paradise kids v. queen's treasures - kids toys trademark declaratory judgment complaint.pdf

19
JUDGE BUCHWALD JS44CISDNY REV.412014 CIVIL COVER cv t. -:> Tho J$.44 civil cover Dheet and tho lnfcrmalion contained hofeln nor supplement lho _i pleadings or olhor papers as requ!led by law, 8lCCept as provided by local rules of court. This form, approved by the Judicial Confefonce of the United States In September 1974, Is requiled for use of the Clerk of Court for the purpose of Initialing tho civil docket sheet. 4 PLAINTIFFS DEFENDANTS PARADISE KIDS LLC and MYRIAN AGUERO THE QUEEN'S TREASURES, INC., and JOANN CARTIGLIA ATTORNEYS (fiRM NAME, ADDRESS, AND TELEPHONE NUMBER ATTORNEYS (IF KNOWN) Stuart M. RlbaCk, Esq. Christopher Serbagl, Esq. Wllk Auslander LLP, 1515 Broadway, 43rd Floor, New York, NY 10036 The Serbagl Law Firm, P.C., 488 Madison Avenue, Suite 1120, New York, NY (212) 981-2300 10022, (212) 593-2112 2 7 CAUSE OF ACTION(CITE THE u.s. CML STATUTE UNDER 'MilCH YOU ARE FILING AND WRITE A BRIEF STATEMENT OF R 2015 (DO NOT CITE JURISDICTIONAL STATUTES UNLESS DIVERSITY) Declaratory judgment of no infringement of defendant's copyright or trade dress, and no violation of Lanham Act; battery; unfair competition. Has lhls action, case, or proceeding, or one essentially the same been previously filed in SONY at any time? Previously .Assigned If yes, was this case Vol. 0 lnvol. 0 Dismissed. No 0 Yes 0 If yes, give date-------- & Case No.-------- Is TMISAHI!mRNATIONALAI1SmiATION CASE1 No [!] Yes 0 {PLAa AN (x] IN ONE BOX ONLY} CONI'IIACT I 1110 I 1120 I 1130 I I 140 I I 11!0 l I 151 I 1152 I 1153 PIRSONALINJURV INSURANCE 11310AIRPLANE MARINE I 315AIRPLANE PRODUCT MIUERACT UABIUTY NEGOTlASlE I 132DASSAULT, UBEL& INSTRUMENT Sl..ANOER RECOVERY OF I I 330 FEDERAL OVERPAYMENT & EMPLOYERS' ENFORCEMENT LIABIUTY OF JUDGMENT 113o40 MARINE MEO!CARE ACT 345 MARINE PRODUCT RECOVERY OF LIABIUTY DEFAULTED I I 350 MOTOR VEHICLE I I 3S5 MOTOR VEHICLE (EXCL VETERANS) PRODUCT UABIUTY RECOVERY OF I I 360 OTHER PERSONAL OVERPAYMENT INJURY OF VETERAN'S I I 382 PERSONAL INJURY· BENEFITS MED MALPRACTICE ( I 160 STOCKHOLDERS SUITS I 1180 OTHER CONTRACT ( I 195 CONTRACT PROOIJCT LIABIUTY I I 1118 FRANCHISE ACTIONS UNDER STAnnES CIVIL RIGHTS NATURE OF SUIT PERSONAL INJURY I 1367HEALTHCAREI FORFEmlltE/PEHALTY PHARMACEUTICAL PERSONAL 11825 DRUG RELATED INJURYIPRODUCf LIABIUTY SEIZURE OF