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IN THE UNITED STATES DISTRICT COURT

FOR THE WESTERN DISTRICT OF TEXAS
WACO DIVISION

ONTEL PRODUCTS CORPORATION,

Plaintiff,
CIVIL ACTION NO. 6:22-cv-911
v.

SHOP LC, and

WAYFAIR INC., JURY TRIAL REQUESTED

Defendants.

COMPLAINT FOR PATENT AND COPYRIGHT INFRINGEMENT

Plaintiff Ontel Products Corporation (“Ontel”), having a principal place of business at 21

Law Drive, Fairfield, New Jersey 07004, by its undersigned attorneys, files this Complaint against

Shop LC (“Shop LC”), having a listed address of 100 Michael Angelo Way Suite 400, Austin, TX

78728, and Wayfair Inc. (“Wayfair”) (collectively, “Defendants”), having a listed address of 4500

S Pleasant Valley Rd, Austin, TX 78744. In support thereof, Ontel states and alleges as follows:

I. INTRODUCTION

1. This case arises out of the unauthorized use and infringement of Ontel’s copyright

and patents for its popular and best-selling evaporative air-cooling product, offered under the

ARCTIC AIR® ULTRA trademark (hereinafter “Arctic Air® Ultra Product”). In violation of

federal and state law and in order to capitalize on the clear success of the Arctic Air® Ultra

Product, Defendants are promoting and selling a clearly infringing version of Ontel’s Arctic Air®

Ultra Product called HydroIce. Products ordered from certain websites owned and operated by

Defendants demonstrate that they are clearly infringing a version of Ontel’s Arctic Air® Ultra
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Product by copying portions from Ontel’s protected copyright in the instruction manual and

usurping Ontel’s significant intellectual property rights in its patents.

2. Defendants’ conduct is directly harming Ontel and consumers as the competing

products copy and diminish the value of and misappropriate Ontel’s valuable intellectual

property rights. The harm to Ontel and the general public will continue unless Defendants’

conduct is enjoined by this Court.

II. PARTIES, JURISDICTION, AND VENUE

3. Plaintiff Ontel is a corporation organized under the laws of the State of New Jersey,

having a principal place of business at 21 Law Drive, Fairfield, New Jersey 07004.

4. Defendant Shop LC is a corporation organized under the laws of the State of Texas,

having a principal place of business at 100 Michael Angelo Way Suite 400, Austin, TX 78728.

5. Defendant Wayfair Inc. is a corporation organized under the laws of the State of

Delaware, having a place of business at 4500 S Pleasant Valley Rd, Austin, TX 78744.

6. Jurisdiction and venue are proper in this Court.

7. This Court has personal jurisdiction pursuant to Fed. R. Civ. P. 4(k)(2). The

exercise of jurisdiction over Defendants comports with due process because they purposefully

direct their activities toward, and purposefully avail themselves of, the privileges offered by the

United States, and more particularly the Western District of Texas. Defendants advertise, sell,

import, and ship their products to consumers all across the United States, and particularly within

this jurisdiction.

8. This Court has jurisdiction by virtue of the fact that this is a civil action under the

Copyright Act, 17 U.S.C. § 101 et seq., jurisdiction being conferred in accordance with 28 U.S.C.

§ 1331 and 1338. As to the Patent Infringement claims, this Court has jurisdiction by virtue of

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the fact that this is a civil action under the Patent Act, 35 U.S.C. § 1 et seq., with jurisdiction

being conferred in accordance with 28 U.S.C. § 1331 and 1338(a). This Court also has pendent

jurisdiction over all remaining claims in accordance with 28 U.S.C. § 1367 as they arise out of

the same underlying factual allegations.

9. Venue is proper pursuant to 28 U.S.C. § 1391 and 1400(b). Specifically, Defendants

reside in this District as they have places of business here and as such Venue is proper.

III. FACTS COMMON TO ALL CLAIMS FOR RELIEF

A. ONTEL’S ARCTIC AIR® PRODUCTS

10. For over twenty (20) years, Ontel has developed, marketed, and distributed some

of the most innovative consumer products on the market, including popular toys, top-selling

kitchen utensils, and ground-breaking household items. Ontel’s products are sold in nearly every

major retail chain in the United States, and in over thirty (30) countries worldwide.

