nespresso v. hiline coffee

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JUDGE SI JS 44C/SDNY REV. 2/2014 14 CV 3292 IVIL COVER SHEI The JS-44 civilcover sheet and the information contained herein neither replace nor supplement the filingand servl pleadings or other papers as required bylaw,except as providedbylocal rules ofcourt. Thisform, approved b; Judicial Conference of the United States in September 1974, is required for us e o f t h e C le rk o f C o ur t f or t he p ur po : initiating the civildocket sheet. *Y0 6M PLAINTIFFS NESPRESSO U SA , I NC . DEFENDANTS HILINE COFFEE COMPANY, INC. ATTORNEYS(FIRMNAME,ADDRESS, ANDTELEPHONE NUMBER Mayer Brown LLP, 1675 Broadway, New York, New York 10019 Telephone: (212)506-2500 ATTORNEYS (IF KNOWN) CAUSE OF ACTION (CITE THEU.S. CIVIL STATUTE UNDER WHICH YOU AREFILING AND WRITE A BRIEF STATEMENT OF CAUSE) (DO NOTCITE JURISDICTIONALSTATUTES UNLESS DIVERSITY) 1 5 U .S. C. 1 11 4, 1 5 U .S .C . 1125,17 U.S.C. 501, N.Y.GEN. BUS LAW349(a): Trademark, trade dress and copyright infringement Has this action, case, or proceeding, or one essentially the same been previously filed in SDNYat any time? No0Yes|_lji udge Previously Assigned If yes, was this case Vol. II Invol. II Dismissed. No fj Yes fj Ifyes, give date. & Case No . IS THISAN INTERNATIONALARBITRATION CASE? No Yes D (PLACEAN[x]INONEBOXONLY) NATURE OF SUIT ACTIONS UNDER STATUTES CONTRACT PERSONAL INJURY PERSONAL INJURY FORFEITURE/PENALTY BANKRUPTCY O T H ER S T A T U T ES II  0 INSURANCE I 1310 AIRPLANE [ ]362 P ER SO NA L I NJURY - 11610 AGRICULTURE [J 422 APPEAL [ 1400 STATE 11120 MARINE I 1315 AIRPLANE PRODUCT MED MALPRACTICE [ ]620 OTHERFOOD & 28 US C 15 8 REAPPORTIONMENT 11130 MILLER AC T LIABILITY [ ]365 P ER SO NA L I N JU RY DRUG [] 423 WITHDRAWAL I 1410 ANTITRUST 11140 NEGOTIABLE [ ]320 ASSAULT, L IB EL & PRODUCT LIABILITY I I625 DRUG RELATED 28 US C 15 7 II 430 BANKS & BANKING INSTRUMENT SLANDER [] 3 68 A SB ES TO S PERSONAL SEIZURE OF II 450 COMMERCE I 1150 RECOVERY OF [ J330 FEDERAL INJURY PRODUCT PROPERTY II 460 DEPORTATION OVERPAYMENT & EMPLOYERS' LIABILITY 21 USC 861 PROPERTY RIGHTS II 470 RACKETEER INFLU ENFORCEMENT LIABILITY [ J630 LIQUORLAWS ENCED & CORRUPT OF JUDGMENT I I340 MARINE P E R S ON A L P R O P E RT Y II 640 RR STRUCK [] 820 COPYRIGHTS ORGANIZATION AC T 11151 MEDICARE AC T II 345 MARINE PRODUCT [ ]650 AIRLINE REGS [ ]830 PATEN T (RICO) 11152 RECOVERY OF LIABILITY [ ]370 OTHER FRAUD [J 66 0 OCCUPATIONAL M840 TRADEMARK I 1480 CONSUMER CREDIT DEFAULTED [ ]350 MOTOR VEHICLE [ ]371 T RU TH I N LEN DI NG SAFETY/HEALTH I 1490 CABLE/SATELLITE TV STUDENTLOANS I I355 MOTOR VEHICLE [] 3 80 O TH ER PERSONAL [J 690 OTHER 11810 SELECTIVE SERVICE (EXCLVETERANS) PRODUCT LIABILITY PROPERTY DAMAGE SOCIAL SECURITY [ ]850 SECURITIES/ 11153 RECOVERY OF I I360 OTHER PERSONAL [ ]38S P RO PE RT Y D AMA GE COMMODITIES/ OVERPAYMENT INJURY PRODUCT LIABILITY LABOR [ )861 HIA (1395ft) EXCHANGE OF VETERANS [ ]862 BLACK LUNG (923) I I 675 CUSTOMER BENEFITS 11710 FAIRLABOR [ J863 D IW C/ DI WW ( 40 5( g) ) CHALLENGE 11160 STOCKHOLDERS STANDARDSACT [ ]864 SSID TITLE XVI 12 US C 3410 SUITS II 720 LABOR/MGMT [ ] 865 RSI (405(g)) [ ]890 OTHER STATUTORY |]190 OTHER PRISONER PETITIONS RELATIONS ACTIONS CONTRACT II 730 LABOR/MGMT [J 891 AGRICULTURAL ACTS 11195 CONTRACT [ ]510 M O TI O N S T O REPORTING & FEDERAL TAXSUITS [ ]892 ECONOMIC PRODUCT ACTIONS UNDER STATUTES VACATE SENTENCE DISCLOSURE ACT STABILIZATION AC T LIABILITY 28 US C 2255 II 740 RAILWAY LABOR AC T [J 87 0 TAXES(U.S. Plaintiff or [J 893 ENVIRONMENTAL 11196 FRANCHISE CIVIL RIGHTS [ ]530 HABEAS CORPUS I I790 OTHER LABOR Defendant) MATTERS [ ]535 D EA TH PE NA LT Y LITIGATION [ J871 I RS -T HI RD P AR TY I I894 ENERGY I 1441 VOTING []540 MANDAMUS& OTHER 11791 EMPL RE T INC 26 US C 7609 ALLOCATION AC T I I442 EMPLOYMENT S E C U R IT Y A C T [ ]895 FREEDOM OF REALPROPERTY II 44 3 HOUSING/ I N F O RM A T I ON A C T ACCOMMODATIONS IMMIGRATION [ ]900 APPEAL OF FE E 11210 LAND [ ]444 WELFARE PRISONER CIVIL RIGHTS DETERMINATION CONDEMNATION [J44S AMERICANS WITH [J 462 NATURALIZATION UNDER EQUAL [ I220 FORECLOSURE DISABILITIES - [ ]550 C IV IL R IG HT S APPLICATION ACCESS TO JUSTICE [ ]230 RENT LEASE & EMPLOYMENT [ J555 P RI SO N C ON DI TI ON 11463 HABEAS CORPUS- II 950 CONSTITUTIONALITY EJECTMENT II 44 6 AMERICANS WITH ALIEN DETAINEE OF STATE STATUTES II 240 TORTS TO LAND DISABILITIES -OTHER 11465 OTHER IMMIGRATION II 245 TORT PRODUCT LIABILITY [J 44 0 OTHER CIVIL RIGHTS (Non-Prisoner) ACTIONS [ ]290 ALL OTHER REAL PROPERTY Check if demanded in complaint CHECK IF THIS IS A CLASS ACTION UNDER F.R.C.P. 23 DEM ND  _ OTHER Check YES only if demanded in complaint JURY DEMAND: S YES NO DO YO U CLAIM T H IS C A S E IS RELATED TO A CIVIL C A S E N O W P E ND IN G IN S.D.N.Y.? IF SO , STATE: JUDGE DO KET NUM ER NOTE: You must a lso s u bm it a t t he ti me o f f il in g t he Statement of Relatedness form (Form IH-32)

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Nespresso sues HiLine Coffee for coffee over "Nespresso (R) compatible" coffee capsules. Nespresso's actions are for trademark and trade dress infringement, including for trade dress of the capsule itself. Nespresso is also suing for copyright infringement of "product images." Its copyright registrations are, according to the complaint, pending with the Copyright Office. The complaint alleges that HiLine uses "Nespresso"metatags on its website to drive Nepresso customers to its website. For informational purposes only. Not legal advice. I am not representing any parties in this action. For more information about our practice, see:http://torekeland.com/about/mark-h-jaffeand legal tidbits on my twitter feed:@MarkJKings

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  • 5/26/2018 Nespresso v. HiLine Coffee

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    JUDGE SIJS 44C/SDNYREV. 2/2014 1 4 CV 3292IVIL COVER SHEI

    The JS-44 civilcover sheet and the information contained herein neither replace nor supplement the filingand servlpleadings or other papers as required by law, except as provided bylocal rules ofcourt. This form, approved b;Judicial Conference of the United States in September 1974, is required for use ofthe Clerk ofCourt for the purpo:initiating the civildocket sheet. *Y0 6MPLAINTIFFSNESPRESSO USA, INC.

