Peleg v. Schedule A - Complaint
Peleg v. Schedule A - Complaint
Plaintiff,
Case No.:
v.
Defendants.
COMPLAINT
undersigned counsel, hereby alleges as follows against the individuals, corporations, limited
liability companies, partnerships, and unincorporated associations and foreign entities identified
INTRODUCTION
1. This action has been filed by Plaintiff to combat online counterfeiters who trade
upon Plaintiff’s reputation and goodwill by selling and/or offering for sale products in connection
with Plaintiff’s registered PELEG Trademark, which is covered by U.S. Trademark Registration
No. 4,558,066 (the “PELEG Trademark”); and copyrights, which are covered by U.S. Copyright
“PELEG Copyrights”). The registrations are valid, subsisting, and in full force and effect. A true
and correct copy of the federal trademark registration certificate for the PELEG Trademark is
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attached as Exhibit 1. True and correct copies of the federal copyright registration certificates for
2. This is also an action for patent infringement to combat e-commerce store operators
who trade upon Plaintiff’s reputation and goodwill by making, using, offering for sale, selling
and/or importing into the United States for subsequent sale or use, unauthorized and unlicensed
products that infringe Plaintiff’s design patent, Patent No. US D929,796 S (the “PELEG Patent”).
The PELEG Patent is valid, subsisting, and in full force and effect. Plaintiff is the owner and lawful
assignee of all right, title, and interest in and to the PELEG Patent, which was duly and legally
issued by the United States Patent and Trademark Office. A true and correct copy of the PELEG
Trademark and/or images that are substantially similar to the PELEG Copyrights; and/or that
embody the design(s) depicted in the PELEG Patent (the “Counterfeit and Infringing Products”).
4. The Defendants have created numerous fully interactive commercial internet stores
operating under the online marketplace accounts (the “Defendant Internet Stores”) and using the
Plaintiff’s genuine PELEG Products (the “PELEG Products”), while selling inferior imitations of
such products.
6. The Defendants’ online marketplace accounts also share unique identifiers, such as
design elements and similarities of the Counterfeit and Infringing Products offered for sale,
establishing a logical relationship between them and suggesting that Defendants’ illegal operations
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7. Defendants attempt to avoid liability by going to great lengths to conceal both their
identities and the full scope and interworking of their illegal counterfeiting operation. Plaintiffs are
forced to file this action to combat Defendants’ infringement and counterfeiting of the PELEG
Trademark, PELEG Copyrights, and PELEG Patent, as well as to protect unknowing consumers
damaged from the loss of its exclusivity of its intellectual property rights, as well as by and through
consumer confusion, dilution, and tarnishment of its valuable trademark, and, therefore, seeks
9. This Court has personal jurisdiction over each Defendant, in that each Defendant
conducts significant business in Florida and in this Judicial District, and the acts and events giving
rise to this lawsuit of which each Defendant stands accused were undertaken in Florida and in this
Judicial District.
10. In addition, each Defendant has offered to sell and ship and/or sold and shipped
11. This Court has original subject matter jurisdiction over the trademark infringement
and false designation of origin claims in this action pursuant to the provisions of the Lanham Act,
15 U.S.C. § 1051 et seq., 28 U.S.C. § 1338(a)–(b), and 28 U.S.C. § 1331. This Court has original
subject matter jurisdiction over the copyright claim pursuant to the Copyright Laws of the United
States, 17 U.S.C. § 101 et seq., 28 U.S.C. § 1338(a)–(b), and 28 U.S.C. § 1331. This Court has
original subject matter jurisdiction over the patent infringement claims arising under the patent
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laws of the United States pursuant to 35 U.S.C. § 1 et seq., 28 U.S.C. § 1338(a), and 28 U.S.C.
§ 1331.
