Case: 3:22-cv-00606 Document #: 1 Filed: 10/20/22 Page 1 of 12
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE WESTERN DISTRICT OF WISCONSIN
`
`JOHNSON HEALTH TECH CO., LTD., and
`JOHNSON HEALTH TECH NORTH
`AMERICA, INC.,
`
`Plaintiff,
`
`v.
`PELOTON INTERACTIVE, INC.,
`Defendant.
`
`Case No. 3:22-cv-606
`JURY TRIAL DEMANDED
`
`COMPLAINT
`
`Plaintiffs Johnson Health Tech Co., Ltd. and Johnson Health Tech North America, Inc.
`
`(collectively, “JHT” or “Plaintiffs”), by its counsel, Michael Best & Friedrich LLP, alleges as
`
`follows for its Complaint against Defendant Peloton Interactive, Inc. (“Peloton” or “Defendant”).
`
`NATURE OF THE ACTION
`
`1.
`
`This is an action for patent infringement under the patent laws of the United
`
`States, 35 U.S.C. § 100 et seq., including 35 U.S.C. § 271, arising from Peloton making, using,
`
`selling, offering for sale and/or importing into the United States one or more products that
`
`infringe U.S. Patent Nos. 10,032,227 (“the ‘227 patent”); 10,796,375 (“the ‘375 patent”);
`
`11,227,340 (“the ‘340 patent”) (collectively, “the JHT patents”), including the Peloton Tread and
`
`Tread+ (“Accused Products”).
`
`THE PARTIES
`
`2.
`
`Johnson Health Tech Co., Ltd., is a company organized under the laws of Taiwan
`
`R.O.C. with its principal place of business at No. 26, Ching Chuan Rd., Taya Hsiang, Taichung
`
`Hsien 428, Taiwan R.O.C. Johnson Health Tech is in the business of making and selling, among
`
`
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE WESTERN DISTRICT OF WISCONSIN
`
`JOHNSON HEALTH TECH CO., LTD., and
`JOHNSON HEALTH TECH NORTH
`AMERICA, INC.,
`
`Plaintiff,
`
`v.
`PELOTON INTERACTIVE, INC.,
`Defendant.
`
`Case No. 3:22-cv-606
`JURY TRIAL DEMANDED
`
`COMPLAINT
`
`Plaintiffs Johnson Health Tech Co., Ltd. and Johnson Health Tech North America, Inc.
`
`(collectively, “JHT” or “Plaintiffs”), by its counsel, Michael Best & Friedrich LLP, alleges as
`
`follows for its Complaint against Defendant Peloton Interactive, Inc. (“Peloton” or “Defendant”).
`
`NATURE OF THE ACTION
`
`1.
`
`This is an action for patent infringement under the patent laws of the United
`
`States, 35 U.S.C. § 100 et seq., including 35 U.S.C. § 271, arising from Peloton making, using,
`
`selling, offering for sale and/or importing into the United States one or more products that
`
`infringe U.S. Patent Nos. 10,032,227 (“the ‘227 patent”); 10,796,375 (“the ‘375 patent”);
`
`11,227,340 (“the ‘340 patent”) (collectively, “the JHT patents”), including the Peloton Tread and
`
`Tread+ (“Accused Products”).
`
`THE PARTIES
`
`2.
`
`Johnson Health Tech Co., Ltd., is a company organized under the laws of Taiwan
`
`R.O.C. with its principal place of business at No. 26, Ching Chuan Rd., Taya Hsiang, Taichung
`
`Hsien 428, Taiwan R.O.C. Johnson Health Tech is in the business of making and selling, among
`
`
`
`Case: 3:22-cv-00606 Document #: 1 Filed: 10/20/22 Page 2 of 12
`
`
`
`other things, fitness and rehabilitation equipment, including treadmills and software related to
`
`that equipment.
`
`3.
`
`Johnson Health Tech North America, Inc. is a corporation organized under the
`
`laws of the state of Wisconsin with its principal place of business at 1600 Landmark Drive,
`
`Cottage Grove, Wisconsin 53527, and is a wholly owned subsidiary of Johnson Health Tech Co.,
`
`Ltd.
`
`4.
