Rolex Watch U.S.A., Inc. v. Rolex Deli Corp. et al

Filing 1

COMPLAINT against Ali Mohamad, Rolex Deli Corp. (Filing Fee $ 350.00, Receipt Number 465401024882)Document filed by Rolex Watch U.S.A., Inc. (Attachments: # 1 Exhibit 1, # 2 Exhibit 2)(ft)

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Brian W. Brokate (BB 5830)
Beth M. Frenchman (BF 3934)
Dupler (JD 5430)
Gibney, Anthony & Flaherty, LLP.
665 Fifth Avenue
New York, NY 10022
Telephone: [phone] Phone
Facsimile: [phone] Fax
Attorneys for Plaintif Rolex Watch Us.A., Inc.
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Plaintiff,
COMPLAINT

v.

ROLEX DELI CORP. and ALI
MOHAMAD
Defendants.

Plaintiff Rolex Watch U.S.A., Inc. ("Rolex"), through its attorneys, complaining

of defendants, Rolex Deli Corp. and Ali Mohamad (hereinafter referred to as
"Defendants") hereby alleges as follows:

STATEMENT OF THE CASE
1. This is a suit by Rolex against Defendants seeking injunctive relief,

Defendants' profits, compensatory damages, costs and attorneys fees of this action for
Defendants' acts of trademark infringement, use of a false designation of origin and false

description and dilution by blurring. Defendants are being sued by Rolex as a result of

Defendants' use of the mark, "ROLEX," as a business/trade name and advertising and
promotion of their services and goods. Defendants' use of this confusing and identical

mark is likely to bring to mind Plaintiffs famous "ROLEX" trademark, create consumer

confusion, a false association between Rolex and Defendants and dilute the
distinctiveness of

the ROLEX trademark. In order to avoid further confusion and mistake

as to an affiiation with Plaintiff and to avoid dilution of its famous trademark, Plaintiff
brings this action. As set forth below, Defendants' acts constitute federal trademark

infringement, use of a false designation of origin, false description and unfair
competition, and dilution by blurring in violation of 15 U.S.C. §§ 1114 & 1125 (a) and
(c).

JURISDICTION AND VENUE
2. This Court has jurisdiction over the federal trademark claims asserted in

this action under 15 U.S.C. § 1121, and 28 U.S.C. § 1331 and 28 U.S.C. § 1338.

3. Defendants are subject to the Court's jurisdiction because they do business
and have committed the acts complained of in this District.

4. Defendants are subject to the jurisdiction of this Court pursuant to and in
accordance with Rule 4 of the Federal Rules of Civil Procedure.
5. Venue is proper in this District pursuant to 28 U.S.C. § 1391(b).

PARTIES
6. Rolex is a corporation duly organized and existing under the laws of the

State of New York, having an office and principal place of business at 665 Fifth Avenue,
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New York, New York, 10022.
7. Upon information and belief, Defendant Rolex Deli Corp. is duly organized
and existing under the laws of the State of New York, having an office and principal
place of

business at 700 Fulton Street, Brooklyn, NY 11217.
8. Upon information and belief, Defendant Ali Mohamad is an individual who

acts as the President and controls the activities of Defendant Rolex Deli Corp., operating
its business under the laws of

of

the State of

New York, having an office and principal place

business at 700 Fulton Street, Brooklyn, NY 11217.

9. Defendants are subject to the jurisdiction of this Court because they are
domiciled in and conduct substantial business within this District.

FACTUAL ALLEGATIONS
A. Rolex's Famous Products and Trademarks

10. Rolex is the exclusive distributor and warrantor in the United States of
Rolex watches, all of

which bear the trademark ROLEX, as defined below, and numerous

other trademarks.
11. Rolex watches are identified by the trade name and trademark ROLEX.

12. Rolex is responsible for assembling, finishing, marketing and sellng in
interstate commerce high quality, distinctive Rolex watches, watch bracelets and related
products for men and women (hereinafter referred to as "Rolex Watches").

