, copyrights, and trademarks detailed below;
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`b.
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`Sell knock-off products that infringe Maglula’s patents, copyrights, and
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`trademarks via Amazon Renewed;
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`c.
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`Sell knock-off products that infringe Maglula’s patents, copyrights, and
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`trademarks via Amazon Warehouse Deals;
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`d.
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`Sell knock-off products that infringe Maglula’s patents, copyrights, and
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`trademarks via Amazon pallet liquidation;
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`e.
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`Deceive customers as to the origin of Maglula’s products by selling
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`Chinese-made knock-offs as “Made in Israel”;
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`f.
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`Sell knock-off products with Amazon labels reading “Made In China”
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`(Amazon knows that genuine products are made in Israel);
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`g.
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`Fail to provide Maglula information needed to stop others from
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`contributing to Amazon’s sales of knock-off products that infringe Maglula’s patents,
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`copyrights, and trademarks;
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`h.
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`Ignore Maglula’s repeated requests to acknowledge its U.S. registered
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`utility patents and common-law trademark rights to delist knock-offs;
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`i.
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`Ignore Maglula’s industry-known common law trademarks “Maglula” and
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`“UpLULA”, when Maglula attempted to join Amazon’s “Brand Registry” and use this
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`process to stop the sale of knock-off products that infringe Maglula’s patents, copyrights,
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`and trademarks;
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`3
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`Case 3:19-cv-00922 Document 1 Filed 12/12/19 Page 4 of 76 PageID# 4
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`j.
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`Ignore that genuine Maglula UpLULA® products come in distinctive
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`packaging easily distinguishable from an array of different packaging used for various
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`knock-offs; and
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`k.
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`Ill-treat repeated IP infringement complaints by Maglula for three years.
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`5.
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`To demonstrate just how ineffective Amazon is at stopping its sale of counterfeits,
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`Amazon even sold a counterfeit of the Maglula UpLULA® product—clearly marked as
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`“COUNTERFEIT”—and wrapped in an Amazon-branded plastic bag:
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`4
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`Case 3:19-cv-00922 Document 1 Filed 12/12/19 Page 5 of 76 PageID# 5
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`6.
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`Since September 2016, Maglula has identified and collected eleven knock-off
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`versions of its best-selling UpLULA® product—the genuine version of which is manufactured
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`only in Israel. These knock-offs infringe Maglula’s IP in various ways. Five versions
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`completely copy Maglula’s trademarks, copyrights, and patents (top row in the following photo).
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`5
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`Case 3:19-cv-00922 Document 1 Filed 12/12/19 Page 6 of 76 PageID# 6
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`These knock-off versions of Maglula’s genuine UpLULA® product are molded with
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`“UpLULA™,” “maglula.com,” “Made in Israel,” and Maglula’s patent numbers. Each also
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`contains a copy of Maglula’s product insert cards, including the text, UPC barcode, “Made in
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`Israel,” and instructional photos (showing the hands of Maglula’s inventor as depicted in genuine
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`materials). Each is also packed in a copy of Maglula’s blister packaging. In the middle row of
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`the photo above are two knock-off versions that have confusingly similar product names
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`“UpLood” and “MagLoad” and infringe Maglula’s trademarks, copyrights, and patents. Two
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`6
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`Case 3:19-cv-00922 Document 1 Filed 12/12/19 Page 7 of 76 PageID# 7
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`additional clones “Castellan” and “QBloader” and two “unnamed” clones in that row infringe
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`Maglula’s copyrights and patents. Two other Maglula products have been counterfeited as well,
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`the BabyUpLULA® product and 1911AI® product, including Maglula’s product insert cards
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`with “Made in Israel,” and blister packaging (see the bottom row of the photo above).
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`7.
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`Despite extensive and repeated requests from Maglula over the course of three