`
`Upon information and belief, Peloton is a corporation organized and existing
`
`under the laws of the State of Delaware, with its principal place of business at 125 West 25th
`
`Street, 11th Floor, New York, New York, 10001.
`
`5.
`
`Peloton has a showroom located at 708 N. Midvale Blvd., Madison, Wisconsin
`
`53705.
`
`6.
`
`Peloton provides personalized demonstrations of, and sells and offers to sell,
`
`Accused Products at its Madison, Wisconsin showroom.
`
`JURISDICTION AND VENUE
`
`7.
`
`JHT’s claim arises under the patent laws of the United States, Title 35 of the
`
`United States Code.
`
`8.
`
`This Court has subject matter jurisdiction pursuant to 28 U.S.C. §§ 1331 and
`
`1338(a).
`
`9.
`
`10.
`
`This Court has personal jurisdiction over Peloton.
`
`Peloton has continuous and systematic contacts with the State of Wisconsin
`
`through, among other things, offering for sale and selling the Accused Products and other
`
`products to consumers, as well as, having a showroom and employees in the Western District of
`
`Wisconsin.
`
`
`
`2
`
`
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`Case: 3:22-cv-00606 Document #: 1 Filed: 10/20/22 Page 3 of 12
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`
`
`11.
`
`Peloton’s offers for sale and sales of the Accused Products in the Western District
`
`of Wisconsin form a substantial part of the acts giving rise to JHT’s claims.
`
`12.
`
`Exercise of jurisdiction over Peloton in the Western District of Wisconsin is
`
`consistent with the United States Constitution and laws because it would comport with due
`
`process and would be reasonable and fair.
`
`13.
`
`Venue is proper in this judicial district pursuant to at least 28 U.S.C. §§1391(b)(2)
`
`and 1400 because Peloton has committed acts of infringement and has a regular and established
`
`place of business in the Western District of Wisconsin, and because a substantial part of the
`
`events or omissions giving rise to the claim occurred in the Western District of Wisconsin.
`
`JHT AND THE JHT PATENTS
`
`14.
`
`JHT is the largest specialty fitness retailer in the United States and offers award
`
`winning fitness and wellness products from brands like Matrix Fitness, Vision Fitness, Horizon
`
`Fitness, Hoist, and Octane, as well as others.
`
`15.
`
`JHT is an industry leader in developing fitness and wellness equipment, such as
`
`treadmills, bikes, ellipticals, and rowers, and a leading developer of software that controls and
`
`enhances fitness and wellness equipment.
`
`16.
`
`The ‘227 patent, entitled “Exercise Apparatus with Exercise Use Verification
`
`Function and Verifying Method,” was duly and legally issued by the United States Patent and
`
`Trademark Office on July 24, 2018. A true and correct copy of the ‘227 patent is attached to the
`
`Complaint as Exhibit A. The ‘227 patent is valid and enforceable.
`
`17.
`
`The ‘375 patent, entitled “Exercise Apparatus with Exercise Use Verification
`
`Function and Verifying Method,” was duly and legally issued by the United States Patent and
`
`
`
`3
`
`
`
`Case: 3:22-cv-00606 Document #: 1 Filed: 10/20/22 Page 4 of 12
`
`
`
`Trademark Office on October 6, 2020. A true and correct copy of the ‘375 patent is attached to
`
`the Complaint as Exhibit B. The ‘375 patent is valid and enforceable.
`
`18.
`
`The ‘340 patent, entitled “Exercise Apparatus with Exercise Use Verification
`
`Function and Verifying Method,” was duly and legally issued by the United States Patent and
`
`Trademark Office on January 18, 2022. A true and correct copy of the ‘340 patent is attached to
`
`the Complaint as Exhibit C. The ‘340 patent is valid and enforceable.
`
`Johnson Health Tech. Co., LTD is the sole owner of the JHT patents.
`
`Johnson Health Tech North America, Inc. is the exclusive licensee of the JHT
`
`19.
`
`20.
`
`patents.
`
`21.
`
`As the owner and exclusive licensee of the JHT patents, JHT is authorized and
`
`has standing to bring legal action to enforce all rights arising from the JHT patents.
`
`PELOTON’S ACCUSED PRODUCTS
`
`22.
`
`On information and belief, Peloton has made, used, offered to sell, sold and/or
`
`imported into the United States, the Accused Products.
`
`23.