    DEFENDANTSHILINE COFFEE COMPANY, INC.

    ATTORNEYS (FIRM NAME,ADDRESS, ANDTELEPHONE NUMBERMayer Brown LLP, 1675 Broadway, New York, New York 10019Telephone: (212)506-2500

    ATTORNEYS (IF KNOWN)

    CAUSE OF ACTION (CITE THEU.S.CIVIL STATUTE UNDER WHICH YOU AREFILING AND WRITE ABRIEF STATEMENT OF CAUSE)(DO NOTCITE JURISDICTIONALSTATUTES UNLESS DIVERSITY)

    15 U.S.C. 1114, 15 U.S.C. 1125,17 U.S.C. 501, N.Y.GEN. BUS LAW349(a): Trademark, trade dress and copyright infringementHas this action, case, or proceeding, or one essentially the same been previously filed in SDNYat any time? No0Yes|_ljiudge PreviouslyAssignedIf yes, wasthis case Vol. I I Invol. I I Dismissed. No f j Yes f j Ifyes,give date. & Case No .IS THISAN INTERNATIONALARBITRATION CASE? No Yes D(PLACEAN [x] INONEBOXONLY) NATURE OF SUI T

    ACT IONS UNDER STATUTES

    CONTRACT PERSONAL INJURY PERSONAL INJURY FORFEITURE/PENALTY BANKRUPTCY O T H ER S T A T U T ES

    I I 0 INSURANCE I 1310 AIRPLANE [ ] 3 62 PERSONAL INJURY- 11610 AGRICULTURE [ J 422 APPEAL [ 1400 STATE11120 MARINE I 1315 AIRPLANE PRODUCT MED MALPRACTICE [ ]620 OTHERFOOD & 28 US C 15 8 REAPPORTIONMENT11130 MILLER AC T LIABILITY [ ] 3 65 PERSONALINJURY DRUG [ ] 423 WITHDRAWAL I 1410 ANTITRUST11140 NEGOTIABLE [ ]320 ASSAULT, LIBEL & PRODUCT LIABILITY I I 6 25 DRUG RELATED 28 US C 15 7 I I 430 BANKS & BANKING

    INSTRUMENT SLANDER [ ] 3 68 ASBESTOS PERSONAL SEIZURE OF I I 450 COMMERCEI 1150 RECOVERY OF [ J 3 30 FEDERAL INJURY PRODUCT PROPERTY I I 460 DEPORTATION

    OVERPAYMENT & EMPLOYERS ' LIABILITY 21 USC 861 PROPERTY RIGHTS I I 470 RACKETEER INFLUENFORCEMENT LIABILITY [ J 6 30 LIQUORLAWS ENCED & CORRUPTOF JUDGMENT I I 3 40 MARINE P E R S ON A L P R O P E RT Y I I 640 RR STRUCK [ ] 820 COPYRIGHTS ORGANIZATION AC T

    11151 MEDICARE AC T I I 345 MARINE PRODUCT [ ]650 AIRLINE REGS [ ] 8 30 PATENT (RICO)11152 RECOVERY OF LIABILITY [ ] 3 70 OTHER FRAUD [ J 660 OCCUPATIONAL M840 TRADEMARK I 1480 CONSUMER CREDITDEFAULTED [ ]350 MOTOR VEHICLE [ ] 3 71 TRUTH INLENDING SAFETY/HEALTH I 1490 CABLE/SATELLITE TVSTUDENTLOANS I I 3 55 MOTOR VEHICLE [ ] 3 80 O TH ER PERSONAL [ J 690 OTHER 11810 SELECTIVE SERVICE(EXCLVETERANS) PRODUCT LIABILITY PROPERTY DAMAGE SOCIAL SECURITY [ ]850 SECURITIES/

    11153 RECOVERY OF I I 3 60 OTHER PERSONAL [ ] 3 8S PROPERTY DAMAGE COMMODITIES/OVERPAYMENT INJURY PRODUCT LIABILITY LABOR [ )861 HIA (1395ft) EXCHANGEOF VETERANS [ ]862 BLACK LUNG (923) I I 675 CUSTOMERBENEFITS 11710 FAIRLABOR [ J863 DIWC/DIWW (405(g)) CHALLENGE

    11160 STOCKHOLDERS STANDARDSACT [ ]864 SSID TITLE XVI 12 US C 3410SUITS I I 720 LABOR/MGMT [ ] 865 RSI (405(g)) [ ]890 OTHER STATUTORY| ]190 OTHER PRISONER PETITIONS RELATIONS ACTIONS

    CONTRACT I I 730 LABOR/MGMT [J 891 AGRICULTURAL ACTS11195 CONTRACT [ ]510 MOTIONSTO REPORTING & FEDERAL T A X S U IT S [ ]892 ECONOMICPRODUCT ACTIONS UNDER STATUTES VACATE SENTENCE DISCLOSURE ACT STABILIZATION AC TLIABILITY 28 US C 2255 I I 740 RAILWAY LABOR AC T [ J 870 TAXES(U.S. Plaintiff or [ J 893 ENVIRONMENTAL

    11196 FRANCHISE CIVIL RIGHTS [ ] 5 30 HABEAS CORPUS I I 7 90 OTHER LABOR Defendant) MATTERS[ ] 5 35 DEATH PENALTY LITIGATION [ J871 IRS-THIRD PARTY I I 8 94 ENERGYI 1441 VOTING [ ]540 MANDAMUS& OTHER 11791 EMPL RE T INC 26 US C 7609 ALLOCATION AC TI I 4 42 EMPLOYMENT SECURITY ACT [ ]895 FREEDOM OFREALPROPERTY I I 443 HOUSING/ INFORMATION ACT

    ACCOMMODATIONS IMMIGRATION [ ]900 APPEAL OF FE E11210 LAND [ ]444 WELFARE PRISONER CIVIL RIGHTS DETERMINATION

    CONDEMNATION [J44S AMERICANS WITH [J 462 NATURALIZATION UNDER EQUAL[ I 2 20 FORECLOSURE DISABILITIES - [ ] 5 50 CIVILRIGHTS APPLICATION ACCESS TO JUSTICE[ ]230 RENT LEASE & EMPLOYMENT [ J555 PRISONCONDITION 11463 HABEAS CORPUS- I I 950 CONSTITUTIONALITYEJECTMENT I I 446 AMERICANS WITH ALIEN DETAINEE OF STATE STATUTES

    II 240 TORTS TO LAND DISABILITIES -OTHER 11465 OTHER IMMIGRATIONI I 245 TORT PRODUCTLIABILITY

    [ J 440 OTHER CIVIL RIGHTS(Non-Prisoner)

    ACTIONS[ ]290 ALL OTHER

    REAL PROPERTY

    Check if demanded in complaint

    CHECK IF THIS IS A CLASS ACTIONUNDER F.R.C.P. 23DEM ND _ OTHERCheck YES only ifdemanded in complaintJURY DEMAND: S YES NO

    DO YOU CLAIM THIS CASE IS RELATED TO A CIVIL CASE NOW PENDING IN S.D.N.Y.?IF SO , STATE:JUDGE DO KET NUM ER

    NOTE: You must also submit at the time off il ingthe Statement of Relatedness form (Form IH-32)

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    (PLACEAN X INONEBOXONLY)ffl1 Original 2 Removed from 3 RemandedProceeding state Court ,, a. all partlet represented Appellate' Court

    I I b. Atleastoneparty is pr o se .

