Amazon.com Inc v. MAsseags

District Court, W.D. Washington·Decided December 19, 2022·No. 2:21-cv-01456·Unknown

Opinion

WESTERN DISTRICT OF WASHINGTON

7 NO. 2:21-cv-1456-BJR AMAZON.COM, INC., a Delaware corporation; and STREAMLIGHT, INC., a Delaware 8 corporation, ORDER GRANTING PLAINTIFFS’ (1) RENEWED MOTION FOR 9 Plaintiffs, PRELIMINARY INJUNCTION; AND (2) SUPPLEMENTAL MOTION FOR 10 v. EXPEDITED DISCOVERY

11 Individuals and entities doing business as the following Amazon Selling Accounts: MASSEAGS; CFD HELPING HANDS; 12 JARRETT’S FENCE, LLC; JERILYN SMITH, LLC; MEALIGHT; MTT TECH; DOREEN 13 CAMPBELL-ISAACS LLC; SOONS; DIFAG; FANRIN; SKABUL; TENUAL; GEMLIGHTS; 14 and DOES 1-10,

Defendants. 15

16 I. INTRODUCTION AND BACKGROUND 17 This matter comes before the Court on two Motions brought by Plaintiffs Amazon.com, 18 Inc. and Streamlight, Inc. (“Plaintiffs”): (1) the Renewed Motion for a Preliminary Injunction 19 (Dkt. No. 25); and (2) the Supplemental Motion for Expedited Discovery (Dkt. No. 32). After 20 requesting and receiving authorization for alternative service, Plaintiffs served the Complaint and 21 these Motions on Defendants through Defendants’ last-known email addresses. See Order 22 Granting Pls’ Ex Parte Mot. Alt. Serv., Dkt. No. 15; Commerson Decl. ¶¶ 12, 14. None of the 23

INJUNCTION AND EXPEDITED DISCOVERY

25 2 the instant motions. Having reviewed allegations in the Complaint, Plaintiffs’ briefs, and 3 supporting evidence submitted by Plaintiffs, including the Declarations of Scott Commerson and 4 Raymond L. Sharrah, and having held a hearing by videoconference, the Court finds and rules as 5 follows. 6 Plaintiff Streamlight manufactures and sells “professional-grade, rail-mounted tactical 7 lights.” Compl., Dkt. No. 1, ¶ 4. This lawsuit involves Lanham Act and Washington Consumer 8 Protection Act (“CPA”) claims arising out of Defendants’ alleged sale of counterfeit products 9 bearing Streamlight’s trademarks, through Defendants’ selling accounts on the Amazon.com 10 website. See generally Compl. Plaintiffs further allege that in conjunction with the sale of 11 products bearing the unauthorized Streamlight trademarks, Defendants have “used QR codes

12 designed to misdirect customers to fake authentication websites and misled customers into 13 believing that they purchased authentic Streamlight products when they had not.” Id., ¶ 6. 14 Plaintiffs now seek a preliminary injunction, enjoining Defendants and “other persons who are in 15 active concert or participation” with Defendants—in particular, the third parties associated with 16 Defendants’ fake authentication websites, registrar NameCheap.com, Inc., and domain registry 17 Verisign, Inc.—from continuing to infringe the Streamlight registered trademarks. Fed. R. Civ. P. 18 65(d)(2); see Commerson Decl., ¶ 8; Adams Decl., ¶ 9. 19 In its second motion, Plaintiffs seek an order authorizing pre-Federal Rule 26(f) discovery, 20 and in particular the service of subpoenas on third-party service providers Payoneer Inc.; LL Pay 21 U.S., LLC; World First UK Limited; PingPong Global Solutions Inc.; Google LLC; and

22 Microsoft Corporation, which Plaintiffs allege “are all linked to Defendants’ counterfeiting 23 scheme.” Supp. Mot. at 1. Plaintiffs submit that the purpose of these subpoenas is to ascertain