`
`The following is a photograph of the Peloton Tread from Peloton’s website,
`
`https://www.onepeloton.com/tread/specs:
`
`
`
`4
`
`
`
`Case: 3:22-cv-00606 Document #: 1 Filed: 10/20/22 Page 5 of 12
`
`
`
`24.
`
`The following is a photograph of the Peloton Tread+ from Peloton’s website,
`
`https://www.onepeloton.com/tread-plus/sign-up:
`
`
`
`
`
`5
`
`
`
`
`
`Case: 3:22-cv-00606 Document #: 1 Filed: 10/20/22 Page 6 of 12
`
`
`
`25.
`
`26.
`
`The Accused Products directly compete with JHT’s treadmills.
`
`The Accused Products include each and every limitation of at least claim 1 of the
`
`‘227 patent, which recites:
`
`1. An exercise apparatus comprising:
`a base;
`
`an operating unit movable relative to the base;
`
` motor coupled to the operating unit;
`
` sensor operable to detect engagement of a user with the operating
`unit;
`
` a
`
` controller in communication with the operating unit and the
`sensor; and
`
` a
`
` communication interface in communication with the controller,
`wherein the controller is configured to generate a non-validated
`exercise use data in response to movement of the operating unit
`relative to the base and the sensor does not detect engagement of
`the user with the operating unit, wherein the controller is further
`configured to generate a validated exercise use data in response to
`movement of the operating unit relative to the base and the sensor
`does detect engagement of the user with the operating unit, and
`wherein the controller transmits the validated exercise use data to
`the communication interface.
`
`The Accused Products include each and every limitation of at least claim 1 of the
`
`27.
`
`‘375 patent, which recites:
`
` a
`
` a
`
`1. An exercise apparatus comprising:
`
` motor;
`
` a
`
`
`an operating member driven by the motor;
`
` a
`
` sensor operable to detect engagement of a user with the operating
`member;
`
` a
`
` controller in communication with the operating member and the
`sensor, the controller configured to generate exercise use data
`when the operating member is driven by the motor; and
`
`
`
`6
`
`
`
`Case: 3:22-cv-00606 Document #: 1 Filed: 10/20/22 Page 7 of 12
`
`
`
` a
`
` communication interface in communication with the controller,
`
`
`wherein the controller is configured determine whether the user is
`engaged with the operating member in response to movement of
`the operating member and the sensor detecting engagement of the
`user with the operating member,
`
`wherein in response to the controller determining that the user is
`engaged with the operating member, the controller is configured to
`report the exercise use data to the communication interface,
`wherein in response to the controller determining that the user is
`not engaged with the operating member, the controller is
`configured to stop reporting the exercise use data to the
`communication interface, and
`
`wherein the communication interface is configured to
`communicate the reported exercise use data to a third party.
`
`The Accused Products include each and every limitation of at least claim 1 of the
`
`28.
`
`‘340 patent, which recites:
`
`1. An exercise apparatus comprising:
`
` a
`
`
`an operating unit movable relative to the base;
`
` base;
`
` motor coupled to the operating unit;
`
` a
`
` a
`
` sensor operable to detect engagement of a user with the operating
`unit;
`
` a
`
` controller in communication with the operating unit and the
`sensor, the controller configured to generate validated exercise use
`data in response to the sensor detecting engagement of the user
`with the operating unit and movement of the operating unit relative
`to the base.
`
`Peloton directly infringes at least claim 1 of each of the ‘227, ‘375 and ‘340
`
`29.
`
`patents by making, using, offering to sell, selling and/or importing into the United States the
`
`Accused Products.
`
`
`
`7
`
`
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`Case: 3:22-cv-00606 Document #: 1 Filed: 10/20/22 Page 8 of 12
`
`
`
`30.
`
`On information and belief, Peloton had knowledge of the JHT patents and
`
`infringement of them before this lawsuit, actively encouraged distributors, customers and/or
`
`others to make, sell, offer for sale, use or import the Accused Products and possessed specific
`
`intent that distributors, customers and/or others infringe at least one claim of the ‘227, ‘375 and
`
`340 patents.
`
`31.