PROPERTY I I 365 PERSONAL INJURY 21 USC 881 PRODUCT UABIUTY I I 368 ASBESTOS PERSONAL I 18&0 OTHER INJURY PRODUCf LIABIUTY PERSONAL PIIDPIRTY ll 3700THER FRAUD 371 TRUTH IN LENDING I 1380 OTHER PERSONAL PROPERTY DAMAGE I I 385 PROPERlY DAMAGE PRODUCT UABIUTY PRISONIRPimiONS I I463AUEN DETAINEE I I 510 MOTIONS TO VACATE SENTENCE 28USC2255 I I 530 HABEAS CORPUS I I 535 DEATH PENALTY LABOR I I 710 FAIR LABOR STANDARDS ACT I 1120 I..ASORIMGMT RELATIONS I ]740 RAILWAY lABOR ACT I I 751 FAMILY MEDICAL LEAVE ACf (FMLA) I 1790 OTHER LABOR UTIGATION ACTIONS UNDERSTAnniS BANKRUPTCY I I 422 APPEAL 28USC158 I I 423 'MTHDRAWAL 28USC 157 PROPERTY RIGHTS bc)820 COPVRIGHTS IJ830PATEHT I I 840 TRADEMARK SOCIAL SKVAI'rY I I 881 HIA (139511) I I 862 BLACK LUNG (923) I I 883 Dlv.ciDMW (4015{gll I I 884 SSID TITLE XVI I I 1185 RSI (4015(g)) FIDEIUU. TAX suns I I 870 TAXES (U.S. ot OQfendatt) cmwtSTAnniS REAPPORTIONMEHT I I 410 ANTITRUST I I 430 BANKS & BANKING I I .-sJ COMMERCE I lo46DDEPORTATION I I 470 RACKETEER INFLU- ENCED & CORRUPT OROANilATION N::r (RICO) I I 480 CONSUMER CREDIT I 490 CABLE/SATELLITE TV I I 850 SECURITIES/ COMMoomESI EXCHANGE I 18800THERSTATUTORY ACTIONS I I 89t AGRICULTURAL ACTS I I 893 ENIIIRONMENTAL MATTERS I I .WO OTHER CIVIL RIGHTS I I 540 MANDAMUS & OTHER I I 791 EMPL RET INC SECURITY ACT I I 871 IRS. THIRD PARTY 26USC71109 I I 895 FREEDOM OF INFORMATION ACf I I 898ARBITRATION I 1210 I 1220 I 1230 I 1240 l 1245 I 1290 LAND CONDEMNATION FORECLOSURE RENT LEASE& EJECTMENT TORTS TO lAND TORT PRODUCT UABIUTY ALl OTHER R£AL PROPERlY (Non-Prisoner) I 1441 VOTING 11 442 EMPLOYMENT 443 HOUSING/ ACCOMMODATIONS 11445AMERICANS'MTH DISABILITIES EMPLOYMENT I I 448 AMERICANS WITH DISABILITIES .OTHER I 144BEOUCATION Check 1/detnQnded In complaint: D CHECK IF THIS IS A CLASS ACTION UNDER F.R.C.P. 23 IMMIGRATION PRISONER CIVIL RIGHTS 1146'2 NATURALIZATION I I 550 CIVIL RIGHTS APPLICATION I I 555 PRISON CONDITION I 1465 OTHER IMMIGRATION I )560CI\'ILDETAINEE ACTIONS CONDITIONS OF CONFINEMENT I I 899AOU!NISTRATIVE PROCEDURE ACTIREVIEWOR APPEAL OF AGENCY DECISION I I 950 OONSTITUTIONAUTY OF STATE STATUTES THIS CASE IS RELATED TO A CIVIL CASE NOW PENDING IN S.D.N.Y.? OTHER _____ JUDGE ___________ DOCKET NUMBER,___ ___ _ Check YES only II demanded in CO!!JPiolnt JURY DEMAND: 0 YES LNO NOTE: You must also submit at the time of ming the Statement of Relatedness fonn (Form IH-32).

