united california glass &...

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Complaint for Damages and Injunctive Relief UCG v. DOYLE, et al., U.S. District Court Case No. ____________

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KENNETH N. FRUCHT (SBN 178881) FREDERICK J. GEONETTA (SBN 114824) GEONETTA & FRUCHT, LLP 825 Washington St Ste 220 Oakland, California 94607-4079 Telephone: (510) 254-3777 Facsimile: (510) 590-9611 Attorneys for Plaintiff UNITED CALIFORNIA GLASS & DOOR

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

SAN FRANCISCO DIVISION

UNITED CALIFORNIA GLASS & DOOR, Plaintiff,

vs.

UNION ROLLING DOOR COMPANY, CARLO DOYLE, STEVE WATSON

Defendants

) ) ) ) ) ) ) ) ) ) ) ) )

Case No.: COMPLAINT FOR: 1. COPYRIGHT INFRINGEMENT; 2. UNFAIR COMPETITION (B&P 17200); 3. UNFAIR COMPETITION (B&P 17500) JURY TRIAL DEMANDED

COMES NOW Plaintiff UNITED CALIFORNIA GLASS & DOOR, demanding trial by

jury, and complains and alleges as follows:

PARTIES

1. Plaintiff UNITED CALIFORNIA GLASS & DOOR (“UCG”) is a California

Corporation with its principal place of business in San Francisco, California.

2. Defendant UNION ROLLING DOOR COMPANY (“URD”) is a California

Corporation with its principal place of business in San Francisco, California.

3. Defendant Steve Watson ("WATSON") is an individual and majority owner of

Case 4:19-cv-03005-KAW Document 1 Filed 05/31/19 of 15

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URD.

4. ROLLING DOOR.

5. Plaintiff is informed and believes and thereon alleges that at all times relevant

herein, each of the Defendants was the agent, employee or representative of each of the other

Defendants, and in doing the things herein mentioned were acting in the course and scope of

such agency and employment. It is further alleged that in doing the acts or omissions complained

of herein, the DEFENDANTS, and each of them, acted or omitted to act in concert as agents of

and/or on behalf of the other Defendants, and authorized, ratified, and aided and abetted the

doing of each of the acts alleged herein. In so acting, the Defendants, and each of them,

proximately caused Plaintiffs’ damages as alleged herein.

JURISDICTION AND VENUE

6. This is an action for copyright infringement and as such the Court has jurisdiction

over Plaintiff’s claim pursuant to 28 U.S.C. §§ 1331 and 1338(a).

7. The Court has supplemental jurisdiction over Plaintiff’s state law claims pursuant

to 28 U.S.C. 1367.

8. Venue is proper in the United states District Court for Northern District of

California pursuant to 28 U.S.C. 28 U.S.C. § 1391(b)(2) and 28 U.S.C. 1400(a), because a

substantial part of the events giving rise to Plaintiff’s claims occurred within the Northern

District of California, and because this is a case for copyright infringement, and venue is proper

in the district where defendant or its agent resides.

FACTUAL ALLEGATIONS

9. UCG has been a San Francisco based company for 28 years and has built its

reputation and customer base in the Bay Area through hard work and dedicated, high quality and

professional service. From its start in 1991, UCG grew from a small glass company with a few


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employees and several trucks, to a business now employing over seventy people, and offering a

wide range of services to an ever growing commercial and residential customer base.

10. While UCG was initially primarily a glass company, it has expanded over the

years to include many other businesses, including the installation and maintenance of Rollup

Doors, which has become a significant part of its business and a substantial source of its revenue.

UCG has invested heavily in its Rollup Door business.

11. Over the years, UCG has invested substantial amounts of money and

resources in building its name and reputation and developing its business in the community, and

as a result has an extensive list of customers that is comprised of thousands of commercial

businesses and residential homeowners. UCG’s investment has paid off, and its customer list has

independent value that would be valuable to many of UCG’s competitors.

12. UCG’s customer list, vendor and supplier information, and pricing information, is

proprietary and confidential trade secret information. UCG’s proprietary and confidential trade

secret information took many years to develop and create and would have great value to UCG’s

competitors if they were able to obtain these trade secrets.

13. UCG has also spent substantial time and resources developing and creating its

own marketing and advertising materials, and branded business forms that include and display

UCG’s logo. One such form is a STICKER.

14. When UCG installs a Rollup Door for a client, it attaches a STICKER with

UCG’s logo and contact information on the door so that the customer can thereafter contact UCG

if and when it needs maintenance services. The STICKER is a marketing and advertisement

tool. In or about May 2019, UCG copyrighted the STICKER, copyright no. 1-7716615031. (A

true and correct copy of UCG’s STICKER is attached hereto as Exhibit 1.)


