Adidas AG et al v. adidasadipure11pro2.com et al
Filing
27
ORDER Granting 26 Motion for Default Judgment. Signed by Judge Patricia A. Seitz on 9/18/2014. (gp)
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA
CASE NO. 14-61001-CIV-SEITZ
ADIDAS AG, et al.,
Plaintiffs,
vs.
ADIDASADIPURE11PRO2.COM, et al.,
Defendants.
/
ORDER GRANTING MOTION FOR FINAL DEFAULT JUDGMENT
THIS MATTER is before the Court on Plaintiffs’ Motion for Entry of Final
Default Judgment. [DE-26.] Plaintiffs 1 move for final default judgment against
Defendants 2 for violations of the Lanham Act. As Defendants have failed to appear,
plead, or otherwise defend this action, and given the documentary evidence submitted
in support of Plaintiffs’ motion, the Court shall grant Plaintiffs’ Motion for Final Default
Judgment.
I.
BACKGROUND
adidas manufactures, promotes, distributes, and sells in interstate commerce,
including within this judicial district, athletic footwear, apparel, and sporting
equipment under the trademarks
,
, and
(collectively, the “adidas
Marks”). (See Zuercher Decl. [DE-5-1] ¶ 4.) adidas is the registered owner of the
following trademarks on the Principal Register of the United States Patent and
Trademark Office:
Plaintiffs are adidas AG, adidas International Marketing B.V., adidas America,
Inc. (collectively, “adidas”); Reebok International Limited and Reebok International Ltd.
(collectively, “Reebok”); and Sports Licensed Division of the adidas Group, LLC
(“SLD”).
2
Defendants are the Partnerships and Unincorporated Associations identified on
Schedule “A” hereto.
1
Trademark
ADIDAS
Registration
Number
0,891,222
Registration
Date
Class / Goods
IC25 - sportswear namely, suits,
shorts, pants, tights, shirts, gloves,
and the like; jerseys; socks; sport
May 19, 1970
shoes namely, track and field
training shoes, basketball shoes, and
tennis shoes.
IC 13 - tote bags
0,973,161
1,300,627
1,310,140
November
20, 1973
IC 25 - specific purpose athletic
shoes; general purpose sport shoes,
sports wear-namely, suits, shorts,
pants, tights, shirts, jerseys, socks,
and gloves.
October 16,
1984
IC 025 - sportswear namely, suits,
shorts, pants, tights, shirts, jerseys,
socks, gloves, jackets, coats,
swimwear, sweaters, caps,
pullovers, warm-up suits, rain suits,
ski suits, jump suits, boots, shoes,
slippers.
December
18, 1984
IC 025 - sportswear-namely, suits,
shorts, pants, tights, shirts, jerseys,
socks, gloves, jackets, coats,
swimwear, sweaters, caps,
pullovers, warm-up suits, rain suits,
ski suits, jump suits, boots, shoes,
slippers.
2
Trademark
Registration
Number
Registration
Date
Class / Goods
IC 018 - all purpose sport bags,
athletic bags, traveling bags,
backpacks, knapsacks, beach bags
2,411,802
December
12, 2000
IC 025 - sports and leisure wear,
namely, shorts, pants, shirts, t-shirts,
jerseys, tights, socks, gloves, jackets,
swimwear, caps and hats, pullovers,
sweat-shirts, sweat suits, track suits,
warm-up suits, rain suits; boots,
slippers, sandals, specific purpose
athletic shoes and general all
purpose sports shoes
IC 028 - sports balls and playground
balls; guards for athletic use,
namely, shin guards, knee guards
and leg guards
3
Trademark
Registration
Number
Registration
Date
Class / Goods
IC 009 - optical apparatus and
instruments, namely, eyeglasses and
sunglasses
IC 014 - horological and
chronometric instruments, namely,
watches
3,104,117
IC 018 - leather and imitations of
leather, and goods made from these
materials in the nature of bags for
general and sport use, namely
handbags, tote bags, waist packs,
overnight bags, backpacks,
knapsacks and beach bags; trunks;
traveling bags for general and sport
use; leather and imitations of leather
and goods made from these
materials, namely, wallets,
June 13, 2006
briefcases, and key cases
IC 025 - sports and leisure wear,
namely suits, shorts, pants,
sweatpants, skirts, skorts, dresses,
blouses, shirts, t-shirts, sleeveless
tops, polo shirts, vests, jerseys,
sweaters, sweatshirts, pullovers,
coats, jackets, track suits, training
suits, warm-up suits, swimwear,
underwear, socks, gloves, scarves,
wristbands and belts; headgear,
namely caps, hats, visors,
headbands; athletic footwear and
leisure foot wear, namely boots,
sandals, specific purpose athletic
shoes and general purpose sports
shoes
4
Registration
Number
Trademark
NITROCHARGE
4,495,754
Registration
Date
March 11,
2014
Class / Goods
IC 025 - Footwear, athletic footwear,
shirts, T-shirts, tops, wind and rain
resistant tops, pants, shorts, jackets,
with the exception of ski gloves, ski
boots, mittens, wet suits for water
skiing, and clothing, footwear and
headgear for snowboarding, skiing,
skateboarding, surfing and
wakeboarding.