12. Personal jurisdiction exists over Defendants in this Judicial District pursuant to
Civ. P. 4(k) because, upon information and belief, Defendants regularly conduct, transact and/or
solicit business in Florida and in this Judicial District, and/or derive substantial revenue from
business transactions in Florida and in this Judicial District and/or otherwise avail themselves of
the privileges and protections of the laws of the State of Florida such that this Court’s assertion of
jurisdiction over Defendants does not offend traditional notions of fair play and substantial justice,
and/or Defendants’ illegal counterfeiting and infringing actions caused injury to Plaintiff in Florida
and in this Judicial District such that Defendants should reasonably expect such actions to have
directing and/or targeting their business activities at consumers in the U.S., including those in
Florida, in this Judicial District, through accounts with online marketplace platforms such as
Alibaba, AliExpress, Amazon, DHgate, eBay, Etsy, Fruugo, LightInTheBox, Walmart, and Wish
(collectively, the “Marketplace Platforms”) as well as any and all as yet undiscovered accounts with
additional online marketplace platforms held by or associated with Defendants, their respective
officers, employees, agents, servants and all persons in active concert or participation with any of
them (“User Account(s)”), through which consumers in the U.S., including Florida (and more
particularly, in this Judicial District), can view the one or more of Defendants’ online marketplace
accounts that each Defendant operates (“Defendant Internet Stores”), uses to communicate with
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Defendants regarding their listings for Counterfeit and Infringing Products (as defined infra) and to
place orders for, receive invoices for and purchase Counterfeit and Infringing Products for delivery
in the United States, including Florida (and more particularly, in this Judicial District), as a means
for establishing regular business with the United States, including Florida (and more particularly,
consumers located in the United States, including Florida (and more particularly, in this Judicial
District), for the sale and shipment of Counterfeit and Infringing Products.
13. Venue is proper in this Court pursuant to 28 U.S.C. §§ 1391(b)(2) and 1400(a)
because Defendants have committed acts of copyright and/or trademark infringement in this
Judicial District, do substantial business in the Judicial District, have registered agents in this
THE PLAINTIFF
14. Plaintiff Peleg Design is a corporation incorporated under the laws of Israel and is
the registered owner of the PELEG Trademark referred to above and with its federal registration
attached as Exhibit 1, the PELEG Copyrights referred to above and with their federal registrations
attached as Exhibit 2, and the PELEG Patent referred to above, a copy of which is attached as
Exhibit 3.
15. Plaintiff is a leading supplier and manufacturer of unique kitchen, home and office
gadgets and accessories, and has earned an international reputation for quality, reliability and
value. Plaintiff is credited for many breakthroughs that have occurred in the industry, including
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16. Plaintiff is the official source of PELEG Products in the United States, which
17. Since at least 2005, the PELEG Trademark is and has been the subject of substantial
and continuous marketing and promotion by Plaintiff. Plaintiff has and continues to widely market
and promote the PELEG Trademark in the industry and to consumers. Plaintiff’s promotional
efforts include—by way of example but not limitation—substantial print media, the PELEG
Products’ website and social media sites, and point of sale materials.
18. The PELEG Trademark is distinctive and identifies the merchandise as goods from
Plaintiff. The registration for the PELEG Trademark constitutes prima facie evidence of its validity
and of Plaintiff’s exclusive right to use that trademark pursuant to 15 U.S.C. § 1057(b).
19. The PELEG Trademark qualifies as a famous mark, as that term is used in 15 U.S.C.
§1125 (c)(1), and has been continuously used and never abandoned.
20. Plaintiff has expended substantial time, money, and other resources in developing,
advertising and otherwise promoting the PELEG Trademark. As a result, products bearing the
PELEG Trademark are widely recognized and exclusively associated by consumers, the public,
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21. Plaintiff also owns all exclusive rights, including without limitation the rights to
reproduce the copyrighted works in copies, to prepare derivative works based upon the copyrighted
works, and to distribute copies of the copyrighted works to the public by sale or other transfer of
ownership, or by rental, lease, or lending, in various copyrights for the PELEG Products, including
without limitation copyrights covered by the PELEG Copyrights. Exemplary images from one of
22. Plaintiff is the owner and lawful assignee of all right, title, and interest in and to the
23. The PELEG Products in many instances embody at least a portion of the design
THE DEFENDANTS
24. Defendants are individuals and business entities who, upon information and belief,
Marketplace Platforms.