`
`On information and belief, Peloton knew that the Accused Products were made
`
`for use in practicing at least one claim in each of the JHT patents, constituted a material part of
`
`the invention, were especially made for use in an infringement of the JHT patents, and are not a
`
`staple article or commodity of commerce suitable for substantial noninfringing use.
`
`32.
`
`Peloton does not have authority from JHT to make, use, offer to sell, sell any
`
`invention claimed in the JHT patents.
`
`33.
`
`34.
`
`35.
`
`36.
`
`Peloton was aware of the ‘227 patent no later than October 8, 2020.
`
`Peloton was aware of the ‘375 patent no later than October 8, 2020.
`
`Peloton was aware of the ‘340 patent no later than April 11, 2022.
`
`Peloton is and was aware before the filing of this lawsuit that its manufacture, use,
`
`offer for sale, sale, and/or importing the Accused Products, inducement of others to make, use,
`
`sell, offer for sale, sell and/or import the Accused Products, and contribution to others making,
`
`using, offering for sale, selling and or importing the Accused Products infringes the JHT patents.
`
`COUNT I
`Infringement of U.S. Patent No. 10,032,227
`
`37.
`
`JHT re-alleges and incorporates the foregoing paragraphs as though fully set forth
`
`herein.
`
`38.
`
`JHT has the right to enforce the ‘227 patent and the right to recover damages for
`
`infringement.
`
`
`
`8
`
`
`
`Case: 3:22-cv-00606 Document #: 1 Filed: 10/20/22 Page 9 of 12
`
`
`
`39.
`
`Peloton has infringed the ‘227 patent, literally or under the doctrine of
`
`equivalents, by making, using, offering to sell, selling and/or importing the Accused Products.
`
`40.
`
`Peloton has infringed the ‘227 patent by inducing others to make, use, offer to
`
`sell, sell and/or import the Accused Products.
`
`41.
`
`Peloton has infringed the ‘227 patent by contributing to others’ making, using,
`
`offering for sale, selling and or importing the Accused products.
`
`42.
`
`Peloton knew that making, using, offering to sell, selling, and/or importing the
`
`Accused Products would infringe the ‘227 patent. Peloton’s past and continued infringement of
`
`the ‘227 patent has been and continues to be willful and deliberate.
`
`43.
`
`Because of Peloton’s infringement of the ‘227 patent, JHT has suffered and will
`
`continue to suffer irreparable harm and monetary damages, which continue to accrue, in an
`
`amount to be determined at trial.
`
`44.
`
`45.
`
`Peloton’s willful infringement will continue unless enjoined.
`
`Peloton’s conduct makes this an exceptional case. JHT should therefore be
`
`awarded enhanced damages and its reasonable attorney’s fees pursuant to 35. U.S.C. §§ 284 and
`
`285 and other applicable rules, statutes, and law.
`
`COUNT II
`Infringement of U.S. Patent No. 10,796,375
`
`46.
`
`JHT re-alleges and incorporates the foregoing paragraphs as though fully set forth
`
`herein.
`
`47.
`
`JHT has the right to enforce the ‘375 patent and the right to recover damages for
`
`infringement.
`
`48.
`
`Peloton has infringed the ‘375 patent, literally or under the doctrine of
`
`equivalents, by making, using, offering to sell, selling and/or importing the Accused Products.
`
`
`
`9
`
`
`
`Case: 3:22-cv-00606 Document #: 1 Filed: 10/20/22 Page 10 of 12
`
`
`
`49.
`
`Peloton has infringed the ‘375 patent by inducing others to make, use, offer to
`
`sell, sell and/or import the Accused Products.
`
`50.
`
`Peloton has infringed the ‘375 patent by contributing to others’ making, using,
`
`offering for sale, selling and or importing the Accused products.
`
`51.
`
`Peloton knew that making, using, offering to sell, selling, and/or importing the
`
`Accused Products would infringe the ‘375 patent. Peloton’s past and continued infringement of
`
`the ‘375 patent has been and continues to be willful and deliberate.
`
`52.
`
`Because of Peloton’s infringement of the ‘375 patent, JHT has suffered and will
`
`continue to suffer irreparable harm and monetary damages, which continue to accrue, in an
`
`amount to be determined at trial.
`
`53.
`
`54.
`
`Peloton’s willful infringement will continue unless enjoined.
