Spyderco v. Extreme Instinct - Complaint
Spyderco v. Extreme Instinct - Complaint
Spyderco v. Extreme Instinct - Complaint
Spyderco, Inc.,
a Colorado corporation,
Plaintiff,
v.
Defendant.
Plaintiff Spyderco, Inc. ("Spyderco") files this Complaint with Jury Demand against
I. THE PARTIES
2. EIL is a Colorado limited liability company in good standing that owns and operates
a retail store and affiliated businesses. The President and Registered Agent of EIL is Matthew
Daniel Wright, and both Mr. Wright and EIL have a business address of 6550 West 14th Avenue,
3. This is an action arising from EIL's willful infringement of Spyderco's design patent
violation of the Colorado Consumer Protection Act ("CCPA"), civil conspiracy, misappropriation
4. This Court has jurisdiction over the subject matter of this action pursuant to 15
U.S.C. § 1121 and 28 U.S.C. §§ 1331 and 1338. The Court has supplemental jurisdiction over
Spyderco's state law claims under 28 U.S.C. § 1367, as they are so related to the federal claims
and has general minimum contacts with this judicial district by transacting business within
Colorado.
6. Venue over this action is proper in this Court under 28 U.S.C. § 1391.
7. Spyderco is engaged in the business of, among other things, designing, developing,
manufacturing and distributing knives and knife accessories. Many of these products are
manufactured at Spyderco's Golden, Colorado facility, and all its business operations occur out of
that facility. Spyderco and its products are recognized by the knife industry as being among the
very best in quality and distinctiveness in the world. Spyderco's business and product reputation
8. One of Spyderco's most recognized and iconic knives is known as the RUBICON
and is based upon a design invented by Peter Carey, a world-renowned knife designer from Texas.
That product name is included on packaging and marketing collateral for the product, which is
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sold with a textile-based carrying pouch embossed with Spyderco's Bug Mark (discussed below).
Marketing literature is also included in the package. Information about that product is listed on
herein by this reference. These knives came in several styles and were sold at retail stores for
many years and carried a manufacturer suggested retail price ("MSRP") of $359.95. As Spyderco's
website describes:
The Rubicon faithfully captures all the qualities of Peter Carey's meticulously
crafted custom folders in one of the most refined production knives ever made. Its
blade is precision machined from premium CPM® S30V® powdered metallurgy
stainless steel and features an integral flipper. This feature—pioneered by the late
Kit Carson—generates leverage to open the blade when powered by pressure from
the user's index finger. It works in concert with special ball-bearing washers around
the pivot to provide swift, remarkably smooth opening of the blade. Once open, the
blade's deeply hollow ground primary bevel and flat-ground wedge offer
exceptional edge geometry and point utility to effectively tackle practically any
cutting chore. The blade also features a Trademark Round Hole™, proudly
identifying it as a Spyderco product and offering additional one-hand opening
options.
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9. These knives are specially manufactured with high quality Crucible CPM S30V
steel, with the quality of this steel being touted as important on Spyderco's website. That specific
steel is often used, as it has qualities prized by military, first responders and others who find
themselves in situations that require constant critical use of cutting tools. In order that these
professionals can know that their cutting tool is made of the highest quality steel and they can be
confident they are entering an uncertain field with a needed tool, Spyderco marks the blade of all
authentic RUBICON knives with the designation "CPM S30V." Also, to show these knives have
been approved by Mr. Carey, they are marked on the blade with his trademark
(“Carey Trademark”).