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15. Defendant DOYLE was hired by UCG on May 5, 2003 and resigned from his

position as a manager on November 10, 2017. In his capacity as a managerial employee,

DOYLE was given access to UCG’s customer list, vendor and supplier information, pricing

information, and other confidential and proprietary information through access to password

protected computers, files, and other UCG business information, including UCG's STICKER

DOYLE was aware of the location of UCG's Rollup Door customers, and that each UCG

customer had a UCG STICKER containing UCG's immediate contact information for use when

service, repair or replacement of windows or doors are needed.

16. Defendant URD is a direct competitor of UCG.

17. UCG is informed and believes and thereupon alleges that, while working at UCG

and having access to important elements of its confidential and proprietary information, DOYLE

conceived of a plan, together with Defendants Watson and URD, to misappropriate UCG’s

customer list, vendor and supplier information, pricing information, business forms, and other

confidential and proprietary information, and bring it to URD, in order to gain an unfair

advantage and to build a Rollup Door business and compete with UCG.

18. UCG is informed and believes and thereupon alleges that DOYLE used UCG’s

proprietary information as a bargaining chip to obtain a 49% ownership interest in ROLLING

DOOR without making any cash investment in URD.

19. UCG is informed and believes and thereupon alleges that WATSON agreed to

give DOYLE a 49% ownership interest in URD and did not require DOYLE to make a cash

investment as consideration for the 49% ownership interest, because of the value of UCG’s

proprietary information that DOYLE was bringing to URD.

20. UCG is informed and believes and thereupon alleges that several days before


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resigning from UCG, DOYLE copied and downloaded computer files containing a UCG

customer list containing several thousand of UCG’s customers, as well as vendor and supplier

information, and pricing information. Included in the files misappropriated by DOYLE are

emails, phone numbers, and contact information not generally known to the public or to UCG’s

competitors. DOYLE further downloaded various forms developed by UCG for use in its

business operations, several thousand UCG business proposals containing proprietary

information such as vendor information, job pricing information, UCG labor rates for particular

jobs, and UCG material and labor costs. DOYLE also downloaded specifications, plans, and

shop drawings for jobs performed by UCG. UCG developed such information over many years,

and through substantial investment in its business development. UCG is informed and believes

and thereupon alleges that URD owner WATSON asked for said information to be brought by

DOYLE for use by URD.

21. UCG is informed and believes and thereupon alleges that DOYLE left UCG and

went to work for URD. Since taking UCG’s proprietary and confidential information and

leaving UCG, DOYLE and URD have been using the information to contact UCG’s customers to

try and convince them to abandon UCG and to instead use DOYLE and URD’s services.

22. When DOYLE went to work for URD and WATSON, he designed a URD sticker

that is almost identical to UCG’s STICKER. (A true and correct copy of URD’s STICKER is

attached hereto as Exhibit 2.)

23. PLAINTIFF is informed and believes and thereupon alleges that URD and its

employees have covered up UCG stickers with URD stickers for the purpose of 1) confusing

UCG’S customers, 2) replacing UCG’S marketing and advertising materials with URD’S

materials, and 3) taking UCG’s customers.


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24. UCG is informed and believes and thereupon alleges that WATSON discussed

with DOYLE and Tony Peglow (“PEGLOW”), a UCG employee, their leaving UCG and going

to work for WATSON at URD.

25. PEGLOW left UCG to work for WATSON shortly before DOYLE left UCG.

Both are now working at URD.

26. When PEGLOW was working at UCG he drove company Truck 45. Each truck

has an AP-5 remote control which is programmed with a code unique to UCG to open any

Rollup Doors installed by UCG for its customers. Thus, an employee with an AP-5 remote can

access UCG’s customers’ property using UCG’s AP-5 the remote.

27. After PEGLOW left UCG, it was noted by UCG that the AP-5 remote that was

supposed to be in Truck 45 was missing, and was never returned.

28. PLAINTIFF is informed and believes and thereupon alleges that PEGLOW took

the AP-5 remote in Truck 45 for the purpose of using it when he went to work for URD.

29. UCG is informed and believes and thereupon alleges that DOYLE, WATSON,

and URD created a COMPETING STICKER substantially similar to UCG's STICKER.

