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Home Source documents 3M Company v. Performance Supply — Declaration of David A. Crist ISO TRO/PI

3M Company v. Performance Supply — Declaration of David A. Crist ISO TRO/PI

Date
2020-04-24

Summary

A declaration of David A. Crist, a Vice President and Chief Marketing Officer at 3M, filed April 24, 2020 as Document 15 in 3M Company v. Performance Supply, LLC, Case No. 1:20-cv-02949, in the U.S. District Court for the Southern District of New York. It supports 3M's application for a temporary restraining order and preliminary injunction. The declaration describes 3M's marks and federal trademark registrations, including U.S. Trademark Reg. No. 3,398,329, and attaches them as exhibits. It states that on or about March 30, 2020 Performance Supply sent New York City's Office of Citywide Procurement a quote for seven million purported 3M N95 respirators at $6.05 and $6.35 per mask, which it compares with 3M list prices of $1.27 and $1.02-$1.31. It asserts that Performance Supply is not an authorized 3M distributor and ends with a certificate of service by counsel for 3M.

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      Case 1:20-cv-02949-JLR-JW           Document 15        Filed 04/24/20      Page 1 of 9




                      IN THE UNITED STATES DISTRICT COURT
                    FOR THE SOUTHERN DISTRICT OF NEW YORK


 3M COMPANY,

                          Plaintiff,
                                                        Case No.: 1:20-cv-02949 (LAP)(KNF)
                     -against-
                                                        Jury Trial Demanded
 PERFORMANCE SUPPLY, LLC,
                          Defendant.

                   DECLARATION OF DAVID A. CRIST
         IN SUPPORT OF PLAINTIFF 3M COMPANY’S APPLICATION
 FOR A TEMPORARY RESTRAINING ORDER AND PRELIMINARY INJUNCTION

       I, David A. Crist, pursuant to 28 U.S.C. § 1746 and upon penalty of perjury, declare as

follows:

       1.      I am a resident of the State of Minnesota; over the age of 18; and competent to

make this declaration. I could and would testify as to the matters set forth herein, if called upon

to do so.

       2.      I am a Vice President and Chief Marketing Officer for the Safety and Industrial

Business Group at 3M. The information set forth herein is based on my personal knowledge

obtained through the course of my duties at 3M, which include, among other things, 3M’s: (i)

brand-development and marketing efforts; (ii) trademark policies; (iii) sales and pricing guidelines;

and (iv) efforts to assist in the battle against COVID-19. The information set forth herein is also

based on my review of records and documents (including electronic records) maintained in the

regular course of 3M’s business, and the complaint in this lawsuit.

       3.      I submit this declaration in support of 3M Company’s application for a temporary

restraining order and preliminary injunction against Defendant Performance Supply, LLC

(“Performance Supply”) in the above-referenced action.
     Case 1:20-cv-02949-JLR-JW           Document 15        Filed 04/24/20     Page 2 of 9




3M Company

       4.        3M (then, Minnesota Mining and Manufacturing company) began over 100 years

ago as a small-scale mining venture in Northern Minnesota. It has grown into an industry-leading

provider of scientific, technical, and marketing innovations throughout the world.

       5.        3M’s portfolio includes more than 60,000 goods and services, ranging from

household and school supplies, to medical devices and equipment. See Exhibit 1 (3M History,

3M Company, available at https://www.3m.com/3M/en_US/company-us/about-3m/history/ (last

visited on Apr. 21, 2020).

The 3M Brand and Marks

       6.        3M provides goods and services throughout the world under numerous brands,

including well-known brands such as: ACE; POST-IT; SCOTCH; NEXCARE; and more. See

Exhibit      2       (3M      Featured      Brands,      3M       Company,       available    at

https://www.3m.com/3M/en_US/company-us/our-brands/ (last visited on Apr. 21, 2020).

       7.        3M’s most famous and widely recognized brand is its eponymous “3M” brand. The

3M brand encompasses products and materials for a wide array of medical devices, supplies, and

personal protective equipment (“PPE”), including, for example: stethoscopes; medical tapes;

surgical gowns; blankets; bandages and other wound-care products; and respirators. See Exhibit

3 (3M Medical Products, 3M Company, available at https://www.3m.com/3M/en_US/company-

us/all-3m-products/~/All-3M-Products/Health-

Care/Medical/?N=5002385+8707795+8707798+8711017+3294857497&rt=r3 (last accessed on

Apr. 21, 2020).




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     Case 1:20-cv-02949-JLR-JW             Document 15        Filed 04/24/20      Page 3 of 9




       8.      3M-branded products are highly visible throughout numerous hospitals, nursing

homes, and other care facilities where patients, care providers, and procurement officers value and

rely on the high quality and integrity associated with the 3M brand.

       9.       3M employs strict quality-control standards in manufacturing all of its products,

including its products used in the fields of healthcare and worker safety. As a result of this

commitment to quality, 3M-brand N95 respirators are highly respected and widely used and

recommended by medical workers, public-health officials, and throughout the worker safety

market.