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JUDGE BUCHWALD JS44CISDNY REV.412014 CIVIL COVER S~ET~ cv t. ~/ -~- -:> i~.

Tho J$.44 civil cover Dheet and tho lnfcrmalion contained hofeln ~eiUie~ce nor supplement lho (iiii'~ _i pleadings or olhor papers as requ!led by law, 8lCCept as provided by local rules of court. This form, approved by the Judicial Confefonce of the United States In September 1974, Is requiled for use of the Clerk of Court for the purpose of Initialing tho civil docket sheet.

4 PLAINTIFFS DEFENDANTS PARADISE KIDS LLC and MYRIAN AGUERO THE QUEEN'S TREASURES, INC., and JOANN CARTIGLIA

ATTORNEYS (fiRM NAME, ADDRESS, AND TELEPHONE NUMBER ATTORNEYS (IF KNOWN) Stuart M. RlbaCk, Esq. Christopher Serbagl, Esq. Wllk Auslander LLP, 1515 Broadway, 43rd Floor, New York, NY 10036 The Serbagl Law Firm, P.C., 488 Madison Avenue, Suite 1120, New York, NY (212) 981-2300 10022, (212) 593-2112 2 7 CAUSE OF ACTION(CITE THE u.s. CML STATUTE UNDER 'MilCH YOU ARE FILING AND WRITE A BRIEF STATEMENT OF CAUS~MA R 2015

(DO NOT CITE JURISDICTIONAL STATUTES UNLESS DIVERSITY)

Declaratory judgment of no infringement of defendant's copyright or trade dress, and no violation of Lanham Act; battery; unfair competition.

Has lhls action, case, or proceeding, or one essentially the same been previously filed in SONY at any time? N~esClJudge Previously .Assigned

If yes, was this case Vol. 0 lnvol. 0 Dismissed. No 0 Yes 0 If yes, give date--------& Case No.--------

Is TMISAHI!mRNATIONALAI1SmiATION CASE1 No [!] Yes 0 {PLAa AN (x] IN ONE BOX ONLY}

CONI'IIACT

I 1110 I 1120 I 1130 I I 140

I I 11!0

l I 151 I 1152

I 1153

PIRSONALINJURV

INSURANCE 11310AIRPLANE MARINE I 315AIRPLANE PRODUCT MIUERACT UABIUTY NEGOTlASlE I 132DASSAULT, UBEL& INSTRUMENT Sl..ANOER RECOVERY OF I I 330 FEDERAL OVERPAYMENT & EMPLOYERS' ENFORCEMENT LIABIUTY OF JUDGMENT 113o40 MARINE MEO!CARE ACT 345 MARINE PRODUCT RECOVERY OF LIABIUTY DEFAULTED I I 350 MOTOR VEHICLE STUDENT~ I I 3S5 MOTOR VEHICLE (EXCL VETERANS) PRODUCT UABIUTY RECOVERY OF I I 360 OTHER PERSONAL OVERPAYMENT INJURY OF VETERAN'S I I 382 PERSONAL INJURY· BENEFITS MED MALPRACTICE

( I 160 STOCKHOLDERS SUITS

I 1180 OTHER CONTRACT

( I 195 CONTRACT PROOIJCT LIABIUTY

I I 1118 FRANCHISE

ACTIONS UNDER STAnnES

CIVIL RIGHTS

NATURE OF SUIT

PERSONAL INJURY I 1367HEALTHCAREI

FORFEmlltE/PEHALTY

PHARMACEUTICAL PERSONAL 11825 DRUG RELATED INJURYIPRODUCf LIABIUTY SEIZURE OF PROPERTY I I 365 PERSONAL INJURY 21 USC 881

PRODUCT UABIUTY I I 368 ASBESTOS PERSONAL I 18&0 OTHER

INJURY PRODUCf LIABIUTY

PERSONAL PIIDPIRTY

ll 3700THER FRAUD 371 TRUTH IN LENDING

I 1380 OTHER PERSONAL PROPERTY DAMAGE

I I 385 PROPERlY DAMAGE PRODUCT UABIUTY

PRISONIRPimiONS I I463AUEN DETAINEE I I 510 MOTIONS TO

VACATE SENTENCE 28USC2255

I I 530 HABEAS CORPUS I I 535 DEATH PENALTY

LABOR

I I 710 FAIR LABOR STANDARDS ACT

I 1120 I..ASORIMGMT RELATIONS

I ]740 RAILWAY lABOR ACT I I 751 FAMILY MEDICAL LEAVE ACf (FMLA)

I 1790 OTHER LABOR UTIGATION

ACTIONS UNDERSTAnniS

BANKRUPTCY

I I 422 APPEAL 28USC158

I I 423 'MTHDRAWAL 28USC 157

PROPERTY RIGHTS

bc)820 COPVRIGHTS IJ830PATEHT I I 840 TRADEMARK

SOCIAL SKVAI'rY

I I 881 HIA (139511) I I 862 BLACK LUNG (923) I I 883 Dlv.ciDMW (4015{gll I I 884 SSID TITLE XVI I I 1185 RSI (4015(g))

FIDEIUU. TAX suns

I I 870 TAXES (U.S. Plant~~~ ot OQfendatt)

cmwtSTAnniS

ll.m~r~ClAIMS REAPPORTIONMEHT

I I 410 ANTITRUST I I 430 BANKS & BANKING I I .-sJ COMMERCE I lo46DDEPORTATION I I 470 RACKETEER INFLU­

ENCED & CORRUPT OROANilATION N::r (RICO)