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26. The success of the PELEG Products has resulted in significant counterfeiting.
27. Plaintiff has identified numerous domain names linked to fully interactive websites
and marketplace listings on platforms such as Alibaba, AliExpress, Amazon, DHgate, eBay, Etsy,
Fruugo, LightInTheBox, Walmart, and Wish, including the Defendant Internet Stores, which were
offering for sale, selling, and importing counterfeit PELEG Products to consumers in this Judicial
28. Defendants have persisted in creating such online marketplaces and internet stores,
like the Defendant Internet Stores. In fact, such online marketplaces and stores are estimated to
receive tens of millions of visits per year and to generate over $135 billion in annual online sales.
According to an intellectual property rights seizures statistics report issued by the United States
Department of Homeland Security, the manufacturer’s suggested retail price of goods seized by
the U.S. government in fiscal year 2021 was over $3.3 billion. Internet websites like the Defendant
Internet Stores are also estimated to contribute to tens of thousands of lost jobs for legitimate
businesses and broader economic damages such as lost tax revenue every year.
29. On personal knowledge and belief, Defendants facilitate sales by designing the
Defendant Internet Stores so that they appear to unknowing consumers to be authorized online
30. Many of the Defendant Internet Stores look sophisticated and accept payment in
U.S. dollars via credit cards, Western Union, and PayPal. Defendant Internet Stores often include
images and design elements that make it very difficult for consumers to distinguish such
31. Defendants further perpetuate the illusion of legitimacy by offering “live 24/7”
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customer service and using indicia of authenticity and security that consumers have come to
associate with authorized retailers, including the McAfee® Security, VeriSign®, Visa®,
32. Plaintiff has not licensed or authorized Defendants to use the PELEG Trademark,
PELEG Copyrights, or PELEG Patent, and none of the Defendants are authorized retailers of
using the PELEG Trademark, PELEG Copyrights and/or PELEG Patent without authorization
within the product descriptions of their Defendant Internet Stores to attract customers, as well as
34. On personal knowledge and belief, Defendants also deceive unknowing consumers
by using the PELEG Trademark without authorization within the content, text, and/or meta tags
of their websites to attract various search engines crawling the Internet looking for websites
relevant to consumer searches for PELEG Products. Additionally, upon information and belief,
Defendants use other unauthorized search engine optimization (“SEO”) tactics and social media
spamming so that the Defendant Internet Stores listings show up at or near the top of relevant
search results and misdirect consumers searching for genuine PELEG Products. Further,
Defendants utilize similar illegitimate SEO tactics to propel new domain names to the top of search
results after others are shut down. As such, Plaintiff also seeks to disable Defendant Internet Stores
owned by Defendants that are the means by which the Defendants could continue to sell counterfeit
35. On information and belief, Defendants go to great lengths to conceal their identities
and often use multiple fictitious names and addresses to register and operate their massive network
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36. For example, it is common practice for counterfeiters to register their domain names
and/or User Accounts with incomplete information, randomly typed letters, or omitted cities or
states.
37. And many Defendant Internet Stores use privacy services that conceal the owners’
identity and contact information. On personal knowledge and belief, Defendants regularly create
new websites and online marketplace accounts on various platforms using the identities listed in
38. On personal knowledge and belief, even though Defendants operate under multiple
fictitious names, there are numerous similarities among the Defendant Internet Stores. For
example, some of the Defendant marketplace websites have virtually identical layouts, even
though different aliases were used to register the respective domain names.
39. In addition, the Counterfeit and Infringing Products for sale in the Defendant
Internet Stores bear similarities and indicia of being related to one another, suggesting that the
Counterfeit and Infringing Products were manufactured by and come from a common source and
40. The Defendant Internet Stores also include other notable common features,
including accepted payment methods, check-out methods, meta data, illegitimate SEO tactics,
similarly priced items and volume sales discounts, similar hosting services, similar name servers,
41. In addition, Defendants in this case and defendants in other similar cases against
online counterfeiters use a variety of other common tactics to evade enforcement efforts. For
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example, counterfeiters like Defendants will often register new online marketplace accounts under
42. Counterfeiters also often move website hosting to rogue servers located outside the
United States once notice of a lawsuit is received. Rogue servers are notorious for ignoring take
43. Counterfeiters also typically ship products in small quantities via international mail
to minimize detection by U.S. Customs and Border Protection. A 2012 U.S. Customs and Border
Protection report on seizure statistics indicated that the Internet has fueled “explosive growth” in
the number of small packages of counterfeit goods shipped through the mail and express carriers.
