Tee Turtle, LLC v. Abmask et al

Filing 55

ORDER RE: PLAINTIFFS MOTION FOR DEFAULT JUDGMENT AND PERMANENT INJUNCTION 51 by Judge Consuelo B. Marshall: The Court GRANTS Plaintiffs Motion for Default Judgment and Permanent Injunction, 51 . Judgment shall be entered consistent herewith in the amount of $40,000.00 against each of the Non-Complying Defaulting Defendants and $25,000.00 against each of the Complying Defaulting Defendants.IT IS SO ORDERED. (shb)

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UNITED STATES DISTRICT COURT

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CENTRAL DISTRICT OF CALIFORNIA

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TEE TURTLE, LLC
v.

Plaintiff,

ABMASK, et al.,
Defendants.

Case No.: 2:21-CV-03572-CBM-(Ex)
ORDER RE: PLAINTIFF’S
MOTION FOR DEFAULT
JUDGMENT AND PERMANENT
INJUNCTION [51]

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The matter before the Court is Plaintiff’s Motion for Default Judgment and

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Permanent Injunction. (Dkt. No. 51 (the “Motion”).) Having considered the

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Motion, the Memorandum of Points and Authorities in support thereof, the

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Declaration of J. Michael Keyes, and the pleadings, files, and records of this

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matter, the Court GRANTS the Motion and finds as follows:

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1.

The Verified Complaint, filed on April 27, 2021, asserts four causes

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of action: (1) Copyright Infringement, 17 U.S.C. § 101, et seq.; (2) Unfair

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Competition, Lanham Act § 43, 15 U.S.C. § 1125(a); (3) State Statutory Unfair

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Competition, Cal. Bus. & Prof. Code § 17200 et seq.; and (4) Unfair Competition

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under California Common Law. (Dkt. No. 1.)

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2.

On April 29, 2021, the Court granted Plaintiff’s Ex Parte Application

for a Temporary Restraining Order (“TRO”) and Order to Show Cause Why a
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Preliminary Injunction Should Not Issue (“OSC”) upon finding Plaintiff

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demonstrated a likelihood of success on the merits, irreparable harm in the

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absence of preliminary relief, the balance of equities tips in its favor, and an

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injunction is in the public interest. (See Dkt. No. 15 (citing Winter v. Nat. Res.

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Def. Council, Inc., 555 U.S. 7, 20 (2008)).)

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3.

On April 29, 2021, the Court granted Plaintiff’s Ex Parte Application

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for an Order Granting Leave for Alternative Service by Electronic Means. (Dkt.

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No. 17.)

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4.

Plaintiff filed a proof of service reflecting electronic service of the

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Verified Complaint and Summons on all Defendants other than Defendant

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Happylifes on May 3, 2021, and electronic service on Defendant Happylifes on

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May 5, 2021, in the manner approved by the Court in its Order Granting Leave for

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Alternative Service by Electronic Means. (Dkt. No. 32; see also Dkt. No. 31-1.)

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5.

The Court issued a preliminary injunction against Defendants on May

6, 2021. (Dkt. No. 23.)
6.

The Clerk entered default as to Complaint against all Defendants on

June 22, 2021. (Dkt. Nos. 36-44.)
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Defendants were served with notice of the Motion on October 5,

2021 (Keyes Decl. ¶ 28).
8.

Pursuant to Local Rule 7-9, Defendants’ opposition to the Motion

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was due on October 19, 2021 based on the November 9, 2021 noticed hearing

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date, but no opposition was filed by Defendants and Defendants did not appear at

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the hearing.

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9.

Plaintiff’s counsel declares Defendants are not infants or incompetent

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persons or in military services or otherwise exempted under the Soldier’s and

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Sailors’ Civil Relief Act of 1940 (Keyes Decl. ¶ 29).

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10.

The Court finds the statutory damages requested by Plaintiff pursuant

to the Copyright Act in the amount of $40,000.00 against each of the six
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defendants (Allanhu, Bestdeals, Besthot2020, Earlybirdno1 Co. Ltd., Hot Wind,

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and Promotionspace) who have not complied with the Court’s preliminary

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injunction order as of September 23, 2021 (hereinafter, the “Non-Complying

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Defaulting Defendants”) and $25,000.00 against each of the remaining defendants

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(Abmask, Ast523, Babyeveryday, Babyfashionwedding, Beautydesign,

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Besthair2021, Bestoffers, Beststore2021, Cheapgoodfuns Co., Ltd., Chicmissday,

