Paul Andrew Leitner-Wise Sues LWRC & SIG Sauer Over Patent Infringement

Case 8:16-cv-02430-DKC Document 1 Filed 06/29/16 Page 1 of 12
UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF MARYLAND
Greenbelt Division
PAUL ANDREW LEITNER-WISE

917 Juniper Place
Alexandria VA 22304
Plaintiff
v.
LWRC INTERNATIONAL, LLC
815 Chesapeake Drive
Cambridge MD 21613
Civil Action Number

8:16-cv-2430
and
SIG SAUER, INC.
18 Industrial Drive
Exeter NH 03833
Defendants
COMPLAINT
This is a patent infringement complaint by inventor Paul Andrew Leitner-Wise
against firearms manufacturers LWRC International, LLC and SIG Sauer, Inc.
PARTIES AND SUBJECT MATTER

1.
Plaintiff Paul Andrew Leitner-Wise is a natural person, and a subject of
the United Kingdom. Leitner-Wise is not a permanent resident alien under the
Immigration and Nationality Act.
2.
Defendant LWRC International, LLC is a limited liability company
organized under the laws of Maryland with a principal place of business in Cambridge
Maryland.
3.
Defendant SIG Sauer, Inc. is a corporation incorporated under the laws of
Delaware with a principal place of business in Exeter, New Hampshire. SIG Sauer, Inc.
is associated with, but organizationally separated from, SIG Sauer GmbH of SchleswigHolstein, Germany, a subsidiary of Lke & Ortmeier Gruppe, also known as L&O
Holding.
4.
The events described herein largely occurred within the State of Maryland
and also closely relate to prior proceedings before this Court in LWRC International,
LLC v. SIG Sauer, Inc., 1:11-cv-00152-WDQ.
JURISDICTION AND VENUE

5.
The Plaintiff herein offers a civil action for monetary damages arising
under 35 U.S.C. 271, et seq. for patent infringement.

6.
The Plaintiff further requests injunctive relief also under 35 U.S.C. 271,
et seq. for patent infringement.

7.
Under 28 U.S.C. 1331, the United States District Court shall have
original jurisdiction of all civil actions arising under the Constitution, laws, or treaties of
the United States, including 35 U.S.C. 271, et seq.
8.
The Plaintiff is a subject of the United Kingdom residing in Virginia.
9.
The Defendants are citizens of New Hampshire, Delaware and Maryland
under 28 U.S.C. 1332 (c)(1).

10.
The amount in controversy herein exceeds $75,000, exclusive of interest
and costs.
11.
This Court has further jurisdiction under 28 U.S.C. 1332 (a)(4) where
the matter in controversy exceeds the sum or value of $75,000, exclusive of interest and
costs, and is between citizens of a State and citizens or subjects of a foreign state not
permanent resident aliens.
12.
The Plaintiff asks this Court to declare his rights and other legal relations.
13.
Under the Declaratory Judgment Act, 28 U.S.C. 2201, et. seq., the
United States District Court may declare the rights and other legal relations of any
interested party seeking such declaration, whether or not further relief is or could be
sought.
14.
The Plaintiff offers an additional causes of action of common law unjust
enrichment and breach of contract.

15.
Under 28 U.S.C. 1367, the United States District Court shall have
supplemental jurisdiction over all other claims that are so related to claims in the action
within such original jurisdiction that they form part of the same case or controversy under
Article III of the United States Constitution.
16.
The Plaintiff's common law claims are so related to the Federal law claims
that they form part of the same case or controversy.
17.
The Plaintiff asserts that these common law claims is necessarily a
federal common law claim required to fill minor gaps in existing federal law.
18.
The inevitable incompleteness presented by all legislation means that
interstitial federal lawmaking is a basic responsibility of the federal courts. United

States v. Little Lake Misere Land Co., Inc., 412 U.S. 580, 593 (1973). The United States
District Court therefore has 28 U.S.C. 1331 federal question jurisdiction for such
federal common law questions herein.
RELEVANT FACTS
19.
In 2004, Plaintiff Paul Andrew Leitner-Wise invented a Self-Cleaning
Gas Operating System for a Firearm, United States Patent No. 7,461,581 (the '581
patent), a self-regulating short-stroke piston operating system for AR-15 type self-loading
rifles. Pl.'s Ex. A.
20.
Leitner-Wise is the founder of the Leitner-Wise Rifle Company, Inc., a
Virginia Corporation known as LWRC.

21.
In 2005, Leitner-Wise sold LWRC.
22.
On April 11, 2005, Leitner-Wise entered into an Employment Agreement
with the Leitner-Wise Rifle Company, Inc.

23.
Such Employment Agreement stated inter alia,
Employer [Leitner-Wise Rifle Company, Inc.] hereby acknowledges that

Executive [Paul Andrew Leitner-Wise] has developed certain Intellectual
Property prior to the execution of this Agreement which Employer desires to
exercise ownership rights including patents developed while Executive was
employed by Leitner-Wise Rifle Company (hereafter LWRC). Employer will
separately pay a royalty of one half of one percent (.05%) [sic] on the net sale
price of each product containing a previously patented or patentable or otherwise

protected device developed by the Executive... Payment of royalties under this
section shall not be withheld or terminated regardless of any Termination of the
Executive for any reason.
Pl.'s Ex. B at 8.
24.
Leitner-Wise left employment with Leitner-Wise Rifle Company, Inc. on
October 31, 2006.

25.
On that date, Leitner-Wise assigned the pending '581 patent to the Leitner-
Wise Rifle Company, Inc. Pl.'s Ex. C.

26.
Such consideration for the assignment included the ongoing compensation
due to Leitner-Wise described in paragraph 18 above.

27.
Following cessation of his employment with Leitner-Wise Rifle Company,
Inc., unknown persons removed all copies of Leitner-Wise's contracts from his
possessions at the company's offices and all copies of Pl.'s Ex. B were believed to be lost.
28.
On information and belief, such removal of the contracts from Leitner-
Wise's possessions was intended to deprive him of evidence of this Employment

Agreement and the residual benefits of the agreement following his departure from
Leitner-Wise Rifle Company, Inc.
29.
On April 18, 2008, Leitner-Wise Rifle Company, Inc. assigned the '581
patent to Defendant LWRC International, LLC. Pl.'s Ex. D.

30.
Such assignment falsely identified the inventor as the ASSIGNOR,
Leitner-Wise Rifle Company, Inc. Id.

31.
Because of the false representations therein, the assignment was defective
on its face.
32.
Because of the false representations therein, the assignment was, and is,
null and void.

33.
Such (re-)assignment in 2008 was made without the knowledge or
authority of the inventor, Leitner-Wise.

34.
Such (re-)assignment in 2008 was made without due consideration of the
existing compensation agreement with royalties due to Leitner-Wise. Pl.'s Ex. B.

35.
On information and belief, such false identification of the inventor within
the 2008 assignment was for the sole purpose of avoiding disclosure of Leitner-Wise's
ongoing right to royalties on the patent and to further deprive Leitner-Wise of the residual
benefits of his Employment Agreement with Leitner-Wise Rifle Company, Inc. which
survived his termination of employment.
36.
On January 18, 2011, Defendant LWRC International, LLC filed suit in
this Court against Defendant SIG Sauer, Inc. 1:11-cv-00152-WDQ.

37.
Within this lawsuit, Defendant LWRC International, LLC alleged, inter
alia:
6.
LWRCI is the owner of United States Patent No. 7,461,581 (the
'581 patent), entitled Self-Cleaning Gas Operating System For A Firearm and
has the right to sue for infringement and collect damages for such infringement...
7.
Defendant Sig Sauer has been and is infringing, contributing to the
infringement of, and/or inducing the infringement of the '581 patent by, among
other things, making, using, selling, and/or offering for sale autoloading rifles
with their associated gas operating system, including rifle models #SIG516
PATROL and #SIG516 PRECISION MARKSMAN, within the territorial
boundaries of the United States and this judicial District without the consent,
license or authorization of LWRCI, and will continue to do so unless enjoined by
this Court.
8.
Upon information and belief, Defendant Sig Sauer's infringement
of the '581 patent has been and is willful.
Pl.'s Ex. E at 2.
38.
On information and belief, attorneys for, or employees of, Defendant SIG
Sauer, Inc. in the course of investigating Defendant LWRC International, LLC's claims in
the 2011 case, discovered the fraud committed in the 2008 assignment of the '581 patent.
39.
On information and belief, attorneys for, or employees of, Defendant SIG
Sauer, Inc. in the course of investigating Defendant LWRC International, LLC's claims in
the 2011 case determined that the 2008 assignment of the '581 patent was invalid.
40.
In Defendant SIG Sauer, Inc.'s Answer and Counterclaim, this Defendant
claimed the '581 patent to be invalid. Pl.'s Ex. F at 3.

41.
On information and belief, attorneys for Defendant SIG Sauer, Inc. then
informed Defendant LWRC International, LLC of the evidence of the fraud committed in
the 2008 assignment of the '581 patent and the now evident mutual infringement of the
Plaintiff's patent.
42.
On information and belief, the Defendants conspired to discontinue such
litigation amicably as to avoid further disclosure of the fraudulent 2008 assignment and
to continue such infringement unimpeded.
43.
On June 17, 2011, the Defendants stipulated to a protective order before
this Court. Pl.'s Ex. G.

44.
On information and belief, the Defendants employed such protective order
for the sole purpose of protecting the fraudulent assignment from public disclosure and
from disclosure to Leitner-Wise.
45.
On information and belief, such stipulation to the protective order was an
affirmative act in furtherance of the conspiracy between the Defendants to hide the
fraudulent 2008 assignment from the public and Leitner-Wise and to continue their
mutual infringement on the '581 patent.
46.
On August 1, 2011, the Defendants stipulated to the dismissal of their case
before this Court. Pl.'s Ex. H.

47.
On information and belief, such stipulation to the dismissal was an
additional affirmative act in furtherance of the conspiracy between the Defendants to hide
the fraudulent 2008 assignment from the public and Leitner-Wise and to continue their
mutual infringement on the '581 patent.
48.
Neither Defendant has ever paid Leitner-Wise for the value received from
the ongoing use of this intellectual property.

49.
On information and belief, Leitner-Wise Rifle Company, Inc. is now
defunct.
50.
In late November 2014, an attorney working for Leitner-Wise on
immigration matters, discovered a copy of the lost Employment Agreement. Pl.'s Ex. B.
The attorney later provided the agreement to Leitner-Wise.
COUNT I
PATENT INFRINGEMENT
51.
Paragraphs 1-50 are incorporated by reference as if fully set forth herein.
52.
Leitner-Wise is the rightful owner of United States Patent No. 7,461,581
("the '581 patent"), entitled Self-Cleaning Gas Operating System For A Firearm" and
has the right to sue for infringement and collect damages for such infringement. The '581
patent issued on December 9, 2008. Pl.'s Ex. A.
53.
Any assignment of the '581 patent by Leitner-Wise was for compensation
on an ongoing basis, including the payment of royalties to Leitner-Wise.