I I 480 CONSUMER CREDIT I 490 CABLE/SATELLITE TV

I I 850 SECURITIES/ COMMoomESI EXCHANGE

I 18800THERSTATUTORY ACTIONS

I I 89t AGRICULTURAL ACTS

I I 893 ENIIIRONMENTAL MATTERS

I I .WO OTHER CIVIL RIGHTS I I 540 MANDAMUS & OTHER I I 791 EMPL RET INC SECURITY ACT

I I 871 IRS. THIRD PARTY 26USC71109

I I 895 FREEDOM OF INFORMATION ACf

I I 898ARBITRATION

I 1210

I 1220 I 1230

I 1240 l 1245

I 1290

LAND CONDEMNATION FORECLOSURE RENT LEASE& EJECTMENT TORTS TO lAND TORT PRODUCT UABIUTY ALl OTHER R£AL PROPERlY

(Non-Prisoner)

I 1441 VOTING

11 442 EMPLOYMENT 443 HOUSING/

ACCOMMODATIONS 11445AMERICANS'MTH

DISABILITIES • EMPLOYMENT

I I 448 AMERICANS WITH DISABILITIES .OTHER

I 144BEOUCATION

Check 1/detnQnded In complaint:

D CHECK IF THIS IS A CLASS ACTION UNDER F.R.C.P. 23

IMMIGRATION PRISONER CIVIL RIGHTS

1146'2 NATURALIZATION I I 550 CIVIL RIGHTS APPLICATION I I 555 PRISON CONDITION I 1465 OTHER IMMIGRATION I )560CI\'ILDETAINEE ACTIONS

CONDITIONS OF CONFINEMENT

I I 899AOU!NISTRATIVE PROCEDURE ACTIREVIEWOR APPEAL OF AGENCY DECISION

I I 950 OONSTITUTIONAUTY OF STATE STATUTES

I?Jt'b?~fl..'ffJ!v1 THIS CASE IS RELATED TO A CIVIL CASE NOW PENDING IN S.D.N.Y.?

DEMANDs~--- OTHER _____ JUDGE ___________ DOCKET NUMBER,___ ___ _

Check YES only II demanded in CO!!JPiolnt JURY DEMAND: 0 YES LNO NOTE: You must also submit at the time of ming the Statement of Relatedness fonn (Form IH-32).

--. •

(PLACE AN x INONEBOXONLY} ORIGIN 1!11 Original 0 2 Removed from

Proc:eecllng Slatct Court D 3 Remanded 0 4 Reinstated or

from Reopened

0 a. ao,.,u........-. Appellate Court

0 5 Transferred from 0 6 Multidisfricl (Specify District) Litigation

0 7 Appeal to Dislrict Judge from Magistrate Judge Judgment

0 b. Atlustone party Is pro n.

(PLACE AN x IN ONE BOX ONLY}

0 1 U.S. PLAINTIFF 0 2 U.S. DEFENDANT BASIS OF JURISDICTION

0 3 FEDERAL QUESTION 1!)4 DIVERSilY IF DIVERSITY, INDICATE CITIZENSHIP BELOW.

(U.S. NOT A PARTY)

CITIZENSHIP OF PRINCIPAL PARTIES (FOR DIVERSITY CASES ONLY)

(Place an [X] In one box for Plaintiff and one box for Defendant)

PTF DEF PTF DEF CITIZEN OF THIS STATE ()111 I I 1 CITIZEN OR SUBJECT OF A I I 3( 13 INCORPORATED and PRINCIPAL PLACE

FOREIGN COUNTRY · OF BUSINESS IN ANOTHER STATE

CITIZEN OF ANOTHER STATE ( )2 [XJ2 INCORPORATED or PRINCIPAL PLACE ( )4( )4 OF BUSINESS IN THIS STATE

PLAINllFF(S) ADDRESS(ES) AND COUNlY(IES) Paradise Kids, LLC, 28 Rock Ridge Avenue, Greenwich, CT 06830 Myrian Aguero, 16 Banksville Avenue, Bedford, NY 10506

DEFENDANT(S) ADDRESS(ES) AND COUNlY(IES)

