UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF GEORGIA ATLANTA DIVISION KREYENBORG GmbH, Case No. Plaintiff, v.

PSI-POLYMER SYSTEMS, INC., GLEN WOODCOCK (in his individual capacity as President and Co-owner), and CARLA WOODCOCK (in her individual capacity as Vice President and Coowner), Defendants. JURY TRIAL DEMANDED

COMPLAINT FOR WILLFUL PATENT INFRINGEMENT, SEEKING INJUNCTIVE RELIEF, TREBLE DAMAGES AND ATTORNEYS FEES, AND DEMAND FOR JURY TRIAL Plaintiff KREYENBORG GmbH (KREYENBORG), by its undersigned attorneys, hereby alleges as follows:

SUBJECT MATTER JURISDICTION 1. This is an action for patent infringement arising under the patent laws

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of the United States, Title 35, U.S.C., by KREYENBORG against Defendant PSI-POLYMER SYSTEMS, INC. (PSI), GLEN WOODCOCK (in his individual capacity as President and Co-owner of PSI), and CARLA WOODCOCK (in her individual capacity as Vice President and Co-owner of PSI). 2. This Court has original, exclusive subject matter jurisdiction over this action pursuant to the provisions of 28 U.S.C. 1331 and 1338(a).

PARTIES, IN PERSONAM JURISDICTION, AND VENUE 3. KREYENBORG is a corporation duly organized and existing under the laws of Germany with its principal place of business at Coermhle 1, 48157 Mnster, Germany. 4. KREYENBORG manufactures piston filtration systems for processing of thermoplastics in Germany, and sells its piston filtration systems to customers in the State of Georgia and throughout the United States through Kreyenborg America L.P., a Georgia limited partnership having its principal place of business in this judicial district, at 720 Raco Drive, Lawrenceville, Georgia 30045-8731. 5. Upon information and belief, PSI is a corporation duly organized and

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existing under the laws of the State of North Carolina with its principal place of business at 1703 Pineview Street SE, Conover, North Carolina 28613. 6. Upon information and belief, PSI is or was previously registered with the Georgia Secretary of State as a foreign corporation transacting business in the State of Georgia. 7. Upon information and belief, PSI has or previously had as its Registered Agent in the State of Georgia the law firm of Olim & Loeb, LLP, located at 6100 Lake Forrest Drive, Suite 480, Atlanta, Georgia 30328. 8. Upon information and belief, PSI is engaged in or transacts business in the State of Georgia, including business relating to the acts of willful patent infringement alleged in this Complaint. 9. Upon information and belief, GLEN WOODCOCK is President of PSI. 10. Upon information and belief, CARLA WOODCOCK is Vice President of PSI. 11. Upon information and belief, PSI is a closely-held corporation, 100% owned by its two executive officers, namely, GLEN WOODCOCK

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and CARLA WOODCOCK. 12. Upon information and belief, each and every act of PSI complained of herein was conceived, formulated, executed, directed, carried out, authorized, instructed, induced, done and/or accomplished in any and every manner with the full knowledge, consent, and participation of GLEN WOODCOCK and/or CARLA WOODCOCK, for their own ultimate gain and benefit as co-owners of PSI. 13. Upon information and belief, this Court may exercise in personam jurisdiction over PSI. 14. Upon information and belief, this Court may exercise in personam jurisdiction over GLEN WOODCOCK. 15. Upon information and belief, this Court may exercise in personam jurisdiction over CARLA WOODCOCK. 16. Upon information and belief, venue is proper under 28 U.S.C. 1391(b) and (c), and 1400(b).

COUNT I WILLFUL PATENT INFRINGEMENT (PSI) 17. On June 9, 2006, Kreyenborg Verwaltungen und Beteiligungen GmbH & Co. KG filed its First Amended Complaint For Injunctive

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And Other Relief against PSI in this Court, in view of PSIs infringement of its United States Patent No. 5,922,194, entitled FILTER CHANGING DEVICE FOR PLASTICS PROCESSING PLANTS, in Case No. 1:06-CV-0996 TCB (N.D. Ga.) (the 2006 Action). 18. The 2006 Action was resolved by settlement and was dismissed with prejudice on September 19, 2006. 19. In 2002 and 2003, Kreyenborg Verwaltungen und Beteiligungen GmbH & Co. KG filed four German patent applications relating to aspects of a novel and nonobvious machine for industrial filtration of molten recycled plastics. 20. In 2004, German Patent No. DE 10254022 B4 was granted, based on one or more of the aforementioned four German patent applications. 21. In 2007, European Patent Nos. EP 1423178 B1 and EP 1524022 B1, both based on one or more of the aforementioned four German patent applications, were granted. 22. On September 2, 2007, United States Patent No. US 7,419,592 B2 (the Middler et al. Patent), entitled DEVICE FOR FILTERING A FLUID ESPECIALLY FOR PLASTIC-PROCESSING