54.
As the inventor, and as an assignor who maintains a royalty interest in the
patent, Leitner-Wise is a patentee of the '581 patent with a statutory right to sue for
infringement under 35 U.S.C. 281.
55.
Further, Leitner-Wise maintains a sufficient financial and property interest
in the patent such as to place him properly within the zone of injury or interest as to
confer prudential standing upon him to now sue for infringement and collect damages for
such infringement.
56.
Defendant LWRC International, LLC has been and is infringing,
contributing to the infringement of, and/or inducing the infringement of the '581 patent
by, among other things, making, using, selling, and/or offering for sale self-loading rifles
with the Leitner-Wise self-regulating short-stroke piston system, including rifle models
M6A2, M6A4, M6-SL, M6-G, M6-PSD, SABR, IC-Enhanced, IC-A2, IC-A5, IC-SPR,
IC-PSD, IC-PDW, SIX8-A2, SIX8-A5, SIX8-SPR and R.E.P.R., and pistol models ICPSD and SIX8-PISTOL, within the territorial boundaries of the United States and this
judicial District without the consent, license or authorization of Plaintiff Leitner-Wise,
and will continue to do so unless enjoined by this Court.
57.
Defendant SIG Sauer, Inc. has been and is infringing, contributing to the
infringement of, and/or inducing the infringement of the '581 patent by, among other
things, making, using, selling, and/or offering for sale self-loading rifles with the LeitnerWise self-regulating short-stroke piston system, including rifle models SIG MCX,
SIG516 Patrol, SIG516 Precision Marksman, SIG516 PDW, SIG516 CQB, SIG516
Tactical Patrol, SIG516 Carbon, SIG516 Carbon TS, SIG716 Patrol, SIG716 DMR,
SIG716 CQB, and pistol model P516 within the territorial boundaries of the United States
and this judicial District without the consent, license or authorization of Plaintiff LeitnerWise, and will continue to do so unless enjoined by this Court.
58.
As demonstrated by the prior proceedings before this Court, and the
Defendants' evident acts of concealment therein, the Defendants' infringement of the '581
patent has been, and is, willful.
59.
Plaintiff Leitner-Wise has suffered and will continue to suffer irreparable
injury and financial damage for which Plaintiff Leitner-Wise is entitled to damages for
infringement, which damages shall be trebled, and for which Plaintiff Leitner-Wise is
entitled to a preliminary and permanent injunction against further infringement.
60.
By this Complaint, Plaintiff Leitner-Wise does hereby comply with the
notice requirements of 35 U.S.C. 287 with respect to the '581 patent.
COUNT II
UNJUST ENRICHMENT
61.
62.
The Defendants' use of the '581 patent has greatly benefited the
Defendants.
10
63.
The Defendants have known of the benefit they received by their use of
the '581 patent. See, e.g., https://www.lwrci.com/t-about.aspx (The foundation for

every LWRCI rifle is our patented, self-regulating, short-stroke piston system.)
[Accessed June 29, 2016]; http://www.sigsauer.com/CatalogProductDetails/sig516carbon.aspx (Modern warriors needed an AR-15 weapon that could overcome the
harshest tactical environments. So we replaced the traditional gas impingement system
with a cleaner, easier-to-maintain, short-stroke piston.) [Accessed June 29, 2016].
64.
The Defendants' use of the '581 patent under the present circumstances is
such that it would be inequitable to allow them to retain the benefit without the paying of
royalties in return.
65.
The Defendants are obliged by the ties of natural justice and equity to pay
Leitner-Wise those royalties upon which he conditioned his assignment of the '581 patent
to Leitner-Wise Rifle Company, Inc.
66.
Such circumstances give rise to the policy of restitution as a remedy.
67.
Such damages are ongoing and will increase over time.
COUNT III
BREACH OF CONTRACT
68.
69.
By accepting assignment of the '581 patent and the benefits thereof,
Defendant LWRC International, LLC assumed the underlying obligation to pay royalties
to Leitner-Wise upon which the original assignment was conditioned.
11
70.
Defendant LWRC International, LLC has failed without excuse to pay
such royalties to Leitner-Wise for the use of the '581 patent.

71.
Defendant LWRC International, LLC has further failed to defend Leitner-
Wise's royalty interests incumbent in the assignment of the '581 patent by failing to
prosecute known infringement claims against Defendant SIG Sauer, Inc.
72.
Plaintiff Leitner-Wise has been directly and proximately injured by
Defendant LWRC International, LLC's breach of its assumed royalty obligations to

Leitner-Wise.
WHEREFORE, the Plaintiff seeks a declaration by this honorable Court finding the
Defendants conduct to be unlawful, an award of monetary damages according to proof at
trial under applicable law in excess of $75,000, that such damages be trebled, costs and
attorneys fees, and an injunction barring further infringement. If there should be an
insufficient remedy at law, the Plaintiff seeks equitable relief.
The Plaintiff demands a jury trial on all issues so triable.
______________________________
Matthew August LeFande
Attorney at Law PLLC
1644 Sixth Street NW
Washington DC 20001
Tel: (202) 657-5800
Fax: (202) 318-8019
email: matt@lefande.com
D. Md. Bar Number 16302
Attorney for the Plaintiff
12
Case 8:16-cv-02430-DKC Document 1-1 Filed 06/29/16 Page 1 of 19

EMPLOYMENT AGREE:MENT
TillS EMPLOYMENT AGREEMENT (the "Agreement"} is entered into as of April 11, 2005, betWeen:. .
LEITNER-WISE RIFLE 'COMPANY, INC., a- Virginia corporation (the "Employer"), and PAUL
LEITNER-WISE, a resident ofVirginia(the "Executive").
BACKGROUND
The Employer desires to continue to obtain the henefit of services by the Executive, and the Executive
desires to continue to render services to the Employer.
The Employer and the Executive desire to set forth in this Agreement the terms and conditions of the
Executive's employment with the Employer. Accordingly, in consideration of the mutual covenants .and
representations contained and set fo$ below, the Employer and the Executive agree as follows
TERMS
1.
EMPLOYMENT
The Executive agrees to accept employment with the Employer to render the services specified in .this
Agreement upon the terms and conditions and for the compensation provided in this Agreement. All
compensation paid to the Executive by the Employer or ~any subsidiary of the Employer, and all:benefits .
and perquisites received by the Executive from the.Employer or any of its subsidiaries, will be aggregated .
in determining whether the Executive has received the compensa~ion and benefits provided for inthls
Agreement.
2.
TERM.OF EMPLOYMENT
The term of this a!ieement shall' be April 11, 2005 through April 10, 2009 and is effectively
renewable for ail additional three year term at the end of. the original term by Employer, provided that
Employer gives written notice of intent to renew the Agreement on or before the third anniversarydate of
Executive's employment to Employee.
3.
SERVICES TO-BE RENDERED; EXCLUSIVITY
(a) Service. During the term of the Executive's employment under this Agreement, the Executive :
shall perform the duties of Chief Technical Officer as defined in Exhibit B, or any reasonably
comparable duties that may be assigned.to the:Executive from time to time.
(b) Full Time Efforts. During the term of this Agre.emerit and excluding any periods of vacat.ion,
family or sick leave or holidaysto which.the Executive is entitled, the Executive shall devote his
full business time and en,ergy to the business, affairs and interests of the Employer and its
subsidiaries, and matters related :thereto, and. shall use his reasonable commercial efforts :and."
ability t9 promote the interests of the Enipl9ye:r and its subs~diaries. The Executive agrees that he
will diligently endeavor to promote the business, affairs and interests of the Employer.. and -its
subsidiari~s and perform services contemplated hereby in accordance with the policies
established by the a oard of Directors of the En;1ployer (the 11 Board 11} and more senior officers.of
the Employer from time to time. The Executive shall serve without additional remuneration in
such senior Executive capaciti~s for one or more direct or indirect subsidiaries ofthe Employer as
the Employer may from time to tinie j equest, . subject to appropriate authorization: by...the -. _:
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subsidiary or subsidiaries involved and _any limitations under applicable law and indemnification.
on the same terms as the Executive is indemnified by the Employer~ The failure of the Executive .
to discharge an order or perform a function because the Executive reasonably and in good faith
believes such would violate a law or regulation or be dishonest shall not be deemed a ~reach by
him of his obligations or duties under this Agreement and shall not entitle the Enip1oyer to
terminate this Agreement pursuant to any of its provisions.
(c) Certain Permissible Activities. The Executive may (i) make and rilanage perSonal busine.ss
investments, of his choice, (ii) teach at educational institutions and deliver lectures, and (iii) serve
in any capacity with any civic, educational. or charitable organization, or any goveri1lllental entity
or trade association, in each such case without seeking or obtaining approval by the Employer so
long as such activities and service do not materially interfere or conflict with the periormance of
his .duties under this Agreement.
4.
COMPENSATION AND BENEFITS.
(a) Base Salazy. The Employer agrees to pay a salary of $125,000 per year. The salary will be paid biweekly as per 1.1-ormal company. payroll cycles. Executive will receive a cost of living increase in the
amoun:t of the CPI adjustment made by the Labor Department Bureau of Standards on each ofthe five
yearly anniversary dates (April 11 of each year) during the term of this Agreement. Executive shall
also be entitled to have a performance review on each of these anniversary dates ofthe Agreement (or
as soon thereafter as is practicable) and be eligible for annual bonuses ancilor merit raises based on the
profitablity of the company and Executive's contribution toward that profitability as determined in the
discretion of the Employer's Board of Directors.
(b) Insurance and Retirement Benefits. The Executive shall also be entitled during the term of this
Agreement to the following rights and benefits to be ri:tade available within 30 days of Employer
obtaining full funding of its Private Offering of Four Million Dollars ($4,000,000) less sales costs anc,l
commissions contained in the Term Sheet ~ttached as Exhibit A hereto, in the following order of
priority: (1) health benefits for which the Employer will be obligated to pay not less that 75% of the
cost of family coverage covering Executive arid his eligible dependents; (2) Employer. paid short and
long tenn: disability insurance coverage on a level of benefits consistent with the then prevailing
standard in the defense contracting industrY; (3) a qualified retirement plan with company match-also
providing a level of benefits and term~ consistent with .that offered to the Chief Executive Offi,cer of
the company as well as the standard then prevailmg in the defense contracting industry. Executive
shall be eligible to participate in any other benefit program for which he is otherwise eligible.
(c) Vacation and.Sick Leave. Executive shall be entitled to four weeks of Employer paid. vacation per
year, as well as paid Federal Government holidays.. _Unused vacation will not carry over or
accumulate in subsequent years. Executive shall alsobe entitled to 10 days of Employer paid sick
leave per year. Sick leave may be cl:lrried over to. subsequent years to a cumulative maximum of30
days but must be fully used prior to the .end of the term of this Agreement and in no event shall
Employer be obligated to make any cash' payment in.lieu of that unused leave.
(d) Automobile Allowance. Employer shall pay Executive taxable automobile allowance ~f $500 per
month. Executive shall be responsible for all gasoline, insurance, mamtenance and rep~, in addition .
to being solely liable for the payment of any income taxes on this amount. The amount of
allowance will also be subject to review at .:time of the annual performance and salary review by
the Board of Directors referred to in the base saiary provision appearing above.
this
the
PLWEmployeeAgreement.doc
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15