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`years (including meetings with Amazon’s in-house counsel), Amazon failed to take reasonable
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`steps to stop the extensive and persistent infringement of Maglula’s IP. Over the years, Maglula:
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`a.
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`Sent Amazon many letters reporting instances of its sale of knock-off
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`products infringing Maglula’s IP, including cease-and-desist letters (examples attached as
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`Exhibits 1A-1C);1
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`b.
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`Provided Amazon with memos (1) detailing its continued sale of knock-
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`off products infringing Maglula’s IP and (2) educating Amazon on how to differentiate
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`between Maglula’s genuine IP-protected products and knock-offs;
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`c.
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`Had at least twelve telephone conferences with Amazon and its officers,
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`including its in-house attorneys, regarding its continued sale of knock-off products
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`infringing Maglula’s IP;
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`d.
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`Emailed Amazon officers, including its in-house attorneys, multiple times
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`regarding its continued sale of knock-off products infringing Maglula’s IP;
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`e.
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`Submitted over one hundred infringement complaints through Amazon’s
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`official reporting systems;
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`1 Maglula’s letters sometimes included detailed comparisons between genuine and knock-off
`products. These comparisons have been redacted from public filing to prevent counterfeiters
`from exploiting the information.
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`7
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`Case 3:19-cv-00922 Document 1 Filed 12/12/19 Page 8 of 76 PageID# 8
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`f.
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`Emailed jeff@amazon.com and Amazon officers over fifty times clearly
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`detailing the infringement problem, including providing comparison pictures of some
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`knock-off products infringing Maglula’s IP, copies of Maglula’s various IP, patent claim
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`charts, names, links, and Amazon Standard Identification Numbers (“ASIN”) for knock-
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`off products infringing Maglula’s IP;
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`g.
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`Offered to provide Amazon employees with in-person instruction on how
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`to distinguish between Maglula’s IP-protected products and knock-offs;
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`h.
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`Ordered from Amazon ten knock-off products that infringe Maglula’s IP
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`addressing them directly to Amazon’s headquarters (including five to Amazon’s
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`Copyright Agent in its legal department office in Seattle) to further illustrate and
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`materialize the problem;
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`i.
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`Monitored Amazon on a daily basis, often twice a day, looking for knock-
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`offs, and filing complaints if found;
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`j.
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`Hired a specialized third-party service (BrandShield.com) at considerable
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`expense to monitor Amazon daily and report infringements, in parallel with Maglula’s
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`internal scans—an arrangement that is still ongoing; and
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`k.
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`Filed two U.S. lawsuits against Chinese entities, believed to be in
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`partnership with Amazon, selling knock-off products infringing Maglula’s IP.
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`8.
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`Despite repetitive and extensive efforts undertaken at great expense to Maglula,
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`Amazon seldom made useful efforts and ultimately failed to enact effective measures to stop its
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`sale of infringing products. Amazon demonstrated a lack of care, failing to timely and
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`effectively stop its sale of infringing products and hurting Maglula’s business. Maglula has done
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`everything possible to avoid filing this Complaint.
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`8
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`Case 3:19-cv-00922 Document 1 Filed 12/12/19 Page 9 of 76 PageID# 9
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`9.
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`Amazon’s refusal to take meaningful steps to stop its sale of products infringing
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`the IP rights of others, like Maglula’s, forces Maglula and other IP owners to shoulder the burden
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`of doing Amazon’s job for it. Despite being the largest online seller with vast resources,
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`Amazon’s “efforts” to stop its counterfeit sales have been shockingly poor and ineffective.