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INSTALLATIONS, also based on the aforementioned four German patent applications, was duly and legally issued to Kreyenborg Verwaltungen und Beteiligungen GmbH & Co. KG as assignee. A copy of the Middler et al. Patent is attached hereto as Exhibit A. 23. All right, title and interest in and to the Middler et al. Patent, including the right to sue for past, present, and future infringement of the same, was subsequently assigned by Kreyenborg Verwaltungen und Beteiligungen GmbH & Co. KG to Plaintiff KREYENBORG, the current owner of the Middler et al. Patent. 24. The Middler et al. Patent relates, generally, to manufacturing processes using molten recycled plastic, which material is called polymer melt. Polymer melts are typically contaminated with

foreign substances and inhomogeneities which negatively affect various plastics manufacturing processes and products made thereby. Such contaminants and inhomogeneities lead, for example, to breakage of fibers while spinning, hazes in blown film, changes of resistance in cable coating, or weak spots in pressure pipes. 25. Filtration in process engineering is defined as a means of trapping liquid and hard substances in fluids by means of a filtration medium.

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As recycling of post-consumer material and manufacturing waste have increased in economic importance worldwide, constantly increasing quality standards have simultaneously necessitated better filtration when processing an ever-increasing range of plastics. 26. Layers of stainless steel mesh cloth are arranged into screen packs for use in filtration of polymer melts. During processing, it is

necessary to occasionally change the screen packs, after they become clogged with contaminants. Machines called screen changers are used for this purpose. Screen changers which enable changing of screen packs without completely stopping the filtration of polymer melt are called continuous screen changers. 27. In addition to the advantages provided by continuous screen changers, it is also desirable to reduce the frequency at which screen packs must be changed. The Middler et al. Patent describes and claims

continuous screen changers having an automatic backflush function. In operation, when a pre-determined degree of blockage of the screen pack is sensed, the direction of flow of polymer melt through the clogged screen pack is reversed and the contaminants are expelled out of the continuous screen changer along with a small quantity of

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polymer melt via backflush channels and pipes. 28. Inclusion of an automatic backflush function in a continuous screen changer increases the useful life of expensive screen packs by as much as twenty-five to one hundred times or even more. 29. Upon information and belief, at some time after September 19, 2006, with full knowledge of KREYENBORGs manufacture and sale of continuous screen changers with automatic backflush function, PSI determined to copy those KREYENBORG products, and successfully did so, introducing for sale to the plastics industry its Continuous Backflush Screen Changer Model CSC/BF series of machines, including the Model CSC-176BF machine. 30. A copy of PSIs promotional materials for its Continuous Backflush Screen Changer Model CSC/BF series of machines is attached hereto as Exhibit B. 31. In early 2010, KREYENBORG learned of PSIs offering its Model CSC-176BF machine in Germany, and notified PSI of German Patent No. DE 10254022 B4 and European Patent Nos. EP 1423178 B1 and EP 1524022 B1, all relating to KREYENBORGs improved continuous screen changers with automatic backflush function.

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32.

When discussions between KREYENBORG and PSI failed to resolve the matter of PSIs infringement in Germany, KREYENBORG filed Process 4a O 222/10 against PSI in the Regional Court of Dsseldorf, Germany for infringement of German Patent No. DE 10254022 B4 (the German Action), based upon PSIs offering for sale in Germany of its Continuous Backflush Screen Changer Model CSC176BF.

33.

During the course of the dispute leading up to the German Action, GLEN WOODCOCK stated, in a letter to KREYENBORG dated May 30, 2010, that "the PSI Filtration Apparatus does not have a position where a screen-bearing piston can be shifted so that there is no connection between a filter screen cavity and a supply channel and an associated back flush channel when there is a connection between that filter screen cavity and discharge channels in the screen-bearing piston for another filter screen cavity."

34.

GLEN WOODCOCKs May 30, 2010 statement is contrary to and inconsistent with the illustrations of PSIs Continuous Backflush Screen Changer Model CSC/BF machines in PSIs promotional materials (Exhibit B).

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35.

Upon information and belief, GLEN WOODCOCKs May 30, 2010 statement was false when made, was known by GLEN WOODCOCK to be false when he made it, and was made for the purpose of deceiving KREYENBORG and disguising PSIs infringement of KREYENBORGs patents.