    ORIGINI I4 Reinstated or LJ 5 Transferred from LZI 6 Multidistrict

    Reopened (Specify District) LitigationI I 7 Appeal toDistrict

    Judge fromMagistrate JudgeJudgment

    (PLACEAN X INONEBOX ONLY) BASIS OF JURISDICTIOND 1 U.S. PLAINTIFF 2 U.S. DEFENDANT [X| 3 FEDERAL QUESTION Q4 DIVERSITY(U.S. NOT A PARTY)IFDIVERSITY, INDICATECITIZENSHIP BELOW28 USC 1332, 1441)

    CITIZENSHIP OF PRINCIPAL PARTIES (FOR DIVERSITYCASES ONLY)(Place an [X] in one box for Plaintiffand one box for Defendant)

    CITIZEN OF THIS STATEPT F DEF; 1 1 CITIZEN O R S UB JE C T O F A

    FOREIGN COUNTRY

    PTF DEF PTF DE F[]3[]3 INCORPORATED and PRINCIPAL PLACE [ ]5 [ ] 5

    OF BUSINESS IN ANOTHERSTATECITIZENOF ANOTHER STATE [ ]2 [ ]2 INCORPORATED or PRINCIPALPLACE []4[]4 FOREIGN NATION

    OF BUSINESS IN THIS STATE

    PLAINTIFF(S)ADDRESS(ES) ANDCOUNTY(IES)100 Park Avenue, 7th Floor, New York, New York 10017, United States, New York County

    DEFENDANT(S) ADDRESS(ES) AND COUNTY(IES)1133 Broadway, Ste. 706, New York, New York 10010, United States, New York County

    [ ]6 I ]6

    DEFENDANT(S) ADDRESS UNKNOWNREPRESENTATION IS HEREBY MADE THAT, AT THIS TIME, I HAVE BEEN UNABLE, WITH REASONABLE DILIGENCE, TO ASCERTAIN TH E

    RESIDENCE ADDRESSES OF THE FOLLOWING DEFENDANTS:

    Checkone: THIS ACTION SHOULD BEASSIGNED TO: WHITE PLAINS |X| MANHATTAN(DO NOT check either box ifthis a PRISONER PETITION/PRISONER CIVILRIGHTS COMPLAINT.)DATE 5/6/2014

    RECEIPT

    SIGNATURE OF ATTORNEY O F R E CO R D

    k*JL .-V^ Magistrate Judge Is to beMagistrate JudgeRuby J. Krajick, Clerk of Court by . Deputy Clerk, DATED.UNITEDSTATES DISTRICT COURT (NEW YORK SOUTHERN)

    ADMITTED TO PRACTICE IN THIS DISTRICT[] NON YES (DATE ADMITTED Mo. Sept. Yr. 1990 )Attorney Bar Code # AM5829

    is so Designated.

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    UNITED STATES D I STR ICT COURTSOUTHERN D I ST R IC T OF N EW Y O R K

    NESPRESSO USA, INC.,Plaintiff, 14,CV,323Cas e No . , ~

    v.

    HILINEG^|$d8mPANY, INC.,Defendant.

    JURY TR I AL DEMANDED

    ^ : ;

    C OM PL A IN TIIHHilMHHIHiimH

    Plaintiff, Nespresso USA, Inc. ( Nespresso o( Plaintiff), by and tbi^uglTjitSocz

    undersigned counsel, complains of Defendant HiLine Coffee Company, Inc. ( HiLine51 or *Defendant ) as follows:

    N AT U RE OF TH E AC T ION

    i 1. This is an action for an injunction, an accounting and money damages arisingfrom HiLine's willful infringement of Nespresso's trademarks, trade dress and copyrights, andunfair competition under federal and state law. Particularly, this action arises out of HiLine'soperation of a business dedicated to the manufacture, offering for sale and sale of what it hascoined Nespresso compatible coffee capsules, which HiLine has designed to be compatiblewith Nespresso machine[s] by using technologies patented by Nespresso, emulatingNespresso's famous trade dress, and improperly using Nespresso's trademarks to trickconsumers into believing that its products are endorsed and/or sponsored by Nespresso. (SeeExhibit A). Indeed, HiLine has conjured up an entire business by unlawfully trading off ofNespresso's valuable assets and goodwill, which has caused, and continues to cause, irreparableharm to Nespresso.

    1

    1 - - 5 c_; ; . . ; c/ >

    v

    u - raC- ; ...; cr>-ri

    CH 70 Pp-rn~ rr -o iO

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    2. In an attempt to address these matters, Nespresso issued a letter to HiLine onMarch 7, 2014, raising the issues set forth herein and requesting a response by March 26, 2014.Consistent with its ongoing pattern of disregard for Nespresso and Nespresso's intellectualproperty rights, HiLine did not respond to Nespresso's letter, until nearly a month later, on April4, 2014, and when HiLine did respond, it did so by refusing to comply with Nespresso'sdemands. Nespresso brings this action to put an end to HiLine's infringing activities and tocease the ongoing and irreparable harm being suffered by Nespresso as a result.

    TH E PART IES

    3. Plaintiff Nespresso is organized under the laws of the state of Delaware andmaintains its principal place of business at 100 Park Avenue, 7th Floor, New York, New York10017, United States.

    4. On information and belief, Defendant HiLine is a corporation organized under thelaws of the state of Delaware and maintains its principal place of business at 1133 Broadway,Ste. 706, New York, New York 10010, United States.

    J U RIS D IC T IO N A N D V E NU E

    5. This is an action for trademark infringement, trade dress infringement, copyrightinfringement and unfair competition. This action arises under the Lanham Act 15 U.S.C. 1051et seq., the United States Copyright Act 17 U.S.C. 101, et seq., New York General BusinessLaw 349(a) and New York common law. This Court has subject matter jurisdiction over this

    action pursuant to at least 28 U.S.C. 1331, 1338, and 1367 and 15 U.S.C. 1121.6. Venue is proper in this Court under 28 U.S.C. 1391(b)(1) and (2) because

    Defendant maintains its principal place of business within this District and a substantial part of

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    the events giving rise to this action occurred in and continue to occur within this District. Venueis also proper under 28 U.S.C. 1400(a).

    NESPRESSO ' S I NTELLEC TUAL PROPERTY AS SETS AN D PRODUCT S

    7. Plaintiff Nespresso is a leader in the single serve coffee market and has beenoffering coffee/espresso machines and compatible espresso capsules, consumables andaccessories under the Nespresso name in the United States as far back as 1990. For over 20years, Nespresso and its affiliate, Nestle Nespresso S.A., together have invested hundreds ofmillions of dollars to promote the Nespresso brand in the U.S. and worldwide. As a result of

    these significant investments, the Nespresso brand and Nespresso cone-shaped capsules havebecome widely recognized and famous among consumers in the United States and globally, andconsumers in the U.S. have come to readily identify the NESPRESSO name and the distinctiveshape, design and color scheme of the Nespresso cone-shaped capsules (the Nespresso TradeDress ) with Nespresso.