(e) Expense. Reimbursement. The Employer agrees to reimburse the Executive in fhl1: for allsuch
reasonable and necessary business, entertainnient ~d travel expenses incurr~d or expanded by
him in connection with the performance of his duties under this Agreement; provided the
Executive Submits to the Employer vouchers or expense statements satisfactorily evidencmg such
expenses as may be reasonably .required by the Employer and such expenses are in accorclahce
with any applicable corporate policy.
(f) Moving expense reimbursement. Employer agrees to reimburse Executive for the a~ amount of
money necessary to move his furniture and household belongings from the United Khigdom to the
United States to a maximum amount of $10,000, provided that Executive furnishes employer With
itemized inv~ices documenting his expense. This expense shall not include the cost .of personal.
airfare or any other costs incidental to such move; and shall be limited to the actual shipping cost
incurred, and shall not under any circumstance exceed the amount and type of expenses allowable
under the Internal Revenue Code.
(g) Limitations on Reductions. Once implemented; the Employer shall have the right to reduce one or
more insurance based benefits but only inconjunction with a corollary reduction of such benefits
applicable to all of the Employer's officers. Any increase in the Exeeutive's Base Salary shlill not
serve to limit or reduce any other obligation to the Executive under this Agreement.

5. TERMINATION UPON DISABILITY
(a) Continuation of Salmy and Benefits Upon Disability. If the Executive becomes totally and
permanently unable to perform his duties because. of any Disability (as defined below) dining the
term of his employment under this Agreement,the Executive's. full-time employment under this
Agreement shall terminate effective on the thirtieth day after the Executive's receipt of written
notice of termination from the Employer (such thirtieth day being referred to in this Agreement as
the ("Disability Effective Date"). In addition to the payments specified in Section 6 below, in the
event of termination of the Executive's employment pursuant to this Section 5, the Employer shall
continue to pay or provide the Executive the following:
(i) Until the Disability Effective Date, all salary and a continuation of vesting of all unvested
stock options granted by the Employer to the Executive, such vesting to occur in .accordance with
the terms of each such grant as in effect on the Disability Effective Date
(b) Offset. The obligations of the Eillployer.to Diake payments under this Agreement to the Executive,
pursuant to Section 5, 6 or 7, following hisDisability shall be reduced prospectively to the extent

that the Executive receives payment of amounts under any salary continuation or similar feature
contained in any disability insuratice policy covering the Executive or under any salary
continuation or siinilar feature under Social Security or any similar federal, state or local program.
The Executive shall provide to the.Employerupo:ti written request from time to time a certification
as to the types and amounts of the benefits referredto in the first two sentences of this Section S(b)
received by the Executive or to which he is entitled.
'
(d) Partial Disability. In the event of a partial Disability of the Executive, it is understood that the
Executive will, provide such part..time services as may be consistent with the nature and extent of
such Disability and his position, duties, responsibilities and statris specified in Section 3(a) of this
Agreement, the Employer shall not be entitl~ to terminate the E?tecutive's employment Un.der
this Agreement as a result of such partiall)isability (provided that despite such partial. disability,
the Executive is able to substantially perform niost of his duties), and the terms and conditions of
this Agreement shall remain in full force.arufeffect after such partial Disability.
PLWBmployeeAgreeQl.ent.doc
15

(e) Definition of Disability. As used in this Agreement, the term "Disability" means the failure ofthe
Executive to render for six consecutive calendar months, or for shorter periods aggregating one
hundred eighty or more business days in any twelve month period, the services contemplated by
this Agreement which a physician seleeted by the Employer or its insurers (and reasonably
acceptable to the Executive or the Executive's legal representative) determines is due-to mental or
physical illness or injury.
(i) Return from Disability. If and to the extent the Executive recovers from any such Disability,
he will resume his duties and responsibilities hereunder partially or fully to the extent of his
recovery, and the term of the Executive's employment under this Agreement shall be reinstated as
if the Executive's employment had not been terminated pursuant to Seetion S(a) of this
Agreement.
6,
DEATH OF THE EXECUTIVE
(a) Payments and Vesting of Options. If the Executive dies while an employee of the Employer or
while receiving any payments on account of a Disability as set forth in Section. 5 above and
during the term of this Agreement, all stock options standing in the name of the Executive shall
immediately fully vest and must be exercised within 120 days of the date of the Executive's death
by the appropriate beneficiary.
7.
PAYMENTS AND BENEFITS UPON TERMINATION OF EMPLOYMENT FOR ANY

REASON
(a) On the Date of Termination of the Executive's employment under this Agreement without good
cause, for disability, or by death, the Executive's Base Salary will continue to accrue for a period.
of two years from the date of termination, disability or death. Employer may pay the cost. of a
suitable additional life policy on the life of the Executive the proceeds froin which may offset any
payment made as aresult of Executive's death.
.
(b) Cause the trustee of any trusteed plan of the Employer to pay and cieliver, and the Employer .
shall pay and deliver under any similar non-trusteed plan of the Employer, to the Exequtive (or, in
the event of his death, to his Beneficiaries), at ihe earliest practicable date after payments become
due under such plan, all money, stock and other property which such plans require to be paid or
delivered or are otherwise payable or deliverable to hlm after the termination of his employment;
(c) Continue, to insure the Executive (or, in the event of his death, his Beneficiaries). with respect
to his activities as a director, officer or Executive of the Employer or any of its subsidiaries, for a
period of two years after such Date of Terln.iriation, under such policies of director and officer
liability insurance as Employer shall provide for its senior officers generally; provided however,
(d) Continue to honor such rights to indeinnification as the Executive (or,.in the event of his death,
his Beneficiaries) may be entitled pursuant to .. any plan of indemnification or indenuiification
agreement in effect at the Date of Termination.
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8.
TERMINATION OF EMPLOYMENT BY EMPLOYER FOR CAUSE

(a) Definition of Cause. The Employer may tei'ntinate the Executive's employment under this
Agreement if the termination is for Cause, for purposes of this Agreement, the Employer shall
have "Cause" to terminate the Executive's employment under this Agreement if and only if any
of the following shall occur:
(i)-
The Executive's conviction by a court of competent jurisdiction or entry of a guilty plea

or a plea of nolo contendere for an act on the Executive's part constituting any felony, or
(ii)
A willful breach by the Executive of any provisions of this Agreement if such breach
results in demonstrably material injury to the Employer, or
(iii) engaging in intentional dishonest oi' deceitful conduct which causes material injury to
the Employer
(b)
Procedural Requirements. The Executive's employment under this agreement shall not be
subject to termination for Cause withoutl {i) reasonable notice to the Executive setting forth the
reasons for Employer's intention-to termina:te and specifying the particulars thereof in detail, and
(ii) an opportuninity for the Executive to cure any such breach, if possible, within thirty days after
such notice.
9.
TERMINATION OF EMPLOYMENT BY EITHER PARTY FOR GOOD REASON
_.(a)
Definition of Good Reason (Executive). The Executive may terminate his employment under
this Agreement and all of his obligations -linder this Agreement to the Employer accruing after
the date of such termination (other than his-obligations Ulider Section), if the termination is for
"Good Reason; II which for purposes of tl:rls Agreement is defmed as:
(i) Failure by the Employer to perform any of its obligations hereunder (including, but not
limited to; Employers obligations under Sections 3 and 4) other than an Isolated, insubstantial or
inadvertent failure not occurring in bad faith and which is remedied by the Employer within 30
day's after receipt of notice thereof given by the Executive; or (ii) The diminution of the Executive'ssalary and or a material diminution of the Executive's
benefits, except in connection with the termination of the Executive's employment .for
permanent disability, cause, as a result of the Executive's death or termination by the Executive
other than for Good Reason,

(iii) Any failure by the Employer to obtain the assumption of this Agreement by. any
successor or assignee of the Employer;

(iv) Any attempt by the Employer to terminate the Executive for Cause which does not resulf
in a valid termination for Cause.
Any such termination will be effective upon thirty days' prior written notice from the Executive
to the Employer.
(b) Definition of Good Reason (Employer). Failure of the Executive to perform any of his . ,
obligations hereunder other than an isolated, insubstantial or inadvertent failure not occurring. iii bruf faith -
PLWEmployeeAgreementdoc
15
and which is remedied by the Executive within 30 days after receipt of notice thereof given by the
Employer.
(c) Compensation and Benefits Upon Section 9' Termination. In addition to the payments specified in
Section 7 of this Agreement, in the event of termination of the Executive's employment pursuant
to this Section 9, the Employer shall contiriue to pay or provide to the Executive the following:
(i) Salary and benefits shall remain a8 ifthe Executive remained employed by the Company
pursuant to this Agreement through the end of the Employment Period (but not less than two
years) and then retired (including both cash and stock components) which pursuant to the terms
of any Plans have been earned and otherwise payable, but-which have not been paid; and
(ii) The Executive will have 90 days subsequent to the Date of Termination to exercise all
stock options and restricted stock awards that have been granted and were vested at Date of
Termination~
The payments and benefits provided pursuant to this paragraph (c) of Section 9 are intended as
liquidated damages for a termination of the Executive's employment by the Company other than
for Cause or Disability or for the actions .of the Company leading to a termmation of the
Executive's employment by the Executive for Good Reason, and shall be the sole and exclusive.
remedy therefore.
10. CHANGE IN CONTROL
A Change In Control for. purposes of this Section shall occur if any of the following events
transpire: Approval by the shareholders of the Employer of a complete liqll.idation or
dissolution of the Employer.
.
(c) Certain Restrictions Following Change in Control. If a Change in Contrql of the Employer
occurs, then the following provisions shall apply:
(i)
The Employer shall not be entitled to reduce, terminate or adversely (from the
Executive's point of view) affect, pursuant to Section: 4(b), any Benefits which are described in
Section 4(b) to which the Executive shall thereafter be. entitled even in connection with a .
reduction in such benefits applicable to all of the Employer's officers who are of a similar class
and station as those of the Executive. If the continliation of any benefit provided to the Executive
violates any law or statute the Employer shall pay to the Executive-the cash equivalent of any
benefit lost by the Executive;
(ii)
All stock optioris restricted stock awards, SERP and similar grants theretofore or
thereafter made which are unvested shall immediately vest effective as of the Change in Control
D~
11.
PROPERTY
(a)
All right, title and interest in mid tO the Intellectual Property (as defined below) shall be
and remain the sole and exclusive property of the Employer. During the term of this Agreement~
Executive shall riot remove from Employer'spremises any documents, records, notebookS, files,
correspondence, reports, memoranda or similar materials of or containfug propri~ information,
or other . materials or property of any kind:, belonging to the Employer uriless necessary or
PLWEmployeeAgreemenldoc
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15