11. Among the products sold by Ontel are: Arctic Air®, Arctic Air® Ultra, Arctic Air®

Tower, Arctic Air® FreedomTM, Arctic Air® Smart ChillTM, Arctic Air® Pocket ChillTM, and

Arctic Air® Pure ChillTM (collectively “Arctic Air® Products”). The Arctic Air® Products are

personal evaporative air coolers that cool air adjacent to the products.

12. Ontel first sold the original version of its Arctic Air® Products in the United States

at least as early as February 2018 and, since then, expanded use of the brand to at least six

additional products within its line of Arctic Air® Products.

13. The Arctic Air® Products have become one of Ontel’s best-selling products in the

United States and worldwide. Indeed, as recently as Summer 2020 products within the Arctic

Air® Products held 3 of the top 10 spots on Amazon.com in the Portable Air Conditioners

category.

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14. The commercial success of the Arctic Air® Products began with the launch of the

original Arctic Air® evaporative air cooler. Further research and development refined the original

Arctic Air® evaporative cooler, resulting in Ontel’s launch of additional Arctic Air® Products,

including the Arctic Air® Ultra Product. An exemplary image showing the Arctic Air® Ultra

Product and packaging are depicted below:

See Exhibit A.

15. Ontel’s products, including the Arctic Air® Ultra Product, are available for

purchase at many large retail stores, including Walmart and Target and are also available for

purchase online through Ontel and many authorized sellers.

16. Ontel’s Arctic Air® Products are known to consumers throughout the United States

to represent genuine, high-quality goods of Ontel. Ontel owns the goodwill associated with its

intellectual property rights and has invested significant time and resources securing and

protecting these rights worldwide.

17. Ontel has invested in excess of eight million dollars ($8,000,000) in marketing and

advertising its Arctic Air® Products, and as a result, the Arctic Air® Products are some of the

best-selling items in Ontel’s portfolio, having generated over one hundred million dollars

($100,000,000) in sales.

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18. Unfortunately, as a result of this success, the Arctic Air® Products are frequently

copied and Ontel regularly expends significant resources combatting infringing products, as

parties like Defendants try to capitalize on Ontel’s success with a line of infringing products.

B. ONTEL’S ARCTIC AIR® COPYRIGHTS

19. Ontel is the owner of multiple, valid U.S. copyright registrations associated with

the Arctic Air® Ultra Product.

20. Ontel obtained U.S. Copyright Registration Number TX 8-922-730 (See Exhibit B)

on August 14, 2020, for the product manual that accompanies each Arctic Air® Ultra Product

(“Arctic Air® Ultra Manual”) depicted below:

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See Exhibit C.

21. Ontel’s Arctic Air® Ultra Manual is also referred to as the “Arctic Air® Ultra

Copyrighted Work” and Ontel’s copyright in the Arctic Air® Ultra Copyrighted Work and the

registrations therefore are collectively referred to as “Arctic Air® Ultra Copyright.”

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22. Ontel’s Arctic Air® Ultra Copyright is valid and subsisting.

C. ONTEL’S ARCTIC AIR® PATENTS

23. As stated above, Ontel’s Arctic Air® Products are the result of significant

investment in research and development. The Arctic Air® Products contain various new, novel,

and original features for which Ontel sought and obtained protection from the U.S. Patent and

Trademark Office.

24. Ontel owns U.S. Patent No. D852,340 (the “Arctic Air® Ultra Design Patent”) (See

Exhibit D).

25. The Arctic Air® Ultra Design Patent was filed on December 21, 2018, and issued

on June 25, 2019.

26. The Arctic Air® Ultra Design Patent protects the ornamental design for a personal

air cooler as depicted in the patent figure reproduced below:

FIG. 1 of the Arctic Air® Ultra Design Patent (See Exhibit D)

27. Ontel owns U.S. Patent No. RE48,619 (the “Arctic Air® Ultra Reissue Design

Patent”) (See Exhibit E).