    8. Nespresso's and Nestle Nespresso S.A.'s investments in the Nespresso brandand the Nespresso Trade Dress include everything from Internet advert isements, stand aloneNespresso retails stores in most major U.S. cities, entire Nespresso boutique stores within highend stores such as Bloomingdale's and Williams-Sonoma to national television ads that featurecelebrity endorsements. (See, e.g.. Exhibit B). These advertisements and promotional materialsconsistently feature the NESPRESSO name and the colorful Nespresso cone-shapedcapsules, all of which have become famous and distinctive indicators of source that consumers inthe U.S. have come to associate with Nespresso.

    9. Nespresso is also the exclusive licensee to a number of federally registered UnitedStates trademarks and pending trademark applications covering the NESPRESSO name and

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    other trademarks associated exclusively with the Nespresso brand, for use in the United States,which are owned by Nespresso's affiliate, Societe des Produits Nestle S.A. ( SPN ). Theseinclude U.S. trademark registration numbers 2009751 and 3813444 (the Nespresso Marks ).(SeeExhibit C).1

    10. Pursuant to the exclusive sub-license agreement between Nespresso and NestleNespresso S.A., Nespresso is granted the exclusive right to use the Nespresso Marks inconnection with marketing, distributing, selling, offering for sale and otherwise promoting theNespresso capsules, consumables and accessories and a non-exclusive right and license to use

    the Nespresso Marks in connection with espresso machines. Nespresso's exclusive right to usethe Nespresso Marks in connection with capsules, consumables and accessories includes theright to enforce the Nespresso Marks in the United States, including the right to bring lawsuitsagainst third parties for infringement of the Nespresso Marks.

    11. Additionally, Nespresso is the exclusive licensee to several copyrighted imagesthat are owned by SPN (the Nespresso Copyrighted Materials ). These include the imagescovered by U.S. Copyright application numbers 1-1400244291 (titled Machines B2C BrevillePixie Electric Red ) and 1-1400244519 (titled Vertuoline ) that cover the product images setforth i n Exh ib i t D.

    HIL INE ' S INFRINGING ACT IV I T IES

    12. On information and belief, HiLine was founded in July 2013 by Gene Kakaulin

    and Ted Snyder with the sole mission of offering More Choice for Nespresso drinkers. (See,e.g., Figure 1). HiLine's entire business is dedicated to the manufacture, offering for sale and

    1The rights to theNespresso Marks licensed to Nespresso include exclusive rights to use the Nespresso Marks inconnection with capsules, consumables and accessories and non-exclusive rights to use the Nespresso Marks inconnec t ion wi th machines .

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    sale of what it has coined Nespresso compatible capsules (hereinafter, the HiLine Capsules ),which are very similar copies of the Nespresso capsules. (See, e.g., Figure 2).

    PREMIUM NESPRESSO CAPSULES ALTERNATIVE FOR LESS

    Figure 1Source: HiLine website , 5/2/2014

    ABOUT US6URMISSNN

    Figure 2Source: HiLine website , 5/2/2014

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    13. HiLine sells the HiLine Capsules through its website andthrough other online storefronts such as Amazon.com and ecscoffee.com. HiLine also promotesits products using social media websites, including Facebook, Twitter, Pinterest and Google+.

    14. To promote and sell the HiLine Capsules, HiLine uses the Nespresso Marks in anumber of ways that infringe Nespresso's trademark rights and dilute the distinctiveness of thefamous Nespresso Marks, including using key words in the meta tags of its website thatinclude the word NESPRESSO, which helps to direct individuals searching for Nespressoproducts using the term NESPRESSO to HiLine's website. (See Figure 3).c 5 t a r t Google Ana l y t i c s >e sc r i p t>

    ( f unct i on ( i , s ,o ,g , r ra rm) { i r /Goog leAna ly t i e sOb jec t ' ] - r ; i [ r ] - i [ r ] ] | f unc t ion (J {( i [ r ] .q - l [ r } .q | | [] ) . push , i [ r ] . l - l *new Date ();**>. creeteElement (o>,m- .g* tEleen tsByTagNae [0 ] ;a .Mync - l ;a . s r c -g ; i i . par en tHode . in s e r tBe for e (a , i i ) window,document, script , //ww. goagle-anelYtics.com/analytics.j ,*ga );ga create , OA-42001713-1 , hilinacoffaa.com1);ga require , linkid , linkld.js >;ga ( ' s e n d ' , ' pagev i ev '> ;

    c / s c x ip t>i . En d Google Ana l y t i c s >

    cmeta h t tp -equ lv - Con ten t -Type co n t en t - t e x t /h tm l ; ch a r s e t - u tf - 8 />Abou t - HiLine Coffee Conf>anycmeta name' descr ipt ion content- He o f f e r more cho ic e an d b e t t e r va lue to Nespresso dr inke r s by s e l l i n g pxexuuro qua l i t y Nespre s so compatible capsu le s a t adiscount price . />cmeta name - ro b o ta content* INDEX,FOLLOW />cmeta name- viewport con ten t - w id th -dev i c e -w id ta , i n i t i a l - s c a l e - 1 , ma*imam-scale- l />cmeta name- ptdomain_veri fy eontent- Qfafe6cfl56ai4ebS98bafl22d0eeb4Q />c l i nk re l - i ean hre f - h t t pa : / /wn f . i a i ineco fgee .coa / s l c l r / f T -nn t>nr t / de f an l t / h l l i neco f f ee / f av l con . l ca t ypeimage /x - i can />s l i n k x e l - a h a r tcu t i con hre f - h t t pa ; / / i n iw .h l l i neGo f f ee .com/ s l c i n / f ron t end /derau l t / ^ t ypelmage /x - i con />c [if It IE 7] >e s c r l p t t y p e - t eK t / j a v a s c rl p t >//* f r - naT a t Figure 3

    Source: HiLine website , 5/2/201415. Throughout its website and social media pages, HiLine refers to the HiLine

    Capsules as HiLine Coffee Nespresso Capsules and HiLine Coffee Nespresso Pods,combining the name HiLine with the Nespresso Marks. (See, e.g., Figures 4-5). HiLine evenrefers to the HiLine Capsules as our Nespresso coffee capsules. See, e.g., Figure 6).

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    HiLine Coffee Company uploaded a videoHiLine Coffee Nespresso Pods - Nespresso UD e m o9 months ago 1,146 viewsNespresso pods from HiLine Coffee ca n be used in mostNespresso machines. This demo shows HiLine's premium.

    Figure 4Source: HiLine YouTube page , 5/2/2014

    HiLine Coffee Company uploaded a v ideoHiLine Coffee Nespresso Capsules Citiz Demo9 months ago 2.716 viewsDemo video of HiLine Coffee Nespresso Capsules used on Citizmachine. For more information, please visit...

    Figure 5Source: HiLine YouTube page , 5/2/2014iVo tevv tesptesss m.jr j'a.ciuioo mc Dos; ;^g:o iirfs hi M~'\ A'>1 'A**- '^rfi'v t>.^ \Ut~-.1 >' . ilVf' h^rt; : M-*;^'S.-Jdirl- *f> Jev^Ksti^d -I fp.'. pirii-./Ti l:*-r\jv nriil ;i-: t.4 3~i |-*vii.tcmpaiit'ic Jespicisc c j f ; '.Vh' *c sftaied o-ji p 'Mjct wii- cm

    Wfi th e wo'tO and introduce ou rWmwt-ve to'tit- Nsst-iir-wy '.''*''i , ni f i-[> p. ; . fr . . : . : i lc. p .d Vhtp M'l - n,A**' W ill *- ; +- to j i .'irT i In - i~ M* ^ li- ^ 11 * ' ~ ' i t Hi j* i in -. ' ivi ^ l > ii i j t i t l5iiJ .Jri .fA^ * ' -il >* ^ ' i ii iL a l r 'J * 1 ** - H-Aloyib l r j.^ ri- ^rlr i ' A l f .a ' i iniTf c -p-rdrvi rp - ;>r rr- ivh iTf - - i i . r -.--i ih- 11 - ui>- ''>- *1- - i-s j i -iiui- I >i ipKifcin h- ,-t( nh-: .' t.i i i., rn-, h,-miwr ,-iiti t | >- >-iii >- *. .