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`10. Maglula seeks to enjoin Amazon’s infringement of Maglula’s IP. Maglula also
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`seeks actual and statutory damages, Defendants’ profits, and other relief, including attorneys’
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`fees and costs. Maglula further seeks compensation for the time and expenses dedicated to
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`monitoring Amazon’s sales and submitting infringement reports to Amazon, and all other
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`relevant expenses.
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`11. Maglula also seeks a recall of all knock-off Maglula products sold by Amazon,
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`along with distribution of a notice to all effected customers that they received a knock-off
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`Maglula product. Maglula seeks this relief because Amazon should (1) be held accountable for
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`defrauding unsuspecting customers and (2) repair the damage it caused to Maglula’s recognized
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`brands and associated goodwill/reputation by disseminating low-quality knock-offs.
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`12. Maglula also brings this action to address Amazon’s abysmal handling of IP
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`infringement reports and direct sales of knock-offs, all of which, in one form or another, hurt
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`hard-working IP owners and manufacturers, like Maglula, and their authorized distributors and
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`dealers, both locally and worldwide.
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`THE PARTIES
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`13. Maglula, Ltd. is a corporation organized and existing under the laws of Israel,
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`having a principal place of business at 13 Gad Feinstein Street, Suite 236, Rehovot 76385, Israel.
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`14.
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`Defendant Amazon.com, Inc. is a Delaware corporation with an address at 410
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`Terry Avenue North, Seattle, WA 98109.
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`9
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`Case 3:19-cv-00922 Document 1 Filed 12/12/19 Page 10 of 76 PageID# 10
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`15.
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`Defendant Amazon.com Services, Inc. is a Delaware corporation with an address
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`at 410 Terry Avenue North, Seattle, WA 98109.
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`JURISDICTION AND VENUE
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`16.
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`This action arises under the federal Trademark Act, 15 U.S.C. §§ 1051 et seq.; the
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`related law of the commonwealth of Virginia; the federal Copyright Act, 17 U.S.C. §§ 101 et
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`seq.; and the patent laws of the United States, 35 U.S.C. §§ 1 et seq. This Court has jurisdiction
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`over the subject matter of this action pursuant to 15 U.S.C. § 1121; 28 U.S.C. §§ 1331, 1338(a)
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`and (b), 2201, and 2202; and 17 U.S.C. §§ 501 et seq.
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`17.
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`This Court has personal jurisdiction over Defendants because Defendants have
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`established minimum contacts with the forum such that the exercise of personal jurisdiction over
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`Defendants will not offend traditional notions of fair play and substantial justice.
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`18.
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`This Court has personal jurisdiction over Defendants, and venue is proper in this
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`District pursuant to 28 U.S.C. §§ 1391(b), 1391(c), and 1400(b) because Maglula is being
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`harmed in this District; Defendants are doing business in this District, including through facilities
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`located in Petersburg, Virginia, Chester, Virginia, and Ashland, Virginia; Defendants have
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`regularly and purposefully availed themselves of the privilege of conducting business activities
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`within Virginia and this District; Defendants are using Maglula’s IP in connection with products
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`shipped from and/or into this District and carried by Defendants within this District; the
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`infringing activity has occurred and continues to occur in this District; and this action arises from
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`activities Defendants directed towards Virginia.
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`MAGLULA’S INNOVATIVE PRODUCTS AND INTELLECTUAL PROPERTY
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`19.
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`Founded in 2003, Maglula is a privately held company employing a modest ten
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`employees in Israel. Maglula is a pioneer in the field of magazine loaders and manufactures
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`10
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`Case 3:19-cv-00922 Document 1 Filed 12/12/19 Page 11 of 76 PageID# 11
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`professional military-grade tools for loading and unloading magazines. Its products save
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`valuable time when loading/unloading magazines, prevent pain associated with
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`loading/unloading magazines, prevent magazine damage, and reduce jams. Among its customers
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`are leading manufacturers like Sturm Ruger, Smith & Wesson, and Heckler & Koch, and around
