NOSSK, Inc. v. Fitness Anywhere LLC

District Court, N.D. California·Decided April 12, 2022·No. 5:21-cv-08914·Unknown

Opinion

NOSSK, INC., Case No. 21-cv-08914-BLF

Plaintiff, ORDER DENYING PLAINTIFF v. NOSSK, INC.’S MOTION FOR PRELIMINARY INJUNCTION FITNESS ANYWHERE LLC, et al., [Re: ECF No. 28] Defendants.

Before the Court is Plaintiff NOSSK, Inc.’s (“NOSSK”) motion for preliminary injunction against Defendant Fitness Anywhere LLC d.b.a. TRX (“TRX”) in this declaratory judgment action for noninfringement and invalidity of TRX’s patent—U.S. Patent No. 8,083,653 (the “’653 Patent”). This action stems from TRX’s patent infringement complaint to Amazon regarding two of the products NOSSK sold via Amazon, which resulted in NOSSK’s products being delisted. In its motion for preliminary injunction, NOSSK seeks a mandatory injunction requiring TRX to withdraw its complaint to Amazon regarding NOSSK’s products, which it argues do not infringe TRX’s patent. TRX opposes, arguing that NOSSK fails to show that it is entitled to a preliminary injunction. Based on the below reasoning, the Court DENIES NOSSK’s motion for preliminary injunction. A. Prior Litigation On November 29, 2021, the Court found that the above-captioned case is related to a case previously before this Court: Fitness Anywhere LLC v. WOSS Enterprises LLC, WOSS Enterprises LLC (“WOSS”) is an entity co-owned by NOSSK CEO and co-owner Wolfgang Ott and NOSSK director and co-owner Nadia Ott. TRX filed the WOSS Action on April 14, 2014, alleging based on WOSS’s manufacture and sales of exercise equipment products that it engaged in (1) patent infringement, including of U.S. Patent No. 7,806,814 (the “’814 Patent”); (2) trademark infringement; (3) unfair competition under federal and California state law; and (4) tortious interference with prospective economic relationships. See WOSS Action, ECF No. 1. The WOSS Action went to trial in March 2017, including based on TRX’s infringement claim of U.S. Patent No. 7,044,896 (the “’896 Patent”) as to the following WOSS products: (1) the Titan 1 1/2 in. Wide Strap; (2) the 3000 Equalizer; (3) the Military Gym Style; (4) the Military 1 in. Trainer; (5) the Military 1 1/2 in. Trainer; and (6) the WOSS XT. See WOSS Action, ECF No. 174 at 3. Following trial, the jury returned a verdict that WOSS infringed the ’896 Patent. See WOSS Action, ECF No. 235. Following the jury verdict, WOSS filed notice that it had filed for Chapter 7 bankruptcy. See WOSS Action, ECF No. 253. Further, on September 18, 2018, TRX filed a motion for reconsideration of the Court’s summary judgment order finding the ’814 Patent invalid. See WOSS Action, ECF No. 281. The Court granted the unopposed motion, thereby denying summary judgment of invalidity regarding the ’814 Patent. See WOSS Action, ECF No. 293. On November 20, 2018, the Court entered a permanent injunction against WOSS enjoining it from making, using, offering to sell, or selling within the United States any of the six products the jury found infringing of the ’896 Patent. See WOSS Action, ECF No. 296. The Court issued a final judgment in the amount of $13,002,462.70 against WOSS. See WOSS Action, ECF No. 305. B. Factual Background TRX is a Delaware corporation with its principal place of business in California. See Complaint, ECF No. 1 ¶ 2. TRX markets and sells exercise equipment products, including suspension trainers, on its website and via third parties like Dick’s Sporting Goods and Amazon.com. See id. ¶¶ 5–8. NOSSK is a California corporation with its principal place of business “high quality suspension bodyweight fitness strap trainers and related devices” via its own website and through third parties like Amazon.com. See id. ¶ 10. NOSSK alleges that Amazon.com sales typically account for 90% of its sales. See id.; Ott Decl., ECF No. 28-22 ¶ 28. NOSSK’s products allegedly include the Home Trainer (“Home Product”) and the Twin Pro Suspension Bodyweight Fitness Strap Trainer (“Twin Pro Product”). See Complaint, ECF No. 1 ¶ 10; Ott Decl., ECF No. 28- 22 ¶ 3. On November 25, 2019, TRX allegedly sent NOSSK a letter indicating that the Home Product infringed TRX’s patents—specifically, the ’814 Patent asserted in the WOSS Action and the ’653 Patent at issue here—and the Twin Pro Product infringed the ’814 Patent. See Mathiowetz Decl., ECF No. 28-1, Ex. L at 4–5; Ott Decl., ECF No. 28-22 ¶ 21; Complaint, ECF No. 1 ¶ 33. In response to TRX’s letter, NOSSK allegedly removed the products from all websites, including Amazon.com, and redesigned the products. See Complaint, ECF No. 1 ¶¶ 34–35; Ott Decl., ECF No. 28-22 ¶¶ 22–23, 26; Mathiowetz Decl., ECF No. 28-1, Exs. M–N. NOSSK indicated in a January 14, 2020 letter to TRX that it had redesigned the Home and the Twin Pro Product so it “copies the prior art acknowledged by TRX in the prosecution of the ’814 patent.” See Mathiowetz Decl., ECF No. 28-1, Ex. N at 1. NOSSK indicated that it did not consider the Home Product to infringe the ’653 Patent. See id. at 1–2. In response, TRX sent NOSSK a letter on January 27, 2020 indicating that it still considered the Home and Twin Pro Products to infringe its patents. See Mathiowetz Decl., ECF No. 28-1, Ex. O. As of July 2021, NOSSK was selling the allegedly redesigned versions of the Home and Twin Pro Products, including through Amazon.com. See Ott Decl., ECF No. 28-22 ¶¶ 8–9; Complaint, ECF No. 1 ¶¶ 12–15. The Home Product consists of a single strap with handles and foot loops on either end, and a short metal tube sown into the middle of the strap. See Complaint, ECF No. 1 ¶ 12; Mathiowetz Decl., ECF No. 28-1, Ex. A. By shutting the Home Product anchor behind a door, a user can secure the strap and use it as a suspension trainer. See Complaint, ECF No. 1 ¶ 12; Mathiowetz Decl., ECF No. 28-1, Ex. A; Ott Decl., ECF No. 28-22 ¶ 3. An image of the Home Product is below: 1 EH Built-In ANCHOR 3 closeup 4 5 6 7 8 9 10 11 = 12 || The Twin Pro Product consists of two separate straps, each with a handle on one end and a door

& 13 anchor sown into the other end. See Complaint, ECF No. 1 § 13; Mathiowetz Decl., ECF No. 28-1,

5 14 || Ex. B. An image of the Twin Pro Product is below: ‘ 16

= 17 6 Built-in Z 18 Door ANCHO 19 closeu 20 21 22 23 24 25 On or about July 16, 2021, TRX allegedly submitted a complaint to Amazon indicating that 26 NOSSK’s products infringed the °653 Patent. See Complaint, ECF No.1 915; Ott Decl., 27 ECF No. 28-2 46. In response, Amazon removed Twin Pro and Home Product listings from its 28

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