IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO

Civil Action No. _____________________ TEXTILE NETWORK, INC., a Colorado corporation, Plaintiff, v.

GERALD SCHWARTZ, INC., a Georgia corporation, Defendant.

COMPLAINT AND JURY DEMAND

Plaintiff Textile Network, Inc. ("Textile Network"), by and through its undersigned attorneys, for its Complaint against Gerald Schwartz, Inc. ("GSI"), states as follows: PARTIES 1. Plaintiff Textile Network is a Colorado corporation with its principal place of

business in Lafayette, Colorado. 2. Upon information and belief, Defendant GSI is a Georgia corporation with its

principal place of business at 4756 Hammermill Rd. #401, Tucker, Georgia, 30084. JURISDICTION AND VENUE 3. This is a civil action for patent infringement arising under the patent laws of the

United States, 35 U.S.C. 101, et. seq.

4.

This Court has jurisdiction over the subject matter of this action pursuant to 28

U.S.C. 1331, 1332 and 1338. 5. Venue is proper in this judicial district pursuant to 28 U.S.C. 1391 and 1400,

and GSI is subject to personal jurisdiction in this judicial district pursuant to Colo. Rev. Stat. 13-1-124, because GSI maintains a shipping facility in Colorado and, upon information and belief, because GSI offers for sale, sells, and/or distributes stretchable straps with grippers within and/or into Colorado such that GSI has committed acts of patent infringement in this judicial district. TEXTILE NETWORK'S PATENTS 6. On February 17, 2009, United States Patent No. 7,490,634 (the "'634 Patent"),

entitled "Stretchable Strap with Gripper and Method of Making the Same" was duly and legally issued to Pamela Resendez and Abel Pereira. A true and correct copy of the '634 Patent is attached as Exhibit A. 7. By assignment, Textile Network owns all right, title and interest in and to the '634

Patent, including, without limitation, the right to enforce the '634 Patent and to collect damages for past infringements. 8. In general terms, the '634 Patent describes and claims a method of making a More

stretchable strap that includes regions woven with material for enhancing friction. specifically, as set forth in the Abstract of the '634 Patent, A stretchable strap includes a side containing regions woven with frictionally enhancing material. Warp threads of both frictionally enhancing and non-frictionally enhancing material are woven to form a two-layer strap. Internal elastomeric threads provide a connection between the two layers as well as allow the strap to

stretch. A method of making the strap is also provided wherein all elements are simultaneously woven on a loom. 9. Independent claim 1 of the '634 Patent claims: A method for making a strap on a loom, comprising: weaving a frictionally enhanced layer in a plain weave from a plurality of upper warp threads and a first plurality of weft threads, said upper warp threads comprising frictionally enhanced threads under a first tension and non-frictionally enhanced threads under a second tension; simultaneously weaving a non-frictionally enhanced layer in a plain weave from a plurality of lower warp threads and a second plurality of weft threads, said lower warp threads comprising non-frictionally enhanced threads under said second tension; simultaneously weaving a connection between said frictionally enhanced layer and said non-frictionally enhanced layer by weaving a plurality of internal elastomeric warp threads under a third tension and a plurality of binder warp threads both woven over and under each of a complete set of weft threads, wherein every other warp thread of said connection belongs to said plurality of internally located elastomeric warp threads, and wherein said complete set of weft threads comprises said first plurality of weft threads and said second plurality of weft threads, wherein every other weft thread belongs to said first plurality of weft threads; and causing said first, second, and third tensions to relax after said weaving steps wherein: i.) said plurality of internal elastomeric threads contracts causing said plurality of weft threads to draw together; ii.) at least a portion of said plurality of frictionally enhanced upper warp threads remain visible on a surface of said strap, and substantially coplanar with said surface; and iii.) said plurality of frictionally enhanced upper warp threads remains operable to provide friction enhancement along said surface. 10. The '634 Patent is enforceable and, pursuant to 35 U.S.C. 282, enjoys a statutory

presumption of validity. 11. On October 13, 2009, United States Patent No. 7,600,540 (the "'540 Patent"),

entitled "Stretchable Strap with Gripper and Method of Making the Same" was duly and legally issued to Pamela Resendez and Abel Pereira. A true and correct copy of the '540 Patent is attached as Exhibit B. 12. By assignment, Textile Network owns all right, title and interest in and to the '540