30. PLAINTIFF is informed and believes and thereupon alleges that at the direction

of DOYLE and WATSON, PEGLOW gained access to the property of a UCG customer and

plastered URD stickers over UCG STICKERS on the property. This particular customer had

never used the services of URD, and had never invited anyone from URD onto the customer’s

property. PLAINTIFF is informed and believes and thereupon alleges that the only way that

URD gained access to the customer’s property was through the use of the AP-5 remote that

PEGLOW took from UCG before leaving and going to work for WATSON and ROLLING

DOOR.


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31. UCG is informed and believes and thereupon alleges that DOYAL, WATSON,

PEGLOW and ROLLING DOOR thereafter went to, and continue to go to, the location of

various customers of UCG, and place URD’s infringing stickers over UCG's STICKER at the

locations of UCG's customers. The effect of this conduct is to destroy UCG's immediate contact

information when service, repair or replacement or a Rollup Door is needed, and to replace

UCG's contact information with URD’s contact information. UCG is informed and believes and

thereupon alleges that DOYLE, WATSON, PEGLOW and URD perpetrated this plan of

covering UCG's STICKER with URD’s sticker, without the consent of the customers of UCG.

UCG is informed and believes and thereupon alleges that this conduct on the part of DOYLE,

WATSON, PEGLOW, and URD, is continuing, thereby infringing upon UCG'S copyright, and

constituting unfair competition.

FIRST CLAIM FOR RELIEF COPYRIGHT INFRINGEMENT AGAINST ALL DEFENDANTS

32. PLAINTIFF incorporates the preceding paragraphs as though fully set

forth herein.

33. UCG registered a copyright for its STICKER, copyright no. 1-

7716615031. (See Exs. 1 and 2.) UCG is the owner of the copyright. UCG's STICKER is its

original work, was independently created and creatively made by UCG for purpose of marketing

its continuous services to its customers.

34. Defendants infringed on UCG's copyright, by copying the work of UCG's

copyright STICKER, replacing UCG's contact information with URD’s contact information on

URD’s sticker, and plastering URD’s sticker over UCG's STICKER at UCG's customer

locations. (See Ex. 2.) URD’s sticker is almost identical to UCG's STICKER, except that URD’

placed its contact information on its sticker instead of UCG's contact information. (Compare

Exs. 1 and 2.) When compared as a whole, UCG's STICKER and URD’ sticker are adequately


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similar to establish appropriation.

35. UCG suffered damages in an amount according to proof, statutory and

economic damages, and Defendants' profits attributable to Defendants' copyright infringement.

36. UCG has suffered irreparable harm as a result of Defendants' infringement. The

Court should issue appropriate injunctive relief.

37. Defendants' conduct was malicious, oppressive and/or fraudulent, justifying an

award of punitive damages.

38. Defendants' actions herein have caused UCG to hire attorneys to pursue this

matter. UCG accordingly prays for its attorneys’ fees and costs.

SECOND CLAIM FOR RELIEF UNFAIR COMPETITION

VIOLATION OF CAL. BUS. & PROFS. CODE, SEC. 17200, ET SEQ AGAINST ALL DEFENDANTS


forth herein.

40. The conduct of Defendants constitutes unlawful, unfair and/or fraudulent

business acts or practice, in violation of Business & Professions Code, sec. 17200, et seq.

41. Defendants have illegally profited at Plaintiff's expense as a result of their

violations Business & Professions Code, sec. 17200, et seq.

42. Pursuant to Business & Professions Code, sec. 17202, Plaintiff prays for

forfeiture of all Defendants' profits arising out of Defendants' violations of Business &

Professions Code, sec. 17200, et seq.

43. Pursuant to Business & Professions Code, secs. 17202 and 17203, Plaintiff

prays for appropriate injunctive relief , including appointment of receiver, and accounting, to

compare all of Defendants' sales to customers of Plaintiff, the amount of profit from each sale, to

forfeit said profits and transfer said profits to Plaintiff.

44. Pursuant to Business & Professions Code, secs. 17203, Plaintiff prays for

appropriate injunctive relief , enjoining Defendants from continuing their unlawful, unfair and/or


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fraudulent business acts or practice at Plaintiff's expense.

45. Defendants' conduct was malicious, oppressive and/or fraudulent,

justifying an award of punitive damages. THIRD CLAIM FOR RELIEF

UNFAIR COMPETITION VIOLATION OF CAL. BUS. & PROFS. CODE, SEC. 17500, ET SEQ AGAINST ALL DEFENDANTS


forth herein.

47. The conduct of Defendants, as described above, in misappropriating

UCG's trade secrets, and in plastering URD’ stickers over UCG's STICKERs, in an attempt to

steal business from UCG under false pretenses, violates Business & Professions Code, sec.

17500, et seq.