FOREIGN NATION

The Queen's Treasures, Inc., 914 North Ninth Street (Route 611 ), Stroudsburg, PA 18360 Joann Cartiglia, 306 Norton Road, Stroudsburg, PA 18360

PTF [XJ5

( )6

DEFENDANTCS) ADDRESS UNKNOWN REPRESENTATION IS HEREBY MADE THAT. AT THIS TIME. I HAVE BEEN UNABLE, WITH REASONABLE DILIGENCE, TO ASCERTAIN

RESltiENCE ADDRESSES OF THE FOLLOWING DEFENDANTS:

Check one: THIS ACTION SHOULD BE ASSIGNED TO: n WHITE PLAINS (DO NOT check either box If this a PRISONER PETITIONIPR'i§ONER CIVIL RIGHTS

[!]MANHATTAN

COMPLAINT.) " DATE 3/26/15 SIGNATURE OF ATTORNEY OF RECORD

RECEIPT#

MITTED TO PRACTICE IN THIS DISTRICT [)NO ()(I YES (DATE ADMITTED Mo.August Yr. 1986 Attomey Bar Code #SR2443

Magistrate Judge Is to be designated by the Clerk of the Court. MAG' fL\DGE Bl\S Magistrate Judge is so Designated.

Ruby J. Krajlck, Clerk of Court by-----Deputy Clerk, DATED--------

UNITED STATES DISTRICT COURT (NEW YORK SOUTHERN)

DEF [XJ5

( )6

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK -------------------------------X PARADISE KIDS, LLC and MYRIAN AGUERO,

Case No. 15 Civ. -------

Plaintiffs, 15 ~t:» 14 I -against- COMPLAINT

THE QUEEN'S TREASURES, INC., and JOANN CARTIGLIA,

Defendants. -------------------------------X JUDGE BUCHWALD

Plaintiffs Paradise Kids, LLC ("Paradise") and Myrian Aguero ("Aguero"), by thcir' Ci

undersigned counsel, as and for their complaint against defendants, allege as follows:

·~ ' ) ..

1. Plaintiffs bring this action to seek declaratory relief against defendants' baseless ~:::

threats of litigation for alleged infringement of a copyright obtained by defendant The Queen's

Treasures, Inc. ("QTI"), which Paradise has not infringed; for a declaration that Paradise's "18

Snack Stand" does not infringe any trade dress or trade mark in QTI's ''Bake Shoppe" and

C1

=-~~ ::~·~r (;i'7i ·-\0 ()

'·:::> (::

accessories; to obtain a declaration that QTI's "Bake Shoppe" and accessories are unprotected under

the Lanham Act and in any event not infringed; to obtain damages for defendants' assault and

battery upon plaintiff Aguero; and to obtain damages for defendants' unfair competition with

Paradise.

PARTIES

2. Paradise is a Connecticut limited liability company. Its sole member is a citizen of

Connecticut.

3. Aguero is a citizen of Paraguay who is a permanent resident of New York.

8229701.·1

4. On information and belief, QTI is a Pennsylvania corporation with its principal place

of business in Stroudsburg, Pennsylvania.

5. On information and belief, Joann Caniglia is a citizen ofPennsylvania and is the

CEO ofQTI.

JURISDICTION AND VENUE

6. This Court has subject matter jurisdiction over this matter under 28 USC § 1331

because it is based on a claim under federal law, and under 28 USC§ 1332 because the parties are

citizens of different states and the amount in controversy exceeds $75,000.

7. Venue in this district is proper under 28 USC§ 1391(b).

8. This court has personal jurisdiction over the defendants pursuant to CPLR 302.

FACTS

Paradise's business

9. Paradise designs, creates, contracts for manufacture and sells children's toys, includ-

ing figurines, dolls and accessories. Paradise invests substantial time, effort and expense in research­

ing, developing, designing, creating and marketing its products.

10. Part of the development process involves purchasing and examining samples of

goods sold in the market. This enables Paradise to assess feasibility of a product, to identify unfilled

niches and to obtain ideas for new products.

11. Paradise sells dolls and action figures under a number of different brand names,

including ''Pocket Prehistories," "Adventure Girlz," "Paradise Horses," "Paradise Poz-ables" and

"Be My Girl." The "Be My Girl" line is a collection of different 18" tall dolls, fashions, vehicles,

furniture and accessories. Paradise's line includes both the dolls and accessories for the dolls.