36.

Shortly after KREYENBORG filed the German Action, PSI agreed to cease and desist from any further infringement of any of German Patent No. DE 10254022 B4, European Patent Nos. EP 1423178 B1 and EP 1524022 B1, and the substantive German Action was dismissed upon the joint request of the parties.

37.

Nonetheless, PSI continues, without authority, to manufacture in the United States, use, offer to sell, sell, and export, in and throughout the United States and the world, its infringing Continuous Backflush Screen Changer Model CSC/BF machines.

38.

On January 27, 2011, the U.S. Patent & Trademark Office published United States Patent Application Publication No. US 2011/0017681 A1, of Bibey et al. entitled FILTRATION APPARATUS FOR FILTERING A FLUID AND METHODS OF USING THE SAME (the Bibey et al. Publication).

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39.

Upon information and belief, the Bibey et al. Publication is owned by PSI.

40.

The Bibey et al. Publication is related to U.S. Provisional Patent Application No. 61/181,173 filed by PSI on May 26, 2009, and illustrates and describes a continuous backflush screen changer. A copy of the Bibey et al. Publication is attached as Exhibit C.

41.

Upon information and belief, the Bibey et al. Publication accurately describes certain aspects of PSIs Continuous Backflush Screen Changer Model CSC/BF series of machines, including the arrangement of housing partial channels and filter carrier partial channels of the Model CSC-176BF machine.

42.

The arrangement of housing partial channels and filter carrier partial channels of the Model CSC/BF machines described and illustrated in the Bibey et al. Publication (Exhibit C) differs from and is inconsistent with the illustrations of PSIs Continuous Backflush Screen Changer Model CSC/BF machines in PSIs promotional materials (Exhibit B).

43.

Upon information and belief, PSI knowingly included inaccurate illustrations of the housing partial channels and filter carrier partial

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channels of PSIs Continuous Backflush Screen Changer Model CSC/BF machines in PSIs promotional materials (Exhibit B) for the purpose of deceiving KREYENBORG and disguising PSIs infringement of KREYENBORGs patents. 44. Notwithstanding its agreement to refrain from any further patent infringement in Germany, PSI announced on February 16, 2012 its establishment of a subsidiary in Germany, namely, PSI-Polymer Systems Europe GmbH, to configure systems manufactured in Conover, North Carolina and shipped to Germany and other European locations. 45. PSI has thus infringed and is continuing to infringe the Middler et al. Patent. 46. Upon information and belief, PSIs infringement has been carried out and continues to be carried out with PSIs full knowledge that PSIs Continuous Backflush Screen Changer Model CSC/BF machines, including at least the Model CSC-176BF machine, infringes KREYENBORGs patents, including the Middler et al. Patent. 47. Upon information and belief, PSI has also, without authority, supplied or caused to be supplied in or from the United States, to foreign

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countries, all or a substantial portion of the components of the patented invention of the Middler et al. Patent, where such components are uncombined in whole or in part, in such manner as to actively induce the combination of such components outside of the United States in a manner that would infringe the Middler et al. Patent if such combination occurred within the United States, and continues to do the same. 48. PSIs infringement of the Middler et al. Patent has been and continues to be willful. 49. PSI, by its actions, has made clear that PSI will continue to willfully infringe the Middler et al. Patent unless enjoined by this Court. 50. By reason of PSIs acts of willful patent infringement,

KREYENBORG has suffered and is suffering and will continue to suffer legal injury and damages, including impairment of the value of its Middler et al. Patent, in an amount yet to be determined. 51. PSIs acts of willful patent infringement are causing irreparable harm to KREYENBORG and will continue to cause further irreparable harm to KREYENBORG unless permanently enjoined by this Court.

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COUNT II WILLFUL INDUCEMENT OF PATENT INFRINGEMENT (GLEN WOODCOCK) 52. KREYENBORG repeats and realleges the allegations of Paragraphs 1-51 as if fully and completely set forth herein. 53. Upon information and belief, at all relevant times, GLEN WOODCOCK was aware of and in control of the events leading up to the 2006 Action, including the 2006 Action itself and its settlement and dismissal. 54. Upon information and belief, at all relevant times, GLEN WOODCOCK was aware of and in control of the events leading up to the German Action and its resolution. 55. Upon information and belief, at all relevant times GLEN WOODCOCK has been aware of the differences between his statement made in his May 30, 2010 letter to KREYENBORG, the descriptions and illustrations contained in PSIs promotional materials (Exhibit B), the descriptions and illustrations contained in the Bibey et al. Publication (Exhibit C), and the actual construction of PSIs Continuous Backflush Screen Changer Model CSC/BF series of

