Coach Services, Inc. et al v. Source II, Inc. et al

Filing 52

JUDGEMENT AND PERMANENT INJUNCTION Signed by District Judge Robert H. Cleland. (LWag)

UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF MICHIGAN
SOUTHERN DIVISION

COACH, INC. and COACH SERVICES, INC.,
Plaintiffs,
v.

Case No. 15-10740

SOURCE II, INC. and CERHUE ANDRE
WALKER, individually and d/b/a SOURCE II,
INC.,
Defendants.
/
JUDGEMENT AND PERMANENT INJUNCTION
Upon consideration of Plaintiffs Coach, Inc. and Coach Services, Inc.’s
(hereinafter collectively referred to as “Coach” or “Plaintiffs”) Motion for Summary
Judgment and Supplemental Briefing Regarding Plaintiffs’ Election of Statutory
Damages against Defendants Source II, Inc. (“Source II”) and Cerhue Andre Walker,
individually and d/b/a Source II, Inc. (“Walker”) (hereinafter collectively referred to as
“Defendants”), having granted Plaintiffs’ Motion for Summary Judgment and having
heard the evidence before it and having considered this case’s docket, pleadings,
exhibits, and memoranda filed, this Court hereby states and finds as follows:
FINDINGS
1. Defendant Walker is the sole member and owner of Defendant Source II, which
operates a clothing and accessory store, The Source Apparel.
2. On December 4, 2014, law enforcement officials executed a search warrant at
the Source Apparel and seized thousands of counterfeit handbags, wallets, and
accessories worth approximately $1,671,040. Four counterfeit Coach purses
were among the products seized. An investigator for Coach examined the
purses and concluded they were counterfeit.

3. Prior to that, on February 21, 2014, Defendants sold to a confidential informant
twenty-eight items, including a Coach wallet, which was determined to be
counterfeit.
4. Defendants’ entire course of conduct demonstrates willfulness. Undisputed
evidence in the record shows that Defendants’ superficially legitimate business
was merely a front — Defendants’ store concealed a hidden backroom where
Defendants traded in counterfeit products. Defendants have not disputed the
existence of or their involvement in this illicit enterprise. Defendants’ willfulness
is further evidenced by the scale of their illegitimate business. The Court can
scarcely conceive of stronger evidence of willful infringement than Defendants’
underhanded efforts to illegally acquire, quietly transport, display out of easy
sight in the “back room,” and offer for sale what amount to — literally — a small
fortune in counterfeit goods.
5. Defendants are not licensed or otherwise authorized to use Coach’s Trademarks.
6. Defendants infringed on the Coach Trademarks at issue in this action and are
liable for federal trademark infringement and counterfeiting (15 U.S.C. § 1114),
false designations of origin (15 U.S.C. § 1125(a)), and violation of the Michigan
Consumer Protection Act (Mich. Comp. Laws § 445.903(1)).
7. Coach has shown a tangible risk of irreparable harm and that it will lack an
adequate legal remedy if this Permanent Injunction is not entered. The Lanham
Act authorizes courts to grant injunctions “under principals of equity and upon
such terms as the court may deem reasonable” to prevent future infringement;
8. Weighing the equities favors Coach’s requested relief;
9. It is in the public interest that the Court enter a Permanent Injunction; and
10. Defendants do not contest the suitability of entry of a Permanent Injunction in this
case.
IT IS, THEREFORE, HEREBY ORDERED that a Permanent Injunction is entered
against Defendants pursuant to Fed. R. Civ. P. 65, forever enjoining the Defendants,
their respective officers, agents, servants, employees, and attorneys and upon those
persons in active concert or participation with them from:
a.

Manufacturing, importing, advertising, marketing, promoting, supplying,

distributing, offering for sale, or selling any products or merchandise, including apparel,
handbags, wallets, purses, and/or related products, not authorized by the Coach,

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bearing unauthorized simulations, reproductions, counterfeits, copies or colorable
imitations of the Plaintiffs’ Trademarks, or bearing a design or image which is of a
substantially similar appearance to the Plaintiffs’ Trademarks.