Patent, including, without limitation, the right to enforce the 540 Patent and to collect damages for past infringements. 13. In general terms, the '540 Patent describes and claims a stretchable strap that

includes regions woven with material for enhancing friction. More specifically, as set forth in the Abstract of the '540 Patent, A stretchable strap includes a side containing regions woven with frictionally enhancing material. Warp threads of both frictionally enhancing and non-frictionally enhancing material are woven to form a two-layer strap. Internal elastomeric threads provide a connection between the two layers as well as allow the strap to stretch. A method of making the strap is also provided wherein all elements are simultaneously woven on a loom. 14. Independent claim 1 of the '540 Patent claims: A strap, comprising: a frictionally enhanced layer comprising a plain weave woven from a plurality of upper warp threads and a first plurality of weft threads, said upper warp threads comprising frictionally enhanced threads and non-frictionally enhanced threads; a non-frictionally enhanced layer comprising a plain weave woven from a plurality lower warp threads and a second plurality of weft threads, said lower warp threads comprising nonfrictionally enhanced threads; and a connection between said frictionally enhanced layer and said non-frictionally enhanced layer comprising a plurality of internally located elastomeric warp threads and a plurality of binder warp threads both woven over and under each of a complete set of weft threads, wherein every other warp thread of said connection belongs to said plurality of internally located elastomeric warp threads, and wherein said complete set of weft

threads comprises said first plurality of weft threads and said second plurality of weft threads, wherein every other weft thread belongs to said first plurality of weft threads; wherein said strap may be stretched from a non-elongated state to an elongated state, and wherein in both said non-elongated state and said elongated state at least a portion of said plurality of frictionally enhanced upper warp threads remain: i.) visible on a surface of said strap; ii.) substantially coplanar with said surface; and iii.) operable to provide friction enhancement along said surface. 15. Independent claim 10 of the '540 Patent claims: A strap, comprising: a frictionally enhanced layer comprising a plain weave woven from a plurality of upper warp threads and a first plurality of weft threads, said upper warp threads comprising frictionally enhanced threads and non-frictionally enhanced thread; a non-frictionally enhanced layer comprising a plain weave woven from a plurality lower warp threads and a second plurality of weft threads, said lower warp threads comprising nonfrictionally enhanced threads; and a connection between said frictionally enhanced layer and said non-frictionally enhanced layer comprising a plurality of internal elastomeric warp threads and a plurality of binder warp threads both woven over and under each of a complete set of weft threads, wherein every other warp thread of said connection belongs to said plurality of internally located elastomeric warp threads, and wherein said plurality of internal elastomeric threads are located substantially between said frictionally enhanced layer and said non-frictionally enhanced layer, and wherein said complete set of weft threads comprises said first plurality of weft threads and said second plurality of weft threads, wherein every other weft thread belongs to said first plurality of weft threads; wherein said upper warp threads are arranged in frictionally enhanced regions and non-frictionally enhanced regions, said frictionally enhanced regions comprising a plurality of said frictionally enhanced upper warp threads, said non-frictionally enhanced regions comprising of plurality of said non-frictionally enhanced threads, wherein said frictionally and non-frictionally enhanced regions are alternatingly disposed across a width of said frictionally enhanced layer; wherein said strap may be stretched from a non-elongated

state to an elongated state, and wherein in both said non-elongated state and said elongated state at least a portion of said plurality of frictionally enhanced upper warp threads remain: i.) visible on a surface of said strap; ii.) substantially coplanar with said surface; and iii.) operable to provide friction enhancement along said surface. 16. The '540 Patent is enforceable and, pursuant to 35 U.S.C. 282, enjoys a statutory

presumption of validity. FIRST CLAIM FOR RELIEF (Infringement of U.S. Patent No. 7,490,634) 17. Textile Network incorporates herein by reference each and every allegation in

paragraphs 1 through 16. 18. GSI is making, using, selling and/or offering to sell in the United States and/or

importing into the United States, stretchable straps with grippers, including, without limitation, the stretchable strap with gripper depicted in attached Exhibit C. 19. GSI's activities in making, using, selling and/or offering to sell in the United