44. Further, counterfeiters such as Defendants typically operate multiple credit card
merchant accounts and PayPal accounts behind layers of payment gateways so that they can
45. On personal knowledge and belief, Defendants maintain off-shore bank accounts
and regularly move funds from their PayPal accounts to off-shore bank accounts outside the
jurisdiction of this Court. Indeed, analysis of PayPal transaction logs from previous similar cases
indicates that offshore counterfeiters regularly move funds from U.S.-based PayPal accounts to
46. Defendants, without any authorization or license from Plaintiff, have knowingly
and willfully used and continue to use the PELEG Trademark, PELEG Copyrights and PELEG
1
https://www.ice.gov/news/releases/buyers-beware-ice-hsi-and-cbp-boston-warn-consumers-
about-counterfeit-goods-during (noting counterfeiters are adept at “setting up online stores to lure
the public into thinking they are purchasing legitimate good on legitimate websites”).
2
While discussed in the context of false pharma supply chains, rogue internet servers and sellers
are a well-known tactic that have even been covered in congressional committee hearings.
https://www.govinfo.gov/content/pkg/CHRG-113hhrg88828/html/CHRG-113hhrg88828.htm.
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Patent in connection with the advertisement, distribution, offering for sale, sale and import of
Counterfeit and Infringing Products into the United States and Florida over the Internet.
47. Each Defendant Internet Store offers shipping to the United States, including
Florida (in this Judicial District) and, on information and belief, each Defendant has offered to sell
counterfeit PELEG Products into the United States, including Florida (in this Judicial District),
which is likely to cause and has caused confusion, mistake, and deception by and among
48. Plaintiff repeats and incorporates by reference herein its allegations contained in
connection with the sale, offering for sale, distribution, and/or advertising of infringing goods. The
PELEG Trademark is a highly distinctive mark. Consumers have come to expect the highest
50. Defendants have sold, offered to sell, marketed, distributed, and advertised, and are
still selling, offering to sell, marketing, distributing, and advertising products in connection with
51. Plaintiff is the registered owner of the PELEG Trademark and official source of
PELEG Products. The United States Registration for the PELEG Trademark (Exhibit 1) is in full
force and effect. Upon information and belief, Defendants have knowledge of Plaintiff’s rights in
the PELEG Trademark and are willfully infringing and intentionally using counterfeits of the
PELEG Trademark. Defendants’ willful, intentional, and unauthorized use of the PELEG
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Trademark is likely to cause and is causing confusion, mistake, and deception as to the origin and
53. The injuries and damages sustained by Plaintiff have been directly and proximately
caused by Defendants’ wrongful reproduction, use, advertisement, promotion, offering to sell, and
54. Plaintiff has no adequate remedy at law, and, if Defendants’ actions are not
enjoined, Plaintiff will continue to suffer irreparable harm to its reputation and the goodwill of its
55. Plaintiff repeats and incorporates by reference herein its allegations contained in
56. Defendants’ promotion, marketing, offering for sale, and sale of counterfeit PELEG
Products has created and is creating a likelihood of confusion, mistake, and deception among the
general public as to the affiliation, connection, or association with Plaintiff or the origin,
57. By using the PELEG Trademark in connection with the sale of counterfeit PELEG
Products, Defendants create a false designation of origin and a misleading representation of fact
misrepresentation of fact as to the origin and/or sponsorship of the counterfeit PELEG Products to
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59. Plaintiff has no adequate remedy at law, and, if Defendants’ actions are not
enjoined, Plaintiff will continue to suffer irreparable harm to its reputation and the goodwill of its
brand.