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machines. 56. Upon information and belief, at all relevant times GLEN WOODCOCK induced, aided, and abetted PSIs publication of the descriptions and illustrations contained in PSIs promotional materials (Exhibit B) and the descriptions and illustrations contained in the Bibey et al. Publication (Exhibit C), for the purpose of disguising PSIs infringement of KREYENBORGs the Middler et al. Patent. 57. PSI continues, without authority, to manufacture in the United States, use, offer to sell, sell, and export, in and throughout the United States and the world, its infringing Continuous Backflush Screen Changer Model CSC/BF machines, all of the aforesaid activities being induced by, authorized by, directed and controlled by, and aided and abetted by, GLEN WOODCOCK. 58. Upon information and belief, PSI has also, without authority, supplied or caused to be supplied in or from the United States, to foreign countries, all or a substantial portion of the components of the patented invention of the Middler et al. Patent, where such components are uncombined in whole or in part, in such manner as to actively induce the combination of such components outside of the

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United States in a manner that would infringe the Middler et al. Patent if such combination occurred within the United States, and continues to do the same, all of the aforesaid activities being induced by, authorized by, directed and controlled by, and aided and abetted by, GLEN WOODCOCK. 59. PSI has thus willfully infringed and is continuing to willfully infringe the Middler et al. Patent, said willful infringement being induced by, authorized by, directed and controlled by, and aided and abetted by, GLEN WOODCOCK. 60. Upon information and belief, PSIs willful infringement has been carried out and continues to be carried out with GLEN WOODCOCKs full knowledge that PSIs Continuous Backflush Screen Changer Model CSC/BF machines infringe KREYENBORGs patents, including the Middler et al. Patent. 61. GLEN WOODCOCK, by his actions, has made clear that he will continue to induce, aid, and abet PSIs willful infringement of the Middler et al. Patent unless enjoined by this Court. 62. By reason of GLEN WOODCOCKs aiding, abetting, controlling, directing, and inducing PSIs acts of willful patent infringement,

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KREYENBORG has suffered and is suffering and will continue to suffer legal injury and damages, including impairment of the value of its Middler et al. Patent, in an amount yet to be determined. 63. GLEN WOODCOCKs aiding, abetting, controlling, directing, and inducing PSIs acts of willful patent infringement are causing irreparable harm to KREYENBORG and will continue to cause further irreparable harm to KREYENBORG unless permanently enjoined by this Court.

COUNT III WILLFUL INDUCEMENT OF PATENT INFRINGEMENT (CARLA WOODCOCK) 64. KREYENBORG repeats and realleges the allegations of Paragraphs 1-51 as if fully and completely set forth herein. 65. Upon information and belief, at all relevant times, CARLA WOODCOCK was aware of and in control of the events leading up to the 2006 Action, including the 2006 Action itself and its settlement and dismissal. 66. Upon information and belief, at all relevant times, CARLA

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WOODCOCK was aware of and in control of the events leading up to the German Action and its resolution. 67. Upon information and belief, at all relevant times CARLA WOODCOCK has been aware of the differences between GLEN WOODCOCKs statement made in his May 30, 2010 letter to KREYENBORG, the descriptions and illustrations contained in PSIs promotional materials (Exhibit B), the descriptions and illustrations contained in the Bibey et al. Publication (Exhibit C), and the actual construction of PSIs Continuous Backflush Screen Changer Model CSC/BF series of machines. 68. Upon information and belief, at all relevant times CARLA WOODCOCK induced, aided, and abetted PSIs publication of the descriptions and illustrations contained in PSIs promotional materials (Exhibit B) and the descriptions and illustrations contained in the Bibey et al. Publication (Exhibit C), for the purpose of disguising PSIs infringement of KREYENBORGs the Middler et al. Patent. 69. PSI continues, without authority, to manufacture in the United States, use, offer to sell, sell, and export, in and throughout the United States and the world, its infringing Continuous Backflush Screen Changer

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Model CSC/BF machines, all of the aforesaid activities being induced by, authorized by, directed and controlled by, and aided and abetted by, CARLA WOODCOCK. 70. Upon information and belief, PSI has also, without authority, supplied or caused to be supplied in or from the United States, to foreign countries, all or a substantial portion of the components of the patented invention of the Middler et al. Patent, where such components are uncombined in whole or in part, in such manner as to actively induce the combination of such components outside of the United States in a manner that would infringe the Middler et al. Patent if such combination occurred within the United States, and continues to do the same, all of the aforesaid activities being induced by, authorized by, directed and controlled by, and aided and abetted by, CARLA WOODCOCK. 71. PSI has thus willfully infringed and is continuing to willfully infringe the Middler et al. Patent, said infringement being induced by, authorized by, directed and controlled by, and aided and abetted by, CARLA WOODCOCK. 72. Upon information and belief, PSIs willful infringement has been