2 822971Nt

12. The product development process for each of these lines includes extensive market

research and design work, which usually includes purchasing and examining products in the market,

in order to assess the state of the market and evaluate the competition.

13. Paradise also supplies private label goods for large stores. In particular, Paradise is a

participating vendor in Wal-Mart's "My Life As" private label doll program.

QTI's business

14. QTI is located in Stroudsburg, PA. On information and belief, it manufactures

children's toys and accessories, including accessories for American Girl18" dolls. Much of QTI's

product line apparendy is copied direcdy from American Girl's catalog, as shown in Exhibit A

hereto.

15. On information and belief, QTI develops its products in a manner similar to the way

Paradise develops its products, by (among other things) researching what is available in the market.

On information and belief, portions of the QTI "Bake Shoppe" and its accessories were copied

from products created by artists Jenny Holiday and Aaron Nieradka of Everyday is a Holiday, a

company located in New Jersey.

16. The QTI accessories for 18" dolls compete with numerous other companies' lines of

accessories for 18" dolls. These include various food-related toy items (including toy baked goods),

lemonade stands, snack stands and bakery shops. All these items must of necessity be of similar

sizes and shapes in order to (a) be recognizable and (b) fit appropriately to 18" dolls.

17. On information and belief, QTI sells its goods in its store in Stroudsburg, on its own

website and through Amazon.com.

3 822970vt

Creation of Paradise's Snack Stand

18. In or about the summer of2013, the principal of Paradise, Amy Pennington, saw a

lemonade stand that her daughter had created, and came up with the idea of developing a snack

stand for Wal-Mart to market under its "My Life As" private label.

19. Paradise's creative team, led by Kelli Sorrentino, commenced research by locating

and purchasing a wide variety of similar types of toy food stands from American Girl, Etsy, QTI,

Fortune Toys, Mattei, a number of sellers on eBay, and FAO Schwarz.

20. The QTI sample that Paradise purchased was called "Bake Shoppe." It consisted of

several pieces: a bakery shop, a cash register and wood signs with pegs. Paradise also purchased

separately from QTI a set of toy cookies and a set of toy cupcakes, for a total of three purchases.

The Bake Shoppe is similar in many respects to other toy food stands manufactured by other

companies, including: Mattei, American Girl- Kanani's Shave Ice Stand; Mattei, American Girl

MYAG CAMPUS SNACK CART Concession Stand; Mattei, Barbie ~vlalibu A\•enue; Matte~ Barbie

Bakery; Matte~ Barbie Scoop 'N Swirly Ice Cream Shop Playset; Mattei, Barbie Hot Dog Stand;

FAO Schwartz Wooden Bake Shoppe; FAO Schwarz Wooden Play Kitchen Bake Shoppe; Gloria

Dollhouse Furnitures Supermarket with Food Accessories Play Set; Calico Bakery; Cardboard­

Lemonade-Stand; Tomy Bake Shop; and Mother Garden Strawberry Bakery Kitchen Set.

21. After expenditure of time, effort and expense by Paradise's' designers, Paradise

completed a prototype snack stand and was ready show it to Wal-Mart as of October 1, 2013. It was

based on original work by Paradise's design staff, inspired by real food items as well as various

elements of most of the samples that Paradise had purchased during its market research, including

but not limited to the QTI "Bake Shoppe." The Paradise "18" Snack Stand" was an all-inclusive

play set that included a plastic snack stand with a functional drawer, signage, cup cakes, cookies,

baking tray, milk shakes, lemonade, cash register, play money and tablecloths.

4 822970vl

22. After several subsequent meetings, Wal-Mart advised Paradise that it would buy the

18" Snack Stand for the Fall2014 season. Paradise arranged for manufacture overseas and for

shipment to the United States for the Fall and Holiday 2014 selling season. The 18" Snack Stand

appeared in Wal-Mart stores under Wal-Mart's "My Life As" private label starting on or around

September 1, 2014.

QTI begins its harassment campaign

23. Shortly after Labor Day 2014, QTI's principal, Joann Cartiglia, contacted Wal-Mart

to demand that they cease selling the 18" Snack Stand on grounds that it is a copy of QTI's Bake

Shoppe.