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28. The Arctic Air® Ultra Reissue Design Patent was filed on November 30, 2020, and

issued on July 6, 2021.

29. The Arctic Air® Ultra Reissue Design Patent protects the ornamental design for a

personal air cooler as depicted in the patent figure reproduced below:

FIG. 1 of the Arctic Air® Ultra Reissue Design Patent (See Exhibit E)

30. Arctic Air® Ultra Reissue Design Patent has a broader scope of protection than the

Arctic Air® Ultra Design Patent. For example, the tabs on the front grill, the name plate on the

front face, the control panel on the top portion, and portions of the lid are not claimed in the

Arctic Air® Ultra Reissue Design Patent.

31. Ontel’s Arctic Air® Ultra Design Patent and Arctic Air® Ultra Reissue Design

Patent are collectively referred to as “Arctic Air® Ultra Design Patents.”

32. Ontel also owns U.S. Patent No. 10,712,029 (the “Arctic Air® Ultra Utility Patent”)

(See Exhibit F).

33. The Arctic Air® Ultra Utility Patent was filed on January 3, 2019, and issued on

July 14, 2020.

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34. The Arctic Air® Ultra Utility Patent protects functional features of a personal air

cooler as described and depicted in the patent, including the system for receiving water,

delivering it to air entering the device to cool it and then emitting the cooler air, and as excerpted

below:

FIGS. 5 and 7 of the Arctic Air® Ultra Utility Patent (See Exhibit F)

35. Ontel’s Arctic Air® Ultra Design Patents and Arctic Air® Ultra Utility Patent are

collectively referred to as “Ontel’s Arctic Air® Patents.”

36. Ontel’s Arctic Air® Ultra Copyright and Ontel’s Arctic Air® Patents are collectively

referred to as “Ontel’s Intellectual Property.”

D. DEFENDANTS’ INFRINGEMENT

37. Defendants individually own, created, established, and/or operate one or more

websites that infringe one or more of Ontel’s Intellectual Property (the “Infringing Sites”).

38. The Infringing Sites that are currently known to Ontel are listed here:

 https://www.shoplc.com/hydro-ice-portable-8-in-1-air-cooling-and-
humidifer-system/p/7025561.html

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 https://www.wayfair.com/HydroIce--Beautyko-Compact-Glowing-
UV-Air-Purifier-BK3460-L7255-K~ADRO1000.html?refid=FR49-
ADRO1000

 https://www.wayfair.com/HydroIce--HYDROICE-8-in-1-All-Year-
Round-Air-Purification-BK3456-L7255-
K~ADRO1001.html?refid=FR49-ADRO1001

39. These Infringing Sites infringe one or more of Ontel’s Intellectual Property Rights

through the marketing, sale, and offering of sale of a product called the “HydroIce” (“HydroIce”

or “Infringing Product”) which misappropriates Ontel’s Intellectual Property Rights in its Arctic

Air® Ultra Product and associated materials.

40. For example, the website https://www.shoplc.com/hydro-ice-portable-8-in-1-air-

cooling-and-humidifier-system/p/7025561.html advertises and sells the HydroIce. As shown

below, the HydroIce infringes on Ontel’s Intellectual Property Rights, and more specifically

Ontel’s Arctic Air® Patents:

See Exhibit G.

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41. The contact information for the company providing the HydroIce available via this

website is 1 (877) 899-0078.

42. Upon information and belief, on or about June 12, 2022, Shoplc.com, a live

shopping channel, sold thousands of infringing HydroIce products, valued at over one hundred

thousand dollars in sales.

43. The website https://www.wayfair.com/HydroIce--Beautyko-Compact-Glowing-

UV-Air-Purifier-BK3460-L7255-K~ADRO1000.html?refid=FR49-ADRO1000 similarly

advertises and sells the HydroIce:

See Exhibit H.

44. The contact information for the company providing the HydroIce available via this

website is https://www.wayfair.com/contact_us.

