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Todd Dotson’s lawsuit against Russ Whitney 3

30. In addition, on information and belief, she has engaged in business and
other conduct in the State of Texas out of which this action arises by,
among other things, selling products in Texas with purposeful direction and
in a substantial volume.
31. She has also committed tortious conduct in whole or part in, or directed
to Texas based on information and belief.
32. She maintains neither a regular place of business, nor a registered
agent for service of process in Texas.
33. Accordingly, under Texas Civil Practice and Remedies Code. § 17.044, she
is deemed to have appointed the Texas Secretary of State as agent for
service, and may be served by serving the Texas Secretary of State with two
copies of process along with the accompanying copies of this Complaint with
the instruction to forward same by certified mall, return receipt requested
to Jessanne Jonhnson at 4100 Highbrook Trail, Raleigh, North Carolina 27606.
34. Defendant, Tim Veler. Tim Veler is an individual. He is a resident and
citizen of the State of Texas. He can be served with citation at his
residence, 3732 Creek Road, Arlington, Texas 76001.
35. Defendant, Margaret Shorts. Shorts is an individual. On information and
belief, she is a citizen and resident of the State of Ohio.
36. She has done business with a Texas resident out of which this action
arises by entering into contract(s) with a Texas resident to be performed by
at least one party in the State of Texas.
37. In addition, on information and belief, she has engaged in business and
other conduct in the State of Texas out of which this action arises by,
among other things, selling products in Texas with purposeful direction and
in a substantial volume.
38. She has also committed tortious conduct in whole or part in, or directed
to Texas based on information and belief.
39. She maintains neither a regular place of business, nor a registered
agent for service of process in Texas.
40. Accordingly, underTexas Civil Practice and Remedies Code. § 17.044,
Shorts is deemed to have appointed the Texas Secretary of State as agent for
service, and may be served by serving the Texas Secretary of State with two
copies of process along with the accompanying copies of this Complaint with
the instruction to forward same by certified mall, return receipt requested
to Margaret Shorts, 24496 Briarwood Drive, Olmstead Falls, Ohio 44138.
41. Defendant, Dana Van Hoose. Van Hoose is an individual. On information
and belief, Van Hoose is a citizen and resident of the State of Arizona.
42. He has done business with a Texas resident out of which this action
arises by entering into contract(s) with the Texas resident to be performed
by at least one party in the State of Texas.
43. In addition, on information and belief, he has engaged in business and
other conduct in the State of Texas out of which this action arises by,
among other things, selling products in Texas with purposeful direction and
in a substantial volume.
44. He has also committed tortious conduct in whole or part in, or directed
to Texas based on information and belief.
45. He maintains neither a regular place of business, nor a registered agent
for service of process in Texas.
46. Accordingly, under Texas Civil Practice and Remedies Code. § 17.044, Van
Hoose is deemed to have appointed the Texas Secretary of State as agent for
service, and may be served by serving the Texas Secretary of State with two
copies of process along wth the accompanying copies of this Complaint with
the instruction to forward same by certified mall, return receipt requested
to Dana Van Hoose, 3743 East Fruitville Avenue, Gilbert, Arizona 85297.
47. Defendant, Todd Trygier. Trygier is an individual. On information and
belief, he is a citizen of the State of Michigan.
48. Trygier has done business with a Texas resident out of which this action
arises by entering into contract(s) with a Texas resident to be performed by
at least one party in the State of Texas.
49. In addition, on information and belief, he has engaged in business and
other conduct in the State of Texas out of which this action arises by,
among other things, selling products in Texas with purposeful direction and
in a substantial volume.
50. He has also committed tortious conduct in whole or part in, or directed
to Texas based on information and belief.
51. He maintains neither a regular place of business, nor a registered agent
for service of process in Texas.
52. Accordingly, under Texas Civil Practice and Remedies Code. § 17.044, he
is deemed to have appointed the Texas Secretary of State as agent for
service, and may be served by serving the Texas Secretary of State with two
copies of process along with the accompanying copies of this Complaint with
the instruction to forward same by certified mall, return receipt requested
to Todd Trygier at 7186 Delta River Drive, Lancing Michigan 48906.
53. James V. ("Jimmy") Reed is an individual residing in Fort Worth, Texas
and may be served with process at his address at 2716 Southpark Lane, Fort
Worth, Texas 76133.
54. Individual Defendants, A.C. and Jessanne Johnson and Veler, Shorts, Van
Hoose, Reed and Trygier, on information and belief, have infringed on
Plaintiffs' copyrighted works by using, and teaching from them for profit in
certain seminars described more fully below and/or selling or promoting
Defendants' seminars. Those individual Defendants are referred to
collectively as "Trainers" or "Mentors".