48. Pursuant to Business & Professions Code, secs. 17202 and 17535, Plaintiff

prays for forfeiture of all Defendants' profits arising out of Defendants' violations of Business &

Professions Code, secs. 17200, et seq. and 17500, et seq.

49. Pursuant to Business & Professions Code, secs. 17202, 17203, 17535,

Plaintiff prays for appropriate injunctive relief, including appointment of receiver, and

accounting, to compare all of Defendants' sales to customers of Plaintiff, the amount of profit

from each sale, to forfeit said profits and transfer said profits to Plaintiff.

50. Pursuant to Business & Professions Code, secs. 17535, Plaintiff prays for

appropriate injunctive relief, enjoining Defendants from continuing their unlawful, unfair and/or

fraudulent advertising at Plaintiff's expense.

51. Defendants' conduct was malicious, oppressive and/or fraudulent,

justifying an award of punitive damages. PRAYER FOR RELIEF

Plaintiff prays for judgment as follows:

On the First Cause of Action for Copyright infringement:


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1. For damages according to proof, including, but not limited to statutory and economic

damages, and defendants' profits attributable to Defendants' copyright infringement.

2. Appropriate injunctive relief precluding Defendants from violating Plaintiff's

copyright in the future and requiring Defendants to remedy their continuing infringement of

Plaintiff's copyright.

3. For Punitive Damages for Defendants' malicious, oppressive and/or fraudulent

conduct.

4. For attorneys’ fees and costs.

5. For Prejudgment and post-judgment interest.

On the Second Cause of Action for Unfair Competition:

6. For forfeiture of all Defendants' profits arising out of Defendants' violations of

Business & Professions Code, sec. 17200, et seq.

7. For appropriate injunctive relief, including appointment of receiver, and accounting, to

compare all of Defendants' sales to customers of Plaintiff, the amount of profit from each sale, to

forfeit said profits and transfer said profits to Plaintiff.

8. For appropriate injunctive relief, enjoining Defendants from continuing their unlawful,

unfair and/or fraudulent business acts or practice at Plaintiff's expense, and to remedy their prior

and continuing unlawful, unfair and fraudulent business practices at Plaintiff's expense.

9. For Punitive Damages for Defendants' malicious, oppressive and/or fraudulent

conduct.

On the Third Cause of Action for Unfair Competition:

10. For forfeiture of all of Defendants' profits arising out of Defendants' violations of

Business & Professions Code, secs. 17200, et seq. and 17500, et seq.

11. For appropriate injunctive relief, including appointment of receiver, and accounting,


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to compare all of Defendants' sales to customers of Plaintiff, the amount of profit from each sale,

to forfeit said profits and transfer said profits to Plaintiff.

12. For appropriate injunctive relief, enjoining Defendants from continuing their

unlawful, unfair and/or fraudulent advertising at Plaintiff's expense, and to remedy their prior and

continuing unlawful, unfair and fraudulent business practices at Plaintiff's expense.

13. For punitive damages in an amount according to proof.

Respectfully submitted, GEONETTA & FRUCHT, LLP Date: May 31, 2019 KENNETH FRUCHT Attorneys for Plaintiff UNITED CALIFORNIA GLASS & DOOR PLAINTIFF HEREBY DEMANDS A JURY TRIAL Respectfully submitted, GEONETTA & FRUCHT, LLP Date: May 31, 2019 KENNETH FRUCHT Attorneys for Plaintiff UNITED CALIFORNIA GLASS & DOOR


EXHIBIT 1


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Fire Rateo Steel Doors & WndoN5Ro,ng Doors 8 Gnl:es

Ro ang Fire DoorsSectional Doors

Electric OperatorsDoor Controls

Fire Door TestingPreventive Maintenance Programs

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24 -HOUREMERGENCY SERVICE

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EXHIBIT 2


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Union Rolling DoorCompanyLicense #964900

CAUTIONThis door should be operated bytrained, authonzed personnel only

DO NOT stand under the door

while operating.

Use both hands tocontrol speed of

the door

Always operate the door slowly to

prevent damage.

Maintenance. spnng tensron andadjustments should be madepenodically only by a qualified

technician.

if the door becomes inoperable,

do not force open or shut Call usimmediately for service.

Serviced on.

Drop tested on

By

Door

Entrance DoorsDoor Closers

Door Locks & Hardware

Fire Rated Steel Doors

Rolling Doors & Grilles

Roiling Fire Doors

Sectional DoorsElectric Operators

Door ControlsFire Door Testing

Preventive Makrtenanoe P10gre1!

Access ControlAutomated Gate Systems

24 -HOUREMERGENCY SERVICE

L550-773-8183


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