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`twenty leading sporting-goods distributors in the United States. Maglula’s products are sold in
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`Academy Sports + Outdoors, Bass Pro Shops, Cabela’s, and Dick’s Sporting Goods stores, and
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`in thousands of independent brick-and-mortar shops across the United States. Users include
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`private individuals, police officers, federal agents, and military personnel.
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`20. Maglula offers a variety of loader and unloader products under the marks
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`UpLULA®, 22UpLULA®, BabyUpLULA®, LULA®, StripLULA®, BenchLoader®, and
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`1911AI®.
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`21.
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`The UpLULA® loader (shown below) is a hand-held device that assists users in
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`loading and unloading magazines. It is Maglula’s top-selling product (on the market since
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`January 2007), offered in multiple colors, and used by millions in the United States. See
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`https://www.maglula.com/product/uplula-9mm-to-45acp.
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`11
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`Case 3:19-cv-00922 Document 1 Filed 12/12/19 Page 12 of 76 PageID# 12
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`22. Maglula takes great pride in the quality and safety of its loaders/unloaders.
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`Maglula undertakes extensive quality-control standards throughout the manufacturing process,
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`leading to minimal returns or complaints. Maglula manufactures all UpLULA® products in
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`Israel, and each is inspected and tested post manufacturing in Israel.
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`23. Maglula’s UpLULA® product is well known as the premier loader/unloader due
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`to its innovative technology, high-quality craftsmanship, and effectiveness in assisting users of
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`all ages and levels of experience in loading and unloading magazines.
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`24. Maglula has received awards and accolades for its products, including the
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`American Rifleman Golden Bullseye “Accessory of the Year” Award in 2018. The UpLULA®
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`product has been independently reviewed by magazines in the field and is the subject of
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`hundreds of online videos from experts in the field. As of December 10, 2019, the UpLULA®
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`product has over 13,992 five-star verified customer reviews on Amazon (92% of total reviews)
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`and many equally positive reviews in the printed press and other online venues. Review ratings
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`on Amazon have been negatively impacted by disappointed customers who received knock-offs
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`that infringe Maglula’s IP instead of a genuine UpLULA® product.
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`Maglula’s Trademarks
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`25. Maglula owns the following trademarks, which are the subject of federal
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`registrations (individually and collectively, the “Maglula Trademarks”):
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`Mark
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`LULA
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`22UpLULA
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`Goods
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`Loader and/or
`unloader for
`firearm magazines
`Firearm magazine
`loaders and
`unloaders
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`App. No.
`Reg. No.
`78392639
`
`3001252
`87256370
`
`5269613
`
`First Use in
`Commerce
`1/30/2002
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`Reg. Date
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`9/27/2005
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`1/9/2013
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`8/22/2017
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`12
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`Case 3:19-cv-00922 Document 1 Filed 12/12/19 Page 13 of 76 PageID# 13
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`Mark
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`Goods
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`Firearm magazine
`loaders
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`Firearm magazine
`loaders and
`unloaders
`Aligning insert for
`firearm magazine
`loader
`Firearm magazine
`loaders and
`unloaders
`Firearm magazine
`loaders and
`unloaders
`Firearm magazine
`loaders and
`unloaders
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`App. No.
`Reg. No.
`87256971
`
`5315117
`87256375
`
`5321129
`87466966
`
`5355180
`87258099
`
`5894011
`87258071
`
`5894010
`87258110
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`5894012
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`First Use in
`Commerce
`6/24/2008
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`Reg. Date
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`10/24/2017
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`7/6/2011
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`10/31/2017
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`2/14/2013
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`12/12/2017
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`9/2/2008
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`10/29/2019
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`1/7/2003
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`10/29/2019
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`12/30/2006
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`10/29/2019
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`BenchLoader