JURISDICTION AND VENUE

55. This is an action seeking, among other things, injunctive relief and
damages for copyright infringement pursuant to the laws of the United
States, Title 17 U.S.C.
56. This Court has jurisdiction over the subject matter of this action
pursuant to 28 U.S.C.. §§ 1331, 1338 and 1367.
57. Venue is proper in this district pursuant to 28 U.S.C.. §§ 1391 and
1400. Among other things, a substantial part of the events or omissions
giving rise to these claims occurred in this judicial district, and one
defendant resides in this district. Moreover, WEG and WLG are subject to
personal jurisdiction here, and Defendants may be found or reside in this
judicial district. Thus, venue is proper here.
58. The Court has personal jurisdiction over each of the Defendants, as set
out above.

BACKGROUND

59. Several years ago, Plaintiff, Dotson Consulting created original works
of authorship known as the "Mentor Manual," "The Wholesale Buying Camp
Manual" and "The Purchase Option Camp Manual" (the "Dotson Manuals").
60. The Dotson Manuals constitute original copyrighted works for which
Dotson Consulting obtained copyright registrations by fully complying with
Copyright Act of 1976, 17 U.S.C.. § 101 et seq. True and correct copies of
the Certificates of Registration for these works are attached to this
Complaint as Exhibits "A", "B" and "C", and those exhibits are incorporated
herein by reference.
61. Dotson Consulting, along with the other Plaintiffs here own all right,
title and interest in, and have registered copyrights for the Dotson
Manuals. [FN1]

FN1. For business purposes, Dotson Consulting assigned to Dotson Training
certain rights in the copyrighted works and permitted Dotson Training to
become a co-owner of the copyrighted Dotson Manuals described hereinabove.

62. In 2002, most of the parties to this action were engaged in litigation
in the 153rd District Court of Tarrant County, Texas. That case was settled
pursuant to the terms of a "Compromise Settlement Agreement and Release"
(the "Settlement Agreement") during the early stages of discovery. All of
the Defendants here, except Russ Whitney, James V. Reed and WLG, are parties
to that Settlement Agreement, and are referred to here as "Settling
Parties."
63. As part of the Settlement Agreement, the Settling Parties specifically
agreed, acknowledged and recognized the ownership of the copyrighted
materials in Dotson and Dotson Consulting.
64. Even so, without any authorization of, or license from any of the
Plaintiffs here, some or all the Defendants have made derivative works of
Plaintiffs' works and have infringed the copyrights covering the Dotson
Manual or Manuals.
65. Dotson has obtained a copy of a document titled "Purchase Option
Manual," which Defendant, WEG apparently uses in certain seminars it
presents. A review of that Purchase Option Manual clearly indicates that it
is derived from, and infringes the copyright of Plaintiffs' copyrighted
Purchase Option Manual.
66. Plaintiffs have also seen promotional and related information relating
to WEG's seminar on wholesale buying and mentoring, demonstrating that the
materials used by Defendants in connection with those seminars in all
reasonable likelihood, and on information and belief, also were derived from
Plaintiffs' copyrighted Dotson Manuals.
67. Further, on information and belief, the Mentor Defendants use the
various infringing manuals and other materials in training they provide to
students at Defendants' seminars.
68. Thus, on information and belief, Defendants have made copies of the
Dotson Manuals, and/or made derivative works based on the Dotson Manuals and
have distributed them to customers and used them generating substantial
income from that commercial activity, and used Plaintiffs' works in other
works of Defendants.
69. Defendants' conduct constitutes breach of contract and an unlawful
taking and use of Plaintiffs' works and constitutes copyright infringement
as well under 17 U.S.C.. § 106, among other things.
70. In addition, priorto the events that led to the Settlement Agreement
described above, Dotson had previously provided teaching services for the
Whitney Defendants. Then, in 2002, WEG, WLG and/or Whitney asked Dotson to,
and Dotson agreed to write and provide certain materials relating to
wholesale real estate buying and selling techniques, purportedly to be
included in a book to be published by those Defendants,
71. Dotson authored, as an original work of authorship protected by
copyright, the work titled "Wholesaling Houses for Quick Cash." See Exhibit
"D" a true copy of Certificate of Registration, incorporated herein by
reference.