13. Rolex is responsible for maintaining control over the quality of Rolex
products and services in this country.

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143. Rolex has developed an outstanding reputation because of the uniform high

quality of Rolex Watches and the ROLEX trademark is a distinctive mark used to
identify these high quality products originating with Rolex.

15. Rolex is the owner of the following federal trademark registration in the
U.S. Patent and Trademark Office:

Trademark

Reg. No.

Reg. Date

ROLEX

101,819

1/12/15

Goods
Watches, clocks, parts of watches and
clocks, and their cases.

A correct and true copy of Rolex's federal trademark registration ("ROLEX") is attached
hereto as Exhibit 1 and is incorporated herein by reference.
16. The ROLEX trademark is valid and subsisting and in full force and effect
and has become incontestable pursuant to 15 U.S.C. § 1065.

17. The ROLEX trademark is a fanciful trademark and is entitled to the highest
level of

protection afforded by law.
18. Rolex and its predecessors have used ROLEX for nearly a century on and

in connection with Rolex Watches and related products.
19. Based on Rolex's continuous and exclusive use of the ROLEX trademark

throughout the U.S. and worldwide, and its extensive advertising, sales and the wide
popularity of Rolex products, the ROLEX trademark is famous and became famous well
prior to the activities of

herein.

Defendants complained of

20. Rolex has gone to great lengths to protect its name and enforce its rights as
the exclusive owner of its ROLEX trademark.
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B. Defendants' Activities

21. Upon information and belief Defendants began using and adopted the name

ROLEX as a business/trade name long after Plaintifts ROLEX trademark became
famous.

22. Defendants use the mark ROLEX to identify its business as the ROLEX
DELI. See photograph of

Defendants' store attached hereto as Exhibit 2.

23. By letters dated September 13 2010, November 8 2010 and February 4

2011, Plaintiff wrote to Defendants advising, among other things, that their use of the
ROLEX trademark was in violation ofPlaintifts rights.
24. Defendants never responded to Plaintifts aforementioned letters.
25. Despite Plaintifts letters, Defendants continue to use the name Rolex Deli

in their business/trade name and on promotional materials.

26. Long after Rolex's adoption and use of its ROLEX trademark on its
products and after the ROLEX trademark became famous, Defendants began using the
name Rolex Deli as a business/trade name and in its promotion and advertising of its

business.
27. Defendants' adoption and use of the business/trade name Rolex Deli is

designed to cause consumer confusion and create a false association and affiiation with

Plaintifts reputation for high quality goods from which Defendants seek to improperly
benefit.

28. Defendants' acts wil dilute Plaintifts distinctive and exclusive use of its
ROLEX trademark.
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29. Defendants are not now, nor have they ever been, associated, affiiated,
connected with, endorsed or sanctioned by Rolex.
30. Rolex has never authorized or consented in any way to the use by
Defendants of

ROLE

X or any mark confusingly similar thereto.

31. Defendants, by using the ROLEX trademark to conduct business, advertise

and promote their services, is trading upon the goodwil and reputation of Rolex and
creating a likelihood of confusion and false impression that Defendants and their services

and goods are in some way affiiated with Rolex.
32. Defendants' use of

the mark ROLEX blurs the distinctiveness ofPlaintifts

ROLEX trademark.

33. Defendants' use of the mark ROLEX tarnishes the distinctiveness of
Plaintifts ROLEX trademark
34. Defendants had knowledge of Plaintifts use of the ROLEX trademark and

its reputation for distinctive high quality goods, prior to its adoption and use of its
ROLEXmark.
35. Rolex has no adequate remedy at law.

Defendants'
36. Rolex has suffered irreparable harm and damages as a result of

conduct, including blurring and tarnishment of its trademark, loss of control over its
reputation, and loss of goodwilL. Defendants' wrongful acts wil continue unless
enjoined by the Court. Accordingly, Defendants must be restrained and enjoined from

any further infringing, unfairly competitive or dilutive activities.