60. Plaintiff repeats and incorporate by reference herein its allegations contained in
61. Plaintiff owns all exclusive rights, including without limitation the rights to
reproduce the copyrighted work in copies, to prepare derivative works based upon the copyrighted
work, and to distribute copies of the copyrighted work to the public by sale or other transfer of
ownership, or by rental, lease, or lending, in various copyrights for the PELEG Products, including
62. Defendants have sold, offered to sell, marketed, distributed, and advertised, and are
still selling, offering to sell, marketing, distributing, and advertising products in connection with
63. Defendants had access to the PELEG Products displaying and/or embodying
Plaintiff’s registered copyrights before Defendants created their Defendant Internet Stores.
64. Upon information and belief, Defendants have directly copied Plaintiff’s PELEG
PELEG Copyrights for the PELEG Products in the Defendant Internet Stores are strikingly similar,
or at the very least substantially similar, to Plaintiff’s PELEG Copyrights for the PELEG Products
and/or public display of Plaintiff’s PELEG Copyrights for the PELEG Products. As just one
example, Defendants deceive unknowing consumers by using the PELEG Copyrights without
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authorization within the product descriptions of their Defendant Online Store to attract customers
as follows:
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65. Defendants’ exploitation of Plaintiff’s PELEG Copyrights for the PELEG Products
in the Defendant Internet Stores constitutes infringement of Plaintiff’s PELEG Copyrights for the
PELEG Products.
66. On information and belief, Defendants’ infringing acts were willful, deliberate, and
committed with prior notice and knowledge of Plaintiff’s PELEG Copyrights. Each Defendant
willfully, wantonly, and in conscious disregard and intentional indifference to the rights of Plaintiff
made and distributed in the United States, including this District, caused to be made and distributed
in the United States, including this District, and aided, abetted, contributed to, and participated in
67. Each Defendant either knew, or should have reasonably known, that Plaintiff’s
PELEG Products were protected by copyright and their representations infringed on Plaintiff’s
PELEG Copyrights. Each Defendant continues to infringe upon Plaintiff’s rights in and to the
copyrighted work.
68. As a direct and proximate result of their wrongful conduct, Defendants have
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realized and continue to realize profits and other benefits rightfully belonging to Plaintiff.
69. In addition to Plaintiff’s actual damages, Plaintiff is entitled to receive the profits
made by the Defendants from their wrongful acts, pursuant to 17 U.S.C. § 504(b). Each Defendant
should be required to account for all gains, profits, and advantages derived by each Defendant
70. In the alternative, Plaintiff is entitled to, and may elect to choose statutory damages
71. Plaintiff is entitled to, and may elect to choose, injunctive relief under 17 U.S.C. §
502, enjoining any use or exploitation by Defendants of their infringing work and for an order
under 17 U.S.C. § 503 that any of Defendants’ infringing products be impounded and destroyed.
72. Plaintiff seeks and is also entitled to recover reasonable attorneys’ fees and costs of
73. Plaintiff has no adequate remedy at law, and, if Defendants’ actions are not
enjoined, Plaintiff will continue to suffer irreparable harm to its reputation and the goodwill of its
74. Plaintiff repeats and incorporates by reference herein its allegations contained in
75. Defendants are and have been making, using, selling, offering for sale, and/or
importing into the United States for subsequent sale or use, without authority, Counterfeit and
Infringing Products that infringe directly and/or indirectly the PELEG Patent.
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76. For example, below is a comparison of figures from Plaintiff’s PELEG Patent and
images of one of Defendants’ Counterfeit and Infringing Products sold on a Defendant Internet
Store.
77. Defendants’ activities constitute willful patent infringement under 35 U.S.C. § 271.
78. Defendants have infringed the PELEG Patent through the aforesaid acts and will
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continue to do so unless enjoined by this Court. Defendants’ wrongful conduct has caused Plaintiff
to suffer irreparable harm resulting from the loss of its lawful patent rights to exclude others from
making, using, selling, offering for sale, and importing the patented invention.
