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(NORTH AMERICA) INC. and DISPENSING TECHNOLOGIES, B.V

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(NORTH AMERICA) INC. and DISPENSING TECHNOLOGIES, B.V UNITED STATES DISTRICT COURT DISTRICT OF SOUTH CAROLINA CHARLESTON DIVISION AFA POLYTEK (NORTH AMERICA) INC. and DISPENSING TECHNOLOGIES, B.V., Plaintiffs, CASE NO.: 2:13-cv-01633-RMG v. JURY TRIAL DEMANDED THE CLOROX COMPANY, GUALA DISPENSING S.p.A. and GUALA DISPENSING USA NORTH AMERICA, Defendants. COMPLAINT Plaintiffs, Afa Polytek (North America) Inc. and Dispensing Technologies, B.V. (collectively, “Plaintiffs”), for their Complaint of patent infringement against Defendants The Clorox Company, Guala Dispensing S.p.A., and Guala Dispensing USA North America (collectively, “Defendants”) do hereby assert and allege: PARTIES 1. Plaintiff Afa Polytek (North America) Inc. (“Afa North America”) is a corporation organized and existing under the laws of the State of Delaware, having a principal place of business at 84 Hubble Drive, O’Fallon, Missouri 63368. Plaintiff Afa North America is a wholly owned subsidiary of Afa Dispensing Group, B.V. 2. Plaintiff Dispensing Technologies, B.V. is a company organized and existing under the laws of the Netherlands, having a principal place of business at Grasbeemd 1, 5705 DE Helmond, Netherlands. Plaintiff Dispensing Technologies, B.V. is a wholly owned subsidiary of Afa Dispensing Group, B.V. 3. Upon information and belief, Defendant The Clorox Company (“Clorox”) is a corporation organized and existing under the laws of the State of Delaware, having a principal place of business at 1221 Broadway, Oakland, California 94612. 4. Upon information and belief, Defendant Guala Dispensing S.p.A. (“Guala S.p.A.”) is a corporation organized under the laws of Italy, having a principal place of business at Zona Industriale D/5, 15122 Spinetta Marengo (AL), Italy. 5. Upon information and belief, Defendant Guala Dispensing USA North America (“Guala US”) has a principal place of business at 3838 Colonel Vanderhorst Circle, Mount Pleasant, South Carolina 29466, and is a wholly owned subsidiary of Guala S.p.A. (Guala US and Guala S.p.A. are referred to herein collectively as “Guala.”) JURISDICTION AND VENUE 6. This is an action for patent infringement arising under the laws of the United States, Title 35 of the United States Code, including 35 U.S.C. §§ 271 and 281-285. This Court has original jurisdiction over the subject matter of this claim pursuant to 28 U.S.C. §§ 1331 and 1338(a). 7. Defendant Clorox has submitted to the personal jurisdiction of this Court by committing acts that establish its legal presence within the State of South Carolina and this judicial district, including acting directly to sell and offer for sale to South Carolina residents in this judicial district infringing products that practice, embody, and/or facilitate unauthorized use of the claimed inventions of the patent-in-suit, thereby constituting patent infringement under 35 U.S.C. § 271(a), and harming Plaintiffs. Upon information and belief, Clorox has also generally acted to place these infringing products into the stream of commerce with the intent, purpose, and reasonably foreseeable result of supplying the South Carolina market. By virtue of its above-described actions, Clorox has transacted business, contracted to supply services or things, committed tortious acts, regularly done or solicited business, engaged in a persistent course of conduct, and/or derived substantial revenues from infringing products used in South Carolina. In light of Clorox’s aforementioned contacts with the State of South Carolina and its purposeful availment of the rights and benefits of South Carolina law, maintenance of this suit in this Court would not offend traditional notions of fair play and substantial justice. 8. Upon information and belief, Defendant Guala US is subject to the personal jurisdiction of this Court by virtue of the fact that it has a regular and established place of business in this judicial district. Upon information and belief, Defendant Guala US also has - 2 - regularly done or solicited business, engaged in a persistent course of conduct, and/or derived substantial revenues from transacting business and/or contracting to provide products and/or services, including infringing products, in South Carolina. In light of Guala US’s aforementioned contacts with the State of South Carolina and its purposeful availment of the rights and benefits of South Carolina law, maintenance of this suit in this Court would not offend traditional notions of fair play and substantial justice. 9. Upon information and belief, Defendant Guala S.p.A. is subject to the personal jurisdiction of this Court by virtue of the fact that it has regularly done or solicited business, engaged in a persistent course of conduct, and/or derived substantial revenues from transacting business and/or contracting to provide products and/or services, including infringing products, in South Carolina. In light of Guala S.p.A.’s aforementioned contacts with the State of South Carolina and its purposeful availment of the rights and benefits of South Carolina law, maintenance of this suit in this Court would not offend traditional notions of fair play and substantial justice. 