In Re Outsidewall Tire Litigation

748 F. Supp. 2d 557, 2010 WL 4263395
District Court, E.D. Virginia·Decided October 28, 2010·No. Case 1:09cv1217·Published·Cited by 10 cases

Opinion

*559 MEMORANDUM OPINION

T.S. ELLIS, III, District Judge.

At issue post-verdict in these closely-related consolidated 1 international business tort cases is plaintiffs’ petition for attorneys’ fees 2 following a jury verdict in favor of plaintiffs on claims for copyright infringement, unfair competition and deceptive trade practices, 3 conversion, and civil conspiracy.

I.

Plaintiffs in this consolidated case are (i) Jordan Fishman, a Florida citizen, and three companies he owns and controls: (ii) Tire Engineering & Distribution LLC (“TED”), a Florida company, (iii) Bearcat Tire ARL, LLC (“Bearcat”), also a Florida company, and (iv) Bcatco A.R.L., Inc. (“Bcatco”), which is incorporated under the laws of the Jersey Channel Islands. During times relevant to this litigation, plaintiffs were in the business of designing, manufacturing, and marketing rubber tires for use on underground mining vehicles.

There are two sets of defendants. The first set, collectively referred to as “A1 Dobowi defendants,” consists of (i) A1 Dobowi, Ltd., (ii) A1 Dobowi Tyre Co., LLC, (iii) TyreX International, Ltd., and (iv) TyreX International Rubber Co., Ltd., all of which are corporations based in the United Arab Emirates and owned by Surender Kandhari, 4 a citizen of Dubai. The second set of defendants, collectively known as “Linglong defendants,” includes (v) Shandong Linglong Rubber Co., Ltd. and (vi) Shandong Linglong Tire Co., Ltd., both of which are incorporated and based in China. All defendants are, inter alia, in the business of designing, manufacturing, and/or marketing rubber tires.

The central allegations in this matter were that defendants designed, manufactured, and sold specialized mining tires based on mining tires originally designed and sold by plaintiffs and protected by plaintiffs* intellectual property rights. Plaintiffs originally brought the following counts against defendants: (i) violation of the Virginia business conspiracy statute (Va.Code § 18.2-499); (ii) common law civil conspiracy; (iii) tortious interference with business relations; (iv) misappropriation of trade secrets; (v) copyright infringement; (vi) trademark infringement based on plaintiffs’ registered mark, “Mine Mauler”; (vii) unfair competition and deceptive trade practices based on misappropriation of eleven unregistered marks 5 ; (viii) conversion; and (ix) unjust enrichment. The initial pretrial conference was held on February 3, 2010. Discovery last *560 ed until June 28, 2010 and was far from free of dispute. Indeed, during discovery, the parties brought a total of six motions to compel — four by plaintiffs and two by defendants — with mixed results. 6 On June 29, 2010, defendants were granted summary judgment as to Counts I, III, IV, and IX based on the applicable statutes of limitations. Plaintiffs proceeded to jury trial on the remaining four counts of their complaint.

During the six-day trial, plaintiffs presented live and videotaped testimony from several witnesses, including (i) Sam Vance, plaintiffs’ former employee and an alleged employee of A1 Dobowi defendants; (ii) Surender, Harjeev, and Jasjeev Kandhari, who together operate the A1 Dobowi defendant entities; (iii) John Canning, a tire design consultant to A1 Dobowi defendants with personal knowledge of the alleged conspiracy; and (iv) Merry Wang, an executive with Linglong defendants. Plaintiffs also presented documentary evidence, including e-mail exchanges among the alleged co-conspirators admitted pursuant to Rule 801(d)(2)(E), Fed.R.Evid. Defendants presented live testimony from Jasjeev Kandhari, a director of the A1 Dobowi entities, and Merry Wang, a marketing director with Shandong Linglong Tire Co. The parties also presented competing expert witnesses on the issues of infringement and damages. 7

The evidence adduced at trial was sufficient to allow a reasonable juror to conclude by the requisite standard of proof as follows:

• In the first week of May 2005, Surender Kandhari and John Canning, both representing one or more A1 Dobowi defendants, met with Sam Vance in the lobby of the Jefferson Hotel in Richmond, Virginia. 8 During this hour-long meeting, Vance, Canning, and Surender Kandhari discussed the possibility of A1 Dobowi defendants— which had never before manufactured or sold mining tires — producing a line of mining tires based on plaintiffs’ line of mining tires, known as “Alpha tires.” 9

• Vance apparently retained blueprints belonging to plaintiffs without plaintiffs’ permission even though a warning on the drawings indicated that they were confidential, and that reproduction or other use must be expressly authorized in writing. 10

• By September 2005, Vance was working with Linglong defendants to adapt the Alpha tire blueprints into drawings for A1 Dobowi defendants’ new “Infinity Mining tires” series. Vance indicated in a contemporaneous e-mail to Merry Wang that he was working “on the 2 drawings.” 11 In this e-mail mes *561 sage dated September 1, 2005, Vance sought to confirm that Linglong defendants’ engineering department was “working on the reccommendations [sic] for the changes to the drawings” to ensure that “our Infinity Mining tires would not look like the AA (Awful Alpha) Ha!” 12

• In a September 8, 2005 e-mail from Canning to Vance, to which the three Kandharis were copied. Canning asked Vance a series of questions about Vance’s proposed drawings, noting: “I understand we can’t copy exactly what Jordan [Fishman] has done but as I said the tyre has to look the part.” 13

• Vance, Canning, and Linglong defendants proceeded to design new tire blueprints and molds based on the Alpha tire blueprints, despite having ample notice — including several communications from plaintiff Jordan Fishman — that the blueprints contained protected intellectual property. Indeed, in a September 22, 2006 email from Vance to Sean DeCosta, an AI Dobowi sales manager, Vance notes: “Please remember we copied existing products in the field.” 14

• Additionally, the Infinity Tire’s sidewall also contains the marking “L-6T”, a marking that also appears on Alpha tires. As Vance acknowledged in an email message to a Linglong employee, the L-6T mark suggests a tire with significant tread depth, but the mark itself has no technical meaning; to the contrary, “this was only a marketing thing.” 15

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In Re Outsidewall Tire Litigation, 748 F. Supp. 2d 557, 2010 WL 4263395 (E.D. Va. 2010).

748 F. Supp. 2d 557 (In Re Outsidewall Tire Litigation) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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