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Cinderelladress, Creative 2, Cwmsports, DHGate Boutiques Store, Dresssave,

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Fidget Toys, Googsports, Hangzhou Boyuan Enterprise Management Co., Ltd.,

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Happylifes, Homehome9, Jack6666, Jspet, Kidswonder, Kn95 Facemask,

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Letsports, Misshowdress, Ningbo Jeeweex Enterprise, One-stopos, Shanhai2008

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(HK) International Trading Limited, Shantou Hoya Network Technology Co.,

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Ltd., Shenzhen Dream Co., Ltd., Springwedding Factory, Triple_s_sneakers,

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Tongxiang Indus Hin Yue Zhendong Sweater Factory, Wholesalefactory,

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Wristwatches(HK) International Trading Co., Ltd., Wusy_store, and Zi527) who

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have complied with the Court’s preliminary injunction order (hereinafter,

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“Complying Defaulting Defendants”), are within the permissible range of

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statutory damages permitted under the Copyright Act. See STJ Enter. Inc. v. H

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Grp. Intl, Inc., 2020 WL 4286875, at *3 (C.D. Cal. July 27, 2020); Star Fabrics,

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Inc. v. Wet Seal, Inc., 2015 WL 12746712, at *6 (C.D. Cal. Apr. 27, 2015).

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11.

The Court finds the factors in Eitel v. McCool, 782 F.2d 1470, 1471-

72 (9th Cir. 1986), weigh in favor of granting the Motion for Default Judgment.
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The Court finds Plaintiff is entitled to a rebuttable presumption of

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irreparable harm pursuant to 15 U.S.C. § 1116(a) because Plaintiff states a claim

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for trade dress infringement and has demonstrated a likelihood of success on the

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merits of its trade dress infringement claim. Defendants have not appeared and

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therefore present no evidence rebutting the presumption of irreparable harm.

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Moreover, Plaintiff submits evidence that it has been harmed by the loss of

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goodwill, damage to its reputation, and the inability to execute deals with large
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retailers based on Defendants selling the infringing products, it is harmed each

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time Defendants sell the infringing products

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13.

Plaintiff offers evidence demonstrating the Non-Complying

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Defaulting Defendants have continued to offer infringing products for sale in

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violation of the Court’s preliminary injunction order. Therefore, the Court finds

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monetary damages would not remedy the harm to Plaintiff from Defendants’

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continued infringement.

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There is no evidence Defendants will be harmed by an injunction,

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and any hardship as a result of enjoining Defendants from infringing Plaintiff’s

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copyrights and trade dress rights is irrelevant in determining whether to issue an

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injunction. See Cadence Design Sys., Inc. v. Avant! Corp., 125 F.3d 824, 829 (9th

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Cir. 1997); Deckers Outdoor Corp. v. Ozwear Connection Pty Ltd., 2014 WL

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4679001, at *13 (C.D. Cal. Sept. 18, 2014). Plaintiff, however, submits evidence

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it will be harmed by the loss of goodwill, damage to its reputation, and the

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inability to execute deals with large retailers if Defendants are not enjoined from

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selling the infringing products.

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15.

The public interest is served by upholding rights under the Copyright

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Act and Lanham Act. See Internet Specialties W., Inc. v. Milon-DiGiorgio

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Enters., Inc., 559 F.3d 985, 993 n. 5 (9th Cir. 2009); State of Idaho Potato

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Comm’n v. G & T Terminal Packaging, Inc., 425 F.3d 708, 715 (9th Cir. 2005);

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Charter Sch. Cap., Inc. v. Charter Asset Mgmt. Fund, LP, 2014 WL 12560776, at

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*11 (C.D. Cal. July 21, 2014).

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16.

Therefore, the Court finds Plaintiff demonstrates the irreparable

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injury, inadequate remedy available at law, balance of hardships, and public

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interest factors weigh in favor of a permanent injunction. eBay Inc. v.

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MercExchange, LLC, 547 U.S. 388, 391 (2006).

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Accordingly, the Court GRANTS Plaintiff’s Motion for Default Judgment
and Permanent Injunction. Judgment shall be entered consistent herewith in the
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amount of $40,000.00 against each of the Non-Complying Defaulting Defendants

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and $25,000.00 against each of the Complying Defaulting Defendants.

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IT IS SO ORDERED.
SIGNED this 17th day of November, 2021 at 11:26 a.m.

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CONSUELO B. MARSHALL
UNITED STATES DISTRICT JUDGE
CC: FISCAL

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