appropriate in accordance with the duties and responsibilities required by or appropriate for his
position and~ in the event that such materials or property are removed, all of the foregoing shall be
returned to their proper files or places of safekeeping as promptly as possible after the reinoval
shall serve its specific purpose. The Executive shall not make, retain, remove and/or distrib11te any
copies of any of the foregoing for any reason whatsoever except as may be necessaryinthe'
discharge of his assigned duties and shall not diwlge to any third person the nature Qf arid/or
contents of any of the foregoing or of any other oral or written information to which he may have
access or with whlch for any reason he may become (amiliar, except as disclosure. shall be
necessary in the performance of his duties. Upon the termination of the Executive's employment
with the Employer, he shall leave with or returit to the Employer all originals and copies of the
foregoing then in his possession, whether prepared. by the Executive or by others.
(b)
The Executive agrees that the company shall have all right, title and interest in and to any
innovations, designs, systems, analyses, ideas for marketing programs, and all copyrights, patents,
trademarks and trade names, or similar intail.gible personal property which have been or are
developed or created in whole or in part by the Executive (hereafter referred to a5 the Iiltellectual
Property): (i) at any tinie and at any place while the Executive is employed by the Employer and.
which, in the case of any or all of the foregoing, are related to and used in connection with the
business of the Employer; (ii) as a result of tasks assigned to the Executive by the Employer; or.
(iii) from the use of premises or personal property (whether tangible or intangible) owned, leased
or contracted for by the Employer (collectively, the "Intellectual Property"); and such property
shall be and remain forever the sole and exclusive property of the Employer. The Exeeutive shall
promptly disclose to the Employer all "Intellectual Property, and the Executive shall.have no claim
for additional compensation for the Intellectual Property, except as otherwise provided in this
Section 12.
(c)
The Executive acknowledges that all Intellectual Property that is copyrightable shall be
considered a work made for hire Un.der Uiuted States Copyright Law. To the ext~t that any
copyrightable Intellectual Property may not be considered a work made for hire under the
applicable provisions of the UD.ited States Copyright Law, or to the extent that, notwithstanding the
foregoing provisions, the Executive may retain an interest in any Intellectual Property that is not
copyrightable, the Executive hereby irrevocably "signs and. transfers to the Employer any and all .
right, title, or interest that the Executive may have in the Intellectual Property" under copyright,
patent, trade secret and trademark law, in perpetuity or for the longest period otherwise permitted
by law, without the necessity of further consideration. The Employer shall be entitled to obtain and
hold in its own name all copyrights, patents, trade secrets, and tradem~ks with respect thereto.
(d)
The Executive further agrees to reveal promptly all inform~tion relating to the Intellectual
Property to appropriate officers of the Employer and to cooperate with the Employer and execute
such documents as may be necessary or appropriate (i) in the event that the Employer desires to
seek copyright, patent or trademark proteetion, or other analogous protection relating
the
Elected Intellectual Property, and when such protection is obtained, to renew an:d restore thesame,
or (ii) to defend any opposition proceedings in respect of obtaining and maintaining such .
copyright, patent or trademark protection, or other analogous protection,
to
(e)
In the event the Employer is unable after reasonable effort to secure the Executive's
signature on atiy of the documents referenced in Section 12(d) above, whether because of the
Executive's physical or mental .incapacity or for any other reason. whatsoever, the Executive.
hereby irrevocably designates and appoints the .Employer and its duly authorized officers and
agents as the Executive's agent and attorneY:-in- fact, to act for aD:d in his behalf and stead. to
execute and file any such docuinents and; to do other lawfully permitted acts to further the
PLWEm.ployeeAgreem.ent.doc
15

prosecution and issuance of any ~uch copyright; patent or trademark protection, or other analogous
protection, with the same legal force.and effect as if executed by the Executive.
(f) Employer hereby acknowledges that Executive has developed certain Intellectual Property prior
to the execution of this Agreement which Employer desires to exercise ownership rights including
patents developed while Executive was employed by Leitner-Wise Rifle Company (hereafter
LWRC). Employer will separately pay a royalty of one half of one percent (.05%)"on the net sale
price of each product containing a previously patented or patentable or otherwise protected device
developed by the Executive. Net sale price is defined as gross sale price less the direct cost for
outside sales and marketing expressed in a per unit cost, but shall not include any commissions or
fees imposed by outside dealers~ distributors, or prime contractors. The royalties' payable under
this subsection shall not be due and payable until Employer's books of accounts show the
existence of pre-tax profits, and in no event shall the royalty payment liability in a given fiscal
year exceed an amount exceeding 3 per cent of the Employer's pre-tax profit. Employer shall be
entitled to treat any patentable enhancements, variations or improvements of these patented
products as Intellectual Property, and the patents which are subject to royalty -payments will be
listed on Exhibit C attached hereto. Payment of royalties under this section shall not be withheld
or terminated regardless of any Termination of the Executive for any reason. Executive will be
responsible for payment of any fees or royalties which may be due to co-inventors in light of the
royalties generated under this Section, and will mdemnify and hold Employer harmless as to any
amounts payable to co-inventors, if any.
(g) Employer likewise hereby acknowledges. that Executive and/or his family members have
developed certain other Intellectual Property in the form of statutory or common law protected
trademarks, prior to the. execution of this Agreement. Employer shall have the right to exercise
.ownership rights with regard to these trademarks without payment of ac,lditional compensation for
so long as Executive is receiving compensation of any kind (excluding stock dividends) from the
Employer under this or any extension of this Agreement. The trademarks which are the subject of
this subsection shall be listed on Exhibit C attached hereto. The ownership rights to all listed
trademarks shall revert to the Leitner-:-Wise family at the end of the term of this Agreement or any
extensions or renewals hereof.
12.
CONFIDENTIAL INFORMATION AND COVENANT NOT TO COMPETE

Acceptance of this Agreement requires the Executive's separate signature and acceptance of the
Confidential Information and Non-Compete Agreement attached to this Agreement as Exhibit D.
13.
NO ASSIGNMENTS; ASSUMPTION BY SUCCESSOR

This Agreement is personal to the Employer and to the Executive and may not be assigned by
either party without the written consent of the other. The Employer will, require any successor
(whether direct or indirectby purchase, merger, consolation or otherwise) to all or substantially all.
of the business and/or assets of the Employer to {i) expressly assume and agree to perform this
Agreement in the same manner and the same extent the. Employer would be required to perform it
as if no such succession had taken place; and (ii) notify the Executive of the assumption of this
Agreement within ten days of such assumption." Failure of the Employer to obtain such assumption
and agreement prior to the effectiveness of any such succession shall be .a breach of this
agreement. As used in this agreement, "Employer" shall mean Leitner-Wise Rifle Company, Inc.,
and any successor to its business and/or assets as aforesaid which assumes and agrees to perform.
this. Agreement by operation of law or otherwise, However, this agreement shall inure to the
PLWEmployeeAgreemenldoc
15

benefit- of and be enforceable by the Executive's personal or legal representatives, executors,
administrators successors, heirs, and distributees; devisees and legatees.
14.
NO SET-OFF
Except as contemplated by Section S(b); the Employer's obligation to make the payments
.provided for in this Agreement and otherwise to perform its obligations hereunder shall not be
affected by any set-off, counterclaim , recoupment, defense or other claim, right~ or action which
the Employer may have against the Executive or others. In no event shall the Executive be
obligated to seek other employment or take any other action by way ofmitigation.ofthe amounts
payable, or benefits to be provided, to the Executive under any of the provisions of this
Agreement, and, except as expressly .. provided in Sections S(c), such amounts shall not be
redpced whether or not the Executive obtains other employment.
..
15,
IMDEMNIFICATION
The Employer and the Executive acknowledge that the Executive's service as an officer ofthe
Employer exposes the Executive to risks of persoilalliability arising from, and pertaining to, the .
Executive's participation in the management of the Employer. The Employer shall defend,
indeninify and hold harmless the Executive from any actual cost, loss, daniages, attOrney's fees,
or liability suffered or incurred by th~ Executive arising out of, or. connected to, the Executive's
service as an officer of the Employer. The Employer shall not be obligated to indemnify the
Executive if the cost, loss, damage, or liability results from the Executive's violation of the
Securities Exchange Act of 1934, as amended, the Executive's violation of criminal law, a
transaction from which the Executive received an improper personal benefit, or .the Executiye's
willful misconduct ot a conscious disregard for the best interests of the Employer. The Employer
will not have any obligation t9 the -Executive under this se~on for any loss suffered if the
Executive voluntarily pays, settles, compromises, confesses judgment for, or admits liability with
respect to without the approval of the Employer. Within thirty days after the Executive receives
notice of any claim or action, which may give rise to the application of this section, the Executive
shall notify the Employer in writing of the claim or action. The Executive's failure to timely notify .
the Employer of the claim or action will relieve the Employer from any obligation to the
Executive under this section.
16.
PRIOR EXPENDITURES AND EMPLOYMENT AGREEMENTS
Executive has maintained that he has previously subsidized company operations from time to time
from personal funds expended and to be reimbursed under the terms of a prior employment
agreement or agreements made betWeen Execu~ve and the c~mpany~ believe~ to be in the amoll.
of $100,000 to $160,000.In return for a wmver of all nghts by Executive to any form 6f
compensation whatsoever under the teims of ariy prior agreements, including emplo}'ment. and
royalty agreements or written or oral contracts of any kind or nature, the exact amount expended
by Executive will be determined by reconciliation of LWRC bank statements and Ex~utive's
personal bank statements generated during the years 2002 and 2003 and the mutually agreed ~pon
amount shall be reimbursed to Executive over a period not to exceed twenty four months .
beginning 30 days after full funding of the: Private Offering in accordance with the Temi Sheet
attached as Exhibit A. The Executive .represents that he has not executed any agreement with
any previous employer under which any pri01~ employer may impose restrictions :on his
emplqym.ent wi. the Employer.
15
:. -.
. . .
:-_ -
..