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`BabyUpLULA
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`1911AI
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`StripLULA2
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`Maglula2
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`UpLULA2
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`
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`26.
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`The Maglula Trademarks appear on the UpLULA® product and its packaging
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`insert card, as shown, for example, here:
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`
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`2 An individual from China filed fraudulent U.S. trademark applications for MAGLULA,
`MAGLULA LTD, and UpLULA a day before Maglula filed some of its applications. It took
`nearly three years for Maglula to resolve this issue with the USPTO and have these three
`trademarks registered.
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`13
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`Case 3:19-cv-00922 Document 1 Filed 12/12/19 Page 14 of 76 PageID# 14
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`[Genuine Maglula 2017 Insert Card - Front]
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`14
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`Case 3:19-cv-00922 Document 1 Filed 12/12/19 Page 15 of 76 PageID# 15
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`[Genuine Maglula 2017 Insert Card- Rear]
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`15
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`Case 3:19-cv-00922 Document 1 Filed 12/12/19 Page 16 of 76 PageID# 16
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`Maglula’s Copyrights
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`27. Maglula owns U.S. copyright registrations covering the various photographs
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`depicted on the UpLULA® product packaging insert card shown above (U.S. Copyright
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`Registration Nos. VA0002084097, registered July 31, 2017; VA0002084096, registered July 31,
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`2017; VA0002084095, registered July 31, 2017; VA0002083361, registered July 31, 2017;
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`VA0002084093, registered July 31, 2017; VA0002083359, registered July 31, 2017; and
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`VA0002146376, registered April 11, 2019), as well as original design elements of the
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`UpLULA® loader itself (U.S. Copyright Registration Nos. VA0002083626, VA0002083624,
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`VA0002083628, VA0002083358, VA0002083627, VA0002083357, VA0002083625, and
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`VA0002083356) (individually and collectively, the “Maglula Copyrights”).
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`28.
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`The Maglula Copyrights cover the following original design elements of the
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`UpLULA® loader:
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`Reg. No.
`Reg. Date
`VA0002083626
`July 24, 2017
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`Deposit Material
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`UpLULA® back view:
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`16
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`Case 3:19-cv-00922 Document 1 Filed 12/12/19 Page 17 of 76 PageID# 17
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`Reg. No.
`Reg. Date
`VA0002083624
`July 24, 2017
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`Deposit Material
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`UpLULA® top view:
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`VA0002083628
`July 24, 2017
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`UpLULA® engraving:
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`VA0002083358
`July 24, 2017
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`UpLULA® arch:
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`17
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`Case 3:19-cv-00922 Document 1 Filed 12/12/19 Page 18 of 76 PageID# 18
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`Reg. No.
`Reg. Date
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`Deposit Material
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`VA0002083627
`July 24, 2017
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`UpLULA® lock:
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`18
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`Case 3:19-cv-00922 Document 1 Filed 12/12/19 Page 19 of 76 PageID# 19
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`Reg. No.
`Reg. Date
`VA0002083357
`July 24, 2017
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`Deposit Material
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`UpLULA® ridged waterfall grip:
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`UpLULA® ridged waterfall grip (2013):
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`19
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`VA0002083625
`July 24, 2017
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`Case 3:19-cv-00922 Document 1 Filed 12/12/19 Page 20 of 76 PageID# 20
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`Reg. No.
`Reg. Date
`VA0002083356
`July 24, 2017
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`Deposit Material
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`UpLULA® beak with reverse bevel:
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`Maglula’s Utility Patents
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`29. Maglula’s expertise in the field has been recognized by the U.S. Patent and
`
`Trademark Office (“USPTO”) by numerous patent awards, including the following U.S. patents:
`
`Patent No.
`
`Title
`
`Issue Date
`
`6,810,616
`
`7,059,077
`
`7,503,138
`
`7,637,048
`
`7,805,874
`
`9,057,570
`
`Magazine Loader and Unloader Accessory
`
`11/2/2004
`
`Heavy Duty Magazine Loader
`
`6/13/2006
`
`Magazine Aligner for Pistol Magazine Loaders
`
`3/17/2009
`
`Universal Pistol Magazine Loader
`
`12/29/2009
`
`Multi-Round Magazine Loader and Unloader
`
`10/5/2010
`
`Loader for Magazines with Projecting Side
`
`6/16/2015
`
`Button
`
`9,212,859
`
`Self-Raising Magazine Loader
`
`12/15/2015
`
`30.
`
`U.S. Patent Nos. 7,503,138 and 7,637,048 are the Asserted Patents in this case.
`
`
`
`20
`
`