States and/or importing into the United States, stretchable straps with grippers constitute direct infringement of the '634 Patent, in violation of 35 U.S.C. 271(a) and (g). 20. GSI's actions in infringing the '634 Patent have been, and are, willful, deliberate

and/or in conscious disregard of Textile Networks rights, making this an exceptional case within the meaning of 35 U.S.C. 285 and entitling Textile Network to the award of its attorneys' fees. 21. GSI's infringement of the '634 Patent has caused and will continue to cause

damage to Textile Network in an amount to be ascertained at trial.

22.

GSI's infringement of the '634 Patent has caused and will continue to cause

irreparable injury to Textile Network, as to which irreparable injury there exists no adequate remedy at law. GSI's infringement of the '634 Patent will continue unless enjoined by this Court. SECOND CLAIM FOR RELIEF (Infringement of U.S. Patent No. 7,600,540) 23. Textile Network incorporates herein by reference each and every allegation in

paragraphs 1 through 22. 24. Textile Network is making, using, selling and/or offering to sell in the United

States and/or importing into the United States, stretchable straps with grippers, including, without limitation, the stretchable strap with gripper depicted in attached Exhibit C. 25. Textile Networks activities in making, using, selling and/or offering to sell in the

United States and/or importing into the United States, stretchable straps with grippers constitute direct infringement of the '540 Patent, in violation of 35 U.S.C. 271(a). 26. GSI's actions in infringing the '540 Patent have been, and are, willful, deliberate

and/or in conscious disregard of Textile Network's rights, making this an exceptional case within the meaning of 35 U.S.C. 285 and entitling Textile Network to the award of its attorneys' fees. 24. GSI's infringement of the '540 Patent has caused and will continue to cause

damage to Textile Network in an amount to be ascertained at trial. 25. GSI's infringement of the '540 Patent has caused and will continue to cause

irreparable injury to Textile Network as to which irreparable injury there exists no adequate remedy at law. GSI's infringement of the '540 Patent will continue unless enjoined by this Court.

PRAYER FOR RELIEF WHEREFORE, Textile Network requests that judgment be entered in its favor and against GSI as follows: A. 7,600,540; B. Issuing temporary, preliminary, and permanent injunctions enjoining GSI, its Declaring that GSI has infringed United States Patent Nos. 7,490,634 and

officers, agents, subsidiaries, and employees, and those in privity or in active concert with any of the foregoing, from further activities that constitute infringement of the United States Patent Nos. 7,490,634 and 7,600,540, pursuant to 35 U.S.C. 283; C. Awarding Textile Network damages arising out of GSI's infringement of United

States Patent Nos. 7,490,634 and 7,600,540 in an amount not less than a reasonable royalty for each act of infringement, and trebling those damages pursuant to 35 U.S.C. 284, together with costs and prejudgment and post-judgment interest; D. Finding that this is an exceptional case within the meaning of 35 U.S.C. 285 and

awarding reasonable attorneys' fees to Textile Network; and E. Awarding Textile Network such further legal and equitable relief as the Court

deems just and proper. JURY DEMAND Pursuant to Rule 38 of the Federal Rules of Civil Procedure, Textile Network demands a trial by jury on all issues so triable.

DATED: June 13, 2012

Respectfully submitted, By: s/ Benjamin B. Lieb Benjamin B. Lieb blieb@sheridanross.com David B. Kellis dkellis@sheridanross.com SHERIDAN ROSS P.C. 1560 Broadway, Suite 1200 Denver, Colorado 80202-5141 Telephone: 303-863-9700 Facsimile: 303-863-0223 E-mail: litigation@sheridanross.com ATTORNEYS FOR PLAINTIFF TEXTILE NETWORK, INC.

Plaintiff's Address: Textile Network, Inc. 501 E. Simpson St. Lafayette, CO 80026