45. This is not the only listing of the HydroIce on Wayfair, as the below listing also

lists and advertises for sale the HydroIce, https://www.wayfair.com/HydroIce--HYDROICE-8-

in-1-All-Year-Round-Air-Purification-BK3456-L7255-K~ADRO1001.html?refid=FR49-

ADRO1001:

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See Exhibit I.

46. The contact information for the company providing the HydroIce available via this

website is https:www.wayfair.com/contact_us.

47. Included in Defendants’ shipment of the HydroIce is a manual copying images and

text from Ontel’s Arctic Air® Ultra Copyrighted Work:

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Ontel’s Arctic Air® Ultra Copyrights Defendants’ Infringement

See Exhibit J.

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48. Upon information and belief, all of the aforementioned Infringing Sites are

advertising and selling the HydroIce containing the infringing manual.

49. Accordingly, each of the Defendants is directly liable for its/his/her own

infringement.

COUNT I: VIOLATION OF 17 U.S.C. § 101 et seq. – COPYRIGHT INFRINGEMENT

50. Ontel incorporates all preceding paragraphs of this Complaint as set forth in full

herein.

51. Ontel is the owner of the Arctic Air® Ultra Copyright, including the corresponding

certification of registration.

52. Examples of Defendants’ infringement of Ontel’s Arctic Air® Ultra Copyright

include copying the following images and text, which are shown above and recreated below for

ease of review:

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Ontel’s Arctic Air Ultra Copyrights Defendants’ Infringement

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53. Defendants violated Ontel’s exclusive rights in the Arctic Air® Ultra Copyright in

the United States by:

a) Reproducing Ontel’s Arctic Air® Ultra Copyrighted Work, including portions

thereof;

b) Preparing derivative works based on Ontel’s Arctic Air® Ultra Copyrighted Work;

c) Distributing copies of Ontel’s Arctic Air® Ultra Copyrighted Work to the public,

including portions thereof;

d) Publicly displaying Ontel’s Arctic Air® Ultra Copyrighted Work; and

e) Other acts of infringement as revealed by discovery.

54. Defendants improperly used Ontel’s Arctic Air® Ultra Copyrighted Work by using

direct copies of Ontel’s Arctic Air® Ultra Copyrighted Work in connection with the manufacture

and sale of Defendants’ infringing products.

55. Defendants’ willful use of Ontel’s Arctic Air® Ultra Copyrighted Work have

caused actual damage to Ontel, for which Ontel has statutory and actual remedies at law.

56. Defendants’ willful use of Ontel’s Arctic Air® Ultra Copyrighted Work as

described above have caused and will continue to cause irreparable damage to Ontel, for which

Ontel has no adequate remedy at law.

57. Unless Defendants are restrained by this Court from continuing its infringement of

Ontel’s Arctic Air® Ultra Copyright, these injuries will continue to occur in the future.

COUNT II: UNJUST ENRICHMENT

58. Ontel incorporates all preceding paragraphs of this Complaint as if set forth in full

herein.

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59. As detailed above, Ontel expended considerable time and resources in creating,

developing, and maintaining Ontel’s Intellectual Property. The undertaking required

considerable research, time, strategic planning, and evaluation of market and economic trends,

new technologies, innovations, and their impact on the personal cooling device industry.

60. But for Defendants’ misappropriation of Ontel’s Intellectual Property, Defendants

would have had to expend considerable time and expense in independent research, development,

marketing, and advertising of their evaporative air cooling products in order to enter the relevant

market and directly compete with Ontel.

61. Defendants have been unjustly enriched by retaining this benefit without providing

Ontel any payment. As a result of Defendants’ wrongful acts, Ontel has suffered and will

continue to suffer significant commercial, monetary, and other damages.

COUNT III: DESIGN PATENT INFRINGEMENT

62. Ontel incorporates all preceding paragraphs of this Complaint as if set forth in full

herein.

63. Upon information and belief, Defendants had and have knowledge of Ontel’s Arctic

Air® Ultra Design Patents as of the date it first offered for sale or sold the HydroIce product.