17.
TRANSFERABILITY. SUCCESSORS'AND~ASSiGNS
The rights and benefits of the Employerunder this Agreement shall be. transferable and _all
covenants and agreements hereunder shall inure to the benefit of and be enforceable by or against
its successors and assigns. No rights or obligations of the Executive hereunder shall be
transferable or assignable by the Executive to any third party.
18.
ATTORNEY'S FEES .
The. prevailing party in any action brought to enforce the provisions of this Agreement shall be
entitled, in addition to such other relief that may be granted, to a reasonable sum for attorney's fees
and costs incurred by such party in enforcing .this Agreement (including fees incurred on any
appeal).
19.
NO ORAL MODIFICATIONS
No modifications or waivers of any provision hereof will be binding or valid unless in writing
executed by both parties.
20.
and
WAIVER
Either party's failure to enforce any provision or provisions .of this Agreement shall not in any way
be construed as a waiver of any such provision or provisions, or prevent that party thereafter from.
enforcing each and every other provision of this Agreement. The rights granted the parties in this.
Agreement are cumulative and shall not. cori.stitute a waiver of either party's right to assert all other
legal remedies available to it under the circumstances.
21.
SEVERABILITY
The invalidity or unenforceability of any particular provision of this Agreement shall not affect the
other provisions hereof, and this Agreement shall be construed in all respects as if su,ch Uivalidor
unenforceable provision were omitted .
22.
GOVERNING LAW AND BINDING EFFECT
This Agreement shall be interpreted and con.Stiued in accordance with the laws of Virginia
23.
CAPTIONS
Captions and section headings used herem are for convenience only, are not a n:laterial term of this
Agreement, and shall not be used in construing this Agreement.
24.
COUNTERPARTS
This Agreement may be executed in two or 'more counterparts, each ofwhich shall be deemedan
original, but all of which taken together shall constitute one and the same instrument.
.
PLWEmployeeA~enldoc
10
15
... ...

25.
NOTICE
Any notice required or permitted to be given underthis Agreement shall be sufficienfif:itis in
writing and sent by hand delivery or by United States Express Mail service to the parties at the
following addresses:
1033 North Fairfax Street
To the Employer:
suite 4oo
Alexandria,Virginia 22314
Attn. - Corporate Secretary/
Chief Executive Officer
Paul Leitner-Wise
91_7 Juniper Place
Alexandria, VA 22304
To the Executive:
26.
. ARBITRATION
Any dispute or controversy arising under or in connection with this Agreement shall be settled
exclusively by arbitration in the City of Alexandria, Virginia in accordance with the rules of the
American Arbitration Association and/or the arbitration group selected by the parties then in
effect. the arbitrator. shall be selected from a: list furnished by the McCammon Group or by then
parties mutual agreement and may, but need not be certified by the American Arbitration
Association. Judgment may be entered in the arbitrator's award in any court having jurisdiction.
Such arbitration shall occur only after the parties have attempted to resolve the dispute or
controversy by mediation under mutually agreeable terms.
27.
ENTIRE AGREMENT.
This Agreement, and the attached Exhibits A, B, C and D, comprise the entire agreement between
the Executive and the Employer, This Agreement supersedes all prior agreements and
understandings between the parties with respect to :the subject matter hereof and may not be
modified or terminated orally. No modification, termination, or attempted waiver shall be valid
unless it is in writing and is executed by each of the parties.
IN WITNESS WliEREOF, the parties have executed this Employment Agreement as of

Aprilll, 2005.
:~~ANY,TNC.
Corporate Secretary
EXEZ/~'
By:
p~~--
11
. .
15
Attorney Docket No.: 966969.00020
ASSIGNMENT
In considetation of the sum of One Dollar ($1.00) or equivalent nnd other good nnd valuable consideration
pnid to ench of the undersigned, Paul Leitner-Wise, the undersigned, hereby sell(s) nnd assign(s) to Leitner-Wi&e
Rifle Compony, Inc. (the Assignee) their entire right, title and interest
check applicable box(es)
181
C8l
for the United States of America (as defined in 3.5 U.S C. 100),
and throughout the world
in the invention known ns SEL.F CLEANING GAS OPERATING SYSTEM FOR A FIREARM for which
npplicntion for patent in the United States of Amorica has been executed by the Wldersigned on October 24, 2006
(also known ns United States Application No. 11/491,141, filed July 24, 2006); in any ond all applications thereon in
nny ond nil Letters Patent(s) thetefor, and in any and all non-provisional applications, reissues, extensions, renewals,
reexaminlllions, divisions, and continWJtions of such applicotions or Letters Patent{s) to the full end of the term or
letms for which such Letters patent(s) issue, such entire right, title, and interest to be held nnd enjoyed by the aboven:~med Assignee the SDme us they would have been held nnd enjoyed by the undersigned had this aSllignmc:nt and
sale not been made.
n )e under-signed agtec(s) to execute all papers necessary in coMection with the applicatioo(s) and any
ccmtinuing, di visionnl, reissue, reexamination or corresponding application(s) thereof and also to execute sepnrate
assignments in connection with such applications as the Assignee may deem necessary or expedient.
The undersigned agyee(s) to execute all papers necessary in cormection with any interfe1ence which may be
decJn,ed concerning the npplicotion{s) or any continuation, division, reissue or reexamination thereof and to
cooperate with the Assignee in every way possible in obtaining evidence and going forward with such interference
The undersigned hereby covenant(s) that he has (tl1ey hwe) full right to convey the entire interest hexein
assigned, nnd tbot he has (they have) not executed, and will not execute, any agreement in conflict therewith
The undersigned hereby grant(s) Mark R Shanks, Registration No. 33,781, Toni-JWlell Herbert,
Registnttion No. 34,348, Chris Aniedobe, Registrntion No. 48,293, and Yukiko Maekawa, Registration No 50,307,
of REED SMITH, LI..P, 3110 Fairview Park Drive, Suite 1400, Foils Church, VA 22042, power to insert on this
assignment nny further Identification which may be necessnry or desirable in order to comply \vith the rules of the
United States Patent and Trademark Office for recordation of this document.
IN WITNESS WHEREOF, executed by the undersigned on the dnte(s) opposite the undersigned namc(s}
Dot"
.31 h> 06
s;&notu oflnvontor.
STATE OF VIRGINlA
~
P1lti1icitileC::is~
) ss .:
COUNTY OF
On theal..?+
day of ~
m ~year 2006, before me, the undersigned, a notary public in and for
snid state, personally appeared P:~ul Leitner-Wise, personally known to me or proved to me on the basis of
satisfactory evidence to be the individual whose name is subscribed to the within insln!ment and acknowledged to
me that he executed the some, and thnt by his signature on the instrument, the individual, or the person upon behalf
of which the indiv idual acted, executed the instrument.
~~
C'g~
Nol:lry Public
- . . . ......... . -.
. ,"-... -.: . - ..,.>.: .. .
W:\Jl400\ll40J'dor\1'~tent
L
2....l)l)f
.- -
-
.L.~~-1..3~ /
AssiiiJlrncnl gas OS 10-26-0G vl DOC
!.
~t;;
RECORDED: 11/06/2006
PLAINTIFF'S
EXHIBIT
PATENT
REEL: 018509 FRAME: 0246
Case
Case8:16-cv-02430-DKC
1:11-cv-00152-WDQ Document
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4.
This Court has jurisdiction over the subject matter of this controversy pursuant to 28
U.S.C. 1338(a).
5.
On information and belief, Sig Sauer is manufacturing, selling and offering for sale
the accused infringing rifles and their associated infringing gas operating system, including rifle
models #SIG516 PATROL and #SIG516 PRECISION MARKSMAN, within Maryland and within
this judicial District. Such rifles are being sold and offered for sale within Maryland and this
judicial District.
PATENT INFRINGEMENT
6.
LWRCI is the owner of United States Patent No. 7,461,581 ("the '581 patent"),
entitled "S~lf-Cleaning Gas Operating System For A Firearm" and has the right to sue for
infringement and collect damages for such infringement. The '607 patent issued on December 9,
2008. A copy of the '581 patent is attached hereto as Exhibit A.
7.
Defendant Sig Sauer has been and is infringing, contributing to the infringement of,
and/or inducing the infringement of the '581 patent by, among other things, making, using, selling,
and/or offering for sale autoloading rifles with their associated gas operating system, including rifle
models #SIG516 PATROL and #SIG516 PRECISION MARKSMAN, within the territorial
boundaries of the United States and this judicial District without the consent, license or
authorization of LWRCI, and will continue to do so unless enjoined by this Court.
8.
Upon information and belief, Defendant Sig Sauer's infringement of the '581 patent
LAW OFFICES
WEBB. BURNETT. haS
been and is Willful.
CORNBROOKS, WILBER,
VORHIS, DOUSE:
& MASON, LLP
P. 0. BOX iltO
SALISBURY. MARYLAND
AliiE:A. CODE: 4 tO
TE:LE:PHONE: 742-3176
Case
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1 Filed
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9.
PlaintiffLWRCI has suffered and will continue to suffer irreparable injury and
financial damage for which LWRCI is entitled to damages for infringement, which damages shall
be trebled, and for which LWRCI is entitled to a preliminary and permanent injunction against
further infringement.
10.
By this Complaint, PlaintiffLWRCl
does hereby comply with the notice
requirements of35 U.S. C. 287 with respect to the '581 patent.
JURY DEMAND
Pursuant to Fed. R. Civ. P. 38, Plaintiff demands a trial by jury on all issues properly
triable by a jury in this action.
PRAYER FOR RELIEF
WHEREFORE, Plaintiff LWRCI prays for a judgment in its favor and against Defendant
Sig Sauer as follows:
A.
that Defendant Sig Sauer be adjudged to have infringed the '581 patent;
B.
that Defendant Sig Sauer and its officers, agents, servants, employees, attorneys and
those persons in active concert or participation with it, be preliminarily and permanent enjoined
from directly or indirectly infringing the '581 patent;
C.
that PlaintiffLWRCI be awarded its damages, together with interest and costs,
pursuant to 35 U.S.C. 284, and that such damages be trebled;

D.
that PlaintiffLWRCI be awarded reasonable attorneys' fees pursuant to 35 U.S.C.
285;and
LAW OFFICES
WEBB, BURNETT,
CORNBROOKS, WILBER.
VORHIS, DOUSE:
& MASON, LLP
P. 0. BOX i'IO
SALISBURY. MARYLAND
AREA CODE 410
TnPii0f'U: 7423176
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E.
that Plaintiff LWRCI have such other and further relief as the Court shall deem just
and proper.
/s/
K. King Burnett (Bar No. 008 70)
kburnett@webbnetlaw.com
WEBB, BURNETT, CORNBROOKS, WILBER,
VORHIS, DOUSE & MASON, LLP
115 Broad Street
Salisbury, Maryland 21803
Telephone: (410) 742-3176
Facsimile (410) 742-0438
Harvey B. Jacobson, Jr.