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    _--\ ->< V ' ' a*-'

    |- . . r. i ' 1 i ,v M i ,?* 1- li i |i-' ' k. (| l M il

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    .; .-.-. ' *;t ri. lir r-. , , -*l . i- ,i-, . ' i I . . I I

    A; :| 'illl| ' In ,1 ' N-

    Figure 8Source: HiLine website , 5/2/2014

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    Tuesday's featuredblend is ourMedium Roast, another bestsellerPremium beans from ColombiaGuatemala. Cotta RicaandKenyaareblendedto create s slightlysweet medium bodied espressowithlightacidity anda velvetysmooth finish Ta ke20 offMedium Roa st a n do the r Mends atwww.HILIneCof fee .com withcode INDEPENDENCEthrough7/311. ;. U pl oa de d b y

    HiLineCoffee NespressoCompatibleCapsules - NespressoU Demo www.HiLlneCoHee.com

    other blends atwww.HILIneCof fee .com withcode INDEPENDENCEthrough7/311

    From Costa Rtca to Ethiopia HiLine

    plntere

    Startoff yourMondaywith MildRoast espresso ourbstsellingblend A mix of the finest beansfrom Colombia Cos ta R i ca andKenya this lightroast yields fruityflavors with notes of cinnamoncitrusand blackberry Take 20%offMild Roat l and otherb lends atwww.HILIneCoffee.com withcode INDEPENDENCE through7/311

    HiLineCoffeeNespressoCompatible Capsules - Pixie Demowww.rl iLineCDf fee .comA -

    c l ean f i n e s s e of the f i n es t A f r ic anArabics beans Take 20%offyourpurchase ofDarkRoast andotherblends with code INDEPENDENCEat www.HiLineCof f se .comthrough 7/311

    HiLineCoffeeNespressoCompatibleCapsules - EssenzaDemo www.HiLineCof f f l e .comft .. . .. .

    HiLineCoffee NespressoCompatible Capsules - Cit iz Demo

    H Kristineample aroma iake 2U% oilUeca tRoas t ando t h e r b l end s atwww.HILIneCoffee.com withcode INDEPENDENCE through7/311

    Demo Using HiLineCoffeeCapsuleinNespresso Citizwww .HiL in eCo f f e e . com

    IPFigure 9Source: HiLine Pinterest page , 5/2/2014

    17. The images displayed on HiLine's website include product images that are ownedby SPN and exclusively licensed to Nespresso. (See, e.g., Figure 10. Exhibit D).

    NESPRESSO VERTUOUNE REVIEWRecentlyNespresso introduced a newcoffee machine forthe U.S.market.We got promotionalmaterials inthe mailfromWilliamsSonoma and receivedan emailfromNespressoClubaboutthisnewoffering.Thisis veryexciting So has Nespressodone itagain?Has itdelivereda breakthroughcoffeetechnologythatwilmakecoffeesnobs raise theireye browsina surprise andsay, woah,didnt expect that from a single serve machine *We thinkifs a verygood machine,butprobablynotworththe hype.Why?Let's discuss al thepluses andminuses ofVertuoLine.The plutsi:

    I tmakes a great espresso, similar intaste towhat alNespresso machines produce. VertuoLinemakes coffee or8 ozespresso-based drink,similarinsizeto a Keurigbrewed coffee Becauseitis espressobased,it has crema and is muchtastier than most K-cupson themarket that we have tried.

    Figure 10Source: HiLine website , 5/2/2014

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    18. In addition, on its website and in other advertisements, HiLine makes statementsimplying affiliation and/or sponsorship with Nespresso, including statements about Nespresso'swarranties. For example, on its FAQ page, HiLine states that the [HiLine] [C]apsules we sellwill not damage your [Nespresso] machine, nor will they in any way void your warranty. (SeeFigure 11).

    FAHI Aw cp*ur*i Ibuy from HILirw Coffw d*m*g my N>rxio michirw ?

    10

    'i i .I| .H ' 'ni > [' ii 't. w M, * * >a i*:* tl1' -.;'' M ii1'< v .i-ij, < Mi'- , : i 'I I . 'ij-i' n ' ' - i . ii 'u' r*-I 'r. .. A .VU .tli. .. ' : -n '' r |[ .. . > . .,'.,'...'.- Ir . i . l | - . .>- . , : ' Ivil-c--'- .'. .Ii. 'l l c . I . I ..i-ll.. lf \ ' ' ' - ' , ,c t j : - ' . . . f r i . ' 'I'l-t,^ ' '* ' f > , . Ill) ' . >' f ); -> | . | , l( . - ;|:v H (P'5 ' I'M ',VI I ll | | . , (-. .., '-: .', '.. I . i f . - U i' -, .' I C' < ' * .' ' -'

    WillI nofect any dilttrtncc m how On*cpui woik*'>vt;ii >> < -',: '-' ' I ; ' n , 1t

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    ?iWWW*jCPM* Uiw'i Carnal*

    Figure 12Comparison - Top of capsule

    msiSBss^L HLia t ' t Carnal*

    Figure 13Comparison - Right side of capsule

    11

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    I SS ^ c -

    Figure 14Comparison - Left side of capsule

    Figure 15Comparison - Front of capsule (A)

    12

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    Supmi** Capurir HHiBeNC >

    Figure 16Comparison - Front of capsule (B)

    Igy twCapMlK

    I

    INf|rMot Csfnaln.Figure 17Comparison - Top of capsule

    13

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    20. HiLine's efforts to manufacture, offer to sell and sell highly similar duplicates ofthe Nespresso capsules are only becoming more egregious as HiLine recently introduced anew capsule design that has a silver top that is nearly identical in appearance to the top of theNespresso capsules. (See Figure 18V

    Figure 18Comparison - Top of capsule21. HiLine's marketing and advertising has emphasized the similarities between the

    HiLine Capsules and the Nespresso capsules, including the compatibility of the HiLineCapsules with certain Nespresso machines. HiLine has marketed its capsules as Nespressocapsules alternative for consumers who desire to use Nespresso machines, but who do notwant to pay for the realNespresso capsules. See, e.g., Figures 1 and 19).

    How can you sell at such a discount to Nespresso?O-jt pf^e o $ to p -< .jpii,i.' .on : fnp.r-v ' [N.:> *u>1 /,. .i'-- If * *> } v ' -J-: -, -i*. rl -'..I'v; ,, r r*v> v u ^ . vx. A.:1i1l*i.'i'i,V . ;/iiik~ rjU'if.'-';;.'. ** ,-iv / 1 iVi--.ft. y .,-:fwTV V i -- ,i'i>1 v.rf-'rv: -,^r-nj,,,i^Hfi^''iFs '.v'n.'' } -v.it -r^'ii i- *r- .j.id'i'r '? - r. -.nj..:r t'.>r 4 * v*~ .,c 'r:*- > -^ vv~ --. ..* .. :;

    Figure 19Source: HiLine website , 5/2/201422. HiLine's knowing and intentional infringement of Nespresso's trademarks and

    comprehensive copying of the Nespresso Trade Dress has caused and continues to causeconfusion among consumers asto the source, sponsorship and/or affiliation of HiLine's productswith Nespresso, and has irreparably harmed and continues to irreparably harm Nespresso'sreputation and the Nespresso brand.

