IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF NORTH CAROLINA Case No.

13-cv-420 CAMCO MANUFACTURING, INC., Plaintiff, v. SEISCO INTERNATIONAL LIMITED, Defendant. COMPLAINT FOR PATENT INFRINGEMENT JURY TRIAL DEMANDED

Plaintiff Camco Manufacturing, Inc. (Camco) for its Complaint for Patent Infringement against Seisco International Limited (Seisco) alleges the following: 1. This action arises out of Seiscos infringement of patents, utility and design

patents, on novel designs and inventions concerning drain pans for tankless water heaters. This is an action for injunctive and monetary relief. THE PARTIES 2. Camco is a corporation duly organized and existing under the laws of the

State of North Carolina with a principal place of business and its headquarters in Greensboro, North Carolina. Camco is a leading manufacturer of a number of products, including a variety of plumbing products related to water heaters. As part of its product suite related to water heaters, Camco manufactures and sells drain pans for use with tankless water heaters.

3.

Upon information and belief, Seisco is a corporation duly organized and

existing under the laws of the State of Texas with a principal place of business and its headquarters in Houston, Texas. Upon information and belief, Seisco supplies tankless water heaters and related products. JURISDICTION AND VENUE 4. Camco brings this action for patent infringement under the patent laws of

the United States, namely 35 U.S.C. 271, 281, 284, 285 and 289 among others. This Court has subject matter jurisdiction pursuant to 28 U.S.C. 1331 and 1338(a). 5. Seisco is subject to personal jurisdiction in the Middle District of North

Carolina (the District), consistent with the principles of due process and the North Carolina Long Arm Statute. Upon information and belief, Seisco has sold and offered for sale infringing products in this District, has committed, induced and contributed to acts of patent infringement in this District, has placed infringing products into the stream of commerce through established distribution channels with the expectation that such products will be purchased by residents of this District, has purposefully established substantial, systematic and continuous contacts within this District such that it expects or should reasonably expect to be haled into court in this District, and has caused injury to Plaintiff in this District and/or the claims arose in this District. Seisco has sought to serve residents of this District by designating on its website a sales representative specifically for handling sales in North Carolina. The actions of Seisco described in this paragraph form a substantial part of the events giving rise to this lawsuit.
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6. 1400(b).

Venue is proper in this judicial district pursuant to 28 U.S.C. 1391(c) and

GENERAL ALLEGATIONS

7.

Camco is the exclusive licensee of two U.S. Patents (Asserted Patents),

both entitled Drain Pan for Mounted Water Equipment: 8,104,634 B2 (the 634 Patent) and D653,745 S (the 745 Patent). True and correct copies of the 634 Patent

(Exhibit A) and 745 Patent (Exhibit B) are attached. 8. Camco received all substantial rights to the Asserted Patents in September

of 2012, through a License Agreement with the owner of the patents. In particular, the License Agreement provides Camco with the exclusive right to seek abatement of patent infringement for the entire term of the Asserted Patents and otherwise to sue for patent infringement and all recoveries therefrom. 9. Seisco sells both tankless water heaters and drain pans therefor and knows

and intends that such products will be put together and otherwise used in combination by those purchasing or utilizing such products. 10. Seisco commits, induces and contributes to acts of infringement by making,

using, offering to sell, and/or selling in the United States, and/or importing into the United States tankless water heaters and drain pans that practice one or more claims in each of the Asserted Patents. True and correct images of one such drain pan are attached as Exhibit C.

11.

Drain pans made and sold by Seisco, including the drain pan shown in

Exhibit C, are copies of, identical to or virtually identical to the products licensed and sold by Plaintiff under one or more of the Asserted Patents. 12. Drain pans made and sold by Seisco, including the drain pan shown in

Exhibit C, are copies of, identical to or virtually identical to the design protected by the 745 Patent. 13. An ordinary observer, familiar with the prior art designs, would be

deceived into believing that the Seisco drain pans are the same as the design protected by the 745 Patent. 14. The overall appearance of the Seisco drain pans are deceptively similar to

the design protected by the 745 Patent 15. The Seisco drain pans have adopted the novel aspects of the design

protected by the 745 Patent. 16. Upon information and belief, Seisco knows that the drain pans it sells,

including the drain pan shown in Exhibit C, have been specially made and adapted to infringe the Asserted Patents. The shape and configuration of Seiscos drain pans have been adapted to couple with and partially enclose tankless water heaters, including tankless water heaters sold by Seisco. As such, Seiscos drain pans constitute a material component of the infringement of the 634 Patent. The specially-adapted design of the drain pan also makes it impractical for any substantial noninfringing use.

17.

When selling tankless water heaters, Seisco requires purchasers to install a

drain pan for some applications to prevent the purchasers from having their warranty voided. Upon information and belief, Seisco customers comply with Seiscos

requirement to so use a drain pan when installing and using a tankless water heater. Upon information and belief, such customers utilize the shape and configuration of the drain pan offered for sale and sold by Seisco to infringe the 634 Patent. 18. Upon information and belief, Seisco knows about, encourages and intends

for its customers to use the drain pans in conjunction with tankless water heaters in a manner that infringes the 634 Patent. 19. Upon information and belief, Seisco has profited through infringement of

the Asserted Patents. As a result of Seiscos unlawful infringement of the Asserted Patents, Camco has suffered and will continue to suffer damages. Camco is entitled to recover these damages from Seisco. 20. Seisco has had actual and constructive knowledge of the Asserted Patents

since before this Complaint was filed. Upon information and belief, Seisco did not sell the infringing drain pans until after Camco began selling nearly identical pans. The drain pans sold by Camco have been marked with the numbers of the Asserted Patents. In addition, at least one Camco representative told a Seisco representative, in a face to face conversation, that Camcos drain pans were protected by patents. Seisco also received, prior to the filing of this Complaint, copies of the Asserted Patents.