`

`Case 3:19-cv-00922 Document 1 Filed 12/12/19 Page 21 of 76 PageID# 21
`
`
`
`31.
`
`The USPTO issued the ’138 patent on March 17, 2009. The ’138 patent bears the
`
`title “Magazine Aligner for Pistol Magazine Loaders.” A true and accurate copy of the ’138
`
`patent is attached as Exhibit 2.
`
`32. Maglula is the owner and assignee of all rights, title, and interest in the ’138
`
`patent, and holds the right to sue and recover damages for infringement thereof, including current
`
`and past infringement.
`
`33.
`
`The USPTO issued the ’048 patent on December 29, 2009. The ’048 patent bears
`
`the title “Universal Pistol Magazine Loader.” A true and accurate copy of the ’048 patent is
`
`attached as Exhibit 3.
`
`34. Maglula is the owner and assignee of all rights, title, and interest in the ’048
`
`patent, and holds the right to sue and recover damages for infringement thereof, including current
`
`and past infringement.
`
`35. Maglula has marked and continues to mark its UpLULA® products with patent
`
`notices, including the ‛138 and ‛048 patents, as shown, for example, on the product insert shown
`
`above, as well as on the genuine UpLULA® product here:
`
`
`
`
`
`
`
`21
`
`

`

`Case 3:19-cv-00922 Document 1 Filed 12/12/19 Page 22 of 76 PageID# 22
`
`
`
`
`36. Maglula’s products, in association with the Maglula Trademarks, the Maglula
`
`Copyrights, and the Asserted Patents, are promoted, offered, and sold nationwide in the United
`
`States through national, regional, independent, and specialty dealers. Maglula’s products
`
`marketed and sold in connection with the Maglula Trademarks, the Maglula Copyrights, and the
`
`Asserted Patents have enjoyed commercial success throughout the United States. In addition to
`
`its own advertising and promotional activities, Maglula and its marks and products receive
`
`significant unsolicited media coverage, attention, and praise.
`
` AMAZON AND ITS INFRINGING CONDUCT
`
`37.
`
`Amazon is reportedly the world’s largest Internet-based seller, with revenues of
`
`over $232 billion in 2018, and employs over half a million people. Amazon sells a vast array of
`
`products to its subscribers and consumers located throughout the United States and abroad.
`
`However, the company continues to perform poorly in combating online counterfeiting—hurting
`
`inventors and legitimate brands as well as consumers, who are left with increasingly fewer
`
`options for online commerce.
`
`38.
`
`Amazon uses its website, www.amazon.com, to sell products directly to its
`
`subscribers and customers. Products identified on Amazon’s website as “Ships from and sold by
`
`
`
`22
`
`

`

`Case 3:19-cv-00922 Document 1 Filed 12/12/19 Page 23 of 76 PageID# 23
`
`
`
`Amazon.com” (see below) are sold and shipped directly by and from Amazon. Amazon receives
`
`payments from its subscribers and customers for the sale and delivery of these products. These
`
`products include Amazon-branded products, such as the Kindle, Fire, Echo, and Alexa devices,
`
`as well as products Amazon obtains from manufacturers, wholesalers, and other sources.
`
`
`
`39.
`
`Amazon also uses its website to sell “Amazon Renewed” products to its
`
`subscribers and consumers. Amazon Renewed products are refurbished, pre-owned, or open-box
`
`products. Amazon Renewed products “have been inspected and tested by qualified suppliers to
`
`work and look like new, and come with the Amazon Renewed Guarantee.” Amazon’s testing
`
`and inspection process purportedly includes “a full diagnostic test, replacement of any defective
`
`parts, and a thorough cleaning process carried out by the supplier, or by Amazon.” See Exhibit
`
`4.
`
`40.
`
`Amazon also uses its website to sell “Amazon Warehouse” products to its
`
`subscribers and customers. Amazon explains that purchasers of Amazon Warehouse products
`
`“[g]et deep discounts on open-box and used products.” Amazon also advertises that it
`
`“inspect[s] and certif[ies] all items for sale on Amazon Warehouse based on physical and
`
`functional condition . . . .” See Exhibit 5.
`
`41.
`
`Amazon also partners with third parties for Amazon to sell products to Amazon’s
`
`subscribers and customers.
`
`
`
`23
`
`