10. Spyderco is the owner of now incontestable U.S. Trademark Registration Number
1,965,458 in International Class 8 (U.S. Classes 23, 28 and 44) for folding knives for the mark
SPYDERCO (the "Spyderco Mark"). A true and accurate copy of the Spyderco Mark registration
is attached hereto as Ex. A, which is incorporated herein by this reference. Based upon Spyderco's
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continuous non-interrupted use of that trademark for years in interstate commerce, relevant
consumers have come to associate it exclusively with Spyderco, who thus also acquired strong
common law trademark rights in and to the Spyderco Mark long before EIL, who without
11. Spyderco is also the owner of now incontestable U.S. Trademark Registration
Number 1,957,810 in International Class 8 (U.S. Classes 23, 28 and 44) for knives, namely
hunting, fishing, pocket, folding and sporting knives, and sharpening stones for the mark
(the "Bug Mark"). A true and accurate copy of the Bug Mark registration is attached hereto as
Ex. B, which is incorporated herein by this reference. Based upon Spyderco's continuous non-
interrupted use of that trademark for years in interstate commerce, relevant consumers have come
to associate it exclusively with Spyderco, who thus acquired strong common law trademark rights
in and to the Bug Mark long before EIL, who without authorization, used the identical mark on
12. Spyderco is the owner of now incontestable U.S. Trademark Registration Number
2,033,317 in International Class 8 (U.S. Classes 23, 28 and 44) for folding knives with a round
through hole in the blade of a knife that is located closer to the end of the knife blade than to the
blade tip (the "Round Hole Mark"). A true and accurate copy of the Round Hole Mark registration
is attached hereto as Ex. C, which is incorporated herein by this reference. Based upon Spyderco's
continuous non-interrupted use of that trademark for years in interstate commerce, relevant
consumers have come to associate it exclusively with Spyderco, who thus acquired strong common
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law trademark rights in and to the Round Hole Mark long before EIL, who without authorization,
13. The Spyderco Mark, Bug Mark, and Round Hole Mark will collectively be referred
14. Spyderco is also the owner of U.S. Design Patent No. D747,946 that lists Peter
Carey of Lago Vista, Texas as its inventor ("the '946 Patent"). The '946 Patent was duly and
properly issued on January 26, 2016, is presumed and is valid and enforceable, and claims the
design of a folding knife that captures the new and nonobvious elements of the RUBICON knife.
A copy of that patent is attached as Ex. D, which is incorporated herein by this reference.
15. EIL was formed by Mr. Wright in 2005 and is in the business of selling knives and
other products for outdoor enthusiasts. Upon information and belief, EIL operates a website at
16. EIL purchased a booth at the National Western Stock Show, held in Denver,
Colorado from January 12 to 27, 2019. In that booth, EIL displayed product that was for sale. A
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17. EIL acquired some yet unknown quantity of knives that were offered for sale at
least the Stock Show Booth. One of those knives was purchased and the following redacted
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18. The purchased knife and carrying case sold with it is shown in the below photo as
the left most items; the right most items are an authentic RUBICON knife and carrying case
manufactured by Spyderco:
A close-up of the knife sold by EIL, showing the FEDERAL MARKS, as well as indicating that
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A photo showing the same knives and carriers, but from the other side of the knives, is reproduced
below:
The EIL-sold knife also shows the Carey Trademark on the blade.
19. The purchased EIL knife was not produced by Spyderco. Instead, it is a counterfeit
RUBICON, being sold for $70, when Spyderco's MSRP for such a knife is $359.95 These knives
being offered for sale by and being sold by EIL as Spyderco knives are made of inferior materials
and have an inferior build quality. These knives will not perform as advertised (i.e., and upon
information and belief, the blades are not made of CPM S30V steel) and will fail in use much more
quickly than an authentic Spyderco RUBICON knife that has a blade made of CPM S30V steel.
When they fail early and/or do not perform as expected, the original purchaser and/or a subsequent
purchaser, another acquirer, or just a person viewing unflattering use of the knives, will think less
of Spyderco and the quality of Spyderco products. Spyderco's reputation is a prized business asset,
and the reputational loss visited upon Spyderco by EIL's sale of the counterfeit knives, which is
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completely out of Spyderco's control, will result in significant reputational damage to Spyderco,
20. 35 U.S.C. §1116 (d)(1)(B)(i) & (ii) defines a counterfeit designation as any symbol
from a symbol that is registered on the Principal Register of the United States. Knowledge of the
(2000) similarly defines "counterfeit" as "to make a copy of, usually with the intent to defraud."