INJUNCTION AND EXPEDITED DISCOVERY

25 3 A preliminary injunction is an extraordinary remedy. Munaf v. Geren, 553 U.S. 674, 689– 4 90 (2008). To demonstrate entitlement to a preliminary injunction, a party must demonstrate “that 5 he is likely to succeed on the merits, that he is likely to suffer irreparable harm in the absence of 6 preliminary relief, that the balance of equities tips in his favor, and that an injunction is in the 7 public interest.” Stormans, Inc. v. Selecky, 586 F.3d 1109, 1126 (9th Cir. 2009) (citing Winter v. 8 Natural Res. Def. Council, Inc., 555 U.S. 7, 20 (2008)). 9 The Court first concludes that Plaintiffs have adequately demonstrated a likelihood of 10 success on the merits of their Lanham Act and CPA claims, as set forth in their Complaint. See 11 Compl., ¶¶ 83-89 (Trademark Infringement – 15 U.S.C. § 1114); ¶¶ 90-98 (False Designation of

12 Origin and False Advertising – 15 U.S.C. § 1125(a)); ¶¶ 99-105 (False Designation of Origin and 13 False Advertising – 15 U.S.C. § 1125(a)); and ¶¶ 106-110 (Violation of Washington Consumer 14 Protection Act, RCW 19.86.010 et seq.). Plaintiffs allege that from November 2020 through 15 September 2021, “Defendants advertised, marketed, offered, and sold” counterfeit versions of 16 Streamlight products through Defendants’ Amazon selling accounts. Compl., ¶ 6. In support of 17 their claims, Plaintiffs aver that they conducted test purchases of products through Defendants’ 18 Amazon selling accounts, examined those products, and verified that those products failed to meet 19 the “manufacturing specifications for components of the authentic products,” but bore the 20 (unauthorized) Streamlight trademarks. See Compl., ¶¶ 46-74; Sharrah Decl., ¶¶ 9-12. Plaintiffs 21 also claim that Defendants’ counterfeit products directed purchasers to fake authentication

22 websites through QR codes on those products, and Plaintiffs have included in their Complaint an 23 image of such a QR code and screenshots of the fake websites to which it leads. See Compl., ¶¶

INJUNCTION AND EXPEDITED DISCOVERY

25 2 disputed these allegations. Plaintiffs’ plausible allegations, which are undisputed, support the 3 elements of their claims, thus demonstrating a likelihood of success on the merits of those claims. 4 The Court also concludes that Plaintiffs are entitled to a presumption of the likelihood that 5 they will suffer irreparable harm in the absence of an injunction. Plaintiffs seeking an injunction 6 based on claims for False Designation of Origin and False Advertising under 15 U.S.C. § 1125 7 “shall be entitled to a rebuttable presumption of irreparable harm . . . upon a finding of likelihood 8 of success on the merits.” 15 U.S.C. § 1116(a). As noted above, the Court concludes that 9 Plaintiffs are likely to prevail on the merits of their Lanham Act claims, and Defendants, having 10 failed to appear, have not rebutted this statutory presumption. This element of entitlement to 11 injunctive relief is therefore also met.

12 Further, the Court finds that under the facts alleged herein, which stand undisputed, the 13 balance of equities weighs in favor of granting the injunction. Plaintiffs claim that Defendants’ 14 actions “have willfully deceived Amazon and its customers, jeopardized the trust that customers 15 place in the Amazon store, tarnished Amazon’s brand and reputation, and harmed Amazon and its 16 customers.” Compl., ¶ 104. Plaintiffs further allege that “Defendants’ infringement constitutes 17 harm to Streamlight and Streamlight’s reputation and goodwill.” Id., ¶ 89. Defendants, in contrast, 18 will suffer no inequity by being enjoined from continuing to infringe Streamlight’s trademarks. 19 See WpIX, Inc. v.

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Related

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553 U.S. 674 (Supreme Court, 2008)
WPIX, Inc. v. Ivi, Inc.
691 F.3d 275 (Second Circuit, 2012)
Stormans, Inc. v. Selecky
586 F.3d 1109 (Ninth Circuit, 2009)