`

`Case 3:19-cv-00922 Document 1 Filed 12/12/19 Page 24 of 76 PageID# 24
`
`
`
`42.
`
`Amazon partners with online liquidators like DirectLiquidation.com,
`
`Liquidation.com, and BIDRL.com, through which Amazon sells products such as customer
`
`returns and unsold inventory. Amazon’s liquidated products can also be found at wholesale
`
`liquidators like Xcess Limited (which has a web store on eBay) and at brick-and-mortar discount
`
`stores like Gimme a $5, World Liquidators, and others. See Exhibit 1C.
`
`43.
`
`Amazon’s business practices have enabled counterfeiting to reach new heights.
`
`Amazon’s own reports reveal that it receives an infringement notice for 1 out of every 100
`
`customer page views. See Exhibit 6.
`
`Amazon’s Sale of Knock-Off UpLULA® Products
`
`“Sold by Amazon”
`
`44.
`
`Amazon has infringed and continues to infringe the Maglula Trademarks, the
`
`Maglula Copyrights, and the Asserted Patents by selling the Accused Products, including the
`
`knock-offs, fakes, and copies of the UpLULA® loaders/unloaders. On its website, Amazon
`
`advertises and sells these products directly under the designation “Ships from and sold by
`
`Amazon.com,” as shown in the example below:
`
`
`
`24
`
`

`

`Case 3:19-cv-00922 Document 1 Filed 12/12/19 Page 25 of 76 PageID# 25
`
`
`
`
`
`[NAME REDACTED]
`
`45.
`
`Customers who believed they were purchasing genuine UpLULA®
`
`loaders/unloaders “[s]hip[ped] from and sold by Amazon.com” received from Amazon
`
`counterfeits or infringing products such as the counterfeit product shown below. This product,
`
`its insert card (also shown below), and its blister packaging are copies of Maglula’s genuine
`
`UpLULA® product and, as such, infringe the Maglula Trademarks, Maglula Copyrights, and
`
`Asserted Patents.
`
`
`
`25
`
`

`

`Case 3:19-cv-00922 Document 1 Filed 12/12/19 Page 26 of 76 PageID# 26
`
`
`
`[Infringing copy of Maglula’s 2016 insert card - Front]
`
`
`
`26
`
`
`
`
`
`

`

`Case 3:19-cv-00922 Document 1 Filed 12/12/19 Page 27 of 76 PageID# 27
`
`
`
`[Infringing copy of Maglula’s 2016 insert card - Rear]
`
`
`
`46. Maglula has collected over forty knock-offs of Maglula’s IP-protected
`
`UpLULA® loader from customers who purchased directly from Amazon, were suspicious of the
`
`loader received, and then directly contacted Maglula about it. Following Maglula’s instructions,
`
`these customers signed or engraved their names on the counterfeits, photographed them signed,
`
`and shipped them to Maglula (example shown below). Each customer invoice issued by
`
`Amazon shows the product was sold by Amazon, i.e., “Sold by: Amazon.com Services, Inc.”
`
`(example shown below). In addition, Maglula has received pictures and communications from
`
`many other Amazon customers regarding knock-offs of Maglula’s IP-protected UpLULA®
`
`product “[s]old by: Amazon.com Services, Inc.” (examples also shown below).
`
`
`
`27
`
`

`

`Case 3:19-cv-00922 Document 1 Filed 12/12/19 Page 28 of 76 PageID# 28
`Case 3:19—cv-00922 Document 1 Filed 12/12/19 Page 28 of 76 PageID# 28
`
`
`
`
`
`Shipped on September 21, 2018
`
`
`
`Price
`
`Items Ordered
`
`
`
`1 of: Magi'uia ltd. UpLuia Magazine Loader/Unioader, Fits 9mm—45 ACP, Brown UP6030
`
`$22.37
`
`Item(s) Subtotal: $22.37
`Shipping & Handling:
`$0.00
`
`
`
`Condition: New
`
`Shipping Address:
`w
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`28
`28
`
`
`
`

`

`Case 3:19-cv-00922 Document 1 Filed 12/12/19 Page 29 of 76 PageID# 29
`
`Picture shows 32 of the collected counterfeits signed each by a customer of Amazon, invoices
`reading “Sold by: Amazon.com Services, Inc.”
`
`
`
`
`29
`
`
`
`
`
`