The knives being sold by EIL include the identical Spyderco Mark, Bug Mark, and Round Hole
Mark, all of which are registered on the Principal Trademark Register of the United States. EIL's
unauthorized advertisement, offer for sale, and sale of those knives thus constitutes distribution in
interstate commerce of counterfeit goods under 15 U.S.C. § 1117(c). Those EIL knives will
21. The Counterfeit Knives have been offered for sale and sold since at least January
17, 2019 and look identical to authentic Spyderco RUBICON knives, but they were not
manufactured or distributed by Spyderco. Rather, and upon information and belief, the Counterfeit
Knives, and more like them, were likely acquired by EIL from a Chinese distributor for
approximately $10 per unit. If that acquisition price is accurate, EIL has been and is continuing to
generate an obscene profit from its illegal and unauthorized sale of the Counterfeit Knives. The
only reason EIL can generate this obscene profit is because Spyderco spent decades generating a
strong product offering, demand for its high-quality goods and a near-cult following for its
RUBICON knives. EIL is free riding on Spyderco's corporate and product reputations to generate
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unbridled corporate gain and is undercutting the MSRP of authentic Spyderco RUBICON knives
22. Under 15 U.S.C. § 1117(c), EIL's advertising, offer for sale, and sale of the
Counterfeit Knives is willful. EIL is in the knife business and, upon information and belief, knows
that authentic Spyderco knives retail for much more than what it is selling the Counterfeit Knives.
EIL was thus aware of exactly what it was doing when it chose to offer for sale the Counterfeit
Knives and knowingly and wantonly chose to offer and sell the Counterfeit Knives to damage,
perhaps irreparably, Spyderco's superior and valuable reputational rights reflected in the
FEDERAL MARKS.
23. EIL's willful counterfeiting and infringement of the FEDERAL MARKS make this
an exceptional case, entitling Spyderco to an award of treble actual damages in the form of
Spyderco's lost profits and EIL's gross profits under 15 U.S.C. § 1117(a), an award of attorney's
fees and costs (including expert costs) under 15 U.S.C. § 1117(a); an award of compensatory
damages to cover a national corrective advertising campaign that Spyderco must undertake to
advise the purchasing public about the hazards of acquiring Counterfeit Knives under 15 U.S.C.
§ 1117(a), an award of prejudgment and post judgement interest under 15 U.S.C. § 1117(a) and,
perhaps most significantly, an award from this Court of statutory damages for willful
counterfeiting under 15 U.S.C. § 1117(c)(2) of not less than $200,000 nor more than $2,000,000
per counterfeited mark (3 in total) found on the Counterfeit Knives, or a total award of statutory
damages of not less than $600,000 nor more than $6,000,000 in statutory damages.
24. The Counterfeit Knives also include on their blades "CPM S30V," indicating to
reasonable consumers that the knife blade is made of CPM S30V steel. This marking is literally
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false and, upon information and belief, a willful fraud upon both Spyderco and the consuming
public. Sale of the Counterfeit Knives with the false product ingredient marking causes
special/actual damages and reputational damages. The reputation damages have been delineated
above. The actual (special) damages flow from a loss of product sales and profits that would
25. The Counterfeit Knives also are a literal, direct infringement of the claim of the
'946 Patent. Alternatively, the Counterfeit Knives infringe the '946 Patent claim under the doctrine
of equivalents.
26. Spyderco incorporates paragraphs 1 through 25 as though fully set forth herein.
27. Without Spyderco's consent, EIL has used, on and in connection with the sale,
offering for sale, distribution and advertising of its Counterfeit Knives Spyderco's FEDERAL
MARKS.
28. These acts constitute trademark infringement and have been committed with the
intent to cause confusion, mistake, or deception, and are in violation of 15 U.S.C. § 1125(a).
29. As a direct and proximate result of EIL's infringing activities, Spyderco is entitled
to recover its unlawful profits and Spyderco's damages under 15 U.S.C. § 1117(a).
intentional, entitling Spyderco to treble the amount of its damages and EIL's profits, and to an
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32. Spyderco incorporates paragraphs 1 through 31 as though fully set forth herein.
