Amazon.com Inc v. Phmn9y3v

District Court, W.D. Washington·Decided September 16, 2024·No. 2:22-cv-00840·Unknown

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON AT SEATTLE AMAZON.COM, INC., CASE NO. C22-840 MJP AMAZON.COM SERVICES LLC, and CARTIER INTERNATIONAL A.G., ORDER GRANTING MOTION FOR DEFAULT JUDGMENT Plaintiffs, v. XINJIANHE TECHNOLOGY CO. Defendants.

This matter comes before the Court on Plaintiffs’ Motion for Default Judgment. (Dkt. No. 54.) Having reviewed the Motion and all supporting materials, the Court GRANTS the Motion, ENTERS default judgment, and PERMANENTLY ENJOINS Defendants as set forth in this Order. Plaintiffs Amazon.com, Inc., Amazon.com Services LLC, and Cartier International A.G., have filed suit against Defendants Li Xinjuan, Shenzhen Xinjianhe Technology Co. (“Shenzhen”), Ltd, Zhu Jian, and Zhou Fuhan, alleging that Defendants sold counterfeit Cartier-

branded products on Amazon’s internet-based store. (Amended Complaint (AC) ¶ 9 (Dkt. No. 25); Declaration of Robert Garrett ¶ 3 (Dkt. No. 55).) Plaintiffs also allege that Defendant Xinjuan and Shenzhen (the company Xinjuan owns and operates) used their social media accounts to direct followers to “hidden links” that led them to buy counterfeit Cartier products through the Amazon store. (AC ¶¶ 3-4, 16, 54, 70.) Based on responses to third-party banking subpoenas, Plaintiffs allege Defendants are associated with various “selling accounts” on Amazon that sold counterfeit Cartier products on Amazon’s store. (AC ¶¶ 15-19, 39-40.) Defendants are associated with the following selling accounts: (1) Defendant Xinjuan and the corporate entity she controls, Defendant Shenzhen Xinjianhe, had selling accounts named Phmn9y3v Jewelry and Miao-He (AC ¶¶ 16-17); (2)

Defendant Jian, who is alleged to be married to Xinjuan, had selling accounts named: Phmn9y3v Jewelry, Vfdnytu, Yinji, and Amazing Jewelry You Want (AC ¶ 18); and (3) Defendant Fuhan had selling accounts named: Byqone US and Byqone Network (AC ¶ 19). According to a declaration for Robert Garret, a Principal Risk Manager for Amazon’s Counterfeit Crimes Unit, Defendants sold $190,005 in counterfeit goods through the various selling accounts as follows: “(1) Phmn9y3v Jewelry: $4,831; (2) Miao-He: $25,157; (3) Amazing Jewelry You Want: $7,350; (4) Vfdnytu: $5,974; (5) Yinji: $632; (6) Byqone US: $127,386; and (7) Byqone Network: $18,675.” (Declaration of Robert Garrett ¶ 3 (Dkt. No. 55).) Garrett claims that each selling account sold counterfeit Cartier-branded products to customers in Washington state

between October 2019 and June 2021, though he does not identify the specific amounts sold in Washington. (Id.) And according to Garrett, the Shanghai Public Security Bureau used the information gathered by Plaintiffs in this case to raid Defendant Jian’s home where they seized counterfeit Cartier jewelry and Defendant Jian “confessed to selling counterfeit jewelry in the

Amazon Store.” (Id. ¶ 4.) Garrett has not, however, explained the basis for his knowledge about the raid or Jian’s purported admission. In addition to the allegations in the Amended Complaint which the Court accepts as true, a representative from Cartier states that Cartier reviewed a sample of jewelry obtained by Amazon and determined that they were counterfeit. (Declaration of Michael Sweeney ¶ 6 (Dkt. No. 56).) The Cartier representative “believe[s] that Defendants’ misuse of the Cartier Trademarks deceived the public into believing that these were authentic Cartier products when the goods were actually counterfeit” and that Defendants “infringed Cartier’s valuable intellectual property, deprived Cartier of legitimate sales, and tarnished Cartier’s reputation by selling counterfeit products under the Cartier brand.” (Id. ¶ 7.)

Plaintiffs pursue claims of: (1) trademark infringement and counterfeiting in violation of 15 U.S.C. § 1114 (AC ¶¶ 74-80); (2) contributory trademark infringement in violation of 15 U.S.C. § 1114 (AC ¶¶ 81-88) (3) false designation of origin and false advertising in violation of 15 U.S.C. § 1125(a) (AC ¶¶ 89-104); (4) contributory false designation of origin and false advertising in violation of 15 U.S.C. § 1125(a) (AC ¶¶ 105-11); and (5) violations of the Washington Consumer Protection Act (AC ¶¶ 112-16). Plaintiffs have served Defendants and obtained entry of default. (Dkt. Nos. 33, 43-45, 50.) Plaintiffs now move for default judgment and entry of a permanent injunction.

A. Legal Standard The Court has discretion to default judgment. Fed. R. Civ. P. 55(b); see Alan Neuman Prods., Inc. v. Albright, 862 F.2d 1388, 1392 (9th Cir. 1988). “Factors which may be considered

by courts in exercising discretion as to the entry of a default judgment include: (1) the possibility of prejudice to the plaintiff, (2) the merits of plaintiff’s substantive claim, (3) the sufficiency of the complaint, (4) the sum of money at stake in the action; (5) the possibility of a dispute concerning material facts; (6) whether the default was due to excusable neglect, and (7) the strong policy underlying the Federal Rules of Civil Procedure favoring decisions on the merits.” Eitel v. McCool, 782 F.2d 1470, 1471–72 (9th Cir. 1986). In performing this analysis, “the general rule is that well-pled allegations in the complaint regarding liability are deemed true.” Fair Hous. of Marin v. Combs, 285 F.3d 899, 906 (9th Cir. 2002) (quotation and citation omitted). And “[t]he district court is not required to make detailed findings of fact.” Id. B. Jurisdiction

Before entering default judgment, the Court must assure itself that it has subject matter jurisdiction and personal jurisdiction over Defendants. There is little doubt that the Court has subject matter jurisdiction over Plaintiffs’ claims. Plaintiffs brings claims under various federal laws, which fall within the Court’s original jurisdiction pursuant to 28 U.S.C. § 1331 and 28 U.S.C. § 1338(a). And the Court has supplemental jurisdiction over Plaintiffs’ state-law claim pursuant to 28 U.S.C. § 1367(a). The Court also finds that it has personal jurisdiction over Defendants, who are nonresidents. First, Plaintiffs have alleged that Defendants agreed to Amazon Services’ Business Solutions Agreement, which required Defendants to consent to jurisdiction in this Court for

claims involving the misuse of intellectual property rights in the Amazon store. See Chan v. Soc’y Expeditions, Inc., 39 F.3d 1398, 1406–07 (9th Cir. 1994); (AC ¶¶ 24 & Ex. B at 6, 9 (Dkt. No. 25 at 48, 51)). This alone satisfies the Court that it has personal jurisdiction. Second, the Court finds that it has personal jurisdiction due to Defendants’ purposeful direction of its

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Amazon.com Inc v. Phmn9y3v, (W.D. Wash. 2024).

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