ADIDAS AG v. The Individuals, Business Entities, and Unincorporated Associations Identified on Schedule A

District Court, S.D. Florida·Decided February 27, 2024·No. 0:23-cv-62191·Unknown

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA

Case No. 23-cv-62191-BLOOM/Hunt

ADIDAS AG, et al.,

Plaintiffs, v.

THE INDIVIDUALS, BUSINESS ENTITIES, AND UNINCORPORATED ASSOCIATIONS IDENTIFIED ON SCHEDULE “A,” Defendants. /

ORDER ON MOTION FOR ENTRY OF FINAL DEFAULT JUDGMENT

THIS CAUSE is before the Court upon Plaintiffs’ adidas AG, adidas International Marketing B.V., and adidas America, Inc. (“Plaintiffs”) Motion for Entry of Final Default Judgment Against Defendants, ECF No. [36] (“Motion”), filed on February 20, 2024. A Clerk’s Default was entered against Defendants on February 1, 2024, ECF No. [35], as Defendants failed to appear, answer, or otherwise plead to the Amended Complaint, ECF No. [21], despite having been served. See ECF No. [31]. The Court has carefully considered the Motion, the record in this case, the applicable law, and is otherwise fully advised. For the following reasons, Plaintiffs’ Motion is GRANTED. I. INTRODUCTION Plaintiffs sued Defendants for trademark counterfeiting and infringement under § 32 of the Lanham Act, 15 U.S.C. § 1114; false designation of origin under § 43(a) of the Lanham Act, 15 U.S.C. § 1125(a); common-law unfair competition; and common-law trademark infringement. The Amended Complaint alleges that Defendants are promoting, advertising, distributing, offering for sale and selling goods bearing and/or using counterfeits and confusingly similar imitations of Plaintiffs’ registered trademarks within the Southern District of Florida through various Internet based e-commerce stores operating under their seller names identified on Schedule “A” attached to Plaintiffs’ Motion for Entry of Final Default Judgment (the “E-commerce Store Names”). See Motion, ECF No. [36] at 19–20.

Plaintiffs further assert that Defendants’ unlawful activities have caused and will continue to cause irreparable injury to Plaintiffs because Defendants have (1) deprived Plaintiffs of their right to determine the manner in which their trademarks are presented to the public through merchandising; (2) defrauded the public into thinking Defendants’ goods are goods authorized by Plaintiffs; (3) deceived the public as to Plaintiffs’ association with Defendants’ goods and the e-commerce stores that market and sell the goods; and (4) wrongfully traded and capitalized on Plaintiffs’ reputation and goodwill, as well as the commercial value of Plaintiffs’ trademarks. In their Motion, Plaintiffs seek the entry of default final judgment against Defendants1 in an action alleging trademark counterfeiting and infringement, false designation of origin, common- law unfair competition, and common-law trademark infringement. Plaintiffs further request that the Court (1) enjoin Defendants from producing or selling goods that infringe their trademarks; (2) require any marketplace administrator to permanently remove any and all listings and associated images of goods bearing and/or using counterfeits and/or infringements of Plaintiffs’ trademarks via the e-commerce stores operating under the E-commerce Store Names; (3) require the surrender of Defendant’s goods bearing Plaintiffs’ trademarks to Plaintiffs; and (4) award statutory damages. Pursuant to Federal Rule of Civil Procedure 55(b)(2), the Court is authorized to enter a final judgment of default against a party who has failed to plead in response to a complaint. “[A]

1 Defendants are the Individuals, Business Entities, and Unincorporated Associations identified on Schedule “A” of Plaintiffs’ Motion, and Schedule “A” of this Order. See Motion, ECF No. [36] at 19–20. defendant’s default does not in itself warrant the court entering a default judgment.” DirecTV, Inc. v. Huynh, 318 F. Supp. 2d 1122, 1127 (M.D. Ala. 2004) (quoting Nishimatsu Constr. Co., Ltd. v. Houston Nat’l Bank, 515 F.2d 1200, 1206 (5th Cir. 1975)). Granting a motion for default judgment is within the trial court’s discretion. Nishimatsu, 515 F.2d at 1206. Because the

defendant is not held to admit facts that are not well pleaded or to admit conclusions of law, the court must first determine whether there is a sufficient basis in the pleading for the judgment to be entered. See id.; see also Buchanan v. Bowman, 820 F.2d 359, 361 (11th Cir. 1987) (“[L]iability is well-pled in the complaint and is therefore established by the entry of default. . .”). Upon a review of Plaintiffs’ submissions, it appears there is a sufficient basis in the pleading for the default judgment to be entered in favor of Plaintiffs. II. FACTUAL BACKGROUND2 Plaintiffs are the owner of the following trademarks, which are valid and registered on the Principal Register of the United States Patent and Trademark Office (“adidas Marks”):

Registration Registration Trademark Class / Goods Number Date IC25. sport shoes namely, track and field shoes, baseball, boxing, football, skating, golf, and soccer shoes; sportswear ADIDAS 0,891,222 May 19, 1970 namely, suits, shorts, pants, tights, shirts, gloves, and the like; jerseys; socks; sport shoes namely, track and field training shoes, basketball shoes, and tennis shoes. IC 025. Sportswear-Namely, Suits, Shorts, Pants, Tights, Shirts, Jerseys, October 16, 1,300,627 1984 Socks, Gloves, Jackets, Coats, Swimwear, Sweaters, Caps, Pullovers, Warm-Up Suits, Boots, Shoes, Slippers.

2 The factual background is taken from Plaintiffs’ Amended Complaint, ECF No. [21], Plaintiffs’ Motion for Entry of Final Default Judgment Against Defendants, ECF No. [36], and supporting evidentiary submissions. Case No. 23-cv-62191-BLOOM/Hunt

IC 025. sports and leisure wear, namely shorts, pants, shirts, T-shirts, jerseys, tights, socks, gloves, jackets, swimwear, < August 11, |sweaters, caps and hats, pullovers, warm- AY 2,179,796 1998 up suits, rain-suits, ski suits, jump suits, boots, slippers, sandals, specific purpose athletic shoes, and general purpose sport shoes ATP PS September 21, |IC 25. sports and leisure wear, namely, qT T 2,278,591 1999 shorts. IC 018. All purpose sport bags, athletic bags, traveling bags, backpacks, knapsacks. IC 025. Sports and leisure wear, namely, shorts, pants, shirts, T-shirts, jerseys, socks, gloves, jackets, swimwear, caps

See Declaration of Mia Nidia Gutierrez, ECF No. [9-2] 9§ 4-5; ECF No. [21-1] (containing Certificates of Registrations for the adidas Marks at issue). The adidas Marks are used in connection with the manufacture and distribution of high-quality goods in the categories identified above. See Declaration of Mia Nidia Gutierrez, ECF No. [9-2] 9] 4-5. Defendants, by operating the Internet based e-commerce stores under the seller names identified on Schedule “A” (the “E-commerce Store Names”), have advertised, promoted, offered for sale, or sold goods bearing and/or using what Plaintiffs have determined to be counterfeits, infringements, reproductions, and/or colorable imitations of the adidas Marks.

ADIDAS AG v. The Individuals, Business Entities, and Unincorporated Associations Identified on Schedule A, (S.D. Fla. 2024).

ADIDAS AG v. The Individuals, Business Entities, and Unincorporated Associations Identified on Schedule A (ADIDAS AG v. The Individuals, Business Entities, and Unincorporated Associations Identified on Schedule A) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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