64. Defendants have actual notice of Ontel’s Arctic Air® Ultra Design Patent at least

as early as the filing of this Original Complaint.

65. Ontel marks the Arctic Air® Products as patented pursuant to 35 U.S.C. 287.

66. Defendants are directly infringing or inducing infringement of Ontel’s Arctic Air®

Ultra Design Patents by making, using, offering to sell, selling, or importing into the United

States, the HydroIce.

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67. With knowledge of Ontel’s Arctic Air® Ultra Design Patents, Defendants willfully

infringed and induced infringement of Ontel’s Arctic Air® Ultra Design Patents.

68. Defendants’ listed HydroIce products infringe on Ontel’s Arctic Air® Ultra Design

Patents.

69. Defendants are infringing on Ontel’s Arctic Air® Ultra Design Patents by

marketing, advertising, offering for sale, and selling the HydroIce with knowledge and the intent

that third parties will use those products.

70. Examples of Defendants’ infringement of the Arctic Air® Ultra Design Patents

include:

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Ontel’s Arctic Air® Ultra Design Patents Defendants’ Infringement

71. Defendants’ infringement was undertaken without permission or license to use

Ontel’s Arctic Air® Design Patent.

72. Ontel has been damaged as a result of Defendants’ infringement as described

herein.

73. Ontel is entitled to and claims all damages allowable by law including adequate

compensation for the infringement, costs, interest, attorney fees, and Defendants’ profits (for

which Ontel demands an equitable accounting).

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74. Ontel further seeks a declaration by the Court that it is entitled to three times the

amount of damages found or assessed pursuant to 35 U.S.C. § 284.

COUNT IV: UTILITY PATENT INFRINGEMENT

75. Ontel incorporates all preceding paragraphs of this Complaint as if set forth in full

herein.

76. Upon information and belief, Defendants had and have knowledge of Ontel’s Arctic

Air® Ultra Utility Patent as of the date it first offered for sale or sold the HydroIce product.

77. Defendants have actual notice of Ontel’s Arctic Air® Ultra Utility Patent at least as

early as the filing of this Original Complaint.

78. Ontel marks the Arctic Air® Products as patented pursuant to 35 U.S.C. 287.

79. Defendants are directly infringing or inducing infringement of Ontel’s Arctic Air®

Ultra Utility Patent by making, using, offering to sell, selling, or importing into the United States,

the HydroIce.

80. With knowledge of Ontel’s Arctic Air® Ultra Utility Patent, Defendants willfully

infringed and induced infringement of Ontel’s Arctic Air® Ultra Utility Patent.

81. Defendants’ listed HydroIce products infringe on Ontel’s Arctic Air® Ultra Utility

Patent.

82. Defendants are infringing on Ontel’s Arctic Air® Ultra Utility Patent by marketing,

advertising, offering for sale, and selling the HydroIce with knowledge and the intent that third

parties will use those products.

83. An example of Defendants’ infringement of the Arctic Air® Ultra Utility Patent

includes:

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Ontel’s Arctic Air® Ultra Utility Patent Defendants’ Infringement

FIG. 5

FIG. 7

84. Defendants are infringing on one or more claims, including but not limited to

independent claims 1 and 16 of the Arctic Air® Ultra Utility Patent.

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85. Specifically, independent claim 1 of the Arctic Air® Ultra Utility Patent states, in

part, “an evaporative air cooler for cooling ambient air, comprising: a housing with a top panel,

a bottom panel, and side panels defining an interior of the evaporative air cooler . . . a tank

positioned adjacent to the top panel and at least one of the side panels, wherein the tank is

configured to receive, store, and release liquid; a misting structure comprising a mister . . . a

filter structure with a plurality of filters . . . and a fan configured to draw the ambient air into the

evaporative air cooler, wherein the ambient air is cooled by at least one of the mist and the filter

structure, and wherein the fan directs the ambient air through the filter structure and out of the

evaporative air cooler.” (See Exhibit F).