IC 028 - Balls, namely, soccer balls.
The adidas Marks are used in connection with the manufacture and distribution of
goods in the categories identified above. (See Zuercher Decl. ¶ 5; Zuercher Comp. Ex. A
[DE-5-2].)
Reebok manufactures, promotes, distributes, and sells in interstate commerce,
including within this judicial district, athletic footwear, apparel, and sporting
equipment under the trademarks REEBOK, RBK, and
(collectively, the “Reebok
Marks”). (See Zuercher Decl. ¶ 13.) Reebok is the registered owner of the following
trademarks on the Principal Register of the United States Patent and Trademark Office:
Trademark
REEBOK
Registration Registration
Number
Date
1,133,704
April 22,
1980
Class / Goods
IC 25 - shoes for use in athletic sports
5
Trademark
Registration Registration
Number
Date
Class / Goods
IC 018 - all purpose sport bags, duffel
bags, tote bags, knapsacks, and shoulder
bags.
1,848,848
August 9,
1994
IC 025 - footwear and apparel; namely, tshirts, shirts, sweatshirts, sweaters,
jackets, hats, visors, socks, sweatpants,
pants, shorts, skirts, unitards, and
leotards.
IC 09 - eyewear, namely, eyewear cases;
eyewear cleaning cloths; sunglasses;
protective helmets for hockey, and
skating.
RBK
3,074,802
IC 025 - footwear; headwear; apparel,
namely, sweatpants, sweatshirts, shirts,
shorts, sweaters, socks, jackets, sweat
suits, warm-up suits, shooting shirts,
fleece tops, tank tops, polo shirts, pants,
athletic bras, leggings, skirts, turtlenecks,
vests, dresses, athletic uniforms, gloves,
infant wear, running suits.
March 28,
2006
IC 028 - sports equipment, namely,
basketballs, footballs, rugby balls, soccer
balls, in-line skates, hockey skates;
protective hockey equipment, namely
shin pads, elbow pads, shoulder pads,
and pants; protective in-line skating
equipment, namely kneepads and elbow
pads.
The Reebok Marks are used in connection with the manufacture and distribution of
goods in the categories identified above. (See Zuercher Decl. ¶ 14.)
SLD manufactures, promotes, distributes, and sells in interstate commerce,
including within this judicial district, apparel and headwear under the trademark
6
Mitchell & Ness (the “Mitchell & Ness Mark”). (See Zuercher Decl. ¶ 22.) SLD is the
registered owner of the following trademark on the Principal Register of the United
States Patent and Trademark Office:
Trademark
MITCHELL &
NESS
Registration
Number
2,860,283
Registration
Date
Class / Goods
July 6, 2004
IC 025 - sports jerseys, jackets,
shirts, t-shirts, sweaters, caps, hats,
head bands and wrist bands
The Mitchell & Ness Mark is used in connection with the manufacture and distribution
of high quality goods in at least the categories identified above. (See Zuercher Decl. ¶
23.)
Defendants, through the fully interactive commercial Internet websites operating
under their partnership and unincorporated association names identified on Schedule
“A” hereto (collectively the “Subject Domain Names”), have advertised, promoted,
offered for sale, or sold (i) footwear and apparel bearing what Plaintiffs have
determined to be counterfeits, reproductions or colorable imitations of the adidas
Marks, (ii) footwear and apparel bearing what Plaintiffs have determined to be
counterfeits, reproductions or colorable imitations of the Reebok Marks, and (iii)
headwear and apparel bearing what Plaintiffs have determined to be counterfeits,
reproductions or colorable imitations of the Mitchell & Ness Mark. (See Zuercher Decl.
¶¶ 31-34; see also Gaffigan Comp. Ex. A [DE-5-7 through DE-5-24].) Defendants are not
now, nor have they ever been, authorized or licensed to use, reproduce, or make
counterfeits, reproductions, or colorable imitations of the adidas Marks, Reebok Marks,
or Mitchel & Ness Mark (collectively, “Plaintiffs’ Marks.”). (See Zuercher Decl. ¶ 31.)