Specifically, those

Trademarks as listed below:
Registratio
n No.

Mark

Classes

Date of
Registration

2,088,706

COACH

6, 9, 16, 18, 20 and 25 for
August 19, 1997
inter alia key fobs,
eyeglass cases, cellular
phone cases satchels, tags
for luggage, luggage,
backpacks, picture frames,
hats, gloves and caps.

3,157,972

COACH

35 for retail store services.

October 17,
2006

0,751,493

COACH

14 for Leather Goods,
namely, Utility Kits,
Portfolios, Key Cases,
Comb Cases, Pass Cases,
Money Clips, Billfolds,
Wallets, Pocket
Secretaries, Stud Cases,
Jewel Cases, and Leather
Book Covers.

June 23, 1963

2,451,168

COACH

9 for eyeglasses.

May 15, 2001

4,105,689

COACH

9 for sunglasses.

February 25,
2012

2,537,004

COACH

24 for inter alia home
furnishings.

February 5,
2002

1,846,801

COACH

25 for inter alia men’s and
women’s coats and
jackets.

July 26, 1994

3,439,871

COACH

18 for inter alia umbrellas.

June 3, 2008

2,061,826

COACH

12 for inter alia seat
covers.

May 13, 1997

3

Image

Registratio
n No.

Mark

Classes

Date of
Registration

2,231,001

COACH

25 for inter alia clothing for March 9, 1999
men, women and children
namely, coats, jackets,
overcoats, raincoats, shirts,
vest, scarves, shoes and
belts.

2,939,127

COACH

9 for inter alia camera
cases.

April 12, 2005

3,354,448

COACH

14 for inter alia jewelry.

December 11,
2007

2,446,607

COACH

16 for inter alia writing
instruments.

April 24, 2001

2,291,341

COACH

14 for inter alia clocks and
watches.

November 9,
1999

1,071,000

COACH

18, 25 for inter alia
women’s handbags and
men’s and women’s belts.

August 9, 1977

3,633,302

COACH

3 for inter alia perfumes,
lotions and body sprays.

June 2, 2009

4,168,626

COACH NEW
YORK

18, 25 for briefcases,
satchels, tote bags, duffle
bags, key cases, coin
cases, wallets, hats, caps,
gloves, coats, jackets,
vests, shirts, overcoats,
raincoats, scarves, ties,
shoes and belts.

July 3, 2012

4,296,584

COACH NEW
YORK

9, 16 for cases for
eyeglasses and
sunglasses, sunglasses
and spectacles, calendars
and diaries

February 26,
2013

3,413,536

COACH EST.
1941 STYLIZED

14 for jewelry

April 15, 2008

2,534,429

COACH &
LOZENGE
DESIGN

9 for inter alia eyeglasses,
eyeglass frames and
sunglasses.

January 29,
2002

4

Image

Registratio
n No.

Mark

Classes

Date of
Registration

3,363,873

COACH &
LOZENGE
DESIGN

3 for inter alia fragrances.

January 1, 2008

2,252,847

COACH &
LOZENGE
DESIGN

35 for retail services.

June 15, 1999

2,291,368

COACH &
LOZENGE
DESIGN

14 for inter alia watches.

November 9,
1999

2,534,429

COACH &
LOZENGE
DESIGN

9 for inter alia eyeglasses,
eyeglass frames and
sunglasses.

January 29,
2002

2,169,808

COACH &
LOZENGE
DESIGN

25 for inter alia clothing for
men and women, namely,
coats, jackets, scarves,
shoes, and belts.

June 30, 1998

2,045,676

COACH &
LOZENGE
DESIGN

6, 9, 16, 18, 20, 25 for inter March 18, 1997
alia key fobs, money clips,
phone cases, computer
cases, briefcases,
satchels, duffel bags, hats,
caps and gloves.

1,070,999

COACH &
LOZENGE
DESIGN

18, 25 for inter alia
women’s handbags and
men’s and women’s belts.