10. Venue with respect to Defendants is proper in this district pursuant to 28 U.S.C. §§ 1391(b), (c), and (d) and 1400(b) because, inter alia, a substantial part of the events or omissions giving rise to the claim occurred in this judicial district, Defendants are subject to personal jurisdiction in and therefore reside in this judicial district, and Defendants have committed acts of patent infringement in this judicial district. FACTS 11. Afa Dispensing Group, B.V. (“Afa Dispensing”), the parent of Plaintiffs Afa North America and Dispensing Technologies B.V. (Afa Dispensing collectively with Plaintiffs is referred to as “Afa”), is a world leader in technologically advanced liquid dispensing systems. Afa Dispensing applies its proprietary technologies as a technical platform for developing new ways to dispense all types of liquids, beverages, soft food products, and other fluids. Afa Dispensing’s wide range of proprietary products includes the best trigger sprayer in the market, known as OpUs®. - 3 - 12. Sprayers used for consumer products have been known since the early 1950s. Until the introduction by Afa of its new line of sprayers, however, there has been little innovation over the last many decades, and the product became commoditized. 13. Beginning in about 1998, Afa decided to adopt an innovation strategy that would transform sprayers into a value-added proposition on consumer products. Towards that end, Afa invested in innovation, the result of which is reflected in numerous worldwide patents on sprayer technology that Afa Dispensing and its subsidiaries have received. 14. Moreover, since the introduction in 1999 of Afa North America’s OnePak® technology, Afa emerged as the leading innovators in liquid dispensing technologies. 15. For example, in 2000 Afa Dispensing introduced its OnePak® technology to a selected group of multinational consumer-packaging companies, among them Henkel GMBH (“Henkel”) of Germany and Clorox that, upon information and belief, was affiliated with Henkel through Henkel’s substantial share ownership of Clorox. 16. Henkel and Clorox expressed a considerable interest in the OnePak® technology, and shortly after being exposed to the OnePak® technology, decided to form a joint team (consisting of technical, commercial, marketing, and financial individuals) in order to examine the potential use of the OnePak® technology for Henkel’s packages in Europe and Clorox’s packages in the United States. 17. Over a period of several months, the Henkel/Clorox team completely analyzed the OnePak® technology, at the end of which Clorox conducted a consumer market test in five cities in the U.S. 18. Based on information Clorox provided, the results of the market test were very positive, showing a high consumer purchasing intent and clear indication that Clorox brands would benefit from the switch to OnePak® packages. 19. Over the years, Afa Dispensing and its subsidiaries entered into non-disclosure agreements with Henkel/Clorox. As a result, Henkel and Clorox were exposed to sensitive confidential information related to Afa Dispensing’s business strategy and its future plans. 20. While Henkel launched Afa Dispensing’s new spray package in Europe very successfully, Clorox decided to pass on the opportunity, upon information and belief, primarily - 4 - due to the substantial investment it would have to make on its filling lines and due to design issues that were peculiar to the U.S. market. 21. Following Henkel’s success with Afa Dispensing’s technology and as a result of a growing market demand for Afa Dispensing’s innovative sprayers, in 2008 Afa Dispensing launched the new, highly innovative, and now-patented OpUs® sprayer, which is the subject matter of this proceeding. 22. In mid-2008, almost concurrently with the introduction of the OpUs® sprayer, Clorox’s only supplier of sprayers, ContinentalAfa Dispensing Company (“Continental”), entered bankruptcy and was liquidated. This posed a serious threat to the supply of all of Clorox brands that used spray bottles and required Clorox to find an alternate supplier quickly. 23. Upon information and belief, Stefano Guala, Guala’s CEO and controlling shareholder, approached Clorox soon after Continental entered bankruptcy in an attempt to have Guala replace Continental as Clorox’s sprayer supplier. However, Clorox opted for another supplier, upon information and belief, because Guala did not have the innovative technology that would satisfy Clorox’s needs (among other reasons). 24. By the end of 2008, Afa Dispensing incorporated a new subsidiary in St. Louis and hired sales and marketing personnel from then-defunct Continental to sell OpUs® products in the U.S. 25. Afa’s strategy was either to import the OpUs® product from China or enter into a joint venture with an injection molding company in North America that would become its OpUs® product contract manufacturer. 26. Toward that end, in the second part of 2008 and early 2009, Mr.
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