Plaintiffs’ representative reviewed and visually inspected the Internet websites,
as well as the items bearing the adidas Marks, Reebok Marks, and Mitchell & Ness
Mark offered for sale via the Internet websites operating under the Subject Domain
7
Names and determined the items offered for sale were non-genuine, unauthorized
versions of Plaintiffs’ products. (See id. at ¶¶ 32-34.)
On April 28, 2014, Plaintiffs filed their Complaint against Defendants for
trademark counterfeiting and infringement, false designation of origin, cybersquatting,
and common law unfair competition. [DE-1.] On April 30, 2014, Plaintiffs filed their Ex
Parte Application for Entry of Temporary Restraining Order and Preliminary
Injunction. [DE-5.] On May 7, 2014, this Court issued an Order Granting Plaintiffs’
Application for Entry of a Temporary Restraining Order [DE‐7], and subsequently
converted the Temporary Restraining Order into a Preliminary Injunction on May 13,
2014. [DE-11.] On June 15, 2014, Plaintiffs filed their Motion for Order Authorizing
Alternate Service of Process [DE-15], which the Court granted on June 17, 2014. [DE-16.]
Pursuant to the Court’s Order, Plaintiffs served each Defendant with their respective
Summons and copies via e-mail and publication service on June 19, 2014, June 24, 2014,
and July 1, 2014. (See Gigante Decl. [DE-26-1] ¶ 4; Proofs of Service [DE-19 through DE22].)
On August 27, 2014, the Clerk of Court, pursuant to Rule 55(a) of the Federal
Rules of Civil Procedure, entered default against Defendants for failure to appear,
plead, or otherwise defend this action. [DE-24.] To date, Defendants have not sought to
vacate the default or otherwise appear and defend this action. On September 5, 2014,
Plaintiffs filed and served the instant motion for entry of final default judgment, to
which Defendants have failed to respond.
II.
LIABILITY
A court may enter a default judgment against a properly served defendant, who,
like Defendants here, failed to file a timely responsive pleading. Fed. R. Civ. P. 55(b)(2).
By such a default, all of Plaintiffs’ well-pled allegations in the Complaint are deemed
admitted. Buchanan v. Bowman, 820 F.2d 359, 361 (11th Cir. 1987). Plaintiffs are not
seeking damages in this case, so no hearing on damages is necessary.
8
A.
Trademark Infringement
The allegations in Plaintiffs’ Complaint, in conjunction with record evidence,
support a finding of liability against Defendants for trademark infringement under 15
U.S.C. § 1114(1)(a). “[T]o prevail on a trademark infringement claim a plaintiff must
demonstrate that (1) its mark has priority; (2) defendant used its mark in commerce
[without consent]; and (3) defendant’s mark is likely to cause consumer confusion.”
Petmed Express, Inc. v. Medpots.com, 336 F. Supp. 2d 1213, 1217-18 (S.D. Fla. 2004) (citing
Int’l Cosmetics Exch., Inc. v. Gapardis Health & Beauty, Inc., 303 F.3d 1243 (11th Cir. 2002)
and Frehling Enter., Inc. v. Int’l Select Group, Inc., 192 F.3d 1330 (11th Cir. 1999)). Plaintiffs
have established each of these elements because: (1) Plaintiffs’ ownership and
registration of the trademarks at issue precede Defendants’ infringing conduct (Compl.
¶¶ 22-23, 31-32, 40; Zuercher Decl. ¶¶ 4-5, 13-14, 22-23); (2) Defendants advertised,
offered for sale and/or sold goods bearing Plaintiffs’ marks in interstate commerce
without Plaintiffs’ consent (Compl. ¶¶ 48, 54; Zuercher Decl. ¶¶ 31-34; Gaffigan Comp.
Ex. A); and (3) the marks used on the goods Defendants advertised, offered for sale,
and/or sold are so similar to Plaintiffs’ marks that consumer confusion is likely. (Compl.
¶¶ 48, 49, 56; Zuercher Decl. ¶¶ 32-34; Gaffigan Comp. Ex. A.)
B.
False Designation of Origin
Plaintiffs also allege false designation of origin under 15 U.S.C. § 1125(a)(1). The
same set of facts allowing Plaintiffs to prevail under § 1114(1)(a) will result in recovery
under § 1125. “This is because Section 1125(a) is broader than Section 1114 in that it
covers false advertising or description whether or not it involves trademark
infringement.” Babbit Elecs. v. Dynascan Corp., 38 F.3d 1161, 1181 (11th Cir. 1994)
(citation omitted). As with trademark infringement claims, the test for liability for false
designation of origin under § 43(a) is also “whether the public is likely to be deceived or
confused by the similarity of the marks at issue.” Two Pesos, Inc. v. Taco Cabana, Inc., 505
U.S. 763, 780 (1992). As discussed above, Plaintiffs have sufficiently shown there is a
9
strong likelihood of confusion that arises because of the use by Defendants of Plaintiffs’
Marks. Thus, Plaintiffs are entitled to default judgment on their false designation of
origin claim.