Michael R. Slobasky
Philip L. O'Neill (Bar No. 08083)
JACOBSON HOLMAN PLLC
400 Seventh St., N.W.
Washington, D.C. 20004
Telephone: (202) 638-6666
Facsimile: (202) 393-5350
January lL 2011
LAW
ATTORNEYS FOR PLAINTIFF

O~FICES
WEBB. BURNETT.
CORNBROOKS, WILBER.
VORHIS, DOUSE
& MASON. LLP
P. 0. BOX 910
SALISBURY. MARYLAND
A"tA CooE 410

TtLEPHONC 742-3176

Case 1:11-cv-00152-WDQ Document 4 Filed 02/22/11 Page 1 of 8

DISTRICT OF MARYLAND
NORTHERN DIVISION
Civil Action No. 1:11-cv-00152-WDQ

Plai ntiff,
JURY TRIAL DEMANDED

v.
SIG SAUER, INC.,

Defendant.
DEFENDANT SIG SAUER, INC.'S ANSWER,

COUNTERCLAIMS, AND JURY DEMAND
Defendant S ig Sauer, Inc. ("S ig Sauer"), by and through its undersigned counsel, hereby
submits the following answer, counterclaims and jury demand in response to Plaintiff L WRC
International, LLC's ("L WRC") Complaint.
NATURE OF THE CASE

I.
Sig Sauer admits that an action for patent infringement may arise under 35 U.S.C.
271 et seq., but otherwise denies the remainder of the allegations of Paragraph I .
PARTIES
2.
S ig Sauer is w ithout kn owledge or information suffic ient to form a belief as to the
truth of the all egations set forth in

3.
Paragr~ph
2.
S ig Sauer admits that it is a Delaware corporation with its principal place of
business at 18 Industrial Drive, Exeter, New Hampshire 03 833.
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4.
Sig Sauer admits that jurisdiction in a patent case may be based on 28 U.S.C.
1338(a), but otherwise denies the remainder of the allegations of Paragraph 4.

5.
Sig Sauer admits that it manufactures, sells and offers for sale rifles, including the
SIG516 PATROL and SIG516 PRECISION MARKSMAN models. Sig Sauer further admits
that the SIG516 PATROL and SIG516 PRECISION MARKSMAN rifles have gas operating
systems. Sig Sauer also admits that it has engaged in business in Maryland. Sig Sauer denies the
remainder of the allegations in Paragraph 5, including that the SIG516 PATROL and SIG516
PRECISION MARKSMAN rifles or their associated gas operating systems infringe any patent.
PATENT INFRINGEMENT
6.
Sig Sauer admits that U.S. Patent No. 7,461,581 (the 581 patent) states on its
front cover that it is entitled Self-Cleaning Gas Operating System For A Firearm and that it
issued on December 9, 2008. Sig Sauer is without knowledge or information sufficient to form a
belief as to the truth of the remaining allegations of Paragraph 6.
7.
Denied.
8.
Denied.
9.
Denied.
10.
Denied.
PRAYER FOR RELIEF
Sig Sauer denies that LWRC is entitled to the relief it prays for, or any relief at all, for the
allegations contained in the Complaint.
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GENERAL DENIAL
All allegations not expressly admitted above are denied.
AFFIRMATIVE DEFENSES
Sig Sauer asserts the following defenses to the Complaint:
First Affirmative Defense
(Failure to State a Claim)
LWRC has failed to state a claim upon which relief may be granted.
Second Affirmative Defense
(Invalidity)
Upon information and belief, the 581 patent and each and every claim contained therein
is invalid due to failure to satisfy at least one of the requirements of patentability under 35 U.S.C.
101, 102, 103 and 112.
Third Affirmative Defense
(Laches, estoppel, waiver, unclean hands)
Upon information and belief, LWRCs claims are barred by the equitable doctrines of
laches, unclean hands, estoppel, and/or waiver.
Fourth Affirmative Defense
(Unavailability of Injunctive Relief)
LWRC is not entitled to injunctive relief because any injury to it is not immediate and
irreparable, LWRC would have an adequate remedy at law, the balance of hardships favors no
injunction, and the public interest is best served by no injunction.
Fifth Affirmative Defense
(Other Affirmative Defenses Based on Later Discovered Evidence)
Sig Sauer reserves all affirmative defenses under Rule 8(c) of the Federal Rules of Civil
Procedure, the patent laws of the United States and any other defenses, at law or in equity, that
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may now exist or in the future be available based on discovery and further factual investigation
in this case.
SIG SAUERS COUNTERCLAIMS
The counter-plaintiff, Sig Sauer, asserts the following counterclaims against the counterdefendant, LWRC:
PARTIES
1.
The counter-plaintiff, Sig Sauer, is a Delaware corporation with its principal place
of business at 18 Industrial Drive, Exeter, New Hampshire 03833.

2.
Upon information and belief, the counter-defendant, LWRC, is a Maryland
limited liability company having its principal place of business at 815 Chesapeake Drive,
Cambridge, Maryland 21613.
3.
Sig Sauer counterclaims for a declaratory judgment that the 581 patent is invalid
and/or not infringed by any act of Sig Sauer.
Sig Sauers counterclaims arise under the
Declaratory Judgment Act, 28 U.S.C. 2201 and 2202, and the Patent Act, 35 U.S.C. 101 et
seq.
4.
This Court has subject matter jurisdiction over these counterclaims pursuant to 28
U.S.C. 1331, 1338, 1367 and 2201.

5.
Based on the foregoing allegations, and by virtue of LWRCs commencement of
the present action, a justiciable controversy exists and this Court has personal jurisdiction over
LWRC.
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6.
Venue is proper in this Court for these counterclaims pursuant to 28 U.S.C.
1391 and 1400, and by virtue of LWRCs commencement of the present action in this Court.
COUNT I
(Declaratory Judgment of Non-infringement)
7.
Sig Sauer repeats the allegations set forth in Paragraphs 1 through 6 as if fully set
forth herein.
8.
A substantial and continuing justiciable controversy exists between Sig Sauer and
LWRC as to the infringement of the 581 patent.

9.
Sig Sauer has not and does not infringe, induce infringement, or contribute to the
infringement of the 581 patent, either literally or under the doctrine of equivalents.
10.
Sig Sauer seeks a declaration from this Court that Sig Sauer has not infringed and
does not infringe any claim of the 581 patent.

COUNT II
(Declaratory Judgment of Invalidity)
11.
Sig Sauer repeats the allegations set forth in Paragraphs 1 through 10 as if fully
set forth herein.

12.
A substantial and continuing justiciable controversy exists between Sig Sauer and
Adams Arms as to the validity of the 581 patent.

13.
Each of the claims of the 581 patent is invalid due to failure to comply with the
requirements of patentability as set forth in Title 35 U.S.C. et seq., including but not limited to
101, 102, 103 and 112.
14.
Sig Sauer seeks a declaration from this Court that each claim of the 581 patent is
invalid.
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WHEREFORE, Sig Sauer prays for judgment and relief as follows:

A.
That LWRCs Complaint be dismissed with prejudice and that LWRC take
nothing by way of its Complaint;

B.
That this Court enter an Order declaring that Sig Sauer does not infringe and has
never infringed any claim of the 581 patent, either literally or under the doctrine of equivalents;
C.
That this Court enter an Order declaring that each and every claim of the 581
patent is invalid;
D.
That this Court declare this to be an exceptional case within the meaning of 35
U.S.C. 285;
E.
That this Court award Sig Sauer its costs in this action, together with reasonable
attorneys fees and pre-judgment interest; and

F.
That this Court grant Sig Sauer such other relief as it deems just and proper.
JURY DEMAND
Sig Sauer demands a trial by jury on all issues so triable.
DATED: February 22, 2011
Respectfully submitted,
/s/ _John P. Moran__
HOLLAND & KNIGHT LLP
John P. Moran (Bar No. 012860)
John.moran@hklaw.com
2099 Pennsylvania Ave. N.W.
Tel: (202) 828-1848
Fax: (202) 955-5564
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OF COUNSEL:
Joshua C. Krumholz (BBO No. 552573)
joshua.krumholz@hklaw.com
Peter I. Sanborn (BBO No. 673401)
peter.sanborn@hklaw.com
10 St. James Ave.
Boston, MA 02116
Tel: (617) 523-2700
Attorneys for Defendant and Counter-Plaintiff
Sig Sauer, Inc.
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CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on February 22, 2011, I electronically filed the foregoing with
the Clerk of the Court by using the CM/ECF system which will send a notice of electronic filing
to the following: K. King Burnett, Webb, Burnett, Cornbrooks, Wilber, Vorhis, Douse &
Mason, LLP, 115 Broad St., Salisbury, Maryland, 21803, and Harvey B. Jacobson, Jr., Michael
R. Slobasky and Phillip L. ONeill, Jacobson Holman PLLC, 400 Seventh St., N.W.,
Washington, D.C. 20004.
/s/ John P. Moran
Case1:11-cv-00152-WDQ
8:16-cv-02430-DKC Document
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NORTHERN DIVISION
LWRC I TERNATIONAL, LLC,
Civil Action No. J:11-cv-00152-WDQ

Plainti ff,
JURY TRIAL DEMANDED

v.
SIG SAUER, INC.,

Defendant.
St ipulated Pr o tect ive Order

The parties hereby stipulate and agree to the entry of the following Protective Order and
request the Court to enter the Protective Order pursuant to Rul e 26(c) of the Federal Rules of
Civi l Procedure.
IT IS HEREBY ORDERED AS FOLLOWS:
I.
T his Protective Order shall govern all documents and things, answers to
inteiTogato ries, answers to request for admi ssio ns, deposition testimony, and other di scovery
materials (collectively "Discovery Material") produced or provided by any party or third parties
in this action , LWRC International, LLC v. Sig Sauer, inc., C ivil Acti on No. I : 11-cv-00 152WDQ .
2.
As used in this Protective Order, "CONFIDENTIAL" shall refer to any Discovery
Material that co nstitutes, includes, or discloses: (a) confidential research, deve lopment, technical
or commercial information that' is not publicly avai lable and that is not expressly contained in
public informati on; or (b) confidential business or financial information or data that is not
publicly available and that is not expressly contained in public information.
~
Cl
PLAINTIFF'S
EXHIBIT
(;
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3.
As used in this Protective Order, HIGHLY CONFIDENTIAL shall refer to any
Discovery Material that constitutes, includes, or discloses: (a) highly sensitive technical
information that is not publicly available and that is not expressly contained in public
information, and that provides a technical or commercial advantage to its possessor, including,
but not limited to, technical trade secrets and/or other proprietary information; (b) highly
sensitive business-related financial or commercial information that is not publicly available and
that is not expressly contained in public information, and that provides a technical or commercial
advantage to its possessor. HIGHLY CONFIDENTIAL Discovery Material may include,
without limitation, sensitive product information (including design specifications), research and
development information (including testing documentation and market research), sensitive
commercial information (including business plans, business strategies, negotiations, and license
agreements), sensitive financial information and business relationship information (including
information pertaining to potential and/or existing customers and competitors), and patent
prosecution information concerning unpublished patent applications (including present or future
patent applications).
4.
As used in this Protective Order, the term Designated Material shall mean any
Discovery Material designated by a Producing Party as either CONFIDENTIAL or HIGHLY