1,309,779

COACH &
LOZENGE
DESIGN

9, 16, 18 for inter alia
December 19,
eyeglass cases and leather 1984
goods, namely, wallets,
handbags and shoulder
bags.

2,035,056

COACH &
LOZENGE
DESIGN

3, 21 for inter alia leather
cleaning products and
shoe brushes.

February 4,
1997

2,983,654

COACH &
LOZENGE
DESIGN

18, 24, 25 for inter alia
handbags, leather goods,
fabrics, swimwear, hats
and shoes.

August 9, 2005

5

August 9, 1977

Image

Registratio
n No.

Mark

Classes

Date of
Registration

2,626,565

CC & DESIGN
(Signature C)

18 for inter alia handbags,
purses, clutches, shoulder
bags, tote bags, and
wallets.

September 24,
2002

2,822,318

CC & DESIGN
(Signature C)

24 for inter alia fabric for
use in the manufacture of
clothing, shoes, handbags,
and luggage.

March 16, 2004

2,832,589

CC & DESIGN
(Signature C)

6, 9, 14, 18, for inter alia
sunglasses and eye glass
cases, leather goods,
metal key fobs, leather key
fobs jewelry, watches,
umbrellas

April 13, 2004

2,592,963

CC & DESIGN
(Signature C)

25 for inter alia clothing
July 9, 2002
namely, scarves, belts,
gloves , hats, shoes, coats,
jackets.

2,822,629

CC & DESIGN
(Signature C)

35 for retail services.

4,365,898

COACH Signature
C Design

9 for Protective covers and July 9, 2013
cases for cell phones,
laptops and portable media
players

3,396,554

AMENDED CC &
DESIGN
(Signature C)

3 for inter alia fragrances.

3,012,585

AMENDED CC &
DESIGN
(Signature C)

18, 24, 25 for inter alia
November 8,
handbags, purses, wallets, 2005
umbrellas, fabrics for the
use in manufacturing
clothings, shoes and
handbags and clothing
namely scarves, hats, caps
and shoes.

6

March 16, 2004

March 11, 2008

Image

Registratio
n No.

Mark

Classes

Date of
Registration

3,784,814

COACH OP ART

9 for eyeglasses and
sunglasses.

4,365,899

COACH OP ART

9 for Protective covers and July 9, 2013
cases for cell phones,
laptops and portable media
players

4,105,636

COACH OP ART

14, 18, 25 for Jewelry,
watches, wallets,
handbags, belts, hats,
scarves, shoes, coats,
gloves and t-shirts.

February 28,
2012

3,696,470

COACH OP ART
& Design

18, 24 and 25 for inter alia
handbags, wallets,
umbrellas, hats, scarves,
belts, coats, shoes and
fabrics for the
manufacturing of clothing,
shoes and handbags.

October 13,
2009

4,391,741

COACH
LEATHERWARE
EST. 1941
[Heritage Logo]

3 for After-shave; Body
lotions; Fragrances; Makeup; Perfumes; Soaps for
personal use

August 27, 2013

4,296,582

COACH EST.
1941 NEW YORK

14,16,18 and 25 for jewelry February 26,
and watches, handbags,
2013
leather credit card cases,
purses, shoulder bags,
wallets, belts, coats, tshirts, hats, gloves, shoes,
day planners.

4,359,191

COACH EST.
1941 NEW YORK

9 for Protective covers and June 25, 2013
cases for cell phones,
laptops and portable media
players.

7

May 4, 2010

Image

Registratio
n No.

Mark

Classes

Date of
Registration

3,251,315

COACH EST.
1941

18, 25 for inter alia
handbags, small leather
goods, jackets, coats and
shoes.

3,338,048

COACH
STYLIZED

18 for inter alia luggage,
November 11,
backpacks, purses, wallets, 2007
and shoulder bags.

3,149,330

C & LOZENGE
LOGO

14 for watches.

September 26,
2006

2,162,303

COACH & TAG
DESIGN

25 for belts.

June 2, 1998

4,334,351

COACH & TAG

9 for Protective covers and May 14, 2013
cases for cell phones,
laptops and portable media
players.