24. Cartiglia also sought out and obtained press and television coverage, primarily in

Northeastern Pennsylvania, in which she claimed that the 18" Snack Stand was a copy of QTI's

Bake Shoppe. The Associated Press also ran the story nationally.

25. After Cartiglia learned that Paradise had created and sold to Wal-Mart the 18" Snack

Stand, she publicly accused Paradise of pirating her goods. She continued her campaign against

Wal-Mart and Paradise on QTI's Facebook page. Notably, whenever any comments were made on

QTI's Face book page noting that the design of her Bake Shoppe was common and unremarkable,

had likely been copied from others or was not the same as Paradise's 18" Snack Stand, Cartiglia or

someone acting on her behalf deleted such comments.

26. Among other things, Cartiglia conceded in the comments on her Facebook page that

she had been advised that QTI had no legitimate legal claim for the alleged "copying," but that she

was hoping to shame Wal-Mart into doing the "right thing."

27. In a transparent but misleading effort to gamer sympathy from her followers, Cartig-

lia posted on QTI's Facebook page what was presented as a side-by-side comparison of the two pro-

5 822970\'1

ducts- QTI's Bake Shoppe and Paradise's 18" Snack Stand. But in reality, she had placed the 18"

Snack Stand in front of the Bake Shoppe to block the leftmost roughly 4" of the Bake Shoppe. The

18" Snack Stand is less than nine inches wide, but the Bake Shoppe is about 50% wider- a bit more

than 13" wide (they are of approximately equal height). By positioning the products this way,

Cartiglia apparendy- and apparendy successfully- misled QTI's followers into believing the two

products are more alike than they actually are. A copy of this misleading photograph is annexed as

Exhibit B. A true side-by-side photograph is annexed as Exhibit C.

28. As of the time of the press exposure of the dispute in September 2014, QTI neither

had obtained nor, on information and belief, had even filed for, a copyright registration from the

Copyright Office.

29. On information and belief, QTI's filing with the Copyright Office did not disclose to

the Copyright Office that much of the Bake Shoppe design was based on others' products and

artwork.

Cartiglia's outrageous tortious behavior

30. The 2015 New York Toy Fair was held at the Javits Convention Center during

February 14-17, 2015. Paradise displayed at a booth at the Toy Fair. QTI displayed a booth at the

Toy Fair as well.

31. On or about February 15, 2015, Cartiglia appeared at the Paradise booth at the Toy

Fair and began to disturb the displays, while loudly proclaiming that Paradise had stolen her ideas

and were a bunch of thieves. Several buyers -potential or actual customers - were present when

Cartiglia created the disturbance. On information and belief, Cartiglia deliberately created the

disturbance in order to discourage prospective customers from doing business with Paradise.

6 82..?CJ70vl

32. Plaintiff Aguero, a Paradise employee, approached Cartiglia and requested that Car-

tiglia stop ruining the displays and cease making a disturbance. She also explained to Cartiglia that

Toy Fair rules prohibited exhibiters from entering other exhibiters' booths without an invitation.

33. Cartiglia responded to Aguero's verbal requests by physically shoving Aguero and

abusing her verbally. Numerous persons were present to observe Cartiglia's attack. Security was

notified, and put on notice to make more frequent checks at Paradise's booth in order to deter

Cartiglia from repeating her harassment. In addition, security advised Paradise that security person-

nel had visited QTI's booth to inform Cartiglia that she should not approach Paradise's booth.

34. Aguero suffered physical and emotional injury as a result of Cartiglia's outrageous

behavior.

QTI's threats

35. On information and belief, on February 18, 2015, the Copyright Office issued a

Certificate of Registration to QTI for a sculpture called "Interchangeable Shoppe for 18" Dolls."

The registration number is VA 1-942-946.

36. On or about March 16,2015, QTI threatened to sue Paradise and Wal-Mart if they

did not offer some form of capitulation by March 30, 2015. QTI apparently claims rights under

both the Copyright Act and the Lanham Act, as well as New York's General Business Law § 359

[sic] and principles of unjust enrichment.

First Claim for Relief (Declaratory Judgment)

. 37. Plaintiff Paradise incorporates the foregoing allegations by reference.

7

38. A dispute exists between Paradise and QTI regarding QTI's claim that Paradise's 18"

Snack Stand infringes QTI's copyright in its "Interchangeable Shoppe for 18" Dolls."