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    23. HiLine has refused to comply with Nespresso's requests for HiLine to ceaseinfringement of the Nespresso Marks and the Nespresso Trade Dress and, after responding toNespresso's initial letter whereby Nespresso raised these issues, HiLine defiantlymisappropriated the Nespresso Copyrighted Materials without Nespresso's consent. (See, e.g.,Exhibit D). Accordingly, Nespresso is left with no options other than to file this lawsuit toprotect some of its most valuable assetsits brand identifiers and product promotional materials.

    COUNT I: TRADEMARK INFRINGEMENT UNDER THE LANHAM ACT .15 U.S.C. S 1114m

    24. Nespresso repeats and incorporates herein each and every allegation set forth inparagraphs 1 to 23 of this Complaint.

    25. Nespresso has exclusive rights, dating back to at least 1990, in and to theNespresso Marks for use in the United States in connection with espresso capsules, consumablesand accessories that well predate HiLine's use of the Nespresso Marks.

    26. HiLine is using the Nespresso Marks in connectionwith the manufacture, offeringfor sale and sale of the HiLine Capsules, which are highly similar to the Nespresso capsules.Such use by HiLine of the Nespresso Marks in commerce in connection with these goods islikely to cause, has caused and continues to cause consumer confusion.

    27. Neither Nespresso, SPN nor Nestle Nespresso S.A. have consented to HiLine'suse of the Nespresso Marks.

    28. HiLine had actual or constructive knowledge of Nespresso's trademark rightsprior to using or continuing to use the Nespresso Marks.

    29. HiLine's use of the Nespresso Marks constitutes trademark infringement of U.S.trademark registration numbers 2009751, 1607148 and 3813444 in violat ion of 15 U.S.C.1114.

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    30. The willful and intentional nature and the reckless disregard of the most basiclevel of diligence by HiLine makes this false designation of origin an exceptional case pursuantto 15 U.S.C. 1117(a) and, accordingly, Nespresso is entitled to an accounting for profits,profits, enhanced profits and damages, actual damages, costs and reasonable attorneys' fees.

    31. As a result of HiLine's trademark infringement, Nespresso has suffered damagesin an amount to be determined at trial.

    32. On information and belief, HiLine has gained profits by virtue of its infringementof the Nespresso Marks.

    33. Nespresso has suffered and will continue to suffer irreparable harm to itsbusiness, reputation and goodwill as a result of HiLine's actions, and Nespresso lacks anadequate remedy at law to compensate for this harm and damage. Accordingly, Nespresso isentitled to an injunction by the Court pursuant to 15 U.S.C. 1116(a).

    COUNT II : FALSE DES IGNATION OF ORIGIN UNDER THE LANHAM ACT.15 U.S.C. S 1125(d)

    34. Nespresso repeats and incorporates herein each and every allegation set forth inparagraphs 1 to 33 of this Complaint.

    35. HiLine's use of the Nespresso Marks as key words in the meta tags of itswebsite violates Section 43 of the Lanham Act, 15U.S.C. 1125(d).

    36. Nespresso has had the exclusive right to use and has used the Nespresso Marks inconnection with espresso capsules, consumables and accessories in the U.S. dating back to atleast 1990.

    37. HiLine is knowingly and intentionally using the word Nespresso and othersimilar terms and phrases that include the NespressoMarks as key words in the meta tags of itswebsi te.

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    38. HiLine's use of the word Nespresso and other similar terms and phrases thatinclude the Nespresso Marks as key words in the meta tags of its website is with the intent ofdiverting consumers, who use search engines to search the Internet forNespresso's website andproducts, to HiLine's website.

    39. In using the Nespresso Marks in the meta tags of its website, it is HiLine's intentthat consumers will be tricked into purchasing and/or instead make the decision to purchase theHiLine Capsules to the commercial gain of HiLine. Indeed, on information and belief, attemptsto locateNespresso's website andpurchaseNespresso's productshave been divertedto HiLine'swebsite and continue to be diverted to HiLine's website. On information and belief, at leastsome of these consumers, as a result, have purchased theHiLine Capsules instead ofNespresso'sauthentic capsules.

    40. HiLine's use of the Nespresso Marks in the meta tags of its website, at leastinitially, is likely to cause, has caused and continues to cause confusion among consumers astothe source, sponsorship, affiliation or endorsement ofHiLine's website and itsproducts.

    41. Neither Nespresso, SPN nor Nestle Nespresso S.A. have consented to HiLine'suse of the Nespresso Marks in the meta tags of its website.

    42. HiLine had actual or constructive knowledge of Nespresso's prior trademarkrightspriorto using,or continuing to use, theNespresso Marks.

    43. The willful and intentional nature and the reckless disregard of the most basiclevel of diligence by HiLine makes this false designation of origin an exceptional case pursuantto 15 U.S.C. 1117(a) and, accordingly, Nespresso is entitled to an accounting for profits,profits, actual damages, costsandreasonable attorneys' fees.

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    44. As a result of HiLine's false designation of origin, Nespresso has suffereddamages in an amount to be determined at trial.

    45. On information and belief, HiLine has gained profits by virtue of its falsedesignation of origin.

    46. Nespresso has suffered and will continue to suffer irreparable harm to itsbusiness, reputation and goodwill as a result of HiLine's actions, and Nespresso lacks anadequate remedy at law to compensate for this harm and damage. Accordingly, Nespresso isentitled to an injunction by the Court pursuant to 15U.S.C. 1116(a).

    COUNT III: FALSE DESIGNATION OF ORIGIN UNDER SECTION 43(a) OFTH E LAN HAM ACT . 15 U.S.C. S 1125(a)47. Nespresso repeats and incorporates herein each and every allegation set forth in

    paragraphs 1 to 46 of this Complaint.48. HiLine's use of the Nespresso Marks in connection with the HiLine name and

    reference to the HiLine Capsules as Nespresso capsules to promote, offer for sale and sell the

    HiLineCapsulesviolates Section 43 of the LanhamAct, 15U.S.C. 1125(a).49. HiLine's use of the Nespresso Marks in connection with the HiLine Capsules

    falsely suggests that the HiLine Capsules are connected with, sponsored by, affiliated with orrelated to Nespresso. HiLine's statements, including those related to the warranties offered byNespresso in connection with Nespresso's machines, bolsters this false association withNespresso. This false association with Nespresso is furthered by HiLine's prominentadvertisements on its website and socialmedia pages whereby it displays the HiLine Capsulesalongside Nespresso machines, which conveys the message that the HiLine Capsules areendorsed by and/oraffiliatedwithNespresso and are intendedto go together.

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    50. Neither Nespresso, SPN nor Nestle Nespresso S.A. have consented to HiLine'suse of the Nespresso Marks, and neither Nespresso, SPN nor Nestle Nespresso S.A. haveauthorized HiLine's sale or offer for sale oftheHiLine Capsules using theNespresso Marks.

    51. HiLine's unauthorized use of theNespresso Marks constitutes a false designationoforigin in violation of 15U.S.C. 1125(a).

    52. HiLine had actual knowledge of Nespresso's trademark rights prior to using, orcontinuing to use, the Nespresso Marks.

    53. The willful and intentional nature and the reckless disregard of the most basiclevel of diligence by HiLine makes this trademark infringement an exceptional case pursuant to15 U.S.C. 1117(a) and, accordingly, Nespresso is entitled to an accounting forprofits, profits,actualdamages, costs and reasonable attorneys' fees.

    54. As a result of HiLine's trademark infringement, Nespresso has suffered damagesin a n amoun t to be determined at trial.

    55. On information and belief, HiLine has gained profits by virtue of its infringementof the Nespresso Marks.

    56. Nespresso has suffered and will continue to suffer irreparable harm to itsbusiness, reputation and goodwill as a result of HiLine's actions, and Nespresso lacks anadequate remedy at law to compensate for this harm and damage. Accordingly, Nespresso isentitled toan injunction bytheCourt pursuant to 15 U.S.C. 1116(a).