C.
Cybersquatting
The Anticybersquatting Consumer Protection Act (“ACPA”), 15 U.S.C. § 1125(d),
imposes liability upon a person for the bad-faith intent to profit from a protected mark
by registering or using a domain name that is identical to, confusingly similar to, or
dilutive of that mark. Petmed Express, 336 F. Supp. 2d at 1218. To prevail under 15 U.S.C.
§ 1125(d), a plaintiff must demonstrate that “(1) its mark is distinctive or famous and
entitled to protection; (2) the defendant’s domain name is identical or confusingly
similar to the plaintiff’s mark; and (3) the defendant registered or used the domain
name with a bad faith intent to profit.” Bavaro Palace, S.A. v. Vacation Tours, Inc., 203 Fed.
App’x. 252, 256 (11th Cir. 2006). In this case, the well-pled allegations demonstrate
Plaintiffs’ Marks are distinctive and famous, that the infringing domain names are
confusingly similar, and that Defendants registered the cybersquatting domain names
with the bad-faith intent to profit from them. (Compl. ¶¶ 25, 34, 42, 48, 58.) As such,
Defendants are liable for cybersquatting under 15 U.S.C. § 1125(d).
D.
Unfair Competition
“To prevail on a Florida common law unfair competition claim, a plaintiff must
prove that (1) the plaintiff is the prior user of the trade name or service mark, (2) the
trade name or service mark is arbitrary or suggestive or has acquired secondary
meaning, (3) the defendant is using a confusingly similar trade name or service mark to
indicate or identify similar services rendered (or similar goods marketed) by it in
competition with plaintiff in the same trade area in which plaintiff has already
established its trade name or service mark, and (4) as a result of the defendant's action
or threatened action, consumer confusion as to the source or sponsorship of the
defendant's goods or services is likely.” Petmed Express, 336 F. Supp. 2d at 1219.
10
Plaintiffs have proved these elements because (1) Plaintiffs’ ownership and
registration of the trademarks at issue precede Defendants’ infringing conduct (Compl.
¶¶ 22-23, 31-32, 40; Zuercher Decl. ¶¶ 4-5, 13-14, 22-23); (2) Plaintiffs’ marks have
acquired secondary meaning (Compl. ¶¶ 27, 36, 44); (3) Defendants advertised, offered
for sale and/or sold goods bearing Plaintiffs’ marks in the same trade area without
Plaintiffs’ consent (Compl. ¶¶ 48, 52, 54; Zuercher Decl. ¶¶ 31-34; Gaffigan Comp. Ex.
A); and (4) the marks used on the goods Defendants advertised, offered for sale, and/or
sold are so similar to Plaintiffs’ marks that consumer confusion is likely. (Compl. ¶¶ 48,
49, 56; Zuercher Decl. ¶¶ 32-34; Gaffigan Comp. Ex. A.) Accordingly, Plaintiffs have
succeeded on the merits of their common-law unfair-competition claim.
III.
INJUNCTIVE RELIEF
A plaintiff seeking a permanent injunction under 15 U.S.C. § 1116 and 17 U.S.C. §
502 must demonstrate that (1) it has suffered an irreparable injury; (2) remedies at law,
such as monetary damages, are inadequate to compensate for that injury; (3)
considering the balance of hardship between plaintiff and defendant, a remedy in
equity is warranted; and (4) that the public interest would not be disserved by a
permanent injunction. See eBay, Inc. v. MercExchange, LLC, 547 U.S. 388, 391 (2006).
Plaintiffs are entitled to the requested injunctive relief. The well-pled allegations
and record evidence demonstrate that Plaintiffs have developed goodwill among the
consuming public which would be undermined if Defendants are not prohibited from
further infringement. Defendants’ counterfeit products will create irreparable harm and
confusion, particularly because the counterfeit products bear identical markings as
Plaintiffs’ genuine merchandise but are not manufactured to Plaintiffs’ quality
standards. (Compl. ¶¶ 48-56.) Moreover, Defendants willfully infringed Plaintiffs’
marks, which demonstrates a likelihood that Defendants would continue to harm
Plaintiffs’ trademarks if the Court declined to issue an injunction. See Petmed Express,
336 F. Supp. 2d at 1222-23 (entering permanent injunction under 15 U.S.C. § 1116 to
11
prevent further infringement of federally-protected trademarks). As there is no
countervailing public interest in this case, the equities favor injunctive relief.
