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Declaration Of David A. Crist

Date
2020-05-06

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Case 8:20-cv-01003-MSS-CPT          Document 10        Filed 05/06/20      Page 1 of 9 PageID 261




                         IN THE UNITED STATES DISTRICT COURT
                          FOR THE MIDDLE DISTRICT OF FLORIDA
                                    TAMPA DIVISION

    3M COMPANY,

           Plaintiff,

    v.                                                   Case No.: 8:20-cv-1003-T-35CPT

    TAC2 GLOBAL LLC,

           Defendant.

    ________________________/

                          DECLARATION OF DAVID A. CRIST
                  IN SUPPORT OF PLAINTIFF 3M COMPANY’S MOTION
                    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
Case 8:20-cv-01003-MSS-CPT          Document 10        Filed 05/06/20    Page 2 of 9 PageID 262




    (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 motion for a

    temporary restraining order and preliminary injunction against Defendant TAC2 Global,

    LLC (“TAC2 Global” or “TAC2”) in the above-referenced action.

    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:



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    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).

           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.



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           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. 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



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    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.

    TAC2 Global’s Misconduct

           18.    Defendant TAC2 Global 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.

           19.     On or about April 14, 2020, Defendant sent an email titled Tac2 Global –

    N95 Masks and Sanitizer (the “Email”) to the Logistics Section Support Director (“LSSD”)

    of the Florida Department of Management Services (“DMS”) Emergency Operations

    Center (“EOC”). See Exhibit 9. In the Email, Defendant falsely claimed to be a recently

    contracted authorized distributor of 3M’s products that otherwise had association or

    affiliation with 3M and its products, purported to be a distributor of certified 3M-brand,

    N95 Model 1860 respirators, and offered to sell said respirators. In the Email, Defendant

    included an itemized quote (the “Quote”) addressed to the DMS’ Division of State

    Purchases which offered to sell five to ten million 3M-brand, N95 Model 1860 respirators

    for $5.50 each and various sizes of bottled hand sanitizer at highly inflated prices. The




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    Quote also contains a reference to the 3M-brand, N95 Model 1860 respirators that

    Defendant purportedly had for sale in the form “3MTM”.

           20.     The Quote further contains a series of false and misleading claims involving

    3M including but not limited to the following:

                   a. That the Defendant had “further contracted to become a
                      distributor of 3M N95 Masks.”;
                   b. That Defendant’s “pricing will remain fixed and transparent to
                      3M and their agents.”;
                   c. That Defendant had a “contract agreement with the 3M
                      Manufacturer”; and
                   d. “Every mask we [Defendant] procure will also be inspected and
                      certified by 3M agents prior to leaving the manufacturing
                      facility, and we are obligated to offer these masks CIF.”

           21.     The Email also contains a purported certificate from the INSPEC

    organization that attests to the quality of the masks Defendant is selling (the “Certificate”).

    See Ex. 9. The Certificate does not show in any way that the masks Defendant offers are

    affiliated with 3M or safe to use. Finally, the Email includes attachments containing

    specifications of the hand sanitizer and screenshots of Florida business registrations (the

    “Attachments”). See Ex. 9.

           22.     Defendant’s use of the 3M mark and invocation of 3M’s name in the Quote

    and the inclusion of the Certificate and Attachments were intended to mislead the EOC

    into believing that Defendant was an authorized distributor of Plaintiff’s products and/or

    otherwise had an association or affiliation with Plaintiff and its products. Under the guise

    of appearing affiliated with 3M, Defendant attempted to deceive consumers into

    purchasing masks at highly inflated prices. Defendant is not, and never has been, an

    authorized distributor or vendor of 3M’s products. Defendant also does not have, and has



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

    its 3M Marks or 3M Slogan to TAC2 Global for any purpose. 3M also has never consented

    to, or authorized or approved, TAC2 Global’s use of the 3M Marks or 3M Slogan for any

    purpose.

           23.     These statements that imply 3M’s involvement are false and likely to

    mislead and/or deceive a consumer into believing that Defendant is an authorized

    distributor of 3M products and/or has an association or affiliation with 3M. Defendant’s

    quote of $5.50 per 3M-brand, N95 Model 1860 respirator is more than quadruple 3M’s

    suggested list price of $1.27 per respirator.

           24.     For purposes of clarity, TAC2 Global is not authorized to solicit purchase

    orders from customers for submission to 3M for approval. Nor is TAC2 Global authorized

    to state how, where, or in what quantity such orders would be filled. The Email and Quote

    do 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.

           25.     Turning back to TAC2 Global’s April 14, 2020 email, the day after

    receiving the email, the EOC contacted 3M for verification. Although that potential sale

    was averted, there is nothing to prevent TAC2 Global 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

    TAC2 Global on April 30, 2020.



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    TAC2 Global’s Misconduct Is Causing Immediate and Irreparable Harm to 3M—
    Especially in This District

           26.     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, TAC2 Global is causing immediate, irreparable, and

    immeasurable harm to 3M’s brand and reputation.

           27.     TAC2 Global is price-gouging by offering to sell purported 3M-brand N95

    respirators to Florida for upwards of 400% their 3M single-case U.S. list price. TAC2’s

    price-gouging activity is particularly harmful to 3M at this unprecedented time. That is

    because TAC2 Global’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.

           28.     TAC2 Global’s conduct is also particularly damaging to the 3M brand’s

    reputation in Florida. 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 TAC2 Global 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




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    may cost. Under the circumstances, it is impossible to measure the resulting damage to

    3M.

             29.       There are already widespread reports of counterfeit, inferior-quality

    respirators being sold at grossly inflated prices. And, despite having not increased the

    prices it charges for its 3M-brand N95 respirators, 3M has already been subject to

    unfounded public criticism in response to third-party price-gouging.

             30.       The 3M brand is also irreparably and immeasurably harmed by TAC

    Global’s conduct in that the purported 3M-branded products that TAC2 Global is

    advertising for sale may not exist and/or are counterfeit. In addition to threatening the

    credibility of the 3M brand, such conduct results in a diversion of critical public resources,

    which places lives at risk. These resources include the time spent by public officials to

    pursue false/fraudulent leads and the money spent to purchase products at inflated prices.

    Additionally, this waste of resources further diminishes the ability of public officials and

    procurement officers to investigate and identify other counterfeit and inferior quality

    supplies as buyers are pressured to place large orders swiftly for essential PPE.

             I declare under penalty of perjury that the foregoing is true and correct to the best

    of my knowledge and that this declaration was executed this 4th day of May, 2020.



                                                                   ________________________
                                                                         David A. Crist



    DM_US 168329621-3.099922.0012




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