CONFIDENTIAL. All Designated Material, any information or material copied or derived
therefrom, and all copies, excerpts, and summaries thereof, as well as testimony and oral
conversations which reveal that information, shall be treated as and hereinafter referred to as
Designated Material.
5.
As used in this Protective Order, the term Producing Party shall mean any party
to this action or any third party, including its counsel, retained experts, directors, officers,
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employees, or agents, who produces any Discovery Material during discovery for this action.
The term Receiving Party shall mean any party to this action or any third party, including its
counsel, retained experts, directors, officers, employees, or agents, who receives any Discovery
Material.
6.
As used in this Protective Order, documents and things shall have the same
meaning and scope as in Rules 26 and 34 of the Federal Rules of Civil Procedure and shall
include, without limitation, the following items:
(A)
documents and electronically stored information, including writings, drawings,
graphs, charts, photographs, sound recordings, images, and other data or data
compilations; and
(B)
tangible things.
7.
Any Producing Party may mark Designated Material as either
CONFIDENTIAL or HIGHLY CONFIDENTIAL in accordance with this Order. In the case

of documents or any other tangible thing produced, designation shall be made by placing the
legend CONFIDENTIAL or HIGHLY CONFIDENTIAL on each page of the document, on
the first page of a multi-page document or another prominent place in or on the document, or on
any other tangible thing prior to production of the document or tangible thing. In the event it is
not possible or practicable to place such a legend directly on a tangible thing, the Producing
Party may advise the Receiving Party of its designation of such Discovery Material, in writing,
concurrently with production of such thing. In the case of deposition testimony, transcripts, or
portions thereof, designation shall be made by the Producing Party either (i) on the record during
the deposition, in which case the portion of the transcript of the designated testimony shall be
bound in a separate volume and marked CONFIDENTIAL or HIGHLY CONFIDENTIAL,
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as applicable, by the court reporter, as the Producing Party may direct, or (ii) by captioned,
written notice to the court reporter and all counsel of record, given within twenty (20) days after
the court reporter sends written notice to the deponent or the deponent's counsel that the
transcript is available for review, in which case all counsel receiving such notice shall be
responsible for marking the copies of the designated transcript or portion thereof in their
possession or control as directed by the Producing Party or deponent. Pending expiration of the
twenty (20) day period or the receipt of such written notice from the Producing Party (whichever
comes first), all parties and, if applicable, any third party witnesses or attorneys, shall treat the
deposition transcript and the information contained therein as if it had been designated
HIGHLY CONFIDENTIAL. If no such written notice is provided within the twenty (20) day
period, the designation(s) made during the deposition, if any, shall stand. If such written notice is
provided, the designation(s) provided in such notice shall be effective upon receipt by the
Receiving Party. No person shall attend the designated portions of such depositions unless such
person is an authorized recipient of Designated Material under the terms of this Order.
8.
Information sought or obtained from a person not a party to this action (third
party) shall be treated as CONFIDENTIAL or HIGHLY CONFIDENTIAL if requested by

the third party. Any such information designated as CONFIDENTIAL or HIGHLY
CONFIDENTIAL by a third party will be accorded the same protection as the parties
Discovery Material, and will be subject to the same procedures as those governing disclosure of
the parties Discovery Material pursuant to this Order.
9.
All Discovery Materials designated as CONFIDENTIAL, or copies, abstracts,
or summaries of such Discovery Materials, or information contained in or derived from such

Discovery Materials, may be disclosed only to the following persons:
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(a)
the attorneys of record for the parties;
(b)
members or employees of the law firms of the attorneys of record for the
parties who are involved with the prosecution or defense of this action;
(c)
no more than four (4) current officers, directors, employees, or in-house

attorneys of the Receiving Party who have a need to know or review such
CONFIDENTIAL Discovery Materials for purposes of this litigation,
provided that any such individual shall first certify in writing in the form
attached as Exhibit A;
(d)
the Court, including judges, law clerks, clerical personnel, and the jury, if
any, in which case such Discovery Materials may be submitted to the
Court under seal upon motion granted by the Court;
(e)
court reporters, videographers, and other persons involved in recording or

transcribing hearings, trial testimony, or deposition testimony in this
action;
(f)
subject to Paragraph 11, outside consultants or experts and their staff who
are employed or retained by any of the parties or their counsel for
assistance to counsel or testimony in this action, but only if the expert or
consultant certifies in writing in the form attached as Exhibit A that the
expert agrees by executing Exhibit A that such Discovery Materials
shall be used solely for the purpose of this action and not be disclosed to
any other person, and that the expert or consultant shall comply with and
be bound by this Protective Order;
(g)
any person who authored and/or received the particular CONFIDENTIAL

Discovery Material sought to be disclosed to that person, or any deponent
when the examining attorney has a good faith basis to believe the
deponent is the author and/or received the particular CONFIDENTIAL
Discovery Material sought to be disclosed to that deponent;
(h)
litigation support vendors retained by outside counsel for such functions as

photocopying, scanning, stenography, videography, imaging, or
preparation of graphics, demonstratives, and audio and/or video
productions or other exhibits for deposition, trial, or other court
proceedings in this action, but only to the extent necessary for the
particular litigation support services being rendered and in accordance
with the vendors ordinary operating procedure;
(i)
jury or trial consultants retained by a party in this action, providing that

any such consultant is not an employee of a party nor anticipated to
become an employee in the near future;
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10.
(j)
mock jurors engaged by the parties and/or their consultants in preparation

for trial, provided that (i) no party will use any mock juror who knows any
person employed or affiliated with either party to this action; and (ii) mock
jurors will not be allowed to retain any tangible materials that contain or
disclose any CONFIDENTIAL Discovery Material, and (iii) mock
jurors first agree in writing to maintain the confidentiality of any materials
and information provided to them in connection with being a mock juror;
and
(k)
persons who have been retained by a party to provide translation or

interpretation from one language to another.
All Discovery Material designated as HIGHLY CONFIDENTIAL, or copies,
abstracts, or summaries of such Discovery Material, or information contained in or derived from

such Discovery Material, may be disclosed only to the individuals described in paragraph 9(a),
(b), (d)-(k).
11.
Consultants and Experts.

A.
No Designated Material shall be disclosed to a consultant or expert
pursuant to Paragraphs 9(f) and 10 until five (5) business days after said individual is identified
in writing, and a current biographical sketch and written commitment in the form of Exhibit A is
provided to the Producing Party. The biographical sketch shall include a curriculum vitae or
equivalent resume setting forth such persons present residence and business address(es), current
employer(s) and job title(s), past and present relationship, if any, with the Receiving Party, and
each company by which that individual was employed or consulted at any time during the last
four (4) years. The list shall disclose the name and address of each such entity for which
consulting work is being, or has been performed. If disclosure of the identity of the entity for
which the work is being performed is deemed proprietary by the Receiving Party, then the fact
that certain information is being withheld on the basis that it is proprietary shall be disclosed by
the Receiving Party, and any such information that is not deemed proprietary shall be disclosed.
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In the event that said individual enters into a subsequent consulting agreement or arrangement,
the Receiving Party shall promptly notify the Producing Party of such agreement or arrangement.
B.
The Producing Party shall be entitled to object to such disclosure to the
consultant or expert within five (5) business days after receipt of the Acknowledgment of
Protective Order by stating specifically in writing the reasons why such consultant or expert
should not receive the Designated Material. A Producing Partys consent permitting disclosure of
its Designated Material information to a retained consultant or expert of the Receiving Party
shall not be unreasonably withheld, delayed, or conditioned.
C.
The party wishing to disclose the Designated Material to a consultant or
expert to whom a written objection has been made has the burden to apply to the Court for an
order that such disclosure is proper. In the event the Court does not sustain the objecting partys
objection, the objecting party shall promptly reimburse the others attorneys fees and expenses
incurred in successfully challenging the objection.
D.
No disclosure of the Designated Material shall be made to the proposed
consultant or expert until the time for serving objections to that consultant or expert has passed,
or, in the event that a written objection is timely served, until the time as the Court has made a
ruling thereon, and then, only in accordance with such ruling.
12.
If a party objects to the designation of any Discovery Material as
CONFIDENTIAL or HIGHLY CONFIDENTIAL, the parties shall attempt to resolve the