`
`Peloton’s conduct makes this an exceptional case. JHT should therefore be
`
`awarded enhanced damages and its reasonable attorney’s fees pursuant to 35. U.S.C. §§ 284 and
`
`285 and other applicable rules, statutes, and law.
`
`COUNT III
`Infringement of U.S. Patent No. 11,227,340
`
`JHT re-alleges and incorporates the foregoing paragraphs as though fully set forth
`
`55.
`
`herein.
`
`56.
`
`JHT has the right to enforce the ‘340 patent and the right to recover damages for
`
`infringement.
`
`57.
`
`Peloton has infringed the ‘340 patent, literally or under the doctrine of
`
`equivalents, by making, using, offering to sell, selling and/or importing the Accused Products.
`
`58.
`
`Peloton has infringed the ‘340 patent by inducing others to make, use, offer to
`
`sell, sell and/or import the Accused Products.
`
`
`
`10
`
`
`
`Case: 3:22-cv-00606 Document #: 1 Filed: 10/20/22 Page 11 of 12
`
`
`
`59.
`
`Peloton has infringed the ‘340 patent by contributing to others’ making, using,
`
`offering for sale, selling and or importing the Accused products.
`
`60.
`
`Peloton knew that making, using, offering to sell, selling, and/or importing the
`
`Accused Products would infringe the ‘340 patent. Peloton’s past and continued infringement of
`
`the ‘375 patent has been and continues to be willful and deliberate.
`
`61.
`
`Because of Peloton’s infringement of the ‘340 patent, JHT has suffered and will
`
`continue to suffer irreparable harm and monetary damages, which continue to accrue, in an
`
`amount to be determined at trial.
`
`62.
`
`63.
`
`Peloton’s willful infringement will continue unless enjoined.
`
`Peloton’s conduct makes this an exceptional case. JHT should therefore be
`
`awarded enhanced damages and its reasonable attorney’s fees pursuant to 35. U.S.C. §§ 284 and
`
`285 and other applicable rules, statutes, and law.
`
`PRAYER FOR RELIEF
`
`WHEREFORE, JHT respectfully prays that this Court render judgment in its favor and
`
`against Peloton as follows:
`
`A.
`
`Judgment that Peloton has infringed the ‘227, ‘375 and ‘340 patents under 35
`
`U.S.C. § 271;
`
`B.
`
`A preliminary and permanent injunction pursuant to 35 U.S.C. § 283, preventing
`
`Peloton, its officers, agents, servants, employees, successors, assignees, parents, subsidiaries,
`
`affiliated or related companies, attorneys, and all others in active concert or participation with
`
`any of them from further infringing the ‘227, ‘375 and ‘340 patents;
`
`C.
`
`An award of damages adequate to compensate JHT for Peloton’s patent
`
`infringement, and no less than the damages provided for under 35 U.S.C. § 284;
`
`
`
`11
`
`
`
`Case: 3:22-cv-00606 Document #: 1 Filed: 10/20/22 Page 12 of 12
`
`
`
`D.
`
`E.
`
`F.
`
`An award of enhanced damages under 35 U.S.C. § 284;
`
`An award of attorneys’ fees under 35 U.S.C. §285;
`
`An award of pre-judgment interest, post-judgment interest, and all costs
`
`associated with this action; and
`
`G.
`
`Any other relief as the Court deems appropriate and just under the circumstances.
`
`JURY DEMAND
`
`JHT demands a trial by jury on all matters and issues properly tried to a jury.
`
`Dated this 20th day of October, 2022.
`
`Respectfully submitted,
`
`MICHAEL BEST AND FRIEDRICH LLP
`
`By: s/ John C. Scheller ___________________
`John C. Scheller, SBN 1031247
`Shane A. Brunner, SBN 1034128
`Tanya M. Salman, SBN 1089151
`One South Pinckney Street, Suite 700
`P.O. Box 1806
`Madison, WI 53701-1806
`Telephone: 608.257.3501
`Facsimile: 608.283.2275
`Email:
`jcscheller@michaelbest.com
`
`
`sabrunner@michaelbest.com
`
`
`tmsalman@michaelbest.com
`
`
`
`
`Attorneys Johnson Health Tech Co., LTD and
`Johnson Health Tech North America, Inc.
`
`
`12
`
`
`
`
`
`
`
`
`
`
`
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