`

`Case 3:19-cv-00922 Document 1 Filed 12/12/19 Page 30 of 76 PageID# 30
`
`
`
`47.
`
`Upon information and belief, Amazon has offered for sale and/or sold Accused
`
`Products that infringe the Maglula Trademarks, the Maglula Copyrights, and the Asserted
`
`Patents bearing labels showing an Amazon ASIN, Maglula’s Trademarks Maglula® and
`
`UpLULA®, and the designation “Made In China” as shown for example below:
`
`
`
`
`
`
`
`30
`
`

`

`Case 3:19-cv-00922 Document 1 Filed 12/12/19 Page 31 of 76 PageID# 31
`
`
`
`48.
`
`Upon information and belief Amazon has on occasion removed from its website
`
`one or more of its webpage advertisements offering to sell Accused Products that infringe
`
`Maglula’s IP after Maglula lodged complaints with Amazon about such advertisements but
`
`rather than ceasing all advertisement of the Accused Products Amazon subsequently posted on
`
`its website the same or a similar advertisement offering to sell the Accused Products and/or
`
`offered for sale and sold such an Accused Product using a different sales channel such as through
`
`pallet sales or liquidation.
`
`“Amazon Renewed” and “Amazon Warehouse”
`
`49.
`
`Amazon also sells knock-offs of Maglula’s IP-protected UpLULA® product
`
`using the “Amazon Renewed” designation, as shown in the example below. These “Renewed”
`
`products are “[s]old by Amazon Warehouse and [f]ulfilled by Amazon.”
`
`[NAME REDACTED]
`On July 26, 2019, a representative of Maglula did a test purchase of what Amazon
`
`50.
`
`advertised as a “Maglula Ltd. UpLULA Magazine Speed Loader 9mm, 0.45 ACP UP60B
`
`(Renewed),” designated “Amazon Renewed.” As shown below, Amazon’s invoice listed the
`
`product as “Sold by: Amazon.com Services, Inc.” As also shown below, the received product
`
`
`
`
`
`31
`
`

`

`Case 3:19-cv-00922 Document 1 Filed 12/12/19 Page 32 of 76 PageID# 32
`
`
`
`(delivered to an address in Reston, Virginia) and its packaging are copies of Maglula’s genuine
`
`UpLULA® loader and, as such, infringe the Maglula Trademarks, Maglula Copyrights, and
`
`Asserted Patents.
`
`
`
`
`
`32
`
`

`

`Case 3:19-cv-00922 Document 1 Filed 12/12/19 Page 33 of 76 PageID# 33
`Case 3:19—cv-00922 Document 1 Filed 12/12/19 Page 33 of 76 Page|D# 33
`
`T969019
`
`amazoncom
`
`Amazm com - Order 112—892?06fl—28DGBD-1
`
`Details for Order #112-8921064-2306604
`Pr'g; :hig Egg; {gr ygpr rgggrgg
`
`Order Placed: Jul-,1I 26, 2019
`Amazonmom order number: 112—8921064—2806604
`Order Total: $1 15.68
`
`Not Yet Shipped
`
`Items Ordered
`4 of: Maglula UpLULA Magazine Speed Loader 9mm. 0.45 ACP UPGD‘B (Renewed)
`50ch by: Amazon.com Sennces, Inc
`Condition: New
`Product Is tested and ceitified to work and look llke new, Include: all accessones. a 90—day wanantv. and has
`passed our rigorous 20-pomt Inspecflon.
`
`Price
`$2128
`
`{933mg fin: 91 ”n: | gamma: 1:} 1996-2019. Amazonmom, Inc. ul It: affiliates
`
`Address:
`
`United States
`
`Shipping Speed:
`filo—Rush Shlpping
`
`Item(s} Subtotal: $109.13
`Payment Method:
`— Shipping & Handling:
`
`Payment information
`
`Bllllnq address
`