    COUNT IV: TRADE DRESS INFRINGEMENT UNDER SECTION 43(a) OF THELANHAM ACT . 15 U.S.C. S 1125(a)57. Nespresso repeats and incorporates herein each and every allegation set forth in

    paragraphs 1 to 56 of this Complaint.

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    58. Nespresso is the exclusive licensee of all right and title to the Nespresso TradeDress in the United States. The Nespresso Trade Dress, as embodied in Nespresso's cone-shaped capsules, is inherently distinctive and/or has acquired secondary meaning, and is notfunctional.

    59. In addition, based on Nespresso's extensive and consistent advertising, promotionand sales throughout the United States, the Nespresso Trade Dress has acquired distinctivenessand enjoys secondary meaning among consumers, identifying Nespresso as the source of theseproducts.

    60. Nespresso's extensive promotion and use of the distinctive Nespresso Trade Dresshas resulted in Nespresso's acquisition of valuable, legally protected rights in the NespressoTrade Dress as well as considerable customer goodwill.

    61. HiLine has misappropriated the Nespresso Trade Dress by mimicking thedistinctive elements of the Nespresso Trade Dress almost in their entirety.

    62. HiLine's manufacture, distribution, offering for sale and sale of the HiLineCapsule products with an identical cone shape and using a similar color scheme as theNespresso Trade Dress is likely to cause and has caused confusion, mistake and/or deceptionamong consumers as to the source, affiliation and/or sponsorship of HiLine with Nespressoand/or as to the source, affiliation and/or sponsorship by Nespresso of HiLine's goods and/orcommercial activities.

    63. HiLine's manufacture, distribution, offering for sale and sale of the HiLineCapsule products with an identical cone shape and using a similar color scheme as theNespresso Trade Dress enables HiLine to unfairly benefit from Nespresso's reputation and

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    success in themarketplace, thus giving HiLine's infringing products sales andcommercial valuethat they otherwise would not have.

    64. HiLine hadknowledge of theNespresso TradeDresswhen it designed theHiLineCapsules, and HiLine has refused to change the design andappearance oftheHiLine Capsules inresponse to Nespresso's clear objections. As such, HiLine's infringement has been andcontinues to be intentional, willful andwithout regardto theNespressoTradeDress.

    65. Nespresso, SPN nor Nestle Nespresso S.A. have consented to HiLine's use of theNespresso Trade Dress, and neither Nespresso, SPN norNestleNespresso S.A. have authorizedHiLine's saleor offer for saleof the HiLine Capsules usingtheNespresso TradeDress.

    66. The willful and intentional nature and the reckless disregard of the most basiclevel of diligence by HiLine makes this trade dress infringement an exceptional case pursuant to15 U.S.C. 1117(a) and, accordingly, Nespresso is entitled to an accounting forprofits, profits,actual damages, costs and reasonable attorneys' fees.

    67. Asa result of HiLine's trade dress infringement, Nespresso has suffered damagesin an amount to be determined a t trial.

    68. On information andbelief, HiLine has gained profits by virtue of its infringementof the Nespresso Trade Dress.

    69. Nespresso has suffered and will continue to suffer irreparable harm to itsbusiness, reputation and goodwill as a result of HiLine's actions, and Nespresso lacks anadequate remedy at law to compensate for this harm and damage. Accordingly, Nespresso isentitled to an injunction by theCourt pursuant to 15 U.S.C. 1116(a).

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    COUNT V: COPYRIGHT INFRINGEMENT UNDER 501 OF THE UNITEDSTATES COPYRIGHT ACT . 17 U.S.C. S 501

    70. Nespresso repeats and incorporates herein each and every allegation set forth inparagraphs 1 to 69 of this Complaint.

    71. Nespresso's affiliate SPN owns U.S. copyright application numbers 1-1400244291 (titled Machines B2C Breville Pixie Electric Red ) and 1-1400244519 (titledVertuoline ), which are pending with the U.S. Copyright Office, that cover the NespressoCopyrighted Materials. Nespresso has exclusive rights to the Nespresso Copyrighted Materialsfo r use in t he Unit ed States.

    72. HiLine's use of the Nespresso Copyrighted Materials on its website and otherpromotional materials to promote and sell the HiLine Capsules constitutes copyrightinfringement in violation of 17U.S.C. 501.

    73. Neither Nespresso, SPN nor Nestle Nespresso S.A. have consented to HiLine'suse of the Nespresso Copyrighted Materials, and neitherNespresso, SPN nor NestleNespressoS.A. have authorized HiLine's sale or offer for sale of the HiLine Capsules using the NespressoCopyrighted Materials.

    74. HiLine's copyrightinfringement has beenwillful, knowingand intentional.75. On information and belief, HiLine has gainedprofitsby virtueof its infringement

    of the Nespresso Copyrighted Materials.76. Nespresso has suffered and will continue to suffer irreparable harm to its

    business, reputation and goodwill as a result of HiLine's actions, and Nespresso lacks anadequate remedy at law to compensate for this harm and damage. Accordingly, Nespresso isentitledto an injunctionby the Court pursuant to 17U.S.C. 502.

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    COUNT VI UNL WFUL DECEPTIVE CTS ND PR CTICES UNDER N YGEN BUS W S 349 a)

    77. Nespresso repeats and incorporates herein each and every allegation set forth inparagraphs 1 to 76 of this Complaint.

    78. HiLine knowingly and intentionally has manufactured, offered for sale and soldand continues to manufacture, offer for sale and sell the HiLine Capsules by improperly usingthe Nespresso Marks and improperly copying theNespresso TradeDress.

    79. HiLine'suse of the Nespresso Marks and copying of theNespresso Trade Dress iswithout Nespresso's consent and without theconsent of SPN orNestle Nespresso S.A.

    80. HiLine's acts complained of herein are materially misleading and, directed atconsumers and have mislead, continue to mislead and/or are likely to mislead reasonableconsumers as to the origin of the HiLine Capsules, and have deceived, continue to deceive and/orare likely to deceive the public into believing that HiLine's products originate from, areassociated withor are otherwise authorized or endorsed byNespresso.

    81. HiLine's deceptive acts and practices involve public sales activities of a recurringna tu re .

    82. HiLine had knowledge of the Nespresso Marks and the Nespresso Trade Dresswhen it began using theNespresso Marks and when it designed theHiLine Capsules, and HiLinehas refused to cease its improper use of the Nespresso Marks or change the design andappearance of the HiLine Capsules in response to Nespresso's clear objections. As such,HiLine's infringement has been and continues tobe intentional, willful and without regard to theNespresso Marks and Nespresso Trade Dress. Accordingly, Nespresso is entitled to anaccounting for profits, profits, enhanced profits and damages, actual damages, costs andreasonable attorneys' fees.

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    83. As a result of HiLine's trademark and trade dress infringement, Nespresso hassuffered damages in an amount to be determined at trial.

    84. On information and belief, HiLine has gained profits by virtue of its deceptiveacts and practices.

    85. Nespresso has suffered and will continue to suffer irreparable harm to itsbusiness, reputation and goodwill as a result of HiLine's actions, and Nespresso lacks anadequate remedy at law to compensate for this harm and damage. Accordingly, Nespresso isentitled to an injunction by the Court.

    COUNT VII: COMMON LAW UNFAIR COMPETITION86. Nespresso repeats and incorporates herein each and every allegation set forth in

    paragraphs 1 to 85 of this Complaint.87. Neither Nespresso, SPN nor Nestle Nespresso S.A. have consented to HiLine's

    use of the Nespresso Marks or the Nespresso Trade Dress.88. HiLine's use of the Nespresso Marks and the Nespresso Trade Dress is with the

    intent to deceive the public into believing HiLine's goods are affiliated with Nespresso.HiLine's unauthorized use of the Nespresso Marks and the Nespresso Trade Dress constitutespassing off and unfair competition in violation of the common law of the state ofNew York.