80. Plaintiff is entitled to recover damages adequate to compensate for the infringement
WHEREFORE, Plaintiff prays for judgment against Defendants and each of them as
follows:
confederates, and all persons acting for, with, by, through, under, or in active concert with them
counterfeit copies, or colorable imitations thereof in any manner in connection with the
distribution, marketing, advertising, offering for sale, or sale of any product that is not a genuine
PELEG DESIGN product or is not authorized by Plaintiff to be sold in connection with the PELEG
b. passing off, inducing, or enabling others to sell or pass off any product as a
genuine PELEG DESIGN product or any other product produced by Plaintiff that is not Plaintiff’s
or not produced under the authorization, control, or supervision of Plaintiff and approved by
Defendants’ counterfeit PELEG Products are those sold under the authorization, control, or
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supervision of Plaintiff, or are sponsored by, approved by, or otherwise connected with Plaintiff.
storing, distributing, returning, or otherwise disposing of, in any manner, products or inventory
not manufactured by or for Plaintiff, nor authorized by Plaintiff to be sold or offered for sale, and
which bear any Plaintiff trademark or copy any Plaintiff copyright, including the PELEG
thereof;
owning the Online Marketplace Accounts, the Defendant Internet Stores, or any other domain
name or Online Marketplace Account that is being used to sell or is the means by which Defendants
g. operating and/or hosting websites at the Defendant Internet Stores that are
involved with the distribution, marketing, advertising, offering for sale, or sale of any product
bearing the PELEG Trademarks or PELEG Copyrights or any reproduction, counterfeit copy or
colorable imitation thereof that is not a genuine PELEG DESIGN Product or not authorized by
confederates, and all persons acting for, with, by, through, under, or in active concert with them
a. making, using, offering for sale, selling, and/or importing into the United
States for subsequent sale or use any products not authorized by Plaintiff and that include any
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reproduction, embodiment, copy or colorable imitation of the designs claimed in the PELEG
Patent;
b. passing off, inducing, or enabling others to sell or pass off any product as a
genuine PELEG DESIGN Product or any other product produced by Plaintiff that is not Plaintiff’s
or not produced under the authorization, control, or supervision of Plaintiff and approved by
storing, distributing, returning, or otherwise disposing of, in any manner, products or inventory
not manufactured by or for Plaintiff, nor authorized by Plaintiff to be sold or offered for sale, and
Internet Stores that are involved with the distribution, marketing, advertising, offering for sale, or
3. Entry of an Order that Alibaba, AliExpress, Amazon, DHgate, eBay, Etsy, Fruugo,
LightInTheBox, Walmart, and Wish, and any other online marketplace account provider:
a. disable and cease providing services for any accounts through which
Defendants engage in the sale of Counterfeit and Infringing Products, including any accounts
with Defendants in connection with the sale of Counterfeit and Infringing Products; and
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c. take all steps necessary to prevent links to the Defendant Internet Stores
identified on Schedule A from displaying in search results, including, but not limited to,
removing links to the Defendant Internet Stores from any search index.
4. That Defendants account for and pay to Plaintiff all profits realized by Defendants
by reason of Defendants’ unlawful acts herein alleged, and that the amount of damages for
infringement of the PELEG Trademark be increased by a sum not exceeding three times the
5. That Plaintiff be awarded such damages as it shall prove at trial against Defendants
that are adequate to compensate Plaintiff for Defendants’ infringement of the PELEG Patent, but
in no event less than a reasonable royalty for the use made of the invention by the Defendants,
infringement of Plaintiff’s PELEG Patent be increased by three times the amount thereof, as
§ 1117(c) of not less than $1,000 and not more than $2,000,000 for each and every use of the
PELEG Trademark; statutory damages of not less than $750 and not more than $30,000 for each
and every infringement of Plaintiff’s copyrights pursuant to 17 U.S.C. § 504(c), which should be
enhanced to a sum of not more than $150,000 by 17 U.S.C. § 504(c)(2) because of Defendants’
willful copyright infringement; and that Plaintiff be awarded all profits realized by Defendants
8. That Plaintiff be awarded its reasonable attorneys’ fees and costs; and
9. Award any and all other relief that this Court deems just and proper.
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