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FIRST CLAIM FOR RELIEF
(Trademark Infringement, 15 U.S.C. § 1114)
37. Rolex hereby incorporates by reference paragraphs 1-36 as though fully set
forth herein.

38. Defendants use an identical copy of the ROLEX trademark in their
business/trade name and advertise their services and goods knowing that their mark is
confusingly similar to the ROLEX trademark.

39. Defendants engage in the above described activities with the intent to

confuse and deceive the public into believing that the services and goods they offer are
sponsored, affiliated or associated with Rolex, when in fact they are not.

40. Defendants' activities, as described above, constitutes use in commerce of a

copy or colorable imitation of Rolex's registered mark in a manner which is likely to
cause confusion and mistake in the minds of

the public in violation of 15 U.S.c. § 1114.

41. Defendants' acts constitute wilful trademark infringement in violation of
15 U.S.C. § 1114.

SECOND CLAIM FOR RELIEF
(Trademark Infringement, Unfair Competition, False Designation of Origin & False
Description, 15 U.S.C. § 1125(a))

42. Rolex hereby incorporates by reference paragraphs 1-36 as though fully set
forth herein.

their
43. In connection with Defendants' business/trade name and promotion of

services and goods, Defendants have used a mark confusingly similar, if not identical, to
the ROLEX trademark in interstate commerce.
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44. Rolex has exclusively used the ROLEX trademark for almost 100 years and

has invested milions of dollars in the advertising and publicity of its mark and created a
reputation as the originator of prestigious and high quality goods.
45. Defendants' use of a colorable imitation or copy of the ROLEX trademark

in their business/trade name and the promotion of their services and goods, is likely to
deceive customers as to the origin, sponsorship, association or approval by Rolex of the
Defendants' services and goods.
the ROLEX trademark with

46. Defendants use a colorable imitation or copy of

full knowledge of the falsity of such affiliation and sponsorship of Defendants and their
goods and services.
47. Defendants' use of a colorable imitation or copy of the ROLEX trademark

constitutes false descriptions and representations tending falsely to describe or represent
Defendants and their services as being authorized, sponsored, affiiated or associated with
Rolex.
48. Defendants have used a mark similar to the ROLEX trademark in a manner

which is likely to mislead the public, and trade upon the reputation of Rolex by

misappropriating the valuable trademark rights of Rolex.

49. Defendants' acts constitute use in commerce of false designations of origin

and false and/or misleading descriptions or representations, tending to falsely or

misleadingly describe and/or represent their services as those of Rolex in violation of
Section 43(a) of

the Lanham Act, 15 U.S.C. § 1125(a).
law.

50. Defendants' acts constitute unfair competition under federal

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51. Defendants' acts are causing and continue to cause irreparable harm to

Rolex regarding its loss of control over its reputation and goodwil. Plaintiff has no
adequate remedy at law, unless and until Defendants' actions are enjoined.

THIRD CLAIM FOR RELIEF
(Federal Trademark Dilution, 15 U.S.C. §1125(c))
52. Rolex hereby incorporates by reference paragraphs 1-36 as though fully set
forth herein.
53. Defendants' use of

the ROLEX trademark in its business/trade name and in

association with its services, constitutes Defendants' commercial use of a mark
substantially similar, if not identical, to the ROLEX trademark.
54. Long before Defendants' use of the ROLEX mark, Plaintifts ROLEX

trademark had become famous in the United States and worldwide.
55. The ROLEX trademark is inherently distinctive.

56. The ROLEX trademark is recognized throughout the United States and
worldwide as a symbol of quality, luxury, success and value.
57. Defendants' use of the ROLEX mark constitutes dilution by blurring of the

distinctiveness of the ROLEX trademark. Unless restrained, Defendants' use wil
continue to dilute the distinctive quality of Plaintifts famous mark by destroying and
blurring the exclusive association between the ROLEX trademark and Plaintift s products
and/or by lessening the abilty for consumers to exclusively identify Plaintiff with its
merchandise.