39. Paradise's 18" Snack Stand and QTI's "Interchangeable Shoppe for 18" Dolls" are

not substantially similar as that term is used for purposes of copyright.

40. Any features of the 18" Snack Stand that may be arguably similar to corresponding

features of QTI's "Interchangeable Shoppe for 18" Dolls" are not protectable, or are protectable

only for virtually exact copying.

41. The Court should declare pursuant to 28 USC§ 2201 that Paradise's 18" Snack

Stand, and each part of it, does not infringe QTI's copyright for "Interchangeable Shoppe for 18"

Dolls" or any part thereo£

42. QTI's claim of infringement is objectively unreasonable.

43. Paradise has no adequate remedy at law.

Second Claim for Relief (Declaratory Judgment)

44. Plaintiff Paradise incorporates the foregoing allegations by reference.

45. The appearance of QTI's Bake Shoppe and of its associated accessories is not

indicative of source and cannot possibly have secondary meaning.

46. The size, shape and configuration of the Bake Shoppe and associated accessories are

dictated largely by their function, which is to provide a play milieu to accompany 18" dolls.

47. Insofar as portions of Paradise's 18" Snack Stand may arguably be similar to QTI's

Bake Shoppe, such similarities are the result of the similar functions of the two toys, or arc generic

in appearance. In all other respects the two sets of toys are utterly different or any resemblances are

de minimus.

8 822970vl

48. A dispute exists between Paradise and QTI concerning QTI's false claims of

infringement.

49. The Court should declare pursuant to 28 USC§ 2201 that (a) Paradise's 18" Snack

Stand, and each part of it, does not infringe any rights of QTI under the Lanham Act; (b) any

similarities between QTI's Bake Shoppe and Paradise's are based on unprotectable elements.

50. QTI's baseless accusations of infringement make this an exceptional case under 28

USC § 1117 (a)(3).

51. Paradise has no adequate remedy at law.

Third Claim for Relief (Battery)

52. Plaintiff Aguero incorporates the foregoing allegations by reference.

53. Cartiglia violendy and viciously struck Aguero without justification, causing Aguero

physical and emotional injury.

54. Cartiglia should be required to pay compensatory damages of no less than $200,000

to Aguero, together with punitive damages to punish the malefactor for her vicious, unlawful

behavior.

Fourth Claim for Relief (Unfair Competition)

55. Plaintiff Paradise incorporates the foregoing allegations by reference.

56. Cartiglia created a large disturbance at Paradise's booth in the New York Toy Fair as

part of an effort to discourage potential customers from dealing with Paradise and to distract

Paradise's personnel from selling Paradise's goods. This illegitimate strategy included not just vocal

9 8229711..-t

outbursts and false statements but also physical attacks on the displays in Paradise's booth and a

physical attack upon a Paradise employee, Aguero.

57. Cartiglia's actions on behalf of QTI constitute unfair competition under New York

law.

58. Paradise's business has been injured as a result of Cartiglia's attacks. QTI should be

compelled to pay damages in an amount to be determined at trial, but no less than $200,000,

together with punitive damages.

WHEREFORE, plaintiffs respectfully request that the Court enter judgment in their favor

as follows:

A. On the first claim for relief, declaring pursuant to 28 USC§ 2201 that Paradise's 18"

Snack Stand, and each part of it, does not infringe QTI's copyright for "Interchangeable Shoppe for

18" Dolls" or any part thereof;

B. On the second claim for relief, pursuant to 28 USC § 2201 that (a) Paradise's 18"

Snack Stand, and each part of it, does not infringe any rights of QTI under the Lanham Act; (b) any

similarities between QTI's Bake Shoppe and Paradise's are based on unprotectable elements;

C. On the third claim for relief, damages in an amount to be determined at trial, includ-

ing punitive damages to punish Cartiglia for her outrageous behavior;

D. On the fourth claim for relief, damages in an amount to be determined at trial,

including punitive damages to punish defendants for their outrageous behavior;

E. Costs, interests and attorneys' fees as permitted by law; and

10 822970v)

F. Such other and further relief as may seem to the Court just and proper.

Dated: New York, New York March 26, 2015

11

Respectfully submitted,

WILKAUSLANDER LLP

By:~ ~M.Riback

1515 Broadway New York, New York 10036 (212) 981-2300

Allont~•s for PlabJiijft

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