3,685,590

COACH & TAG

14 for Bracelets; Earrings;
Jewelry; Necklaces; Rings
being jewelry; Watches

2,088,707

COACH & TAG
DESIGN

18 for briefcases,
August 19, 1997
handbags, satchels, tote
bags, duffle bags, cosmetic
bags, luggage.

3,908,558

POPPY

9 for eyeglasses and
sunglasses.

January 18,
2011

3,812,170

POPPY

18 for inter alia backpacks,
briefcases, leather key
chains, bags, wallets and
billfolds.

Image

June 12, 2007

June 29, 2010

September 22,
2009

This includes, but is not limited to, the following marks used by Defendants, and
any mark bearing a design or image which is of a substantially similar appearance:

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b.

Using Plaintiffs’ Trademarks or any reproductions, counterfeit copies or

colorable imitations thereof in any manner in connection with the distribution, marketing,
advertising, offering for sale, or sale of any product that is not a genuine product of
Plaintiffs or not authorized by Plaintiffs to be sold in connection with the Plaintiffs’
Trademarks;
c.

Passing off, inducing, or enabling others to sell or pass off any product as

a genuine product of Plaintiffs or any other product produced by Plaintiffs, that is not a
genuine product of Plaintiffs or not produced under the authorization, control or
supervision of Plaintiffs and approved by Plaintiffs for sale under Plaintiffs’ Trademarks;
d.

Committing any acts calculated to cause consumers to believe that

Defendants’ products are those sold under the authorization, control or supervision of
Plaintiffs, or are sponsored by, approved by, or otherwise connected with Plaintiffs;
e.

Further infringing Plaintiffs’ Trademarks and damaging Plaintiffs’ goodwill;

f.

Manufacturing, shipping, delivering, holding for sale, transferring or

otherwise moving, storing, distributing, returning, or otherwise disposing of, in any
manner, products or inventory not manufactured by or for Plaintiffs, nor authorized by

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Plaintiffs to be sold or offered for sale, and which bear any of Plaintiffs’ Trademarks or
any reproductions, counterfeit copies or colorable imitations thereof;
g.

Engaging in any other acts and practices that deceive consumers, the

public, and/or trade, including without limitation, the use of designations associated with
Coach.
IT IS FURTHER ORDERED AND ADJUDGED that Defendants shall recall from
any distributors and retailers and to deliver to Coach for destruction or other disposition
all remaining inventory of all Infringing Products, including all advertisements,
promotional and marketing materials therefore, as well as means of making same.
Defendants shall also file with this Court and serve on Coach within thirty (30) days after
entry of the injunction a report in writing under oath setting forth in detail the manner
and form in which Defendants have complied with the injunction.
IT IS FURTHER ORDERED AND ADJUDGED that the Court finds that
Defendants have intentionally used counterfeit marks as defined in Section
1116(d)(1)(B) of Title 15.
IT IS FURTHER ORDERED AND ADJUDGED that pursuant to 15 U.S.C.§
1117(c)(2), Coach is awarded statutory damages and attorney fees and costs from the
Defendants, jointly and severally, in the amount of three hundred thousand dollars
($300,000) for use by the Defendants of one or more counterfeit Coach Trademarks;
IT IS FURTHER ORDERED AND ADJUDGED:
That the Court finds that there is no just reason for delay, and therefore, pursuant
to Fed. R. Civ. P. 54(b), the Court expressly directs the entry of judgment on all rulings
made by the Court which shall operate as a final judgment as to Defendants.

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Dated at Port Huron, Michigan, this twenty-first day of April, 2017.

s/Robert H. Cleland
ROBERT H. CLELAND
UNITED STATES DISTRICT JUDGE

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I hereby certify that a copy of the foregoing document was mailed to counsel of record
on this date, April 21, 2017, by electronic and/or ordinary mail.

s/Lisa Wagner
Case Manager and Deputy Clerk
[phone]

S:\Cleland\TLH\Civil\15-10740.COACH.injunction.judgment.docx

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