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58. Defendants' use of the ROLEX mark constitutes dilution by tarnishment

harming the reputation of Plaintiffs famous ROLEX trademark. Unless restrained,

Defendants' use wil c1Jtinue to dilute the distinctive quality of Plaintiffs famous
trademark by destroying and tarnishing the exclusive association between the ROLEX

trademark and Plaintiffs products and/or by harming Plaintiffs reputation as being the
source of

high quality, distinctive and exclusive goods.

59. Defendants' acts as aforesaid are diluting the distinctive quality of the
the Lanham Act, 15 U.S.C. § 1125(c).

ROLEX trademark in violation of Section 43(c) of

60. Defendants' acts were done with full knowledge and awareness of

Plaintiff s famous trademark and reputation.

61. Rolex is suffering and wil continue to suffer irreparable harm from the
Defendants' dilutive activities, without any adequate remedy at law, unless enjoined by
this Court.

PRAYER FOR RELIEF
WHEREFORE, Rolex respectfully requests that the Court order the following
relief:
i. That the Court enter an injunction ordering that Defendants, their agents,

servants, employees, and all other persons in privity or acting in concert with them be
enjoined and restrained from:

(a) using the mark ROLEX, or any mark similar thereto,

specifically but not limited to, their trade/business name, "Rolex
Deli", or in any other name or as a trademark to identify its goods or
services;
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(b) using the mark ROLEX or any mark similar thereto in a
manner which may injure Rolex's business reputation or weaken the

distinctive quality of the ROLEX trademark, Rolex's name,
reputation or goodwil;

(c) using the mark ROLEX or any mark similar thereto in a
manner which is likely to cause confusion or tends to falsely
describe or represent Defendants' services as being sponsored by or
associated with Rolex and from offering such services in commerce;
and
(d) using or continuing to use the ROLEX mark as a

trade/business name in any variation thereof on the Internet (either in

the text of a website, as a domain name, or as a keyword, search
word, metatag, or any part of the description of the site in any
submission for registration of any Internet site with a search engine
or index).

II. That Defendants, within thirty (30) days of judgment, fie and serve Rolex

with a sworn statement setting forth in detail the manner and form in which it has
complied with this injunction pursuantto 15 U.S.C. § 1116(a).
III. That Defendants immediately remove and change its present name with the

New York Secretary of State.

IV. That Defendants be required to immediately destroy any and all signs,
posters, advertising, promotional, or marketing materials, or supplies used to conduct
business within its possession, custody or control that use the ROLEX trademark.
V. Requiring Defendants to pay to Rolex such damages Rolex has sustained as

a consequence of its acts of unfair competition as alleged herein, and to account for all
gains, profits and advantages derived by Defendants from their activities.

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Vi. Ordering that Rolex recover the costs of this action, together with
reasonable attorneys' fees and pre-judgment interest in accordance with 15 U.S.C. §
1117.

VII. Directing that this Court retain jurisdiction of this action for the purpose of
enabling Rolex to apply to the Court at any time for such further orders and interpretation

or execution of any Order entered in this action, for the modification of any such Order,
for the enforcement or compliance therewith and for the punishment of any violations

thereof.

VIII. Awarding to Rolex such other and further relief as the Court may deem just
and proper, together with the costs and disbursements that Rolex has incurred in

connection with this action.

Dated: December l~20 11

By:

Brian W. Brokate
Beth M. Frenchman
Dupler
Jeff

Gibney, Anthony & Flaherty, LLP.
665 Fifth Avenue
New York, NY 10022
Telephone: [phone] Phone
Facsimile: [phone] Fax
Attorneys for Plaintiff Rolex Watch U.S.A.,

Inc.

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