       10.     Over the past century, 3M has invested hundreds of millions of dollars in

advertising and promoting its 3M-brand products to customers throughout the world (including its

3M-brand N95 respirators) under the standard-character mark “3M” and the 3M design mark

(together, the “3M Marks”). 3M also uses its famous “3M Science. Applied to Life” slogan (the

“3M Slogan”) in connection with the promotion of its goods and services.

       11.     During this period, 3M’s goods and services offered under its 3M Marks, in

particular, have been the subject of widespread, unsolicited media coverage and critical acclaim.

       12.     Products offered by 3M using its 3M Marks have also enjoyed enormous

commercial success (including, without limitation, its range of 3M-brand N95 respirators).

       13.     To strengthen 3M’s common-law rights in and to its famous 3M Marks, 3M has

obtained numerous federal trademark registrations, including, without limitation: (i) U.S.

Trademark Reg. No. 3,398,329, which covers the standard-character 3M mark in Int. Classes 9

and 10 for, inter alia, respirators (the “‘329 Registration”); (ii) U.S. Trademark Reg. No. 2,793,534,

which covers the 3M design mark in Int. Classes 1, 5, and 10 for, inter alia, respirators (the “‘534

Registration”); and (iii) U.S. Trademark Reg. No. 5,469,903, which covers the “3M Science.



                                                  3
     Case 1:20-cv-02949-JLR-JW            Document 15       Filed 04/24/20      Page 4 of 9




Applied to Life” slogan in a number of Int. Classes, including Int. Class 9 for facial masks and

respirators (the “‘903 Registration”).

       14.     I attach hereto as Exhibit 4 a true and correct copy of the ‘329 Registration.

Pursuant to Section 15 of the Lanham Act, namely, 15 U.S.C. § 1065, on April 2 2014, the United

States Patent and Trademark Office (the “PTO”) issued a Notice of Acknowledgement of 3M’s

Declaration of Incontestability of the ‘329 Registration. See Exhibit 5.

       15.     I attach hereto as Exhibit 6 a true and correct copy of the ‘534 Registration.

Pursuant to Section 15 of the Lanham Act, namely, 15 U.S.C. § 1065, on December 21, 2009, the

PTO issued a Notice of Acknowledgement of 3M’s Declaration of Incontestability of the. See

Exhibit 7.

       16.     I attach hereto as Exhibit 8 a true and correct copy of the ‘903 Registration.

       17.     The general consuming public associates the 3M Marks uniquely with 3M and

recognizes them as identifying 3M as the exclusive source of goods and services offered under the

3M Marks. Additionally, 3M has received public commendation and praise for its contributions

to the COVID-19 pandemic response, particularly with respect to its production of 3M-brand N95

respirators. Based on the public commendation and praise, and widespread media coverage of

3M-brand N95 respirators during the COVID-19 pandemic, the public is more aware now than

ever that 3M manufacturers N95 respirators and other PPE that is essential to protecting healthcare

personnel and workers from exposure to airborne particles including viruses like COVID-19.

Performance Supply’s Misconduct

       18.     Defendant Performance Supply is seeking to exploit the 3M brand and prey on

unwitting customers and governmental agencies in the midst of the COVID-19 public health

emergency.



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     Case 1:20-cv-02949-JLR-JW           Document 15        Filed 04/24/20     Page 5 of 9




       19.     On or about March 30, 2020, on information and belief, Performance Supply sent

Ms. Ebony P. Roberson, a Purchasing Agent at New York City’s Office of Citywide Procurement,

a Formal Quote, offering to sell seven million purported 3M N95 respirators. See Exhibit 9.

Performance Supply stated that it would sell the respirators for $6.05 per “mask” (respirator) for

2 million 3M Model 8210 respirators and for $6.35 per “mask” (respirator) for 5 million 3M Model

1860 respirators. See id. The prices at which Performance Supply offered to sell New York City

the purported 3M-brand N95 respirators are more than five times 3M’s list price:

                                    3M’s              Performance
                               Per-Respirator           Supply’s
             3M Model                                                        Markup
                              Single-Case U.S.        Per-“Mask”
                                 List Price               Price
                1860               $1.27                 $6.35                 500%
                8210            $1.02-$1.31              $6.05               460-590%

       20.     In its one-page Formal Quote, Performance Supply reproduced 3M’s marks nine

times. See Ex. 9 at p. 1. Performance Supply also attached to the Formal Quote a 3M Technical

Specification Sheet for both Models of 3M-brand N95 respirators that Performance Supply

purported to have available for sale. See id. at pgs. 2-6. Plaintiff’s famous 3M design mark, and

well-known 3M Slogan, prominently appeared in the upper left-hand corner of both Technical

Specification Sheets. Id. Plaintiff’s famous 3M design mark appeared in the lower left-hand

corner of both Technical Specification Sheets. Id. Plaintiff’s famous standard-character 3M mark

also appeared in the Technical Specification Sheets. Id.