86. The HydroIce product, like Claim 1 of the Arctic Air® Ultra Utility Patent similarly

features an evaporative air cooler for cooling ambient air, comprising: a housing with a top panel,

a bottom panel, and side panels defining an interior of the evaporative air cooler . . . a tank

positioned adjacent to the top panel and at least one of the side panels, wherein the tank is

configured to receive, store, and release liquid; a misting structure comprising a mister . . . a

filter structure with a plurality of filters . . . and a fan configured to draw the ambient air into the

evaporative air cooler, wherein the ambient air is cooled by at least one of the mist and the filter

structure, and wherein the fan directs the ambient air through the filter structure and out of the

evaporative air cooler, which is demonstrated above.

87. Relatedly, independent claim 16 of the Arctic Air® Ultra Utility Patent states, in

part, “an evaporative air cooler for cooling ambient air, comprising a housing . . . a tank . . . a

misting structure . . . a filter . . . a fan . . . and a v-shaped shroud positioned underneath the tank

and configured to direct the mist toward the filter structure.” (See Exhibit F).

88. Likewise, the HydroIce product also features an evaporative air cooler for cooling

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ambient air, comprising a housing . . . a tank . . . a misting structure . . . a filter . . . a fan . . . and

a v-shaped shroud positioned underneath the tank and configured to direct the mist toward the

filter structure, which is shown above.

89. Defendants’ infringement was undertaken without permission or license to use

Ontel’s Arctic Air® Ultra Utility Patent.

90. Ontel has been damaged as a result of Defendants’ infringement as described

herein.

91. Ontel is entitled to and claims all damages allowable by law including adequate

compensation for the infringement, costs, interest, attorney fees, and Defendants’ profits (for

which Ontel demands an equitable accounting).

92. Ontel further seeks a declaration by the Court that it is entitled to three times the

amount of damages found or assessed pursuant to 35 U.S.C. § 284.

PRAYER FOR RELIEF

WHEREFORE, Ontel respectfully requests that this Honorable Court:

a) Enter judgment against Defendants finding:

i) Defendants have engaged in willful and intentional copyright

infringement in violation of Section 501 of the Copyright Act (17 U.S.C. §

501);

ii) Defendants have been unjustly enriched in violation of Texas

common law; and

iii) Defendants have knowingly and willfully engaged in actions to

interfere with Ontel’s Arctic Air® Patents, including advertising,

marketing, sale, attempted sale, or importation of the HydroIce; and

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continue to operate the Infringing Sites, and any similar sites.

b) Issue a temporary restraining order and preliminary and permanent

injunctions prohibiting Defendants and each of their agents, servants, employees, attorneys, and

any other persons who are in active concert or participation with them from:

i) Using Ontel’s Arctic Air® Copyright in connection with the

offering for sale or advertising of any products;

ii) Engaging in further actions to interfere with Ontel’s Arctic®

Ultra Air Patents, including the advertising, marketing, sale, attempted sale,

or importation of the HydroIce or similar infringing products; and iii)

Continuing to operate the Infringing Sites, and any similar site;

c) Require Defendants to account for profits;

d) Award Ontel its actual damages, or in the alternative, statutory damages for

willful copyright infringement pursuant to 17 U.S.C. § 504;

e) Award Ontel an amount equal to adequate compensation for Defendants’

patent infringement, multiplied by three pursuant to 35 U.S.C. § 284;

f) Award Ontel the costs associated with bringing this action; and

g) Award Ontel interest and reasonable attorneys’ fees.

JURY DEMAND

Plaintiff Ontel Products Corporation hereby demands a trial by jury of all issues so

triable.

Respectfully submitted this 2nd day of September, 2022,

/s/ John S. Artz

John S. Artz
Michigan State Bar No. P48578
DICKINSON WRIGHT PLLC

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350 S Main St, Suite 300

Ann Arbor, MI 48104
Tel: (734) 623-7075
Email: [email protected]

Andrea L. Arndt
Texas Bar No. 24127129
DICKINSON WRIGHT PLLC
607 W 3rd St, Ste 2500
Austin, TX 78701
Tel: (512) 770-4200
Email: [email protected]

Attorneys for Plaintiff

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