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carried out and continues to be carried out with CARLA WOODCOCKs full knowledge that PSIs Continuous Backflush Screen Changer Model CSC/BF machines infringe KREYENBORGs patents, including the Middler et al. Patent. 73. CARLA WOODCOCK, by her actions, has made clear that she will continue to induce, aid, and abet PSIs willful infringement of the Middler et al. Patent unless enjoined by this Court. 74. By reason of CARLA WOODCOCKs aiding, abetting, controlling, directing, and inducing PSIs acts of willful patent infringement, KREYENBORG has suffered and is suffering and will continue to suffer legal injury and damages, including impairment of the value of its Middler et al. Patent, in an amount yet to be determined. 75. CARLA WOODCOCKs aiding, abetting, controlling, directing, and inducing PSIs acts of willful patent infringement are causing irreparable harm to KREYENBORG and will continue to cause further irreparable harm to KREYENBORG unless permanently enjoined by this Court.

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JURY TRIAL DEMANDED KREYENBORG demands a trial by jury on all issues so triable.

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PRAYER FOR RELIEF WHEREFORE, KREYENBORG respectfully prays: A. That judgment be entered against PSI, and in favor of KREYENBORG; B. That judgment be entered against GLEN WOODCOCK, and in favor of KREYENBORG; C. That judgment be entered against CARLA WOODCOCK, and in favor of KREYENBORG; D. That PSI, and its successors, assigns, officers including GLEN WOODCOCK and CARLA WOODCOCK, directors, agents, servants, employees, attorneys, confederates, and all persons and/or entities acting for, with, by, through, or in concert with them, or any of them, be permanently enjoined from infringing KREYENBORGs United States Patent No. US 7,419,592 B2: i. By the manufacturing, using, offering to sell, selling, and exporting its Continuous Backflush Screen Changer Model CSC/BF machines, or any colorable imitation thereof, within and/or from the United States, or ii. By supplying or causing to be supplied in or from the United

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States all or a substantial portion of the components of the invention of KREYENBORGs United States Patent No. US 7,419,592 B2, or any colorable imitations thereof, where such components are uncombined in whole or in part, in such manner as to actively induce the combination of such components outside of the United States in a manner that would infringe the aforesaid patent if such combination occurred within the United States; or iii. By inducing others to do any of (i) or (ii) above; E. That an award of damages for patent infringement, including pre- and post-judgment interest, in an amount to be determined at trial, be made against each of PSI, GLEN WOODCOCK, and CARLA WOODCOCK, both individually and jointly and severally, and in favor of KREYENBORG; F. That the Court declare PSIs infringement of KREYENBORGs United States Patent No. US 7,419,592 B2, and GLEN WOODCOCKs and CARLA WOODCOCKs inducement of the same, to be willful; G. That the amount of damages awarded against PSI, GLEN

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WOODCOCK, and CARLA WOODCOCK, and in favor of KREYENBORG shall be trebled due to the willfulness of their infringement; H. That the Court declare this case to be exceptional within the meaning of the Patent Act, 35 U.S.C. 285; I. That the Court award KREYENBORG its reasonable attorneys fees, expenses and costs; and J. That the Court award such other and further relief as it may deem appropriate and equitable under the circumstances.

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Respectfully submitted this 1st day of March, 2012.

/s/ C. Walker Ingraham C. Walker Ingraham Seyfarth Shaw LLP 1075 Peachtree Street, NE Suite 2500 Atlanta, Georgia 30309-3962 Telephone: (404) 885-1500 Facsimile: (404) 892-7056 E-mail: cingraham@seyfarth.com Ailis L. Burpee Seyfarth Shaw LLP 1075 Peachtree Street, NE Suite 2500 Atlanta, Georgia 30309-3962 Telephone: (404) 885-1500 Facsimile: (404) 892-7056 E-mail: aburpee@seyfarth.com Of Counsel: Peter C. Schechter Edwards Wildman Palmer LLP 750 Lexington Avenue New York, New York 10022 Telephone: (212) 912-2934 Facsimile: (866) 492-3146 Email:schechter@edwardswildman.com Attorneys for Plaintiff KREYENBORG GmbH

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