       21.     Based on Performance Supply’s Formal Quote, on information and belief, Ms.

Roberson, prepared an “Evaluation Request – Bid Document Review” as part of the City’s quality-

assurance measures. See generally Ex. 9 at pgs. 14-5. In the Evaluation Request, New York City

twice officials identified Performance Supply as a “vendor” of 3M-brand, N95 Model 8210 and

1860 respirators. See id. at p. 14. However, the New York City officials were mistaken.

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      Case 1:20-cv-02949-JLR-JW          Document 15       Filed 04/24/20     Page 6 of 9




Performance Supply is not, and never has been, a 3M authorized distributor, vendor, or

representative of Plaintiff’s products. Performance Supply also does not have, and has never had,

an association or affiliation with Plaintiff. Additionally, 3M has never licensed its 3M Marks or

3M Slogan to Performance Supply for any purpose. 3M also has never consented to, or authorized

or approved, Performance Supply’s use of the 3M Marks or 3M Slogan for any purpose.

        22.    In the Formal Quote, Performance Supply also stated:

        “Due to the national emergency, acceptance of the purchase order is at the full
        discretion of 3M and supplies are based upon availability. The N95 masks 3M can
        begin shipping in 2-4 weeks CIF at any of 3M [sic] plants in the USA or 3M Plants
        Overseas according to their manufacturing schedule. 3M choose the plant. Order
        may be shipped in whole or in part.” Ex. 9 at p. 1.

        23.    For purposes of clarity, Performance Supply is not authorized to solicit purchase

orders from customers for submission to 3M for approval. Nor is Performance Supply authorized

to state how, where, or in what quantity such orders would be filled. The Formal Quote does not

accurately describe how 3M fills N95 orders. Indeed, 3M fills orders for its N95 respirators by

accepting purchase orders from 3M’s authorized distributors and wholesalers and, to a lesser

extent, directly from the government. 3M does not accept purchase orders from unauthorized

resellers.

        24.    Turning back to Performance Supply’s Formal Quote, the same day that Ms.

Roberson received it, she contacted Eileen Simmons, a 3M Business Development Manager for

government markets, for verification of Performance Supply’s claim. Ms. Simmons advised Ms.

Roberson that Performance Supply was not associated with 3M, and so that potential sale was

averted. However, there is nothing to prevent Performance Supply from making similar offers to

other government or healthcare entities around the United States, causing irreparable harm to the

3M brand and putting the public at risk. Accordingly, 3M commenced this lawsuit against

Performance Supply on April 10, 2020.
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      Case 1:20-cv-02949-JLR-JW            Document 15         Filed 04/24/20      Page 7 of 9




Performance Supply’s Misconduct Is Causing Immediate and Irreparable Harm to 3M—
Especially in This District

        25.     By falsely holding itself out as a party that is affiliated with or authorized by 3M to

sell 3M-branded respirators, and using 3M’s trademarks to advance this false representation of

affiliation, Performance Supply is causing immediate, irreparable, and immeasurable harm to 3M’s

brand and reputation.

        26.     Performance Supply is price-gouging by offering to sell purported 3M-brand N95

respirators to New York City for upwards of 600% their 3M single-case U.S. list price.

Performance Supply’s price-gouging activity is particularly harmful to 3M at this unprecedented

time. That is because Performance Supply’s conduct disrupts the supply of respirators by, among

other things, (a) wasting 3M and public resources devoted to identifying fraudulent pricing and

inauthentic offers and (b) squandering public and private monies used to pay grossly excessive

prices for essential respirators.

        27.     Performance Supply’s conduct is also particularly damaging to the 3M brand’s

reputation in New York City. When customers and government officials observe price-gouging

by third parties, particularly those that hold themselves out as affiliated with or authorized by 3M

(as Performance Supply is doing), they will inevitably draw the false impression that this behavior

reflects pricing changes by 3M in response to the COVID-19 pandemic. The false impressions are

so strong that in this instance, as in others, public officials are complaining to 3M about the

unlawful behavior of parties that have no relationship to 3M. These false impressions are harming

3M’s reputation and it is unknown how long it may take, if ever, to repair that damage, what

measures, if any, will work, and how much those measures may cost. Under the circumstances, it

is impossible to measure the resulting damage to 3M.


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Case 1:20-cv-02949-JLR-JW   Document 15   Filed 04/24/20   Page 8 of 9
     Case 1:20-cv-02949-JLR-JW            Document 15        Filed 04/24/20      Page 9 of 9




                                 CERTIFICATE OF SERVICE

       I, A. John P. Mancini, hereby certify that, on April 24, 2020, I filed a true and correct copy
of the foregoing document, titled Declaration of David A. Crist in Support of Plaintiff 3M
Company’s Application for a Temporary Restraining Order and Preliminary Injunction, using this
Court’s ECF Filing System. I also certify that, on April 22, 2020, before filing the foregoing
document, I arranged for service of a true and correct copy of it on Defendant Performance Supply,
LLC via personal service and First Class Mail at:

                                   Performance Supply, LLC
                                      c/o Ronald Romano
                                       3 Westbrook Way
                                  Manalapan, New Jersey 07726


                                                              /s/ A. John P. Mancini
                                                              A. John P. Mancini

                                                              Attorney for Plaintiff 3M Company




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