33. Without Spyderco's consent, EIL has used, on and in connection with the sale,
offering for sale, distribution, and advertising of its Counterfeit Knives, Spyderco's FEDERAL
MARKS. EIL is promoting and advertising, selling, offering for sale, and distributing counterfeit
34. These acts are likely to cause confusion in the trade and among the general public
35. With actual or constructive notice of Spyderco’s federal registration rights under
15 U.S.C. § 1072, and long after Spyderco commenced use of the FEDERAL MARKS, EIL made
36. These illegal acts constitute counterfeiting and trademark infringement of the
FEDERAL MARKS in violation of Spyderco’s rights under § 32 of the Lanham Act, 15 U.S.C. §
1114.
exceptional and intentional, entitling Spyderco to treble the amount of its damages and EIL’s
profits, and to an award of attorneys' fees and costs under 15 U.S.C. § 1117(a).
38. Spyderco has suffered and will continue to suffer irreparable injury due to EIL’s
actions if EIL is not preliminarily and permanently enjoined. Spyderco is entitled to injunctive
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39. Spyderco incorporates paragraphs 1 through 38 as though fully set forth herein.
40. Without Spyderco's consent, EIL has used, on and in connection with the sale,
offering for sale, distribution and advertising of its Counterfeit Knives designations that are
42. As a direct and proximate result of EIL's activities, Spyderco is entitled to recover,
among other things, at least $600,000 in statutory damages under 15 U.S.C. § 1117(c).
43. EIL's counterfeiting renders this case exceptional and intentional, entitling
Spyderco to, among other things, an award of attorneys' fees under 15 U.S.C. § 1117(a).
45. Spyderco incorporates paragraphs 1 through 44 as though fully set forth herein.
46. Through the acts complained of herein, EIL has violated at least sections (a)-(e) of
Colo. Rev. Stat. § 6-1-105 and thus engaged in unfair and deceptive trade practices.
47. These acts occurred during and as part of EIL's actual and continuing business.
48. The complained of acts significantly impact the public who purchased the
Counterfeit Knives in that they or those acquiring the products from them acquired inferior
products under false pretenses that could cause grave bodily harm to those individuals or others.
While the total number of consumers who may be affected by the inferior Counterfeit Knives may
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be low when compared to the total number of authentic Spyderco knives that have been sold, the
damage that could be caused by a failure of a Counterfeit Knife could be very significant (perhaps
including death), and this is the type of impact for which the CCPA was designed to address.
49. Spyderco has suffered actual and reputational injury due to EIL's fraudulent and
deceitful conduct as outlined herein and EIL has intentionally and willfully caused that injury.
50. Spyderco is entitled to injunctive relief and monitory relief on this claim in the form
of treble actual damages and corrective advertising dollars, an award of fees and costs and an
51. Spyderco incorporates paragraphs 1 through 50 as though fully set forth herein.
52. The false statement etched into the Counterfeit Knives, along with counterfeiting
of the FEDERAL MARKS, constitute actionable willful and wanton commercial disparagement:
(1) the steel designation is literally false; (2) these statements have been and are continuing to be
published to customers and potential EIL customers; (3) EIL's Counterfeit Knives are inferior to
authentic Spyderco RUBICON knives and as such their sale by EIL and use by its customers and
others is derogatory to (i.e. detract from or diminish) Spyderco's business in general, Spyderco's
rights in and thus title to its FEDERAL MARKS and to the quality of products sold thereunder, as
well as to the quality of Spyderco's reputation, generally; (4) EIL had actual malice (i.e. intent,
without just cause or reason, to commit a wrongful act that will result in harm) when it chose to
advertise and sell the Counterfeit Knives, knowing or reasonably should have known that they
were not authentic Spyderco products; (5) thus, causing special damages in the form of lost profits
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53. Because of EIL's wrongful conduct, Spyderco has suffered significant injury.
54. As a direct result of EIL's actions, Spyderco has been and will continue to be
irreparably injured because it no longer has complete control of its reputation and the goodwill
that has been painstakingly developed in the products and FEDERAL MARKS. Spyderco will be
forced to correct confusion in the marketplace resulting from EIL's counterfeiting, even after
56. Spyderco incorporates paragraphs 1 through 55 as though fully set forth herein.
57. Spyderco has expended significant resources, including skill, time, effort, and
money, in acquiring and developing the FEDERAL MARKS, look of the RUBICON knife, and
the goodwill associated therewith. Spyderco has thus acquired substantial business values therein,
58. Through its sale of the Counterfeit Knives, EIL has wrongfully appropriated the
skill, time, effort, and money that Spyderco has invested in its business values, causing significant
injury to Spyderco.