    89. HiLine had actual knowledge of Nespresso's trademark and trade dress rightsprior to using, or continuing to use, the Nespresso Marks and the Nespresso Trade Dress,resulting in willful and intentional conduct. Accordingly, Nespresso is entitled to an accountingfor profits, profits, actual damages, costs and reasonable attorneys' fees.

    90. As a result ofHiLines's conduct, Nespresso has suffered damages inanamount tobe determined at trial.

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    91. Nespresso has suffered and will continue to suffer irreparable harm to itsbusiness, reputation and goodwill as a result of HiLine's actions, and Nespresso lacks anadequate remedy at law to compensate for this harm and damage. Accordingly, Nespresso isentitled to an injunction by the Court.

    PRAYER F O R R E LI EF

    WHEREFORE, as a result of the unlawful acts of Defendant set forth in each of th ecountsabove,plaintiff Nespresso prays that the Court enter a judgment against Defendant:

    (a) Preliminarily and permanently enjoining Defendant, its agents, servants, employees,officers and all persons in active concern and participation with them:

    i. From using the Nespresso Marks or any marks similar thereto in connectionwith the manufacture, distribution, advertising for sale, promotion or sale ofany unauthorized goods or services, including the manufacture, distribution,advertisement, promotion, holding for sale or selling of the HiLine Capsulesand in the meta tags of any websites dedicated to the same (including);

    ii. From using the Nespresso Trade Dress or any trade dress similar thereto inconnection with the manufacture, distribution, advertising for sale, promotionor sale of any unauthorized goods or services, including the manufacture,distribution, advertisement, promotion, holding for sale or selling of theHiLine Capsules;

    iii. From using, displaying or otherwise exploiting the Nespresso CopyrightedMaterials in any way;

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    iv. From using any logo, trade name, trademark or trade dress which may becalculated to falsely represent or which has the effect of falsely representingthat the services or products of Defendant are sponsored by, authorized by, orin any way associated with the PlaintiffNespresso or the Nespresso brand;

    v. From infringing Plaintiff Nespresso's exclusively licensed trademarks, tradedress and copyrighted materials; or

    vi. From falsely representing themselves as being connected with, sponsored byor associated with PlaintiffNespresso or the Nespresso brand.

    (b) Ordering the destruction of all unauthorized goods, bearing any copy or colorableimitation of the Nespresso Marks or the Nespresso Trade Dress, including the HiLineCapsules.

    (c) Ordering the destruction of all materials displaying the Nespresso CopyrightedMaterials, modifications thereofor any derivative works created there from.

    (d) Pursuant to 15 U.S.C. 1116(a), ordering Defendant to file with the Court and serveupon Nespresso's counsel, within thirty (30) days after service of the order ofinjunction, a report in writing under oath setting forth in detail the manner and formin which Defendant has compliedwith the injunction.

    (e) Finding that, by the acts complained of above, Defendant has infringed Nespresso'sexclusively licensed federally registered trademarks in violationof 15U.S.C. 1114.

    (f) Finding that, by the acts complained of above, Defendant has created a falsedesignation of origin, false representation of association and has infringed theNespresso Marks and the Nespresso TradeDress in violationof 15U.S.C. 1125(a).

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    (g) Finding that, by the acts complained of above, Defendant has created a falsedesignation of origin and false representation of association in violation of 15 U.S.C. 1125(d).

    (h) Finding that, by the acts complained of above, Defendant has infringed Nespresso'sexclusively licensed copyrights in violation of 17 U.S.C. 501.

    (i) Finding that the acts complained of above constitute willful infringement of theNespresso Marks, the Nespresso Trade Dress and the Nespresso CopyrightedMaterials,

    (j) Ordering Defendant to provide Nespresso with a full accounting of all manufacture,distributionand sale of the HiLineCapsules, includingall profits derived therefrom,

    (k) Ordering Defendant to pay Nespresso:i. Defendant's profits for sale of the infringing goods (i.e., the HiLineCapsules)

    using the Nespresso Marks, the Nespresso Trade Dress and the NespressoCopyrighted Materials;

    ii. Treble actual damages in connection with Defendant's infringement of theNespresso Marks;

    iii. Actual damages in connection with Defendant's infringement of theNespresso Trade Dress;

    iv. Statutory damages in connection with Defendant's infringement of theNespresso Copyrighted Materials; and

    v. Nespresso's costs and reasonable attorneys' fees incurred in this matter,(k) Awarding Nespresso pre-judgment andpost-judgment interestagainstDefendant.

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    (1) Awarding Nespresso such other and further relief as the Court may deem jus t andproper .

    JURY D EMAN D

    Nespresso hereby demands a trial by jury.

    Dated: New York, New YorkMay 6, 2014

    M a y e r B ro w n LLP

    a .^A. John P. Mancin i1675 BroadwayNew York, New York 10019Telephone: (212) [email protected] J. Palmer (pro hac vice to befiled)Kristine M. Young (prohac vice to befiled)71 Sout h Wacke r D ri veChicago, Illinois 60606Telephone: (312) [email protected]@maverbrown.comAttorneysfor PlaintiffNespresso USA, Inc.

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    Our capsules ar e compatiblewiththe followingNespresso models. Citiz,Essenza, Maestria, U.LeCube, Lattissima Plus, Inissia and Pixie. Additionally, each batch of capsules is rigorously tested inall models ofNespresso machines for quality and consistency and to ensure proper operation. Please note that Pixie and Umachines purchased after November 1,2013 ar e only compatible with Greenwich Dark Roast and Grand CentralMedium Roast. For questions or more information, please contact us at [email protected].

    Broadway Dark RoastP A CK O F 10 CAPSULES

    DARK ROASTS

    Liberty Loop DarkP AC K O F 1 0 C APSUL E S

    Source: HiLine website, 5/2/2014

    ABOUT USOUR MISSION

    Source: HiLine website , 5/2/2014

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    Source: Nespresso television commercial

    Source: Nespresso in-store display

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    Source: Nespresso website , 5/2/2014

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    Int. Q .: 30

    Prior L \& C I: 46 Re*. No. 2,009.751United States Patent and Trademark Office ******m a i wTRADEMARK

    PRINCIPAL REGISTER

    NESPRESSO

    SOCTFTE PES f O IX' I T5 NEST l * * * I5WTT- FIRST VSH 3 IW3, tN U)MMEJ l c /eju-anotxntronATioN) :- m

    c a s e r a s T A i f w t i w *L* w is reo no i . * , iinvEvtT, swnrjadjvsi} s e n no --

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    ^titte states of m .\IV* HUitrft attain JP4trnt art OJrafcmwrli Office *-*

    NESPRESSORet- V. W l 3.444 s.m .mw.i >,- . \ >, i - - m,,..m.* .j. Rrgfattcrvd Jul> fc. Mill i -a , ,Int. < K: JO. JS ad 4J .. * ..< . ,, i .UtMHMtMk

    miMirM K H . I M r K ^ s r*'. s..*ivhi ..#->, * w M '.) i v i i im'.Mi ** |n , a . *t ^ v ^ i , i s ; Si - V> v k

    . n i vs . t

    .*-- - r- * : * * .> Ai \ r= j*i i : i.:

    *( 4 I 'I

    VMI\ V S

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    Image covered by U.S. Copyright Application 1-1400244519, titled Vertuoline

    Imagecovered by U.S. CopyrightApplication 1-1400244291, titled Machines B2CBrevillePixie Electric Red