Abc Corporation I v. Partnership and Unincorporated Associations

51 F.4th 1365
Court of Appeals for the Federal Circuit·Decided October 28, 2022·No. 21-2150·Published·Cited by 2 cases

Opinion

Case: 21-2150 Document: 57 Page: 1 Filed: 10/28/2022

United States Court of Appeals for the Federal Circuit ______________________

ABC CORPORATION I, ABC CORPORATION II, Plaintiffs-Appellees

v.

THE PARTNERSHIP AND UNINCORPORATED ASSOCIATIONS IDENTIFIED ON SCHEDULE “A”, TOMOLOO OFFICIAL, TOMOLOO INE, TOMOLOO FRANCHISE, TOMOLOO-US, TOMOLOO FLAGSHIP, TOMOLOO TC, TOMOLOO DX, TOMOLOO INT, URBANMAX, GYROOR, FENGCHI- US, GYROOR US, Defendants

GAODESHANGUS, Defendant-Appellant ______________________

2021-2150 ______________________

Appeal from the United States District Court for the Northern District of Illinois in No. 1:20-cv-04806, Judge Thomas M. Durkin.

-------------------------------------------------

ABC CORPORATION I, ABC CORPORATION II, Plaintiffs-Appellees

EBAY, INC., Plaintiff Case: 21-2150 Document: 57 Page: 2 Filed: 10/28/2022

v.

THE PARTNERSHIP AND UNINCORPORATED ASSOCIATIONS IDENTIFIED ON SCHEDULE “A”, TOMOLOO OFFICIAL, TOMOLOO INE, TOMOLOO FRANCHISE, TOMOLOO-US, TOMOLOO FLAGSHIP, TOMOLOO TC, TOMOLOO DX, TOMOLOO INT, GAODESHANGUS, GYROOR, CARTSTACK, DIDEN WU, HUSNAL- COLLECTIONS, MHESTORE2009, WHOLESALESHOP666, CARRIE_YUX-5, 2013TANKSTRONG001, MIJIASTORE, PAUTA60, SKATEBOARDSTORE2012, SMG-STORE, STRONGJENNIE, CHO POWER SPORTS, SYLUS, XGN, SHAMOLUOTUO, XUEWEIWEIFUZHUANGDIAN, EVERCROSS, XIE SHI, JIANGYOU-US, RUNCHENYUN, TOMOLOO, SHOPCHEAPUNIVERSAL, TOMOLOO-NX, AOXTECH, BETTER TOMOLOO, LISON ET, GYROSHOES, HGSM STOREFRONT, HGSM, Defendants

GYROOR US, URBANMAX, FENGCHI-US, Defendants-Appellants ______________________

2021-2277, 2021-2355 ______________________

Appeals from the United States District Court for the Northern District of Illinois in No. 1:20-cv-04806, Judge Thomas M. Durkin. ______________________

Decided: October 28, 2022 ______________________ Case: 21-2150 Document: 57 Page: 3 Filed: 10/28/2022

ABC CORPORATION I v. 3 PARTNERSHIP AND UNINCORPORATED ASSOCIATIONS

MARK BERKOWITZ, Tarter Krinsky & Drogin LLP, New York, NY, argued for plaintiffs-appellees. Also represented by RICHARD LOMUSCIO. Also represented by Adam G. Kelly, Douglas N. Masters, Neil G. Nandi, Arthur Tan-Chi Yuan, Loeb & Loeb LLP, Chicago, IL (withdrawn).

HE CHENG, Glacier Law LLP, New York, NY, argued for defendants-appellants. Also represented by TIANYU JU, TAO LIU. ______________________