59. As a direct result of EIL's actions, Spyderco has been and will continue to be
irreparably injured because it no longer has complete control of its reputation and the goodwill
that has been painstakingly developed. Spyderco will be forced to correct confusion in the
marketplace resulting from EIL's counterfeiting, even after injunctive relief is granted.
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61. Spyderco incorporates paragraphs 1 through 60 as though fully set forth herein.
62. EIL conspired with its employees, officers, and directors and with the individual or
entity from which it acquired the Counterfeit Knives to resale the Counterfeit Knives at a
significant profit.
63. At least two of those individuals and/or entities agreed to that course of conduct.
64. EIL and its co-conspirator actions have caused damage to Spyderco, as outlined
herein.
65. Spyderco incorporates paragraphs 1 through 64 as though fully set forth herein.
66. EIL has infringed upon the '946 Patent by the making, offering for sale, selling,
using, and/or importing into the United States the Counterfeit Knives.
67. EIL's infringement of the '946 Patent has caused Spyderco irreparable harm.
68. EIL's infringement of the '946 Patent has caused Spyderco damage in an amount to
be proved at trial.
69. Spyderco incorporates paragraphs 1 through 68 as though fully set forth herein.
70. Pursuant to Colorado statute, when compensatory damages are assessed by a jury,
that jury may, in addition to actual damages, award reasonable exemplary damages against a
defendant when it finds that the plaintiff's injury "is attended by circumstances of fraud, malice,
or willful and wanton conduct." When awarded, exemplary damages are intended to punish a
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wrongdoer and to set an example for others, not to compensate the victim for the harm done to
him or her.
71. EIL has here acted with malice, willfully, wantonly and fraudulently. Accordingly,
WHEREFORE, Spyderco prays that the Court enter an Order for Judgment as follows:
B. That EIL has willfully infringed the FEDERAL MARKS and '946 Patent;
C. That EIL, and its respective agents, servants, officers, directors, employees and all
persons acting in concert with it, directly or indirectly, be permanently enjoined from
D. That EIL, and its respective agents, servants, officers, directors, employees and all
persons acting in concert with it, directly or indirectly, be ordered to deliver up to Spyderco for
destruction, or certify destruction of, all products that counterfeit and/or infringe the FEDERAL
E. That EIL account for and pay to Spyderco damages adequate to compensate
Spyderco for its conduct, in an amount to be proven at trial, together with interest and costs as
F. That EIL pay to Spyderco statutory damages to the full extent permitted by law;
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G. That Spyderco be awarded its costs and attorneys' fees in accordance with 15 U.S.C.
§ 1117(a) and Colo. Rev. Stat. § 6-1-113 and any other appropriate statute or on the Court's own
power;
I. That the Court award such other and further preliminary and permanent relief to
Respectfully submitted,
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EX. A, p. 1
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EX. B, p. 1
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EX. C, p. 1
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EX. D, p. 1
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EX. D, p. 2
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EX. D, p. 3
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EX. D, p. 4
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EX. D, p. 5
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EX. D, p. 6
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EX. D, p. 7
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EX. D, p. 8
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EX. D, p. 9
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EX. D, p. 10
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EX. D, p. 11
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EX. D, p. 12
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EX. D, p. 13
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EX. D, p. 14
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EX. D, p. 16
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EX. D, p. 17
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EX. D, p. 18
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VI. Cause of Action. Report the civil statute directly related to the cause of action and give a brief description of the cause. Do not cite jurisdictional
statutes unless diversity. Example: U.S. Civil Statute: 47 USC 553 Brief Description: Unauthorized reception of cable service
VII. Requested in Complaint. Class Action. Place an "X" in this box if you are filing a class action under Rule 23, F.R.Cv.P.
Demand. In this space enter the actual dollar amount being demanded or indicate other demand, such as a preliminary injunction.
Jury Demand. Check the appropriate box to indicate whether or not a jury is being demanded.
VIII. Related Cases. This section of the JS 44 is used to reference related pending cases, if any. If there are related pending cases, insert the docket
numbers and the corresponding judge names for such cases.
Date and Attorney Signature. Date and sign the civil cover sheet.