dispute without judicial intervention within fifteen (15) days following notice of the objection. If
a resolution cannot be reached, either party may request review by the Court of whether the
disputed Designated Material should be subject to treatment as CONFIDENTIAL or
HIGHLY CONFIDENTIAL under the terms of this Protective Order. The party seeking
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confidentiality has the burden of showing that the designation is appropriate under Fed. R. Civ.
P. 26(c). If the Court determines that it will review the dispute, the Court may conduct an in
camera review of the Designated Material submitted and determine whether the designation
should be modified in any respect. The disputed Designated Material shall remain confidential
and subject to the terms of this Protective Order unless and until the Court rules otherwise.
13.
No copies, abstracts, or summaries of Designated Material shall be made by a
party or its attorneys of record for distribution or use by persons other than those described in
Paragraph 9 of this Protective Order.
14.
A Receiving Party shall not use a Producing Partys Designated Material for any
purposes whatsoever other than to prepare for and conduct this litigation.
15.
Any attorney, patent agent, or other person who has accessed Discovery Material
constituting, disclosing, or including technical product information (including, but not limited to,
design specifications; research, design, and development information; or information concerning
testing and/or analysis of products) designated HIGHLY CONFIDENTIAL by the Producing
Party, shall be prohibited during the pendency of this case and for a period of one (1) year
following the final disposition of this litigation, whether by judgment (including exhaustion of all
appeals), settlement, or otherwise, from participating either directly or indirectly in Patent
Prosecution directed to such HIGHLY CONFIDENTIAL technical product information. For
the purposes of this Order, Patent Prosecution shall be defined as preparing, drafting,
commenting upon, and/or filing patent applications; preparing, drafting, commenting upon,
and/or responding to office actions; signing oaths or declarations in connection with patent
applications; otherwise prosecuting any pending or future patent application; and/or assisting in
any part of the foregoing activities.
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16.
For any deposition of a non-party deponent, and before any Designated Material
is disclosed to the deponent, such deponent shall be first advised that pursuant to a protective
order entered in this litigation such deponent may use any Designated Material disclosed to them
solely for the purpose of this action and may not disclose such Designated Material to any other
person or make any use of any Designated Material, and shall be required to certify her/his
agreement to the same on the deposition record in advance of disclosure.
17.
Nothing in this Protective Order shall be deemed to preclude any party from
seeking, upon an appropriate showing, lesser or greater protection with respect to the
confidentiality of any Discovery Material.
18.
No party to this action shall be obligated to challenge the propriety of any
designation by any Producing Party, and a failure to do so shall not constitute a waiver or in any
way preclude a subsequent challenge in this or any other action to the propriety of such
designation.
19.
At any time after any Discovery Material is designated as CONFIDENTIAL or
HIGHLY CONFIDENTIAL under this Protective Order, the Producing Party may agree in
writing that the CONFIDENTIAL or HIGHLY CONFIDENTIAL Discovery Material may
be disclosed to designated persons employed by the Receiving Party who were otherwise not
permitted access to such Designated Material. Any such agreement or waiver must be in writing
or by statement made on record at the deposition.
20.
Nothing in this Protective Order shall be construed as an admission of any party
that any Designated Material would be admissible in evidence in this proceeding or in any other
proceeding.
21.
Nothing in this Protective Order shall limit, or be construed to limit, in any way
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the use that a party may make of Discovery Material that (a) the party itself has produced and
designated as CONFIDENTIAL or HIGHLY CONFIDENTIAL or (b) that the party itself
has obtained by means other than by formal discovery in this action.
22.
In the event that a party seeks to file materials subject to this Protective Order (or
any pleading, motion or memorandum disclosing such material) under seal, the party making
such filing must file such materials with the Clerk of the Court in an envelope marked SEALED
PURSUANT TO ORDER OF COURT DATED _____________; or similar designation, and
simultaneously submit a motion and accompanying order pursuant to Local Rule 105.11. At the
conclusion of the litigation, the Clerk shall return to the Producing Party or destroy any sealed
material.
23.
Within thirty (30) days after the conclusion of this action or exhaustion of all
appeals, if appealed, and unless the parties agree otherwise, each party shall:
(a)
assemble and make available for return to the disclosing party, or destroy, all
Designated Material received from the Disclosing Party, and all copies, abstracts, or
summaries of such confidential Discovery Materials other than attorney-client
communications strictly between that party and its counsel; and
(b)
24.
certify in writing that the procedures set forth have been completed.
The parties recognize that confidentiality procedures may be necessary for the use
of Designated Material under this Protective Order at hearings and trial and will attempt in good
faith to agree at a later date on an appropriate procedure for any such hearing and trial. These
procedures will be submitted to the Court for approval before any such hearing and trial.
25.
Nothing in this Protective Order shall preclude any party from seeking to amend
or modify this Protective Order, if necessary.

26.
The inadvertent production of Discovery Material without a designation of
CONFIDENTIAL or HIGHLY CONFIDENTIAL shall not be deemed a waiver of a claim of
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confidentiality.
27.
If a party through inadvertence produces or provides Discovery Material that it
believes is subject to a claim of attorney-client privilege or work product immunity, the

Producing Party may give written notice to the Receiving Party or Parties that the information or
material is subject to a claim of attorney-client privilege or work product immunity and request
that the information or material be returned to the Producing Party. The Receiving Party or
Parties shall return to the Producing Party such information or material. Return of the
information or material by the Receiving Party shall not constitute an admission or concession,
or permit any inference, that the returned information or material is, in fact, properly subject to a
claim of attorney-client privilege or work product immunity nor shall it foreclose any party from
moving the Court for an order that such information or material has been improperly designated
or should be producible for reasons other than a waiver caused by the inadvertent production.
The Court retains jurisdiction to make such amendments, modifications, and additions to this
Protective Order as the Court may from time to time deem appropriate, as well as to resolve any
disputes about the disposition of Designated Material at the conclusion of this action.
SO STIPULATED AND AGREED:

/s/______Michael R. Slobasky __________
/s/John P. Moran
Harvey B. Jacobson, Jr.

Michael R. Slobasky
Philip L. ONeill (Bar No. 08303)
N. Whitney Wilson
Jacobson Holman PLLC
400 Seventh St., N.W.,
Tel: (202) 638-6666
Fax: (202) 393-5350

John P. Moran (Bar No. 012860)
John.moran@hklaw.com
2099 Pennsylvania Ave. N.W.
Tel: (202) 828-1848
Fax: (202) 955-5564
OF COUNSEL:
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K. King Burnett (Bar No. 00870)

Webb, Burnett, Cornbrooks, Wilber, Vorhis,
Douse & Mason, LLP
116 Broad Street
Salisbury, MD 21803
Tel: (410) 724-3176
Fax: (410) 742-0438
Joshua C. Krumholz (BBO No. 552573)

joshua.krumholz@hklaw.com
Peter I. Sanborn (BBO No. 673401)
peter.sanborn@hklaw.com
10 St. James Ave.
Boston, MA 02116
Tel: (617) 523-2700
Attorneys for Plaintiff and Counter-Defendant

LWRC International, LLC
Attorneys for Defendant and Counter-Plaintiff

Sig Sauer, Inc.
Pursuant to Federal Rule of Civil Procedure 26 and the above stipulation of the parties, and it
appearing that discovery in the above-entitled action is likely to involve the disclosure of
confidential information, and good cause appearing,
IT IS SO ORDERED.
_________________________________________
UNITED STATES DISTRICT JUDGE
Dated:
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NORTHERN DIVISION
LWRC INTERNATIONAL, LLC,

Civil Action No. 1:11-cv-00152-WDQ
Plaintiff,
v.
SIG SAUER, INC.,
Defendant.
EXHIBIT A
I,
, state that:
My business address is
My present employer and job description are
My relationship to the parties to this action is as follows
I have read and reviewed in its entirety the Protective Order (Protective Order) entered
in this matter.
I hereby agree to be bound by and comply with the terms of the Protective Order, and not
to disseminate or disclose any information subject to the Protective Order that I review or about
which I am told, to any person, entity, party, or agency for any reason, except in accordance with
the terms of the Protective Order.
13
JH05202011a
Document1-7
25 Filed 06/17/11
06/29/16 Page 14 of 14
I understand that contempt sanctions may be entered for violation of this Protective Order
and further agree to submit to the jurisdiction of this Court for the purposes of enforcement of
the terms of this Protective Order.
DATED this
day of
, 2011.
Signature
(Typed or Printed Name)
14
JH05202011a

Paul Andrew Leitner-Wise Sues LWRC &amp; SIG Sauer Over Patent Infringement

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Paul Andrew Leitner-Wise Sues LWRC &amp; SIG Sauer Over Patent Infringement

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Case 8:16-cv-02430-DKC Document 1 Filed 06/29/16 Page 1 of 12

UNITED STATES DISTRICT COURT

PAUL ANDREW LEITNER-WISE

Civil Action Number

PARTIES AND SUBJECT MATTER

Plaintiff Paul Andrew Leitner-Wise is a natural person, and a subject of

Case 8:16-cv-02430-DKC Document 1 Filed 06/29/16 Page 2 of 12

Defendant LWRC International, LLC is a limited liability company

Defendant SIG Sauer, Inc. is a corporation incorporated under the laws of

JURISDICTION AND VENUE

under 35 U.S.C. 271, et seq. for patent infringement.

et seq. for patent infringement.

The Plaintiff is a subject of the United Kingdom residing in Virginia.

Case 8:16-cv-02430-DKC Document 1 Filed 06/29/16 Page 3 of 12

The Defendants are citizens of New Hampshire, Delaware and Maryland

under 28 U.S.C. 1332 (c)(1).

The amount in controversy herein exceeds $75,000, exclusive of interest

The Plaintiff offers an additional causes of action of common law unjust

enrichment and breach of contract.

that they form part of the same case or controversy.

Case 8:16-cv-02430-DKC Document 1 Filed 06/29/16 Page 4 of 12

The Plaintiff asserts that these common law claims is necessarily a

The inevitable incompleteness presented by all legislation means that

interstitial federal lawmaking is a basic responsibility of the federal courts. United

In 2004, Plaintiff Paul Andrew Leitner-Wise invented a Self-Cleaning

Leitner-Wise is the founder of the Leitner-Wise Rifle Company, Inc., a

Virginia Corporation known as LWRC.

In 2005, Leitner-Wise sold LWRC.

On April 11, 2005, Leitner-Wise entered into an Employment Agreement

with the Leitner-Wise Rifle Company, Inc.

Such Employment Agreement stated inter alia,

Employer [Leitner-Wise Rifle Company, Inc.] hereby acknowledges that

Case 8:16-cv-02430-DKC Document 1 Filed 06/29/16 Page 5 of 12

price of each product containing a previously patented or patentable or otherwise

Leitner-Wise left employment with Leitner-Wise Rifle Company, Inc. on

October 31, 2006.

Wise Rifle Company, Inc. Pl.'s Ex. C.

Such consideration for the assignment included the ongoing compensation

due to Leitner-Wise described in paragraph 18 above.

Following cessation of his employment with Leitner-Wise Rifle Company,

On information and belief, such removal of the contracts from Leitner-

Wise's possessions was intended to deprive him of evidence of this Employment

patent to Defendant LWRC International, LLC. Pl.'s Ex. D.

Such assignment falsely identified the inventor as the ASSIGNOR,

Leitner-Wise Rifle Company, Inc. Id.

Because of the false representations therein, the assignment was defective

Case 8:16-cv-02430-DKC Document 1 Filed 06/29/16 Page 6 of 12

null and void.

Such (re-)assignment in 2008 was made without the knowledge or

authority of the inventor, Leitner-Wise.

Such (re-)assignment in 2008 was made without due consideration of the

existing compensation agreement with royalties due to Leitner-Wise. Pl.'s Ex. B.

On information and belief, such false identification of the inventor within

On January 18, 2011, Defendant LWRC International, LLC filed suit in

this Court against Defendant SIG Sauer, Inc. 1:11-cv-00152-WDQ.

Within this lawsuit, Defendant LWRC International, LLC alleged, inter

Case 8:16-cv-02430-DKC Document 1 Filed 06/29/16 Page 7 of 12

On information and belief, attorneys for, or employees of, Defendant SIG

On information and belief, attorneys for, or employees of, Defendant SIG

In Defendant SIG Sauer, Inc.'s Answer and Counterclaim, this Defendant

claimed the '581 patent to be invalid. Pl.'s Ex. F at 3.

On information and belief, the Defendants conspired to discontinue such

On June 17, 2011, the Defendants stipulated to a protective order before

this Court. Pl.'s Ex. G.

Paul Andrew Leitner-Wise Sues LWRC & SIG Sauer Over Patent Infringement

Paul Andrew Leitner-Wise Sues LWRC & SIG Sauer Over Patent Infringement