Thomas R. Vuksinick (Utah State Bar No. A3341) tvuksinick@wnlaw.

com WORKMAN | NYDEGGER 60 East South Temple, Suite 1000 Salt Lake City, Utah 84111 Telephone: (801) 533-9800 Facsimile: (801) 328-1707 Attorneys for BRIDGEWATER, LLC. IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF UTAH, CENTRAL DIVISION BRIDGEWATER, LLC, a Utah limited liability company, Plaintiff, v. OCTI-DRY INDUSTRIES, INC., a Florida corporation, and ERNEST L. BASS, an individual, Defendants. DECLARATORY JUDGMENT COMPLAINT JURY DEMANDED Magistrate Judge Paul M. Warner Civil Action No. 2:13-cv-00451-PMW

Plaintiff, Bridgewater, LLC (Bridgewater), complains and alleges against defendants Octi-Dry Industries, Inc. (Octi-Dry) and Ernest L. Bass (Mr. Bass), (collectively, Defendants) as follows: THE PARTIES 1. Bridgewater is a Utah limited liability company with its principal place of

business at 4282 S 590 W, Salt Lake City, UT 84123.

2.

Bridgewater alleges on information and belief that Octi-Dry is a Florida

corporation with its principal place of business at 5188 North U.S. Highway 441, Lake City, FL 32055. 3. Bridgewater alleges on information and belief that Ernest L. Bass, also known as

Lenny Bass, is an individual residing in Florida who is the owner and chief executive officer of Octi-Dry. JURISDICTION AND VENUE 4. This is a Declaratory Judgment action pursuant to 28 U.S.C. 2201 and 2202.

Defendants have raised a reasonable apprehension of the filing of a lawsuit against Plaintiff, resulting in the establishment of a case or controversy between the parties relating to a patent as set forth below. Accordingly, this action arises under the patent laws of the United States, including 35 U.S.C. 271, 281, and 283-85. 5. This Court has jurisdiction over the action pursuant to at least 28 U.S.C. 1331,

1338(a), 2201, and 2202. 6. On information and belief, Defendants have transacted business with Plaintiff in

Utah and otherwise purposely availed themselves of the privileges and benefits of the laws of the state of Utah, including, but not limited to, entering into an agreement with Plaintiff with respect to the distribution of products incorporating the technology of the patent that is the subject matter of this action, selling products incorporating the technology that is the subject matter of this action to Plaintiff in Utah, offering to sell the patent that is the subject matter of this action to Plaintiff in Utah, and sending written communications to Plaintiffs in Utah alleging patent

infringement and threatening related legal actions. Defendants are, therefore, subject to the jurisdiction of this Court pursuant to Utah Code Ann. 78-27-24. 7. Venue is proper in this district pursuant to at least 28 U.S.C. 1391(b). BACKGROUND 8. 9. Octi-Dry and Bridgewater are both in the business of drying walls after floods. On information and belief, Octi-Dry and/or Mr. Bass purport to be the owners of

United States Patent No. 5,408,759 (the 759 Patent). This patent, entitled Wall drying device, issued April 25, 1995. A copy of the patent is attached hereto as Exhibit A. 10. Prior to May 31, 2013, Mr. Bass of Octi-Dry called Gordon Hanks at Bridgewater

in Utah, and alleged that Bridgewater was infringing the 759 Patent. 11. On May 31, 2013, Mr. Bass of Octi-Dry sent a letter to Bridgewater in Utah,

asserting that Bridgewater was engaged in acts of patent infringement. The letter, written on Octi-Dry letterhead and signed Ernest L. Bass, Octi-Dry Industries, Inc., was emailed to Gordon Hanks at Bridgewater. A copy of the letter (the Infringement Letter) is attached hereto as Exhibit B. 12. The Infringement Letter alleges that Bridgewater has committed acts of blatant

infringement, along with other allegations of unlawful conduct by Bridgewater based on its sale of allegedly infringing products, and alleges damages approaching a million dollars as a result. The Infringement Letter offers to sell the 759 Patent to Bridgewater. 13. As a result of the Infringement Letter and Mr. Bass phone call, Bridgewater has a

reasonable apprehension that Octi-Dry and/or Mr. Bass will sue it for infringement of the 759 Patent and seek damages of approximately one million dollars. 3

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As a result of Octi-Dry and/or Mr. Basss actions, there is also a substantial,

continuing, and justiciable controversy between Bridgewater and Octi-Dry or Mr. Bass as to Octi-Drys or Mr. Bass right to threaten or maintain suit for infringement of the 759 Patent seeking approximately one million dollars in damages. FIRST CAUSE OF ACTION (Declaratory Judgment) 15. By this reference Bridgewater realleges and incorporates each of the foregoing

paragraphs as though fully set forth herein. 16. As a result of Octi-Drys and/or Mr. Basss actions, there is an actual and

substantial case or controversy between Bridgewater and Octi-Dry and Mr. Bass of sufficient immediacy and reality to warrant the issuance of a declaratory judgment. 17. Bridgewater disputes Octi-Drys and/or Mr. Basss allegation that it is liable for

damages for patent infringement, or otherwise, in the amount of approximately one million dollars. 18. By reason of the foregoing, and pursuant to 28 U.S.C. 2201 and 2202,

Bridgewater requests a declaration resolving the dispute between the parties PRAYER FOR RELIEF WHEREFORE, Bridgewater prays for relief against Octi-Dry and Mr. Bass as follows: A. An order from this Court resolving the dispute between the parties with respect to

Octi-Drys and Mr. Basss allegation that Bridgewater is liable for patent infringement in an amount of approximately one million dollars.

B.

That this be declared an exceptional case and that Bridgewater be awarded its

attorneys fees against Octi-Dry and Mr. Bass pursuant to 35 U.S.C. 285; C. D. For an award of Bridgewaters costs pursuant to at least 28 U.S.C. 1920; and For such other and further relief as the Court in its discretion deems appropriate. JURY DEMAND Bridgewater demands a trial by jury on all issues triable to a jury as a matter of right. DATED: June 14, 2013. WORKMAN | NYDEGGER By: /s/ Thomas R. Vuksinick Thomas R. Vuksinick

Attorneys for Plaintiff BRIDGEWATER, LLC

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