IV.
CONCLUSION
For the reasons stated above, it is hereby
ORDERED THAT
Plaintiffs' Motion for Entry of Final Default Judgment [DE 26] is GRANTED. The
Court shall concurrently enter Final Default Judgment against Defendants.
DONE AND ORDERED in Miami, Florida, this
a-·
;tf' ~y
f September, 2014.
UNITED STATES DISTRICT JUDGE
cc:
Counsel of Record
12
SCHEDULE “A”
DEFENDANTS BY NUMBER AND SUBJECT DOMAIN NAMES
Defendant
Number
1
2
2
3
3
3
3
3
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
Defendant / Domain Name
adidasadipure11pro2.com
2013mercurial.net
mercurialix.net
2013mercurialcr7.com
mercurialfg2013.com
mercurialsx2013.com
mercurialvaporxv.net
mercurialxfg2013.com
2013nikemercurialvapor.com
adidascopamundialfg.org
adidasnitrocharge.com
adidasnitrochargekaufen.com
allmercurial.com
blackmercurialcleats.com
blackoutmercurials.com
bluemercurial.com
cheapadidasnitrocharge.com
cheapmercurial9.com
cr7mercurial2013.com
cr7mercurial9.com
cr7mercurialix.com
cr7mercurialsuperfly.com
cr7mercurialvaporix.com
cramponsmercurial.com
crmercurialix.com
crmercurialvaporix.com
f50mercurial.com
galaxymercurials.com
gsmercurial.com
jrmercurialvictoryfg.com
mercurial9cleats.com
mercurialastroturf.com
mercurialazul.com
13
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
mercurialcustomize.com
mercurialexplosivespeed.com
mercurialfutsal2013.com
mercurialhypervenom.com
mercurialixcr7.com
mercurialixorange.com
mercurialixyellow.com
mercurialmango.com
mercurialnewvapor.com
mercurialneymar.com
mercurialspeed.com
mercurialsummer.com
mercurialsuperfly2013.com
mercurialsuperflysafariiii.com
mercurialvapor8acc.com
mercurialvapor8allegro.com
mercurialvaporcr7.com
mercurialvaporixcr7.com
mercurialvapors9.com
mercurialvaporscr7.com
mercurialvaporsuperflyiv.com
mercurialvelocefg.com
mercurialvictoryglide.com
mercurialvictoryturf.com
mercurialviiicr.com
mercurialyellow.com
new2013mercurials.com
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neymarmercurial2013.com
nikemercurial2014cr7.com
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nikemercurialreflective.com
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nikemercurialworldcup2014.com
14
4
4
4
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4
4
4
5
5
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nitrochargefg.com
predatoradidas2013.org
ronaldomercurialgalaxy.com
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sepatumercurial9.com
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yellowmercurial9.com
2013mercurialpurplevolt.com
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cheapmercurialsboots.com
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mercurialvapor9citrus.com
mercurialvapor9cr7galaxy.com
mercurialvaporcr7safari.com
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newnitrocharge.com
nikemercurialpurple.com
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novamercurialneymar.com
sepatufutsalmercurial.com
2013mercurialvaporxs.com
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2014mercurial.com
blackmercurialvapor10.com
15
7
7
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25
mercurialcr.com
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mercurialixcr.com
mercurialxv.com
2014mercurialvapor.com
2014mercurialvaporix.com
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mercurialvaporpurple.com
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adidascopamundial.com
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adidasf50adizeroiv.com
adidasf50red.com
adidasnitrocharge2014.org
adidaspredatorlz2.com
adidaspredatorlz2014.com
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blackmercurialvaporix.com
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blackmercurialx.com
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blackoutfootballboots.com
nikemercurialgalaxy.com
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nitrochargeblackout.com
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nouvellemercurial2014.com
blackoutmercurial2014.com
mercurialpredator.com
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newmercurialvapor2014.com
themercurialid.com
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worldcup2014mercurial.com
buynikenfl.me
cheapmercurial2012.com
mercurial2013.com
16
25
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40
mercurialschuhe.com
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cheapmercurial2013.com
cheapmercurialix.com
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newmercurial9boots.com
nitrocharge10fg.com
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mercurial2013website.com
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mercurial8.com
mercurial9galaxy.com
17
41
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mercurialcr2013.com
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mercurialcr7cleats.com
mercurialcr7sales.com
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mercurialf50sales.com
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mercurialneolime.com
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nitrocharge10footballboots.com
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