21.

Upon information and belief, Seiscos infringement is willful and

deliberate, entitling Camco to enhanced damages and reasonable attorney fees and costs. This case is also exceptional within the meaning of 35 U.S.C. 285, further entitling Camco to an award of attorneys fees. 22. Upon information and belief, Seisco intends to continue its unlawful

infringing activity, and Camco continues to and will continue to suffer irreparable harmfor which there is no adequate remedy at lawfrom such unlawful infringing activity unless Seisco is enjoined by this Court.
COUNT I (INFRINGEMENT OF U.S. PATENT NO. D 653,745)

23. 24.

Camco incorporates paragraphs 1 through 22 herein by reference. Seisco has infringed and continues to infringe the 745 Patent by importing,

using, selling and offering to sell, in the United States, one or more drain pans identified in this Complaint, which embody the design covered by the 745 design patent. Seiscos infringing activities violate 35 U.S.C. 271(a). 25. Drain pans made and sold by Seisco, including the drain pan shown in

Exhibit C, are copies of, identical to or virtually identical to the products sold by Plaintiff under one or more of the Asserted Patents. 26. Drain pans made and sold by Seisco, including the drain pan shown in

Exhibit C, are copies of, identical to or virtually identical to the design protected by the 745 Patent.

27.

An ordinary observer, familiar with the prior art designs, would be

deceived into believing that the Seisco drain pans are the same as the design protected by the 745 Patent. 28. The overall appearance of the Seisco drain pans are deceptively similar to

the design protected by the 745 Patent 29. The Seisco drain pans have adopted the novel aspects of the design

protected by the 745 Patent.

COUNT II (CONTRIBUTORY INFRINGEMENT OF U.S. PATENT NO. 8,104,634 B2)

30. 31.

Camco incorporates paragraphs 1 through 29 herein by reference. Seisco has infringed and continues to infringe the 634 Patent by importing,

offering to sell, and selling, in the United States, tankless water heaters and drain pans, knowing that the drain pans have been specially adapted to infringe the 634 Patent. Seiscos infringing activities violate 35 U.S.C. 271(c). 32. Upon information and belief, Seisco knows that the drain pans it sells,

including the drain pan shown in Exhibit C, have been specially made and adapted to infringe the Asserted Patents. The shape and configuration of Seiscos drain pans have been adapted to couple with and partially enclose tankless water heaters, including tankless water heaters sold by Seisco. As such, Seiscos drain pans constitute a material component of the infringement of the 634 Patent. The specially-adapted design of the drain pan also makes it impractical for any substantial noninfringing use.

COUNT III (INDUCING INFRINGEMENT OF U.S. PATENT NO. 8,104,634 B2)

33. 34.

Camco incorporates paragraphs 1 through 32 herein by reference. Seisco has infringed and continues to infringe the 634 Patent by knowingly

and actively inducing others to use tankless water heaters with drain pans that infringe the 634 Patent. Such inducing actions include requiring customers to use drain pans to maintain warranty coverage and offering for sale and selling drain pans that have been designed to infringe the 634 Patent. Seiscos infringing inducement activities violate 35 U.S.C. 271(b). 35. Upon information and belief, Seisco customers comply with Seiscos

requirement to so use a drain pan when installing and using a tankless water heater. Upon information and belief, such customers utilize the shape and configuration of the drain pan offered for sale and sold by Seisco to infringe the 634 Patent. 36. Upon information and belief, Seisco knows about, encourages and intends

for its customers to use the drain pans in conjunction with tankless water heaters in a manner that infringes the 634 Patent. JURY DEMAND Pursuant to Rule 38 of the Federal Rules of Civil Procedure, Camco hereby requests a trial by jury of all issues so triable. PRAYER FOR RELIEF Camco requests that the Court find in its favor and against Seisco, and that the Court grant Camco the following relief:
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a.

Judgment that Seisco has infringed one or more of the claims in each of the

Asserted Patents; b. Judgment awarding Camco compensatory damages and lost profits as a

result of Seiscos infringing activities complained of herein, with interest and costs; c. Judgment declaring that Seiscos infringement of the Asserted Patents has

been willful and deliberate; d. Judgment awarding Camco enhanced damages, up to and including treble

damages, under 35 U.S.C. 284 as a result of Seiscos willful and deliberate infringement; e. Judgment awarding Camco the total profits that resulted from Seiscos

infringement, under 35 U.S.C. 289; f. g. Judgment declaring this case exceptional; Judgment awarding Camco its attorney fees under 35 U.S.C. 285 due to

the exceptional nature of this case, or as otherwise permitted by law; h. Judgment permanently enjoining Seisco from infringing the Asserted

Patents, or in the alternative, requiring Seisco to account for and pay to Camco a reasonable, on-going, post judgment royalty because of Seiscos infringing activities; and i. Judgment granting such other and further relief as the Court may deem just

and proper under the circumstances.

Respectfully submitted, this the 23rd day of May, 2013.

/s/ David W. Sar David W. Sar North Carolina State Bar No. 23533 Email: dsar@brookspierce.com /s/ Darrell A. Fruth Darrell A. Fruth North Carolina State Bar No. 33418 Email: dfruth@brookspierce.com BROOKS, PIERCE, McLENDON, HUMPHREY & LEONARD, L.L.P. Post Office Box 26000 Greensboro, North Carolina 27420 Telephone: (336) 373-8850 Fax: (336) 378-1001 Attorneys for Plaintiff Camco Manufacturing, Inc.

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