Before DYK, TARANTO, and STOLL, Circuit Judges. TARANTO, Circuit Judge. We address three appeals—filed by GaodeshangUS; by Fengchi-US and Urbanmax together; and by Gyroor-US— from orders entered by the district court in a case brought in 2020 by ABC Corporation I and ABC Corporation II (col- lectively, ABC), in which ABC asserted four design patents against several business entities selling hoverboards online. ABC identified the defendants through a Schedule A, which changed over time, attached to the original and amended complaints. On November 24, 2020, the district court entered a preliminary injunction against the then- named defendants, which included Gyroor-US, though it had not yet been served with process and was not given advance notice under Federal Rule of Civil Procedure 65(a) of the request for a preliminary injunction. Six months later, on May 24, 2021, the district court granted ABC’s motion to amend Schedule A to add GaodeshangUS, Fengchi-US, and Urbanmax, among others, thereby slating them to be defendants directly bound by the 2020 Prelimi- nary Injunction, though these entities had not yet been served with process and did not receive Rule 65(a) notice. Because the required Rule 65(a) notice had not been given, we vacate the 2020 Preliminary Injunction as of its issu- ance, and, perhaps redundantly, we also vacate the May 24 Case: 21-2150 Document: 57 Page: 4 Filed: 10/28/2022

Order insofar as it added defendants to the 2020 Prelimi- nary Injunction. 1 I On August 17, 2020, ABC brought the present design- patent infringement action in the Northern District of Illi- nois, and it filed an amended complaint the next day. ABC identified the defendants by their “merchant names” listed in an attached Schedule A, and it described them as “De- fendant Internet Stores” that were selling goods on Inter- net websites, including amazon.com. ABC accused those defendants of infringing U.S. Design Patents D737,723; D738,256; D784,195; and D785,112, which claim particular designs of powered, two-wheeled, handle-less, stand-on ve- hicles known as “hoverboards.”

Appellant Gyroor-US was one of the originally named defendants, but it was not served with the complaint until December 29, 2020, or with the required summons until January 29, 2021. Of relevance to the issues that we ad- dress in this opinion, on November 19, 2020, ABC filed its third amended complaint, under seal (as with key previous

1 In October 2021, the district court entered another preliminary injunction naming, as defendants, three of the appellants before us in the present trio of appeals (all but Gyroor-US), plus four other entities: Gyroor, Gyroshoes, Fengshi-US, and HGSM. The 2021 Preliminary Injunction is the subject of Appeal No. 22-1071, filed by those entities and decided by us today in a separate opinion (which iden- tifies the companies given the ABC names in the caption). ABC Corp. I v. P’ship & Unincorporated Ass’ns, -- F.4th -- (Fed. Cir. 2022). We initially consolidated Nos. 21-2277 and 21-2355 with No. 22-1071 for briefing, but we have re- voked that consolidation and newly consolidated Nos. 21- 2277 and 21-2355 with No. 21-2150 for purposes of this opinion. Case: 21-2150 Document: 57 Page: 5 Filed: 10/28/2022

ABC CORPORATION I v. 5 PARTNERSHIP AND UNINCORPORATED ASSOCIATIONS

filings), with the updated Schedule A naming Gyroor-US and also Jiangyou-US—an appellant in Appeal No. 22- 1071 but not here—but not naming any other appellant here or in No. 22-1071. (Jiangyou-US, we note, was not served with process until June 25, 2021.) On November 20, 2020, the day after it filed its third amended complaint, ABC filed a motion for a preliminary injunction. Four days later, on November 24, 2020, the court entered the 2020 Preliminary Injunction, covering the “defendants” then identified in Schedule A, plus “their affiliates, officers, agents, servants, employees, attorneys, confederates, and all persons acting for, with, by, through, under or in active concert with them.” 21-2150 J.A. 9; cf. Federal Rule of Civil Procedure 65(d)(2) (“Persons Bound. The order binds only the following who receive actual no- tice of it by personal service or otherwise: (A) the parties; (B) the parties’ officers, agents, servants, employees, and attorneys; and (C) other persons who are in active concert or participation with anyone described in [(A) or (B)].”). It is undisputed before us that Gyroor-US was not given no- tice that a motion for a preliminary injunction had been filed or was under consideration before the 2020 Prelimi- nary Injunction was entered, and it was not served with process within thirty days of the entry of the preliminary injunction. Indeed, lack of pre-entry notice to most then- named defendants is reflected in the fact that the 2020 Pre- liminary Injunction itself unsealed the series of complaints and amended complaints and various motions and exhibits filed in the case until then, along with a previously entered temporary restraining order. J.A. 14. 2

2 On December 23, 2020, the district court entered a modification of the November 24, 2020 preliminary injunc- tion. As noted above, service on Gyroor-US was not com- pleted until January 29, 2021, more than thirty days after December 23, 2020.

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